10 Smartest Ideas From TDAI National Conference
Images courtesy of TD Ameritrade.
<b>Building enterprise value? Think about cash flow.</b>
Think about cash flow. "Make sure you get your pricing right," said Brent Brodeski (center) during a session on powering practice growth. "If you give away boutique quality service with Walmart pricing, you don't have anything left." And if you don't have your staffing level right, he added, you won't be able to service the clients you're bringing in.
<b>To reach Gen Y, change your strategy.</b>
"Young people don't want to work with their parents' advisors -- but they don't mind working with their parents' firm," noted Kim Brown (speaking), president of JNBA Financial Advisors in Minneapolis. JNBA assigns a younger staff member to attend every client meeting, Brown said -- and then if the client has Gen Y offspring, the senior advisor will ask permission to have the junior team member reach out to the client's kids. Also, she notes: Gen Y hates getting a sales pitch, but they don't mind getting information at work -- and many workplaces are open to having you run programs for their younger staff on topics such as budgeting or saving for your first home. So use those seminars as a source of prospects.
<b>Get serious about a retirement plan business.</b>
"Only about 6% of the specialists focused on retirement plans are RIAs," TDAI president Tom Nally (pictured above) told the audience as he introduced a new TDAI initiative aimed at giving advisors the tools to develop a retirement plan offering for business clients. The "turnkey program," created by TD Ameritrade Trust, will offer recordkeeping, custody and plan administration, as well as a how-to guide for advisors looking to set up a retirement plan operation. And for those advisors who are not interested: "How many of your clients add money to their accounts every two weeks?" Nally challenged the group, pausing to let that sink in. "Because that's what retirement accounts do."
<b>Watch for fraud when responding to client requests.</b>
One best practice: When you get a client request via email for a wire transfer, the first thing you should do is contact the client by phone, said Justin Kam of consulting firm National Compliance Services during a session on protecting clients from fraud. And make sure you use the phone number you already have on file, not any substitute number included in the email, Kam emphasized. In the same session, former FBI staffer Dan Larkin (left), who is now with the National Cyber Forensic Training Alliance, raised a red flag about credit card rewards programs, which he said are vulnerable to fraud because they are often are managed elsewhere than the financial institution.