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]

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