Written by: John Swolfs | Chief Content Officer at Advisor Circle
The true value of fiduciaries is their ability to be a full-service advisor. It’s not just investment management anymore, said Penny Phillips, Co-founder & President of Journey Strategic Wealth, it’s someone who guides and interprets the financial landscape for the client.
“The consumer doesn’t recognize the difference,” she said. “And what I say to advisors is: It’s our responsibility as professionals in this business to educate the consumer. Not only does it help us garner new business, the minute we talk to a client about all the ways we help — cash flow planning and budgeting, philanthropic desires, health insurance, understanding their employee benefits. When they hear all this, they recognize, they’re not getting that experience at XYZ wirehouse.”
This differentiation should be spelled out to the consumer and embraced by the RIA. A simple way to think of it is:
Be Adaptable: The financial services industry hasn’t trained advisors well on how to adapt to the changing consumer model. As a result, there’s a disconnect that needs to be resolved. Invest time in understanding the changing consumer model and adapt to their new needs.
Be an Interpreter: Consumers have access to an abundance of financial information, now more than ever before. Respond by being a financial “interpreter” — someone who sorts through what will work and won’t work for them. Translate this information to show greater value.
Bring the Value: Remind the client of the value you bring. Engage with them, develop robust financial plans, and cultivate relationships. Phillips also recommends documenting the outcomes so the client recognizes the value — tangible or not.
Unite Together to Share Advice
Phillips — who has spent most of her career coaching and consulting financial advisors, business owners, and wealth management institutions — is excited to share this type of advice during the Future Proof Festival in September.
“I’m super excited for Future Proof because I think the organizers and folks involved really get something that I have been talking about for a long time, which is this idea of community and creating an experience,” she said. “It’s more than just delivering a specific data point or facts that we want the advisors to know.”
It’s about forming a collaborative culture, said Phillips. An experience that allows the attendees to “have control over their own destiny, where they’re able to create their own learning pathways because there are a ton of different resources available to them.”
Don’t miss Phillips as she shares this message during an interactive panel at Future Proof September 11-14 in Huntington Beach, CA.
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