How Outsourcing Investment Management Services Gives You More Time

Independent financial professionals wear a lot of hats… but a magician’s hat is not one of them. If you’re like most advisors, you wouldn’t mind waving a wand and pulling some free time out of a hat. After all, your most valuable asset is time. It’s a finite, multi-purpose, business-building commodity.

Spend more time with your existing clients. You’re in the business of relationships. And, it takes time and ongoing effort to nurture them. However, the typical financial advisor spends barely 20% of their time meeting with clients.¹ As the marketplace gets more competitive, and generational wealth shifts rapidly continue, not delivering a high-touch experience to clients – and their families – is a recipe for client attrition. Remember, if you’re not meeting your clients’ needs, they’ll find someone else who will.

Prospect for new clients. Like any business, your practice puts a premium on prospecting. That often means building your brand with a comprehensive marketing plan. In fact, according to industry benchmarking studies, 69%² of RIAs see marketing as their number one strategic initiative for the upcoming year. Yet RIAs only spend about 2%³ of their revenue on marketing initiatives. Why the disconnect? Most advisors lack the time they need to create and execute a marketing plan. Having more time to build credibility, create buzz for your business, and get your name out there can build your pipeline.

Expand your Digital Footprint. Technology is on the mind of decision-makers in every industry. A recent survey of C-Suite executives reported that 70% of respondents believed that introducing digital technologies is the biggest key to improving operations.^4. Why? Clients expect it. We’re living in an all-access-all-the-time world. Innovative and secure technologies, a well-designed and intuitive website, and 24/7 account access, build client satisfaction and are a key indicator that you deliver high-caliber solutions and support. Whether you take the time to develop web content, enhance the look and functionality of your website, or research and deploy new technologies to enhance your client experience, it will be time well spent.

Nurturing COIs. Your network is your lifeblood. Your Centers of Influence (COI) support you and your clients across the wealth management spectrum and often direct clients your way. They enhance your value proposition, help build your book of business, and deliver specialized services to your clients. How much time do you spend today engaging with them, keeping them abreast of your offerings, and broadening your circle? Whatever it is, you can be spending more time engaging the COIs in your community – CPAs, estate attorneys, realtors, insurance specialists, bankers – with clients who could benefit from your services.

Education. Not only is continuing education an industry requirement for many advisors, it’s a driver of long-term success for every advisor. How about devoting time to earning a certificate? For example, the BFA (Behavioral Financial Advisor) designation is trending, with good reason. Your job is to bring objectivity to what is a highly emotional realm: money. What better way to support your clients than to understand why people think and act the way they do? Ongoing education, such as behavioral finance training, results in tangible career benefits.⁵

• 79% of financial professionals who received behavioral finance training said it resulted in better client relationships;
• 75% said it resulted in better client reception of their planning; and
• 22% said it resulted in more clients.

Better Work/Life Balance. Flight attendants have it right: put your own oxygen mask on first. You must make yourself the priority and take care of yourself physically and mentally in order to help others. So, if you designate extra time as “me time” that’s an investment in yourself and your business.

Go From “What if I could…?” to “Here’s how I can…” 

Outsource.

It would be great if you could pull a few extra hours out of a magic hat when you needed them, but you don’t need magic. Make more time a reality by outsourcing your front, middle, and back-office tasks: a tangible, accessible, and practical solution that can put more hours back in your day while still keeping you in the driver’s seat, doing business YOUR way.

As both an entrepreneur and financial advisor, you have a lot on your plate. The role of asset manager is demanding and complex… and becoming more so seemingly every day. One research report found that 93%⁶ of advisory practices don’t have enough people to adequately select and monitor investments. There is a solution that can do the heavy lifting for you without compromising the quality investment management you provide your clients. Using a TAMP can give you back the time you need to tackle other client-centric services.

Why Outsource?

Elevate the Depth and Breadth of Your Investment Offerings

In a recent study, 98% of advisors surveyed said outsourcing enables them to deliver better investment solutions to their clients.⁷

Obtain Immediate and Tangible Financial Benefits⁷

A recent survey of financial advisors who utilize outsourcing found that:

• 91% reported growth in total assets
• 84% reported higher business valuation
• 83% reported higher personal income
• 79% reported lower operating costs

 7 Source: The Impact of Outsourcing, AssetMark, 2021

Better Quality of Life

Financial advisors who outsource at least half of their AUM gained back an average of eight hours per week. Ninety-five percent of advisors say they have better work-life balance due to outsourcing.⁷ How?

Broader Service Offering

Outsourcing the day-to-day management of all or a portion of your clients’ assets gives you the bandwidth to deliver on the other services your best clients demand: estate planning, philanthropic planning, financial planning, trust services, cash management, and more. Investment management is among the top three “must haves” for high-net worth clients.⁸ Getting this right is critical… and if you are not positioned to deliver on HNW must-haves, you risk losing your best clients.

Why Outsource with AssetMark?

Getting it right means working alongside a partner with the capabilities, expertise, and platform to deliver a diverse, curated selection of institutional-grade investment solutions, technology, and consulting services to help you address clients at every stage of their financial journey. AssetMark can empower you to provide the highest level of service possible to clients while providing high-quality wealth management services across asset classes, risk tolerances, and asset levels.

 Access the Expertise of AssetMark

You’ll maximize your time… and deliver what your clients demand.

Get in touch and let us know how we can support your professional and personal goals.

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1. https://www.kitces.com/blog/how-do-financial-advisors-spend-time-research-study-productivity-capacity-efficiency/

2. https://clearingcustody.fidelity.com/app/proxy/content?literatureURL=/9898611.PDF

3. https://www.kitces.com/blog/client-acquisition-cost-financial-advisor-marketing-efficiency-lifetime-client-value-lead-generation-satisfaction/

4. https://explore.broadridge.com/capital-markets_modernization/taking-the-on-ramp

5. Based on an online survey of 5 questions that inquired about financial professionals' views on behavioral finance. The online survey was fielded October 21 to November 4, 2020, to 9,130 graduates and students of the College for Financial Planning^®, a Kaplan company's CFP^® certification and professional designation education programs who were students during the time period of October 2018 to October 2020. 507 respondents completed the survey.

6. https://www.riaintel.com/article/b1hr6xh36vtrd7/advisors-are-in-over-their-heads-and-ill-equipped-to-manage-portfolios-study

7. Source: The Impact of Outsourcing, AssetMark, 2021

8 Source: Spectrem Group; Wealth Management Redefined 2021.