Jack Singer has some great advice on how to toughen up mentally to build a lasting and successful practice. A Ph.D. sports psychologist, Jack began his career teaching elite athletes the blueprint for success and has since turned his attention to financial advisors and insurance producers. You can read his complete essay on How to Become a “Mentally Tough” Financial Advisor here. Below, an excerpt:
The 7 Critical C’s of Mental Toughness. In my working with both athletes and advisors, I have found that there are 7 key elements that differentiate mentally tough athletes and advisors from those who struggle with the challenges they face. Each of these elements can be learned and through practice, can be put to use whenever you need the toughness to overcome any adversity or challenge in your work or life.
1. Maintaining a Commitment to accomplishing a task or goal through to completion, despite the obstacles that you may face.
2. Viewing Challenges as opportunities, rather than as obstacles.
3. Believing that you are in Control of your life and destiny, rather than “outside” circumstances, beyond your control.
4. Maintaining Confidence in your ability to succeed, despite all of the challenges you face.
5. Remaining Calm in the face of stressors.
6. Remaining Consistent, in your quest to grind through adversity and succeed.
7. Being able to Concentrate and focus on the task at hand, rather than getting derailed by unexpected circumstances.
Financial advisors weren’t in a hurry to make changes this past year. The main culprits: regulatory uncertainty and scaled back recruiting packages. But that’s all changing now. Advisors are less worried about future changes to the fiduciary rule and are more willing to join rival firms or seek out new business models if that makes sense for them.
Click here to read my On Wall Street article to find out why.
Photo : Vladimir Pustovit
Payouts may appear to be almost identical but scratch beneath the surface, and you’ll find some important differences among payouts that look the same.
For example, at one major indie firm charges were 220% higher than he would have paid at a smaller boutique group — a difference of more than $8,000 per year. Both firms offered 90% payouts. Unlike grid payouts at wirehouse and regional firms, there are three components to advisor payouts at independent broker-dealers.
My Thinkadvisor article explains what those three components are and how advisors can calculate their true net payout at independent firms.
Branch managers and recruiters at the wirehouses have an unexpected challenge this year: They need to convince financial advisers to change firms and take less in compensation than they would have received just a few months ago.
Thanks to the Department of Labor’s fiduciary rule, recruiting packages have dropped to 250% of commissions from 300% last year. When you’re talking seven-figure deals, that’s a lot of lettuce left behind in the fields.
How is this likely to play out? Read our On Wall Street article.
Photo: Bronwyn Quillian
For the past 30 years, the conventional wisdom has been that advisors who want the best recruiting deals should flaunt bigger offers they have from rival firms to encourage other suitors to raise their bids. But is this really always the best strategy?
Read my Research magazine piece.
Selling a practice to the highest bidder can be an expensive and ill-advised decision. In order to get their back end earn out, a seller must choose a buyer who can deliver a positive client experience. Read our On Wall Street piece.
Photo: Jeremy Schultz
Wirehouses have put the kibosh on their aggressive recruiting efforts, at least temporarily, as details from the newly adopted fiduciary rule dribble out.
In response to information published just before the election, major wirehouses halted the flow of offers – even withdrawing nearly done deals – to avoid even the possibility of locking horns with regulators.
What exactly happened? Read my Seeking Alpha article.
Photo: Kamil Dziedzina
As 2016 draws to a close, advisers are normally preoccupied with the yearly wirehouse payout tweaking rituals. But this year is different.
All eyes are focused on how broker-dealers will respond to the new fiduciary rule adopted by the Department of Labor this year. The key question: Will broker-dealers allow advisers to avail themselves of the best interest contract exemption so they can make commission trades in retirement accounts?
So how are advisers coping with the new rules?
Read my On Wall Street article.
Photo: Aaron Goodwin
Launching an RIA can seem like a daunting task for some advisers. It’s not really just a single major business decision but a barrage of choices that are each equally important in creating a successful enterprise. It can overwhelm the underprepared.
But as with any secret sauce, it’s rarely just one ingredient that makes the difference but a combination that’s unique to each entrepreneur.
I’ve identified five fundamental questions that advisers should ask themselves before going forward with this advisory model.
Read my On Wall Street article.
Photo: Chris Hunkeler
The low-return environment is the talk of the town. What’s an advisor to do?
I talked to a few of the top experts in the field, who gave me some great hands-on advice on how to manage client expectations.
Here’s my Thinkadvisor piece.