What does an advisor have to do to ensure a successful transition with an internal candidate? Angie Herbers, founder and CEO of Angie Herbers Inc., has a few ideas about that. She explains in the November issue of Investment Advisor five steps advisors can take to set themselves up for success.
FA Insight’s Eliza De Pardo and Dan Inveen return for the fifth annual Study of Advisory Firms. This year, FA Insight focused on people and compensation in advisory firms with a special look back at how firms have performed over the past five years. The good news is advisors’ hard work is paying off. The bad news is there are still major challenges all firms face, including the top performing firms.
What if people actually liked financial planning? Sure, everyone wants a successful retirement, but few people actually enjoy the planning process. Michael Kitces suggests that doesn’t have to be the case.
We also present Ave Maria Funds as one of our Overlooked Managers. Ave Maria Funds is a faith based family of funds that exclaim not only is there a difference between socially responsible investing and morally responsible investing, but that it’s just as good for clients as more traditional investments.
The scope of the succession problem in the independent advisory industry is well-documented. We’ve known for years now that the baby boom generation of advisory firm owners are on the brink of retiring over the next 10 years or so, with some sources estimating that as many as 50,000 of their firms—and $4 trillion in client assets—will be changing hands or closing their doors. The vast majority of the owners of these firms would prefer to transition ownership to their junior partners in an internal succession. Yet very few have taken steps to make this happen, even at this late date. What’s scarier, many owners have failed to educate themselves and their juniors on how internal successions work. Angie Herbers outlines five actions to keep failure at bay.
This year marks the fifth release of the annual FA Insight “Study of Advisory Firms.” The five-year history of the studies underscores the resilience of the advisory industry. During this period, notable for a global financial meltdown that shuttered major Wall Street firms, advisory firms struggled to maintain their footing. Trying times forced firms to tighten management controls with a new level of discipline that appears to have held through a return to stability.
In 2012, the typical advisory firm achieved the highest profitability and greatest level of owner income of any FA Insight study year. While resurgent equity markets deserve a share of the credit for the turnaround, performance indicators also point to improved management practices, especially those relating to controlling costs and the more effective use of people. FA Insight’s Elza De Pardo and Dan Inveen once again break down the results of the survey in this first of a four-part series.