Providing Your Clients Value Through Retainer-Based Planning

Most financial planners enter the industry with honest intentions and the desire to help clients manage and understand their finances. They often begin working in wirehouses, and eventually might decide to start their own business. Soon, they realize it can get lonely out there.

It’s tough making decisions alone when running your own business — from the firm name and logo to deciding if the next piece of office equipment is going to be leased or purchased. There is a lot of time spent thinking and managing trivial tasks that do not have major effects on clients. Instead, it’s important for you to focus your time on the outcomes that have a direct impact.

Retainer-based planning is a unique approach to financial advising that provides distinct values and insights for clients, as well as marks off all of the checkboxes that clients seek in an experienced advisor. Not only can retainer-based planning benefit your clients, but it will help you, the advisor, accomplish your long-term goals by creating an easier method to managing work/life balance while continuing to grow your practice.

The Life of a Financial Advisor Can Be a Challenging One

A wise man once told me, “The easy answer is rarely the right one and the right answer is rarely the easy one.” There was a time when financial advising mainly revolved around asset collection and sales practice. Advisors used to be the source of investment information, but with the digital age further advancing in the professional world, many advisors have taken a step back from providing their own investment knowledge.

One of the biggest challenge’s advisors face is selling themselves to new clients. Offering superior services and insights to prospects will help an advisor stand out from the crowd. It’s vital for advisors to market themselves accordingly and provide prospects with information they may not be receiving from their current advisor. Above all, advisors must market what makes them different in a crowded industry.

However, while all advisors want to be different, compliance demands the containment of financial professionals. This limits solutions and encourages financial advisors to stick with “traditional planning” and standard investments. Differentiation is difficult when all planners appear exactly the same.

The truth is, the more money a prospect has, the more likely they won’t take a chance on an independent firm or team. The risk of losing the game is too monumental, which prevents many firms from branching out to nontraditional models. Because of this, older firms with recognition are hired. In order to compete, you need to provide a value to clients that cannot be found through the traditional model.

Value Your Firm and Be Valued by Others

It is possible to create a profitable business that adds real value to clients’ lives without stretching yourself too thin.