Page 40 - Investment Advisor July/August 2022

include tax planning, tax returns and apy, and charge an hourly rate for pandemic and “the Great Resignation.”
retirement plan services. The industry their services. Many advisors continue to reevalu-
sees wealth management firms as pro- The fact that each of these models has ate whether they’re in the right role
viding a broad cross section of financial taken root in the marketplace of advice and whether they’re truly profession-
services under one roof. means that advisors now have more ally satisfied. They are well aware that
Competition among wealth manage- potential career tracks, and more oppor- they have more choices of firm models;
ment firms is high, and clear market tunities to specialize when it comes to in some cases, they’re contemplating
leaders are emerging. These dynamics giving advice. The key for advisors and building their own businesses around
are positive, and there’s still space for firms alike is to align the advisor with their strengths and interests.
many new wealth management firms. the business model. Retention is tied to an advisory firm’s
But as the space evolves, we will see Is the candidate predisposed toward a culture and service model. If the fit isn’t
leading firms continue to consolidate more therapeutic type of client relation- right, then increasing salaries or bestow-
their positions, while many smaller ship? They might have a more natural ing new titles and responsibilities won’t
firms focus on offering much create sustainable satisfaction.
more comprehensive, per- There is ample room for And bending your vision of the
sonalized wealth manage- firm, even if it’s to accommo-
ment experiences for key career growth within each date a valued advisor, is likely
client niches. to undermine the growth of the
Financial planning firms: of the five service models. business over the long term.
One of the most interesting For now, “general financial
models to develop in recent But there is also more advisor” is still a viable career
years has been planning-only opportunity than ever for track. But as upstart mod-
firms. These businesses gen- els become even more fully
erally do only financial plan- advisors to leave one firm developed, specialization
ning, usually for a retainer among advisors will become
fee, and do not usually man- for another that might be the norm. Firms won’t be able
age assets. It’s noteworthy to simply hire advisors and
that planning-only firms have a better fit for their talents, plug them into their business-
proliferated in tandem with es as though the profession
investment-only firms. personality, career goals, and were homogenous. They will
One selling point of wealth clients they want to serve. have to engage with candi-
management firms is that they dates with the aim of under-
eliminate the need for the cli- standing which services they
ent to shop around for multiple finan- affinity for a technology-driven client truly want to provide.
cial services providers. But the growth relationship serving the mass-affluent. Hiring an advisor without regard to
of financial planning firms and invest- One candidate might be best suited to whether they’re a good match for your
ment-only firms suggests that a substan- the comprehensive work of a wealth model may work out in the short term.
tial number of households are willing to management firm, while another pre- But ultimately, if firms are unable to
do the legwork of coordinating services fers to focus solely on tax planning or accommodate advisors’ preferred type
for themselves. retirement-centric consumers. of work, they’ll have a hard time with
Financial therapy firms: Financial There is ample room for career growth retention. And that means they’ll have a
therapy is a relatively new field, in in each of the five service models described hard time with growth.
which advisors help clients to under- above. But there is also more opportunity How do advisory firms overcome
stand and transform their beliefs and than ever for advisors to leave one firm for these changes in the career and hiring
“scripts” around money. The goal is another that might be a better fit for their landscapes? In today’s environment of
to support those clients in moving talents, personality, career goals, and cli- rapidly evolving financial service busi-
from a scarcity mentality to an abun- ents they want to serve. Thus, it’s impor- ness models, firms must know what type
dance mentality so that they may make tant for firm leaders to clearly understand of firm they are really building to garner
better financial decisions for them- their business model, and to hire advisors the best talent.
selves and for their families. Financial who are a natural fit.
therapy firms generally focus on the Bear in mind that we remain in a Angie Herbers is an independent consultant to
middle market, combining financial period of soul-searching among employ- the advisory industry. She can be reached at Adobe Stock
planning services and emotional ther- ees who arose during the depths of the [email protected].

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