As we head into the long weekend to kick off the summer I thought I would reflect back over the last three years since Process for Growth Consulting was launched in June of 2014. PFGC has always been predicated on the fact that fee pressure would force us to manage a lot more assets efficiently and effectively if we wanted to maintain our lifestyles.
The last three years has not only reinforced this view but if fact the landscape is demanding far more from us than just managing more assets. Clients have told us through studies that they want us to address all their needs and goals and not just investments.
So clients now are questioning our basic value proposition (how much they pay us in fees) in how we manage their assets and they also want us to be wealth managers in the truest sense of the phrase. The problem is very few of us have a CFP designation and even fewer of us employ a business model that incorporates basic principles of wealth management.
If we want to be compensated as a value-added partner our basic business model must change on how we function on a daily basis. There are two basic functions we must address in building our new business model.
First to become a valued partner the way we articulate our investment philosophy and then execute it should entail us having an open, honest, transparent and professional discussion on why and how we build a portfolio based upon our client's risk profile by actively managing low cost investment vehicles in a dynamic market to attain after tax risk-adjusted returns based on metrics to assist our clients in meeting their needs and goals.
Second we need to standardized our processes so we can affiliate with multiple centers of expertise so we can deliver all wealth management services our client's desire.
And while you are working to change your business model we must pay attention to improving ourselves through designations. The future is cloudy but one thing is clear. If we want people to pay us for our expertise then we must have the requisite designations to prove our worth. CFP for wealth management and CPM to manage money.
No small thing.
This first link is to PGFC's Retention/Attrition Strategies on how to become a valued partner in managing our client's assets.
This next link discusses in detail the way FAs are adopting to the new world. It is very rare where I agree so much with someone's point of view of investing but this article some of my client's think was plagiarized from me. It's not and it's a great article.
Kitces on the disintermediation of mutual funds and the rise of the Financial Advisor portfolio manager
Investment News on fees and account demographics
Finally PFGC will be raising it's prices as of August 1st 2017. PFGC has come a long way since June of 2014 and now with highly competent standardized groups running successful affiliation models PFGC has proven to be a valued-added partner.
So pricing as of August 1st will be:
Teams will go to a one time fee of $5,000.00 from $3,500.00
Individuals FAs will go to a one time fee of $3,500.00 from $2,500.00
Babies (less than 6 months in the business) remain at $500.00
A new product will be available to Branch Managers soon:
Structuring a Complex in an Organic Growth Environment which has a one time fee of $10,000.00
The life blood of my business is referrals and if there is someone you believe that will benefit from PFGC's coaching I will treat them with the same professionalism and courtesy I treat you.
Speaking of partners PFGC welcomes a new partner in SS&C Inc. We are all very excited about this partnership and look to bring to PFGC clients new meaningful learning opportunities to drive our new business models. Look for PFGC to sign several new partnerships in the near future so we can continue to bring unique solutions to our clients.
So it has been a crazy three years but like the changes in our industry the changes at PFGC are accelerating to keep pace with all the challenges we face. PFGC believes we can control our future, that we are not at the mercy of the vagaries of the business and that we and we alone are responsible for our own success.
"Between the small things we will not do and the great things we can not do, the danger is that we do nothing". Adolph Monod
Take one left-footed step today!
Danny
"One left-footed step per day"