Jeff Magson, CRPC, executive vice president and client experience officer of 1st Global, also sees financial planning as the centerpiece of any financial advisors’s business. By following a comprehensive financial plan with an outstanding service model, financial advisors can revisit clients’ goals and the progress toward those goals, enabling advisors to take advantage of the opportunity the proposed new DOL rule provides—the opportunity to provide better service to clients.
“A refreshing message that we need to leave with our clients,” said Magson.
Providing service and education beyond asset management will become increasingly important because the new DOL rule will lead to increased money management price compression in the industry, according to McAleer. Many financial advisors will become more planning based, so the differentiating factor will be breadth of services provided.
Expand Centers Of Influence
In today’s economic and demographic environment, financial advisors need to expand the centers of influence beyond the traditional attorneys and CPAs. With the aging of America and most financial advisor’s client bases, McAleer emphasizes that it’s increasingly important to focus on growing centers of influence such as elder law attorneys, Medicare experts, geriatric care managers and similar professionals.
By working with these professionals, financial advisors can better understand the issues facing clients and help them with aging and longevity issues. A few basic questions, such as: “Where will you live? How will you get around? How will you safeguard your health?” helps engage the client and enables the financial advisor to understand the client’s financial hopes, dreams and fears. Questions like these will help a financial advisor help a client to focus on his or her future transportation, housing and care issues and will help with the development of a quality financial plan designed to meet those needs.