When I started physical therapy, I was told I could not run for six weeks. I thought my goals of running races were unattainable. My wife
asked me to look at the interruption and rather than think linearly (i.e.; prep for race + race = be in shape) and think of alternatives that will still get me to my goal. What she was really saying was: Don’t throw away the year, just because the first quarter didn’t work out the way you expected.
Diversification: In finance, diversification means reducing risk by investing in a variety of assets. If the asset values do not move up and down in perfect synchrony, a diversified portfolio will have less risk than the weighted average risk of its constituent assets, and often less risk than the least risky of its constituent. (Wikipedia, 2014)
Thank you, Wikipedia! By now, most of the industry has realized that accusations that diversification died a painful death in 2008 were highly exaggerated. That noted, diversification does take breaks from time to time, as I referenced in my previous blog “Diversification Works Over Time, Not Every Time.” In that entry, I highlighted how unusual 2013 asset class returns were, with the S&P 500 being a clear driver of returns throughout the year.
SEI just held a well-attended diversification webinar in which a number of advisors voiced questions about or sought reinforcement for the idea that diversification does, in fact, still have value.
Today’s blog post is a video blog (“vlog”). I sat down with financial advisor Ellen Rogin to discuss a popular topic: developing relationships with female investors.
You’ll hear Ellen’s perspective on:
• How financial planning differs for women vs. men
•What qualities women investors typically look for when choosing a financial advisor
•What lead sources have been the most fruitful in attracting women investors
If you have any requests for future video topics, please let us know in the comments section.
The following is a guest blog post by Dan Inveen, Principal and Director of Research for FA Insight, a consulting firm that helps financial advisory firms with growth planning, organizational design and more. FA Insight is now fielding the 2014 FA Insight Study of Advisory Firms; participate by visiting their website.
At its core, our work with advisory firms centers on helping them become more valuable enterprises. Building value predicates on improving the firm’s ability to profitably sustain growth. In other words, valuable firms don’t simply grow—they grow in a sustained and profitable manner.
One way our firm, FA Insight, provides guidance for advisors is through its industry research. Many of you may be familiar with the annual FA Insight of Advisory Firms, which for five years now has served to benchmark industry performance and identify best practices. In even numbered years the research coverage tilts toward the topic of advisory firm growth. Our 2014 Growth by Design study is currently open for fielding, with all advisory firms encouraged to participate.
A few weeks ago, I was able to sit in on an advisor “open mic” session and hear some great stories. I’d like to share how one advisor grew his assets under management by 30% and received more referrals than he had gotten in years. All he had to do was to move 600 miles away!
Last week was T3, or in long hand, Technology Tools for Today (http://www.technologytoolsfortoday.com/). This conference, run by Joel Bruckenstein (@FinTechie) and David Drucker (@DavidDrucker), is where all the newest technical toys are laid out for advisors. It’s like a geeky Christmas day. Due to its technical content, the conference was heavily covered on social media. If you didn’t follow along with the live tweeting during the event, you can still view all the details by searching on the hashtag on Twitter: #T32014.
My Olympic-themed post last week hit home for a lot of you (I’ve Met Your Competition – and It’s You). Thanks to those who sent me notes on how they are fighting complacency and striving to get bigger and better each day. Late last week, I came across an article from a real Olympian and coach to financial advisors, Paul Kingsman. I thought Paul’s insight was interesting and fits with our client-centric businesses… Please enjoy.
The 2014 Financial Advisor Social Media Study was completed by a whopping 917 advisors (wow!) and WealthManagement.com recently ran an article by Kevin Nichols highlighting why financial advisors use Facebook, substantiated with real life examples from Oeschli Institute clients. What did they find? In short, advisors are using Facebook, and the segment that has really embraced Facebook are using it not just for humanizing and branding for their firm, but to get new business.
I think Facebook might just be the most important social network for financial advisors. After all, it’s where clients discuss every last detail of their lives, including key life events such as new relationships, births, travel, retirement, and more. It’s not just for “the kids.” Teens and young twenty-somethings are actually increasingly moving on to other social platforms, such as Instagram and SnapChat.
But I’m not going to sell you Facebook. As you can see from the Oeschli research linked above, advisors are using it more and more, and getting new business and developing deeper client relationships as a result.
Instead, I’d rather give you some examples of content that would be appropriate for you as a financial advisor to share on Facebook.
Unfortunately, our family missed the opening ceremonies and the first few days of the Winter Olympics. (Having no electricity for almost five full days, we missed quite a lot, thanks an ice storm here in Philly.)
When we finally settled down to watch some of the events on Sunday night, it got me thinking about the work and effort each athlete puts forth just to get to that moment – struggling for years, waking up early to train, and making time in the day to go the extra mile to become the best in their chosen fields. Somehow, they find the will to make that effort every day.
What I realized is that while athletes are competing against each other in the Olympics, really they are competing against themselves every day. It got me thinking, who are you competing against? Are you even trying to compete?
Last week, I co-hosted a webinar on one of my favorite topics. The webinar entitled, “Understanding Investor Behavior” was with Jay Mooreland, MS, CFP®, behavioral economist and owner of The Emotional Investor. Over 500 advisors registered to help understand how to proactively manage and influence investor behavior. The feedback was very positive and it looks like most came away with some great ideas and ways to incorporate some of Jay’s insights into their practices.
In case you weren’t able to join the webinar, we have two new pieces that may be of interest to you:
We’ve created a new investor-approved brochure entitled, “The Emotional Spin Cycle.” You can download it now.
Also, I’ve invited Jay to contribute a blog post on investor behavior. You can find it below.