Weekend Reading for Financial Planners (October 17-18)

Executive Summary

Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with a new survey finding that, despite the turmoil of the pandemic and its disruption for the business activities (including the marketing) of advisory firms, 71% of advisors are now reporting that they have more clients than they did before the coronavirus pandemic broke out… a remarkably fast recovery and turnaround (coinciding with the sharp V-shaped recovery of the markets themselves in March), and far different from the more protracted decline and recovery that the typical advisory firm faced after the 2008-2009 financial crisis.

Also in the news this week is the latest Putnam Social Advisor study that, not surprisingly, shows a significant uptick in the advisor use of social media as traditional marketing channels have struggled (with the average advisor in the survey who uses social media reporting $7M of new assets from social media channels in 2020, up from just $2.4M on average in 2019), and the latest Schwab benchmarking survey finding that despite all the hand-wringing that small RIAs are ‘doomed’ and cannot compete without consolidation, that in practice the average RIA with <$100M of AUM saw slightly more revenue and client growth than larger RIAs (at 7.7% and 4.6%/year, respectively, for smaller firms, compared to 7.4% and 4.4% for larger RIAs) and had better retention (at 97.5% for small RIAs, compared to 96.5% retention rates for larger firms).

From there, we have several articles on broader industry trends, including a look at the ongoing consolidation of TAMPs (which unlike advisory

Keep reading this article on Nerd's Eye View, Michael Kitces - Blog.

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