C2P

3 Ways to Reduce Stress and Increase Revenue for Your Financial Firm

Published June 17th, 2019 in Blog |

Advisors can learn how to reduce stress and increase revenue

Both investors and their advisors are feeling more stressed than they were five years ago, according to a recent study by the Financial Planning Association. Added to which, advisors are even more stressed than their investors.  71% of financial advisors consider themselves moderately to highly-stressed, compared to 64% of investors.

Fee compression, shrinking margins and increasing competition are just a few of the contributing factors identified in a recent article from CNBC. Not to mention bouts of market volatility and political uncertainty are becoming more frequent in a bull market that is more than a decade old, leaving many questioning the fate of their investments. If you are feeling the stress mounting for your financial business, read on for tips to diffuse the pressure!

How to Reduce Stress and Increase Revenue

  1. Problem: Fee Compression & Shrinking Margins

An increasing demand for transparency and fiduciary standards has advisory fees front-and-center now more than ever before. Plus, additional layers of compliance and technology are increasing standard operational costs to do business as an advisor. Those who cannot compete by elevating the value of their service will be left chasing sales with slashing prices.

 

Solution: You have two choices.

  • Treat yourself like a financial sales bin bargaining for discount shoppers or
  • Elevate your service in a way that not only justifies your value but also warrants a planning fee! Providing a comprehensive financial planning process is the ideal opportunity to deliver more value, discover and capture more assets, and diversify and increase the revenues of your firm.

 

  1. Problem: Increased Competition

In addition to your competition being fueled by lean margins, the level financial awareness and education of average consumer is continuing to increase. The demand for holistic financial planning for average American families has never been higher. Those agents who have relied on product pitches and sales tactics are unlikely to survive the future of financial planning.

Solution: Want to reduce the stress of competition? Investing in your professional education to raise the caliber of your services is the most essential step needed for the financial advisory firm of tomorrow. Be proactive in seeking out training opportunities and services that put you in a different league than your competitors and make your value undeniable. Plus, if you are investing in your education, that knowledge is likely worth more than just giving away for free, (further justifying the value of planning fees from our first point!)

 

  1. Problem: Market Volatility

If your phones are currently ringing with every blip in the market, there is a very good chance that your book of business has not been built to withstand the next major downturn. Whether it is from your investors panicking or capital losses themselves, there is a good chance your AUM revenues are in for a rude awakening.

 

Solution: Leading with a structured, educational approach will help to set crystal clear expectations, lessening the stress of market volatility for you and your clients alike. Your process should include

  • Foundational conversations introducing the biggest risks in investing (market risk, interest rate risk and sequence of returns),
  • A multi-dimensional approach to assessing volatility tolerance and
  • A structured, written and memorable financial plan to help keep clients remain cool, confident and on track for the immediate, short- and long-term goals.

 

Looking for more help reducing stress in your financial firm?

The Bucket Plan® is one of our signature turnkey planning processes that delivers all of these solutions and more for you, your team and your clients. Complete the form below to download a white paper to learn about our 21 processes or call Clarity 2 Prosperity today at 888-240-1923.

Dave Alison

Dave Alison, CFP®, EA is a founding partner of C2P Enterprises, driving a vision to help financial advisors across the United States simplify financial planning. Dave’s professional capabilities to coordinate tax, financial, insurance and estate planning needs are what led him to found Alison Wealth Management as a boutique tax, financial planning & investment management firm bringing household CFO services to affluent families & high-income professionals across the United States.