Financial Advisor Recruiter

Specialized Recruiting for Financial Advisors. RIAs | Broker/Dealers | Wirehouses | Family Offices

[Financial Advisor Recruiter @AdvisorJobs]

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We specialize in recruiting and consulting experienced financial advisors who are in the lead chair, actively managing client relationships and running a business.

When you have clients, making a move to a new firm is about a lot more than finding a new home.

There are different business models, compensation structures, transition packages, equity buy-ins, restrictive covenants and plenty of other factors to consider.

That's where we come in.

We help advisors understand their options, evaluate opportunities and navigate the complexities of making a move.

Whether you're ready to make a move tomorrow or simply starting to explore what's out there, we meet you where you are.

Always 100% free and completely confidential for financial advisors.
https://t.co/1Q5KJ1fptJ

[Financial Advisor Recruiter @AdvisorJobs]

@wealthMAinsider Hyper specialization is the future

[Financial Advisor Recruiter @AdvisorJobs]

@georgeguidotti @haik_sahakyan @ARQA_AI In your opinion, what’s 1 AI workflow that’s increasing time savings (adding capacity) more than AI note takers?

[Financial Advisor Recruiter @AdvisorJobs]

What is the capacity of a 3 person advising team?

Lead advisor
Associate
Client service

[Financial Advisor Recruiter @AdvisorJobs]

Kitces did some research a couple years ago and found that productivity of financial advising teams maxes out at 3 poeple.

Unsupported solo advisors generate a median $200,000.

Add one support person and that jumps to nearly $591K.

The sweet spot?

1 lead advisor + 2 support staff.

[Financial Advisor Recruiter @AdvisorJobs]

On pace to break the daily record for submitted job applications!!

[No Book Required @NoBookRequired]

Very busy day on the job board.

90 job applications have been submitted so far today.

Firms are still able to list their jobs for free at this time

https://t.co/DVD3LXbNcB

[Financial Advisor Recruiter @AdvisorJobs]

@haik_sahakyan Sounds good in theory.

I have yet to see a single firm use AI to meaningfully increase capacity.

AI capturing meeting notes is still the biggest time saver by a country mile

[Financial Advisor Recruiter @AdvisorJobs]

The size of the wirehouse firms is astonishing.

They bring in more assets in a single year than almost any RIA has in total

[Financial Planning @finplan]

.@Merrill and other @BankofAmerica wealth units are on track to bring in $80B in new client assets this year. To hit their goals, they need to double that. #financialplanning #wealthmanagement #financialadvisors
https://t.co/fflGQRyTwW

[Financial Advisor Recruiter @AdvisorJobs]

Kitces did some research a couple years ago and found that productivity of financial advising teams maxes out at 3 poeple.

Unsupported solo advisors generate a median $200,000.

Add one support person and that jumps to nearly $591K.

The sweet spot?

1 lead advisor + 2 support staff.

[Financial Advisor Recruiter @AdvisorJobs]

I asked Grok what advice it would give to someone that wanted to become a financial advisor.

[Financial Advisor Recruiter @AdvisorJobs]

@versacether I know of a decent amount of opportunities like that

[Financial Advisor Recruiter @AdvisorJobs]

Here is what every up and coming financial advisor wants:

1. Firm provides salary so they are protected on the downside.
2. 30%+ revenue share on any clients they serve so they’re not capped on the upside
3. Firm provided leads/clients so they can grow their income

I’m not saying these opportunities don’t exist…

but these opportunities almost don’t exist

[Financial Advisor Recruiter @AdvisorJobs]

@h_th14 I only know of a couple of these opportunities around the country.

It’s very rare that these come across my desk

[Financial Advisor Recruiter @AdvisorJobs]

Missouri is the first state to formally ban financial advisors from using credential-sharing platforms like Pontera to manage clients’ held-away 401(k) assets.

https://t.co/2lGGjVvlCP

[Financial Advisor Recruiter @AdvisorJobs]

@AndyHVandenBerg I think he’s downplaying the risks just a smidge lol

[Financial Advisor Recruiter @AdvisorJobs]

@back40lawyer Thanks for sharing

[Financial Advisor Recruiter @AdvisorJobs]

@pjo_tanistry I cover all the movement each week here

https://t.co/ZJphM7hFiU

[Financial Advisor Recruiter @AdvisorJobs]

November has been very busy for both M&A and recruitment.

This past week was the most headline advisor moves of the year.

[Wealth M&A Insider @wealthMAinsider]

12 RIA deals reported in the first week of November. "Not for sale" is now just the opening bid.

[Financial Advisor Recruiter @AdvisorJobs]

Most financial advisors are dually registered.

[Financial Advisor Recruiter @AdvisorJobs]

@matt_gottshall 100%

[Financial Advisor Recruiter @AdvisorJobs]

When it comes to financial advisor fees, people like to say…

“it doesn’t cost any more to serve a $4M client than it does a $2M client.”

There may be individual situations where that’s true…

But at scale, that is largely untrue

[MichaelKitces @MichaelKitces]

More "fun with AdvisorEconomics data" this weekend. Looking at what it costs advisory firms to deliver their advice services, relative to the fees they charge a typical client.

The chart you're looking at here is revenue per client on the vertical axis, and cost-to-serve per client on the horizontal. The former is straightforward - total revenue divided by client headcount. The latter is the cost side of the equation... total business expenses of the firm, divided by that same client headcount.

What the chart reveals is that while there's much industry debate about what a 'reasonable' advisory fee is, the reality is that advisory firms really DO tend to keep their costs in line with what they charge, reinvesting into depth of planning, services, or other capabilities, so profit margins are relatively consistent. Simply put, firms with higher dollar clients tend to do more for each client, increasing their costs in line with the additional fees they charge.

This makes sense in a competitive environment - firms that charge 'too much' relative to the depth and breadth of services they provide will eventually be outcompeted by other firms that are willing to do more for a less generous profit margin, and firms that charge too little for what they provide can't hire support to cover all the work and eventually face burnout.

In essence, that means there really is a "healthy" profit margin for an advisory firm - roughly somewhere between 20% to 35% (after reasonable salary compensation to the owner, this is JUST profits) - where firms can struggle outside of those profit bands. Being "too profitable" seems nice in the short term, but it tends to result in a firm that isn't competitive (fees "too high" relative to the higher level of services other firms will provide for the same fee). Being "barely profitable" also becomes an issue, though, because the firm doesn't have the room to reinvest into staff and technology, and cannot withstand business shocks (e.g., a bear market). Thus why, when we look at the data, the numbers tend to stay in a relatively tight band where revenue/client and cost/client move in sync.

The starting point is to understand the firm's cost-to-serve per client (all business expenses divided by client headcount) relative to their revenue-per-client, to see whether the numbers are in-line... first at a firm level overall (as shown in the chart here), and then at the individual client level (i.e., client by client) to see if there are clients who don't even pay enough to cover the cost it takes to operate the firm on their behalf (which drags down the average overall)!

(For those who are curious, AdvisorEconomics is in paid beta right now as we build out a deeper data set, so you can try out your own numbers for a discounted $29/month rate at https://t.co/hrt9i8iaAP )

[Financial Advisor Recruiter @AdvisorJobs]

@wealthMAinsider The money is shifting towards specialization