Carson Coaching Study Unveils Opportunities for Advisors to Reinvent their Value

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May 06, 2020, 09:00 ET

OMAHA, Neb., May 6, 2020 /PRNewswire/ -- Advisory and investment fees have driven valuable conversation and debate in the financial services industry over the past few years. According to a new study conducted by Carson Coaching, clients who believed their advisors provided more services and led with planning were consistently more confident about their own retirement, more likely to be highly satisfied with their advisor and more likely to believe they receive adequate value for the fee they pay. So while fees are an important part of the conversation, a holistic menu of services and a focus on financial planning are stronger indicators of value for top advisors. However, many advisors surveyed were not showing the levels of planning and transparency that clients relayed as providing value for cost.

"With a notable uptick in individuals reaching out to financial advisors for the first time in their lives due to the Coronavirus and market upheaval, there's no better time for advisors to re-examine and adjust their value proposition and how they engage with clients," said Jamie P. Hopkins, ESQ., MBA, CFP®, LLM, CLU®, ChFC®, RICP®, managing director of Carson Coaching and director of retirement research for Carson Group.

"Some of the data challenged what I viewed as industry best practices. For example, value was strongly correlated with the number of interactions an advisor had with a client. Many of these interactions have had to shift to phone and videoconferencing due to social distancing efforts of late, but it just goes to show that human connection is key, especially in times of uncertainty or distress. The traditional once or twice a year reach out is simply not enough for most clients."

Key findings:

Transparency leads to value. 94 percent of respondents who knew how their advisor is compensated felt they received adequate value, versus only 82 percent of those that were in the dark.
The conversation around compensation increases with wealth. Roughly 62 percent of respondents with more than one million dollars in investable assets said knowing their advisor's compensation model was extremely important, versus 50 percent of those with $100,000-$299,000 in investable assets.
What is a fiduciary anyway? It's not clear to clients what "fiduciary" means. They are more likely to understand when an advisor uses common vernacular, such as acting in their "best interest."
Long-term care and estate planning increase advisor value. These are often the last planning topics covered between an advisor and client, yet 61 percent of clients with an estate plan in place felt highly confident about retirement and 74 percent expressed high satisfaction with their advisor.
The power of the pen. Clients who receive a formal written plan from their advisor felt highly confident about retirement (65 percent) versus the 54 percent without.

"The research shows that advisors should lead with planning if they want more satisfied clients, and they should document those plans meticulously and communicate them thoughtfully and often. The new best practices uncovered in our study will be critical as advisors seek to reinvent their value and guide their clients forward in 2020 and beyond."

Founded in 1993, Carson Coaching is a leading national financial advisor coaching and resource program with more than 1,200 coaching members and 5,000 graduates. It is designed to help growth-minded advisors build their businesses through coaching support, proven tactics and accountability that drive proven results. The program includes more than 10 coaches with a combined 150 years of experience guiding advisors in matters of business and growth. Carson's network of advisors serves more than 33,000 families across the United States.

To learn more about Carson Coaching and request a free coaching session, visit: https://www.carsongroupcoaching.com

Survey Methodology
Advisor and consumer surveys were conducted and analyzed in December 2019 by Carson Group. The advisor survey consists of 129 (advisor) completed responses. The consumer data analyzed consists of more than 1,000 respondents from an online survey of investors with at least $100,000 in investable assets. The survey was administrated through three different lists, a coaching member list, a discovery list, and social media.

About Carson
Carson Group serves financial advisors and investors through its businesses including Carson Wealth, Carson Coaching, and Carson Partners. The family of companies offers coaching and partnership services to advisor firms – and straightforward financial advice to the investing public. All three organizations are headquartered in Omaha, Nebraska, and share a common mission to be the most trusted for financial advice. For more information, visit www.carsongroup.com.

Carson Partners offers investment advisory services through CWM, LLC, an SEC Registered Investment Advisor. Carson Partners, a division of CWM, LLC, is a nationwide partnership of advisors. Carson Coaching and CWM, LLC are separate but affiliated companies and wholly-owned subsidiaries of Carson Group Holdings, LLC. Carson Coaching does not provide advisory services.

SOURCE Carson Group