The choices we made years ago allowed us to go from being a multi-hat, advisor-led firm to one with dedicated professionals serving in key areas … freeing our advisors to focus solely on our clients.
Looking Forward After The Pandemic
Since mid-March, many firms have had to focus almost exclusively on client service to ensure each client receives the personal attention our industry is famous for. We must add value by rebalancing portfolios at just the right time, doing tax-loss harvesting or finally making that adjustment to clients’ long-term investment strategies.
In our case, we’ve also engaged in some new, unique activities, such as helping business owners identify and apply for critically needed Paycheck Protection Program (PPP) loans. We also helped clients update their financial plans as corporate downsizing has led to seismic shifts in executive compensation.
With the initial disruptions of early 2020 behind us, it’s time for us to consider what we’ve learned and our paths ahead. The fact is, our industry has had an easy time over the last 11 years. We’ve had what most would agree has been a slow but steady market tailwind and a growing economy. Tailwinds, whether short or long, make our jobs easy, as profits rise and client retention is high. The recent volatility and changes in our clients’ lives, however, have been a sharp reminder that our role as advisors is most critical at times of disruption, as we keep clients engaged in their investment and wealth strategies.
The path taken now will determine your destination. As you consider your firm’s possibilities, ask these questions: Will this path take you where you want and, just as important, in the time frame you want? Will you choose to invest in the infrastructure needed for the long run? Or would you be better off serving and growing your client base while affiliating with a firm that already has that operational infrastructure in place?
Every firm will choose a different path forward, whether through deliberate action or passive inaction. The results though, will become particularly important if the timing with which you make infrastructure changes doesn’t match the transition strategy of first-generation partners. We tell our clients that they never have as much time as they think they have, and we should give ourselves the same counsel. If the timing doesn’t match, will partners really get credit in their pricing when it’s time? Will all that work be for naught?
Ray Padrón is chief executive officer for Brightworth, an Atlanta wealth management firm.