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August 4, 2015 - By now we all know about the new “fiduciary rule” that the White House and DOL are trying to push through congress. You know, the one that would force commissioned based advisors into a fee based model, in turn making it harder for some “savers” to justify the cost of maintaining a relationship with their advisor, and for advisors  to justify the new costs and legal risks involved, forcing many clients to turn to none other than…the robo advisor.

The sentiment above is captured in a new Wall Street Journal article, Obama's Big Idea for Small Savers: 'Robo' Financial Advice, which goes more in depth about the negative effects this legislation will have on advisors. However, we are not here to complain about how this is unjust to honest advisors who are being Villainized by this legislation. There are plenty of other places on the internet to find that. Whether this legislation is passed or not, the advisor landscape is changing, and technology is constantly evolving. There will always be a threat. So instead, we are here to offer a solution.

We thought the WSJ article would hit a nerve with many of the advisors we partner with, so we decided to talk to our retirement income guru Phil Lubinski, and get his advice on how advisors can compete with the low “robo” fee.

Focus On Value
“Getting into a fee competition with robos is like the Mom and Pop grocery stores trying to compete with Costco”, says Lubinski.  “When your services become a commodity… lose.  This is the very reason  my national training is focused on moving from a “price” business model to a “value” business model.  If all you are doing is building portfolios and re-balancing them with a few client meetings in between, the robos will ultimately sweep your AUM under their management”.  Their technology is bigger, faster and becoming more sophisticated every day.”

Have a Plan
How do you move from price to value?  With a strategic plan for both you and your clients.  With the Tsunami of assets moving from accumulation to retirement income, there has never been a better time to re-invent your business model, re-define your value proposition and experience significant business growth rather than die on the vine trying to compete at the fee level with robo advisors.


3D Asset Management provides value enhancing solutions to advisors. Whether you need a plan that resonates with your clients, and clearly communicates your value, or compliant FINRA reviewed marketing and sales support, or a technology platform to manage and track your clients' retirement income plan for years to come, 3D has the tools you need. Contact us now to learn more about how we can help you build a better practice.