It has been found that designating a trusted individual to handle financial matters is crucial for clients. Waiting too long to choose a trusted agent could result in a permanent financial mistake, as discovered in a recent survey conducted by Vanguard. In order to prevent such errors, researchers recommend that older individuals regularly assess their cognitive capacity to identify early signs of decline.
AI Reality Check
This week’s most-read articles on wealth management shed light on the impact of artificial intelligence (AI) in the industry. While AI has already started transforming how wealth management firms provide financial advice to customers, experts assert that it will not fully replace human advisors for quite some time. Instead, AI is being employed to enhance advisor efficiency and identify opportunities to improve client service.
Trends that May Fizzle
Insufficient Time
According to a recent survey conducted by consulting firm J.D. Power, nearly a third of financial advisors claim that they do not have enough time to dedicate to their clients. The survey attributes this issue to time-consuming compliance-related and administrative tasks that absorb the attention of financial advisors. Unfortunately, this could result in increased turnover in the coming years. Only 30% of employee advisors and 28% of independent advisors express intent to continue working for their current firms within the next one to two years.
RayJay Promotion
Raymond James Financial is proud to announce the promotion of Bert White as the new head of its Western Division. Five years ago, White joined Raymond James Financial, leaving his position at Morgan Stanley. He brings a wealth of experience to this new role, having previously served as a regional director in Florida, where he oversaw 50 Raymond James branches. White’s appointment comes as Pat Allison, the current head, prepares to retire later this year. Alongside this exciting news, Raymond James Financial has also revealed other leadership changes and a restructuring that incorporates Alex. Brown advisors.
Cerity’s Latest Deal
New York-based Cerity Partners, backed by private-equity firm Genstar Capital, is expanding its reach by acquiring AJ Wealth. Known for managing nearly $2.4 billion in assets, AJ Wealth is another New York-based company founded in 2012 by Andrew Cooper and Justyn Volesko. Cooper and Volesko are former members of Goldman Sachs’ family-office unit. In their new roles, they will join Cerity’s leadership team and contribute to the oversight of the firm’s family-office service. Cerity, recently ranked No. 10 on the list of top RIAs, continues to make strategic moves within the industry.
The Unconventional Approach of UBS’s Franco Estrada
UBS’s Franco Estrada takes a unique approach to his financial advising practice. Rather than aiming to expand his client base, Estrada is actively reducing it. His goal is to cultivate relationships with extremely wealthy clients who have complex needs and require the highest level of service.
The Journey to Success
Estrada’s journey to success has not been an easy one. He has had to travel long distances in order to establish his practice. However, he believes that this sacrifice has been worth it in the pursuit of providing exceptional financial advice.
The Bright Future of the Financial Advice Industry
In spite of the challenges he’s faced, Estrada remains optimistic about the future of the financial advice industry. He believes that there are ample opportunities for growth and success, especially for advisors who are willing to put in the hard work.
The Role of Luck and Hard Work
According to Estrada, luck is a factor that cannot be discounted when it comes to the success of financial advisors. However, he emphasizes that hard work is also crucial. It is the combination of both luck and dedication that pave the way for advisors to thrive in their careers.
As Estrada continues to refine his client list, he is dedicated to delivering tailored and top-tier service to his exclusive clientele.