It could be beneficial for advisors to venture outside of their comfort zones by addressing services they are less confident in offering, according to the 2016 Scottrade® Advisor Services Registered Investment Advisor Study.*
The study indicates RIAs are generally more comfortable offering traditional services such as retirement planning (68 percent “very” confident) and asset management (55 percent “very” confident protecting and 59 percent “very” confident growing assets). However, advisors are less likely to be comfortable in areas that are important to different generations of investors.
According to the survey,* only 52 percent of RIAs say they’re confident in their ability to help plan for financing a home. At the same time, 52 percent of RIAs said Millennials asked for such assistance – the highest of any category. And 61 percent of advisors said that the Gen Xers asked for home finance assistance.
While only 40 percent of advisors felt very comfortable giving health care planning advice, 68 percent of advisors said that Baby Boomers had requested assistance from them on health care. Furthermore, only 50 percent of advisors are confident in tax planning, but 63 percent of RIAs say that Boomers are asking for tax planning assistance.
“It’s essential to know where your level of comfort lies in providing the best service to clients,” says Jeff Ragan, vice president of client services at Scottrade® Advisor Services. “If a client’s needs fall beyond the scope of your value proposition, then build a referral network and leverage centers of influence to help serve those needs.”
An effective referral network and well-defined customer service model can help clients properly articulate what you do. A previous Advocate article discussed the importance of effectively communicating services that clients may not be aware of.
*About the 2016 Scottrade® Advisor Services RIA Study
The 2016 Scottrade® Advisor Services RIA Study was conducted July 25 – Aug. 9, 2016, in collaboration with Harris Poll, an independent third-party research firm not affiliated with Scottrade Financial Services, Inc., its business units or subsidiaries. The 303 Registered Investment Advisors were aged 18 and older and were employed at firms managing at least $10 million in assets under management.
This online survey was not based on a probability sample, and therefore, no estimate of theoretical sampling error can be calculated. For more on the 2016 Scottrade® Advisor Services RIA Study, visit the Scottrade® Advisor Services RIA Study site at https://about.scottrade.com/media/research-findings/advisor-services-study.html.