7 Traits of Superstar Advisors
November 25, 2013 4:27 PM
7 Traits of Superstar Advisors
A select group of financial advisors have already reached more than $50 million in assets under management despite having less than five years of experience. This group accounted for just 5.1% of the more than 2,100 financial advisors surveyed recently by CEG Worldwide, but their success led us to ask: What traits and behaviors help set this group apart?
John J. Bowen Jr. digs into recent research in depth in his Financial Planning column, but we pulled out a few of the key takeaways. -- Kayan Lim
John J. Bowen Jr. digs into recent research in depth in his Financial Planning column, but we pulled out a few of the key takeaways. -- Kayan Lim
<b>1. They have higher AUMs than their peers.</b>
Amongst the group, 13.9% manage $500 million or more in assets, and another quarter have $200 million to $500 million in AUM. By contrast, only 5.4% of the group CEG calls elites -- more established advisors with $50 million or more in assets -- manage more than $500 million or more.
<b>2. They focus on the affluent.</b>
More than a third serve 30 or more clients with at least $1 million or more in assets -- almost as many as in the elite group of advisors. Further, 22.2% have built practices that serve 75 or more $1 million-plus clients.
<b>3. They are selective.</b>
Nearly half of the group -- again, almost as many as among elite advisors -- require a minimum account size for new clients. Among advisors who manage less than $50 million, many fewer require account minimums.
<b>4. They stay close to top clients.</b>
Among these rising superstars, 42.6% contact their top clients at least monthly. CEG's research suggests that there is a correlation between frequency of contact and the amount of assets under management.
<b>5. They work with other experts.</b>
Affluent clients often have complex planning needs. These superstar advisors know when to get help: 62% report that they rely on teams of experts to address their clients diverse financial needs.
<b>6. They get referrals from other pros.</b>
Obtaining referrals from accountants, attorneys and other professional advisors is challenging for most financial advisors. These rising stars do the best job at getting those crucial introductions, with 77.8% getting either occasional or a steady stream of referrals.
<b>7. They plan for business growth.</b>
Finally, it's no accident that these advisors are high performers. Almost three quarters of these superstars have business plans in place -- more than any other sets of advisors. They also lead in marketing planning as well, with 61.1% using a specific marketing plan.
Want to know more? Read the full story here.
Want to know more? Read the full story here.
