Shea shared a scary statistics for advisor with older books, noting that when the patriarch of a wealthy family passes the primary decision of a wealth management provider to the spouse in the family, the average advisor retention of the account is only 44%. When the decision is passed to the children in the family though, the average account retention drops all the way down to 2%. [He attributed this information to Sallie Krawcheck Bank of America/Merrill Lynch.]
That is why he stressed, "Advisors need to build relationships with younger generations."
5. Market conviction - Retooling today's core investment philosophy will be a necessity. Shea said, "If it isn't broke, break it. It needs to be succinct, forward looking and easy to understand." He explained clients want to hear a simpler approach that makes sense to them.
Shea did point out that advisors need to make conversations count. He thinks advisors are more vulnerable to lose accounts if they are seen as just an investment manager. Shea advised the attendees, "Spend no more than 50% of the time with clients talking about the markets."
Shea's final thoughts were to redirect clients from wants to needs. He explained this saying, "Clients want knowledge, but need a trusted advisor." He ended with three simple top advisor takeaways: 1. Decide what your practice should look like, 2. Define your client, and 3. Put the plan into action.
Read the article called Top Advisors Share Keys To Success to learn more from the IMCA session that Shea helped organize.
Mike Byrnes founded Byrnes Consulting to provide consulting services to help advisors become even more successful. His expertise is in business planning, marketing strategy, business development, client service and management effectiveness, along with several other areas. Read more at www.byrnesconsulting.com.