The gamma factor – the discipline associated with longstanding financial advice and higher savings rates – is key to explaining the large difference in assets between households with advisors and those without
Clients want low-cost, passive investments and returns of 9.3% above inflation while advisors, who prefer actively managed products, say 4.8% is more realistic
Advisors who cannot show the holistic services they provide may find themselves in a negotiation battle with clients once enhanced reports are delivered in early 2017
The brochure walks investors through the development of a relationship with an advisor and suggests questions investors should ask advisor before commencing the relationship
As well, discussing fee structures with clients leads to a dramatic jump in the percentage of investors who feel they understand what they are being charged
Implementing strategies that reduce your client’s tax liability and reduce their professional advice fees are just as valuable as investment returns, argues Scott Welch
However, the report is not recommending a return to commission-based advice
With investors having more options for financial advice than ever before, it’s critical that advisors are aware of the major deal-breakers that could cause clients to switch firms
One puzzling finding of the research is that many clients do not believe that they are paying for their advisors' services
Advisors will also need to use technology to improve productivity and free up time to spend with clients, survey finds