Growing your business as an RIA is no small task these days. It’s not about taking on any and all new clients, but rather, having the vision and even shrewdness to select the ideal type of client at the right stage of your practice. Being able to grow at scale through personalization is key. That often means focusing on a specific client niche — whether it be a certain type of professional, a generation of individuals all encountering similar issues, or even just families within a defined geographic area. There are many avenues to take to call your business your own, but a few core elements are growing in prominence.

Growth at All Costs? Is It Worth It?

Schwab recently released its 2023 Independent Advisor Outlook Study. The survey was conducted last December and asked more than 850 advisors for their take on the state of the industry. In short, growth itself is not the only high-priority objective among today’s RIAs; it’s also about acquiring the right talent so you can offer better services and differentiate your business. What’s more, the advisory community is increasingly feeling that growth comes at a price. Another theme throughout the report was that independent advisors continue to feel outpaced by larger firms when it comes to career progression and results tracking. 

Tech Woes Continue to Plague the RIA Space

What’s also a sore spot for smaller shops? Technology. According to the survey, just 43% of RIAs feel their analytics and other tech tools are up to snuff — and many are not using such tools at all. In today’s quickly changing investment and financial planning landscape, having the right technology suite along with some basic guidance is key. 

Partnering with Halo for Sustainable Growth

Halo Investing is all about empowering as well as guiding advisors so they can help their clients navigate volatile and uncertain markets. Our protective investment solutions are designed to help people feel more confident in their financial future. Structured notes, annuities, and buffered ETFs are investment vehicles that continue to gain momentum, and Halo’s team of subject-matter experts is dedicated to making life easy for the advisor. Moreover, we help with many of the operational tasks on the back-end to streamline processes. So, while many advisors feel overwhelmed and unsure if growing quickly is even a viable option, Halo’s team and services have a mission to lead RIAs toward a bigger tomorrow.

Better Tools & Tech Means Higher Retention

And Growth still matters. A larger business is better able to bring on quality advisors who will stick around. At the heart of attracting and retaining talent is making day-to-day life easier with fintech solutions. Halo’s award-winning structured note marketplace is one example of how advisors can craft portfolios and investment strategies in a unique way to better serve clients. It’s through this approach that an advisor can build lasting relationships with clients. 

Streamlined Portfolios That Can Still Buffer Against Volatility

In fact, 42% of the survey’s respondents reported that the diversity of advisory services offered is how growth is defined. Just pitching the usual stock and bond portfolio does not separate you from the pack, but building financial plans around protecting what a client has through today’s lower-cost protective investments adds a new, better layer of customization. And that can target a range of individuals and families. 

We find that structured notes and annuities are naturally suited for older, wealthier clients, but they can also be put to work for those growing their nest egg with specific goals and a defined time horizon. Multi-year guaranteed annuities (MYGAs) are one such emerging annuity type that can feature yields above those of typical savings accounts and certificates of deposit. Bernie Clark, Managing Director, Head of Advisor Services at Schwab asserts: “Income solutions have been a very big question in advisors’ minds over the past several years — short-term duration, guaranteed return — and this will continue to be important well into the future.” 

The Bottom Line

The latest industry findings reveal that there are pros and cons to growing your business. Wealth managers struggle with maintaining a human touch with their clients while technology remains a pain point. Growth without the right help can be problematic and unattainable. Halo not only offers an “alternative to alternatives,” but we also recognize key challenges the RIA community increasingly faces. 

Please see our Halo Disclaimer for other important disclosures.