Ask an advisor: In the post-COVID era, do wealth managers still need real offices?

Ask an advisor: Do wealth managers still need real offices?

February 13, 2023 6:39 PM

Since the start of the COVID-19 pandemic, many financial advisors have been working from home.

Welcome back to "Ask an Advisor," the advice column where real financial professionals answer questions from real people. The topic can be anything in the world of finance, from retirement to taxes to wealth management — or even advice on advising.

This week, for the second time, we're taking a different approach: Our question comes not from an investor, but from an advisor. Jeremy Bohne, a Boston-based financial planner and the founder of Paceline Wealth Management, is wondering how to adapt his business in the era of remote work.

His question comes at a confusing time in the COVID-19 pandemic. Though still deadly, the coronavirus is no longer the all-encompassing crisis it once was. With lockdowns a thing of the past and 68% of Americans fully vaccinated, much of the economy has returned to normal.

But there's one exception: Remote work appears to be here to stay. Fifty-eight percent of the U.S. workforce, or 92 million Americans, work from home at least one day a week, according to consulting firm McKinsey & Company. As for financial advisors, 73% expect to continue working at least partly from home this year, according to Arizent's "Predictions 2023" report.

But what does this mean in practice? How do advisors meet with current clients, or recruit new ones? How have wealth managers adapted to the "new normal"? Bohne has been pondering all these questions. Here's what he wrote:

Dear advisors,

Nearly all people have returned to a pre-pandemic lifestyle, yet one change that persists is remote work.

My office space is downtown, and before COVID, tons of the people I'd want to meet (customers or prospects) were within walking distance, which was great. Back then, it was pretty effortless to meet people in a location convenient to them, where they'd already be for work and where I happened to be working myself, so it was a lot easier to get someone to meet for coffee.

Now, with many people working from home, they're all over the place, so it just doesn't seem like there is a critical mass of people in any one specific location.

How have you adjusted to this, in order to maintain an office located close to your current and prospective customers? What changes have you made to your office space and/or location, and how you work with clients?

Thanks,

Jeremy Bohne, founder of Paceline Wealth Management

And here's what other advisors wrote back:

No office, no problem

Jay Zigmont, a certified financial planner and the founder of

Childfree Wealth

in Water Valley, Mississippi:

I opened my firm during the COVID period, so I've always worked from my home office. You may want an office if location is your primary marketing differentiator, but if you serve a niche, you may be able to ditch the physical office space. For example, I serve childfree (by choice) and permanently childless (not by choice) people. My clients come from all across the U.S., and I don't have any who are close enough to visit in person. All of my meetings are via Zoom, and it works well for both the clients and me. It is nice to be able to look at accounts in real time via Zoom screen sharing, and clients can pick a time that works for them via Calendly (which sets up a Zoom meeting).

Convenience is key

Ron Strobel, a certified financial planner and the founder of

Retire Sensibly

in Meridian, Idaho:

Many of our clients live in nearby cities or rural areas, and they might need to drive 30+ minutes to visit with us. Luckily, our location is highly convenient. We're right off the freeway, at the front of our office building. We have a large sign in our front window with the business information on it, so clients can pull into the parking lot and then park directly in front of our door. This makes it really easy for clients to find our office and they don't have to wander around hallways or take an elevator. That has helped us out a lot, because clients are rarely late to meetings due to getting lost and they are not stuck in traffic on surface streets.

I work remotely most days, but the office location has the added advantage of making my own commute relatively easy whenever I need to go to the office. I am spoiled after working from home for so long, and the last thing I want to do is spend unnecessary time in traffic.

The virtue of virtual

Matthew Daniel, a certified financial planner and co-founder of

Columbus Wealth Management

in Columbus, Ohio:

We've had really great luck continuing our relationships with clients by utilizing video conferencing on Zoom and (Microsoft) Teams, which many have grown more comfortable with since the pandemic. Occasionally, we have also traveled to meet those clients in-person, especially when we can visit a cluster of clients in the same location. We really haven't seen an effect on our relationship with those clients, even if we used to meet with them in-person.

A chance to streamline

Eric Roberge, a certified financial planner and founder of

Beyond Your Hammock

in Boston:

While we still have an office space in Boston, these days our business is all virtual. Since the pandemic started, we've actually streamlined our systems, improved our processes and delivered a better overall experience to clients as well. We work hard to deliver impactful meetings — but also to create meaningful touchpoints outside of those meetings. We use Knudge [a digital to-do list for advisors and clients] to hold everyone accountable to completing actions; we proactively reach out and check in with clients one-on-one in between meetings to see how things are going; we have a monthly newsletter that goes out to our entire client base; and clients know they can email us at any time as questions or new concerns pop up.