Category: Clients

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What if clients aren’t a fit for retainer-based planning?

What if clients aren't a fit for retainer based planning?

Many of your existing clients are likely on an asset management deal. Maybe all of them! It’s hard to determine which clients are a fit for retainer-based planning. Some clients fit. Others do not. Let’s talk about how to navigate the differences.

The truth about fit

Truthfully, it wasn’t as hard as you think it may be. When I first rolled out our retainer-based planning program, I started small. I only introduced it to prospects and kept all existing clients under asset management.

We adjusted to the processes, we fine-tuned our approach.

Over time as we fine-tuned the planning process and met with existing clients, I slowly began discussing it with clients. As I prepped for meetings or came across something that instantly made me think of a specific client I would look and see if they would benefit from planning. If yes, then I would introduce it to them.

Be willing to experiment

I always say it is better to introduce the idea than have them find out. Worst case scenario, the client says no and we continue how we were. Best case, they make the switch.

However, not all clients make great planning clients. At first, try things out. We have planning clients who were under asset management and love it while others change their mind halfway through and no longer want planning.

You won’t get it right the first time and that’s okay. No process or team is perfect, it’s what makes us human. The best advisors are willing to try new things, fail, and then get it better.

What if clients aren’t a fit for retainer-based planning?

Then you say okay, and you move on! You continue to work with them to ensure they get the service they want and deserve. You build your practice around your target clients.

Trust the process.

Make sure to check our Youtube channel!

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RBA blog – Game of Thrones edition

Game of Thrones & Financial Advisors
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Now that the 8 year GOT saga is in our rearview mirror, it got me thinking about how financial services are similar to GOT. You have fighting ideologies: passive vs. active, index vs. manager plus the plagues of fee compression, compliance (sorry, but it’s true), increasing customer demands and the cherry on top, when the market is going up “who needs you?”.

Well winter is coming and the market (especially the fixed income side) is overdue for a correction. Fee compression has only begun and wait until you see what AI can do to replace us. We are a few years away from Siri or Alexa to say “the market is down today, shall I increase your equity position per your risk profile?”

So where is our GOT King or Queen (not going to spoil it, if you are not caught up)?  Well, if you know me, I think you can take a guess at my answer. It’s in competing on something that AI and the warring factions can’t really take away. It’s competing with your experience, advice and ability to create a long term beneficial relationship with your client.  My other “secret sauce” since we mostly deal with accredited investors is to use alternative investments as my “dragon”. It’s something that adds value to the client by giving them additional choices for their allocation.

 #winteriscoming

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What the client gets out of Retainer based advice

What does a client get out of retainer-based planning?

Looking at the retainer-based planning “movement” from the clients’ perspectives, several advantages are apparent. First, most working individuals and business owners do not have significant investable assets outside of their 401k or business (respectively).

However, the value and choices wishing the 401k and around the business could benefit from an outside financial advisor. In addition, by not having revenue come from AUM, the client can get advise “where they are”.

My office is practically in Vanguard’s backyard and I will never be as big or cheap as them. So, with this model clients can keep their assets at Vanguard and we can provide advice on asset allocation and insurance; if they are accredited investors, we also provide access to alternative investments that they won’t get at a Vanguard.

One of our newest clients was a Director at a publicly-traded company. He had a $4M rollover and a small investment account with another advisor. This client didn’t feel like paying 1% on $4M (and I don’t blame him).

So, he hired us to provide retainer-based planning. We charged him $5K in the first year (a savings of $35K) and did more than simple asset allocation. He was exposed to alternative strategies that would complement the bulk of the $4M. We kept his assets at Fidelity and only moved the alternatives under our “umbrella”. The client saves significant fees, gets exposure to an asset class he was lacking, and gets additional services from our planning program. All for less than just the AUM fee he would have paid the “other guy”.

Win for all. Except for the guy who didn’t get the rollover business 🙂

Make sure to check our Youtube channel!

About Mr. Retainer

Fred Hubler (Mr. Retainer) is an accomplished financial advisor with more than 25 years of success in financial services and technology. 

He founded Creative Capital Wealth Management Group and grew the firm to 11 states. The practice focuses on retainer-based wealth management. As Chief Wealth Strategist, Fred works with individuals and families to serve their financial needs and achieve their goals. 

Fred is an inspiring speaker with a deep knowledge of market leadership, business development, goal execution, and wealth management. 

He is an innovative leader with a keen eye for unique solutions and vast knowledge in alternative wealth creation strategies. He built a framework to allow third-party experts to collaborate with and assist his clients, a practice now spreading throughout the industry.  He is also a certified Behavioral Financial AdvisorTM (BFATM).