• Addressing the Decline in Financial Planning

    Fewer New Plans from Bank-Based AdvisorsFinancial planning is one of the best ways that financial advisors can differentiate themselves in an increasingly commoditized market for financial advice. While firms urge advisors to incorporate planning into their practice, bank-based advisors have been slow to embrace planning. New data suggests that, despite progress in recent years, planning in banks and credit unions has actually regressed. In 2017, the average number of new plans created per ...  Read More...

  • For Most Advisors, the Payoff from Planning Seems Slim

    Getting Over A Startup Hurdle to Reap the RewardsMost advisors in banks and credit unions resist financial planning, or go through the motions to check the boxes that management builds into the incentive program. The average number of goal plans created or updated is just one plan per month. Why don’t they embrace planning as a way to create deeper relationships with their clients, document the basis for their financial advice, and build a better business model?New research from Kehrer Bie...  Read More...

  • Analysts Disrespect Annuities, So Why Do People Buy Them?

    “I hate annuities!” trumpets one mass marketing money manager. Other critics look down on tepid yields and what seems like high fees. Yet US consumers invested $133 billion in fixed and fixed index annuities last year.   Read More...

  • Annuity Owners More Confident

    But Annuities Get No RespectIn the world of investing, fixed-rate and index annuities are dismissed as not worthy of a savvy investor’s attention. Indeed, for some, annuities are the object of scorn. Ken Fisher, the ubiquitous money manager, uses the tagline, “I hate annuities.”For the traditional stock-picking stockbroker, fixed-rate and index annuities are dull fare, and limit the client’s upside.   Read More...

  • Assets Flow to Providers of Financial Plans

    According to the MacroMonitor, 11 percent of US households have a written financial plan, but only 10% of them – 1% of all US households – have obtained that plan where they bank. As banks and credit unions consider the extent to which their financial advisors have embraced financial planning, they should be mindful of the effect of plan penetration on where households keep their financial assets.The MacroMonitor data indicate that the average US household keeps 59% of its savings an...  Read More...

  • Assets Flow to Providers of Financial Plans

    According to the MacroMonitor, 11 percent of US households have a written financial plan, but only 10% of them – 1% of all US households – have obtained that plan where they bank. As banks and credit unions consider the extent to which their financial advisors have embraced financial planning, they should be mindful of the effect of plan penetration on where households keep their financial assets.The MacroMonitor data indicate that the average US household keeps 59% of its savings an...  Read More...

  • How Much Are Referrals Worth to an Advisor?

    Highlights from the 2018 Advisor Compensation StudyOver the past few years firms have felt the impact of an ever-increasing market demand for high performing Financial Advisors. The changing behavior to greater advisory revenue has created an increased emphasis on Advisors who can consistently produce in this environment, and firms now more than ever are changing their compensation outlook to attract these types of employees. While many disruptive types of Special Incentives are being introduced...  Read More...

  • Gender Divide on Retirement Preparedness: Men Bullish, Women Tentative

    According to the new study from Global Atlantic Financial Group and Kehrer Bielan—Gender Dynamics in Retirement Investor Households—32% of clients who advisors work with say they don’t know how much to save for retirement. But only 26% of client households where a man makes retirement investment decisions express uncertainty.Similarly, retirement investor households where a woman makes or influences investment decisions are much more likely to say they need expert help in retir...  Read More...

  • Banks and Credit Unions Struggle to Grow Advisor Force

    Annual Checkup Reveals Softness in Growth EngineWhile financial institutions grew their revenue a robust 9% in 2018, this year’s Kehrer Bielan Annual Industry Checkup identified a troubling trend: banks and credit unions are losing ground in the uphill climb to recruit and retain the advisors needed to grow the business. Decades of research by the firm have confirmed that adding advisors is a key to growing revenue and increasing penetration of the institution’s customer opportu...  Read More...

  • Bank-Based Advisors Add More Advisory Assets

    Maintain Level of Asset Acquisition, Shift Away from Transaction BusinessIn last year’s benchmarking surveys, Kehrer Bielan found that the typical advisor in a bank or credit union added $7.4 million in new client assets, slightly more than the $7.3 million of asset accumulation the previous year. While the pace of asset accumulation is not accelerating, the composition of those new assets points to a stronger foundation for future growth.       Thirty-one percent of th...  Read More...

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