February 12, 2015 - I remember meeting with a client of mine in 1979. He was the sales manager for TV advertising at the local NBC affiliate.  I asked him if the new cable stations were any advertising threat to his business. He laughed out loud and told me that cable would “never” catch on and certainly there would be very few companies that would want to waste advertising dollars on such an insignificant market. According to a Television Bureau of Advertising study done in 2008, cable stations reach nearly 90% of television viewers in the U.S.


Several articles published by robo advisor services say that advisors shouldn’t worry about competing. Yet, a recent article in Financial Advisor, well known advisor, Ric Edelman stated just the opposite. More recently, in the February 18th Sunday Wall Street Journal, Jonathan Clements states that the 1% advisory fee may soon be a distant memory since the robo advisors are averaging about ¼%. He concludes that advisors need to be providing more than just portfolio building and regular reviews to have any chance of justifying a 1% fee. Bringing financial planning, estate planning and tax planning to the client’s table will be essential for maintaining the current fee structure.

As alarming as this may seem, it validates the significance of 3D’s WealthConductor program. One of the core training principles is helping the advisor move their business model from managing the assets to managing the retirement income plan. Through the use of WealthConductor’s comprehensive fact finder, advisors can gather the necessary data to implement a segmented retirement income strategy that will incorporate financial planning into the retirement income process.  Many retirement income technologies in the market place are merely proposal systems. WealthConductor is a full suite of platforms to provide advisors with technology, training, marketing and practice management support. This level and depth of client service will not only justify an advisor’s fee, but cannot be replicated in a computer driven “robo” model.

For a free advisor brochure about retirement income planning please click here.


Disclosure: The opinions herein are those of the author and are for information purposes only. A reader should consult with their investment advisor to determine the appropriate investment strategy based on the individual’s specific facts and circumstances.