Ensemble firms are more profitable than traditional advisory firms.
In fact, many firms find they are less profitable after they've
incorporated additional services (financial planning, tax, estate
planning, insurance, etc.) into their business. Ensemble firms have
adopted the "wealth manager" moniker in hopes of separating themselves
from traditional advisors.
Financial services CEOs understand consumers. You can't package
trust. As advisors, we get that. The most popular session at the CEO
Summit was the "Ask The Consumer" Panel. A widow vividly outlined her
fears following her husband's sudden death. She had never written a
check and was now responsible for a family business. The fear subsided
when she was referred to a trustworthy advisor, but it still took her
years for the advisor to gain her trust. A newly divorced mother of
triplets echoed similar fears. Financial services CEOs tend to focus on
strategy, products and services. Observing their reactions to this
panel would lead you to feel they spend little time, if any, with real
consumers. That's fine. Advisors can handle the trust part.
Tom Lydon is president of Global Trends Investments and proprietor of
ETFtrends.com in Newport Beach, Calif. He serves on the advisory board
of Tiburon Strategic Advisors. You may reach him at
[email protected]
Ten Myths Busted At Tiburon Summit
June 1, 2006
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