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    WMTC17 Presentation Ben Carlson

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    Ben Carlson
    The document discusses strategies for financial advisors to survive and thrive in today's changing financial advice landscape. It notes that half of all advisors are over age 55 and around 100,000 will retire in the next decade. It provides tips for advisors such as focusing on goals-based asset management, keeping costs low, and understanding that behavior determines client success. Successful advisors are said to manage investors rather than just investments, help clients understand markets in plain language, and focus on controlling what you can rather than worrying about factors outside your control.

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    WMTC17 Presentation Ben Carlson

    Uploaded by

    Ben Carlson
    3K views19 pages
    The document discusses strategies for financial advisors to survive and thrive in today's changing financial advice landscape. It notes that half of all advisors are over age 55 and around 100,000 will retire in the next decade. It provides tips for advisors such as focusing on goals-based asset management, keeping costs low, and understanding that behavior determines client success. Successful advisors are said to manage investors rather than just investments, help clients understand markets in plain language, and focus on controlling what you can rather than worrying about factors outside your control.

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    ABA conference slides

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    The document discusses strategies for financial advisors to survive and thrive in today's changing financial advice landscape. It notes that half of all advisors are over age 55 and around 100,000 will retire in the next decade. It provides tips for advisors such as focusing on goals-based asset management, keeping costs low, and understanding that behavior determines client success. Successful advisors are said to manage investors rather than just investments, help clients understand markets in plain language, and focus on controlling what you can rather than worrying about factors outside your control.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    3K views19 pages

    WMTC17 Presentation Ben Carlson

    Uploaded by

    Ben Carlson
    The document discusses strategies for financial advisors to survive and thrive in today's changing financial advice landscape. It notes that half of all advisors are over age 55 and around 100,000 will retire in the next decade. It provides tips for advisors such as focusing on goals-based asset management, keeping costs low, and understanding that behavior determines client success. Successful advisors are said to manage investors rather than just investments, help clients understand markets in plain language, and focus on controlling what you can rather than worrying about factors outside your control.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 19

    Surviving & Thriving in the

    New World of Financial Advice

    Ben Carlson, CFA


    Director of Institutional Asset Management,
    Ritholtz Wealth Management
    My Books

    Organizational A Wealth of
    Alpha Common Sense

    CreateSpace, 2017 John Wiley &


    Sons, 2015
    A manual for
    institutional How simplifying
    investors to the investment
    improve decisions process can
    and add value improve long-term
    through intelligent investment results
    planning and by avoiding
    organizational complexity.
    structure.
    Financial Advisors in the U.S.
    310,000 financial advisors (down from
    325,000 in 2008)

    Half of all advisors are over the age of 55

    An estimated 100,000 advisors will retire


    in the next decade

    Wirehouses control around 50% of the


    market

    Almost 12,000 Registered Investment


    Advisors (RIAs)

    Source: Cerulli Associates


    The DOL Fiduciary Rule
    Does the Market Care Who
    the President is?

    Source: DFA
    Big Ideas We Believe In
    Investors are compensated for the risks
    they bear & some risks pay better than
    others

    While the future is unknowable, the past is


    a decent guide and you have to always
    understand the present

    Asset Management has to be tied to goals


    to work effectively

    Less is more, costs & taxes matter,


    forecasting is unreliable & performance is
    mean-reverting

    Client fit is everything

    Behavior will determine client success or


    failure
    The Advisor of the Pastand the
    Future
    Next Gen Advice
    Unfortunate Realities of the
    Investment Business
    A talented sales staff will trump a talented
    investment staff when attracting $ from
    clients

    . The products that sound the best are


    often the worst ones to invest in

    . Clients are often in search of unrealistic


    solutions

    . Increased activity does not necessarily


    lead to better results

    . There are no guarantees


    Biggest Advisor Mistakes

    Chasing past performance & fad investments

    Overconfidence

    Having the wrong type of knowledge

    Fighting the last war

    No idea what risk entails in the markets


    Invert, always invert
    Focus on What You Control
    Decision-Making Amid Uncertainty

    Perform a pre-mortem

    . Document your process

    . Stay humble

    . Avoid blame & excuses

    . Scenario analysis

    . Make it a habit
    Sources of Alpha
    How to Succeed in Todays
    Financial Markets
    Understand that evidence-based research doesnt always work
    perfectly with real world investor behavior

    Admit that every investment strategy or portfolio has drawbacks

    Know what you own and why you own it

    Financial advice & investment management go hand-in-hand

    Perfect is the enemy of good

    Know thyself
    Successful Financial Advisors
    manage investors more than investments.

    understand that the long-term is the only


    time horizon that matters but people dont live life
    in the long-term.

    ...obsess about their clients, not their


    competitors.

    speak in plain English to help their clients


    understand whats going on with their money.

    help clients focus on those things that they


    control and ignore everything else.
    Questions?

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