Enjoy the current installment of "weekend reading for financial planners" - this week's edition kicks off with two interesting studies on advisor trends: the first finds that advisors who outsource investment management are growing substantially larger businesses than those who continue to manage investments in house, and that the result appears to be driven primarily by the direct time constraints that occur when the owner-advisor spends time on portfolio construction instead of meeting with prospects and clients and doing business development; and the second study finds that social media adoption amongst financial advisors is now widespread, with a growing number reporting a material amount of new business development stemming directly from their digital marketing efforts.
From there, we have several articles on practice management and career development, including: a look at how most advisory firms aren't even tracking the volume of new client leads coming in, making it impossible to evaluate whether they're doing a good job with their marketing and sales processes; strategies on how to reach out and develop deeper relationships with Centers of Influence (COIs) to generate referrals; issues to consider when deciding whether it's time to hire another financial planner in the office; and the most common leadership mistakes that financial advisors make in growing firms (all of which are related to the "thinking mistakes" we unwittingly unleash upon ourselves with our own mental attitudes).
We also have a few more technical articles this week, from key talking points with clients about the new money market fund rules that have just taken effect, to the way you can get a 3.5% yield on a government bond (by buying Series EE Savings Bonds!), and tips for finding an alternative to a big national bank if you've decided its time for something different (especially given the recent controversial news about Wells Fargo).
We wrap up with three interesting articles: the first is a fascinating introspective look from Stephanie Bogan, a consultant to advisors who built up a successful business and sold it for seven figures while she was still in her mid-30s, and reflects on how important it is not to confuse achievement and business success with truly finding your passion and purpose; the second is a fantastic reminder from Julie Littlechild of the importance of taking time off to renew, supported by her own research that finds the advisors who are most effectively engaged in their businesses really do tend to be the ones that take the most time off from the business as well; and the last is a discussion of a recent research study finding that the whole concept of "work-life balance" may be the wrong way to view the issue, as it implies a painful zero-sum trade-off, and that pursuing "work-life harmony" is a better way to approach the competing demands of business and life/family.
And be certain to check out Bill Winterberg's "Bits & Bytes" video at the end, which this week includes coverage of a financial advisor who got fired after falling for a cyberthief's "spoofing" attack (where the advisor accidentally processed fake email wire transfer requests), the news that Envestnet has acquired Wheelhouse Analytics (likely in preparation for DoL fiduciary price benchmarking), and the announcement of two new robo-advisor platforms, from Zacks Investment Management (which launched Zacks Advantage) to Merrill Lynch and its new Merrill Edge Guided Investing solution.
Enjoy the "light" reading!