Every year, Americans’ No. 1 New Year’s resolution is to lose weight -- but few actually follow through with their plans.
So readers should take a recent study from Oaks, Pa.-based SEI Advisor Network with a grain of salt.
When SEI asked advisors to rank their New Year’s resolutions for 2016, they said their top priorities are to build their referral networks, engage clients in goals-based investing and to implement new technologies.
According to the study, almost two-thirds (66 percent) of advisors said they resolve to grow their practice by building their referral networks and listed referral-sourcing as their first priority. But John Anderson, head of practice management solutions for SEI, says not everyone will do it.
“We hear that from advisors every year,” Anderson says. “I correlate that with personal resolutions. Everybody wants to lose weight in 2016, too. We all start off thinking that we’re going to lose weight, but by February those resolutions are gone. What this actually means is that people want to grow. Referrals are the easiest, most passive way to grow. So it’s like they want to lose weight but they don’t want to go to the gym.”
2016 will also see the Department of Labor implement a fiduciary standard for all investment advisors, but only 20 percent of advisors surveyed planned to expand their understanding of the proposed regulations.
Interestingly enough, advisors’ No. 1 priority was a goals-based approach to investing in 2016. That, as well as their resolutions involving technology and investments, indicate advisors might be somewhat pessimistic about 2016, says Anderson.
“They’re interested in creating more efficiencies and tightening their belt with regard to operating margin,” he says. “They’re also interested in exploring managed volatility, so it appears that they’re expecting a more volatile market moving forward. The interest in goals-based investing may be motivated by behavioral finance, to shift clients’ focus from the volatile market towards their personal goals.”
Those surveyed intended to use more client-facing technology next year: 61 percent said they planned to use LinkedIn more as well as other social media sites; 52 percent said they would upgrade their websites; 44 percent said they would offer video conferencing for client meetings; and 42 percent said they would add new client relationship management tools.
“Using LinkedIn and other social media and upgrading their website, these are how advisors are finding clients and differentiating their business,” Anderson says. “In the past, it was the vanity wall behind your desk with certificates and diplomas, but now it’s your website that shows people who you are and what you do in real life that shows them what you know.”