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Explore TAG Advisory Services’s latest blog posts, expert advice, news, and commentary.* Learn more about the features of our innovative blog here.

You’ve no doubt heard the old adage that 20% of your effort produces 80% of your results. Since the early 1900’s when this principle was first developed by Italian economist Vilfredo Pareto, we have seen the 80/20 Rule show up in all corners of business, even financial advising. Take a look at any advisory practice and you’ll no doubt see the same pattern: 80% of the revenue is generated from only around 20% of clients. And if we treat all clients equally, which many of us do, this means we are diverting a large percentage of our time away from...

How Advisors Can Increase Retention with the 80/20 Rule

TAG Advisory Services's Insight

If 80% of a financial advisor’s positive business results are driven by only 20% of their clients, what does that say about that financial advisor’s relationship with their clientele? In this article, the author suggests the 80/20 rule should be applied to an advisor’s communication practices so they can earn more trust from their clients and drive better business results. Specifically, the author suggests devoting only 20% of your communications to discussing business with clients while the remaining 80% is devoted to building trust and offering additional value. While this may sound counterintuitive, it’s an essential step to take in an industry that is wholly dependent upon trust and transparency.

Article Excerpt:
You can increase trust and retention by communicating regularly with your clients and following the 80/20 rule.  

The 80/15/5 Rule For Financial Advisors

TAG Advisory Services's Insight

The 80/20 rule has several applications in finance, and not just in relation to value and revenue. According to one study of how financial advisors spend their time in an average week, many spend only 20% of their time meeting with clients, devoting the remaining 80% of their time to administrative tasks, management, and marketing. This is despite the fact that providing expertise to clients is the only true activity that produces revenue. In this article, one expert from the Forbes Advisory Council recommends financial advisors spend 80% of their time with clients, 15% of their time expanding their knowledge and expertise, and 5% of their time doing hiring and team building activities.

Article Excerpt:
Financial advisors are small business owners. If they aren’t consistently offering their expertise, they are not maximizing their profitability and may be putting their business at risk.  

3 Bad Client Types to Avoid and When to Fire Them

TAG Advisory Services's Insight

The 80/20 rule tells us that 80% of our revenue comes from the best 20% of our clients. Equally true: 20% of your clients will cause you 80% of the grief. When advisors prune their client lists to remove those that aren't the right fit for them, it frees up time and energy that can be used to acquire new clients and give more attention to their best clients. This article on INC explains how to identify three types of potentially problematic clients. In many cases, the clients who aren't a great fit for your practice also aren't terribly happy with you, so helping them find a new advisor can be a great win-win. And when the time comes, TAG can help you transition those clients to a new advisor with ease to show them the love they deserve. 

Article Excerpt:
Bad clients cost you time, money and opportunity. Here are three to get rid of asap.  

TAG Featured in the Boston Business Journal

Read the full article in the Boston Business Journal Consultants to financial advisors have been sounding the alarm for years: without a clear succession plan in place, both clients and advisors face significant risks if the advisor were suddenly unable to continue working. According to the article in the BBJ, “advisors, should they be forced to suddenly step down, risk sending their clients and employees into a panic — and watching their hard-won book of business, built over decades, quickly lose its value.” And yet, fewer than a third of advisors within 5 years of retirement have a plan in...

Financial Planners are Retiring Faster Than They Can Be Replaced

TAG Advisory Services's Insight

The growing age gap between younger and older advisors is nothing new, so why are so few advisors doing anything about preparing for succession, particularly when statistics show that client retention falls off drastically after a sloppy transition? The good news for both advisors and clients is that the industry is finally starting to open its eyes to the importance of careful succession planning.

Article Excerpt:
Older financial planners are retiring at twice the rate new ones are entering the field.  

Trust Advisory Group is Pleased to Introduce TAG 2.0

Young couple having fun on zip line.
Take control of your retirement at TAG 2.0! TAG 2.0 was created to solve the industry-wide problem of senior financial advisors aging out of the workforce with no one in the pipeline to take over their business. Few advisors know how to monetize the value of their books and fewer still have a succession plan in place. TAG 2.0’s “TAG TEAM Model” is a new take on financial advisory services that combines the best of all worlds: the fresh thinking, creativity and enthusiasm of a start-up division, infused with the experience and know-how of seasoned advisors, backed by the security...

Trust Advisory Group Launches Innovative TAG 2.0 Program

Young couple having fun on zip line.
Media Contact: Lisa Murray Trevi Communications, Inc. O: 978.750.0333 / M: 617.835.0396 [email protected] Boston, MA, September 5, 2019 – Registered Investment Advisor, Trust Advisory Group, Ltd. announces the launch of TAG 2.0, an innovative model developed to improve the business of financial advising. TAG 2.0 addresses today’s industry-wide problem of financial advisors aging out of the workforce with no one in the pipeline to replace them. The TAG 2.0 process is designed to seamlessly transition seasoned financial advisors, their clients and assets to the next generation of advisors to ensure business continuity and peace-of-mind for everyone involved. How It Works...

Values Check—Getting the Most from Life

TAG Advisory Services's Insight

The author notes that most people spend more time planning their vacations than they do planning their lives. Taking just a couple of minutes to read this article provides a great opportunity to step back and gain some perspective. Providing a handy list to get you started, the author encourages all of us to take the time to identify those values in life that are most important to us and reflect on where we are today. 

Article Excerpt:
It’s time to take a breath and reflect on where you are now—personally, professionally and spiritually.  

Survey: Half Of Advisors Don’t Expect To Grow In The Next Five Years

TAG Advisory Services's Insight

This article recaps some interesting results from the fourth wave of the Bloomberg Media Financial Advisor Study. While half of advisors expect their practice to remain the same over the next five years, some expect the bull market in equities, changing demographics and a resolution of trade disputes to lead to growth in the industry. Interestingly, about half of advisors think that growth will be fueled by clients who are brand new to the advisory industry. And, as many of the existing clients transition into retirement, almost 70% of advisors said they plan to address decumulation and potential wealth transfer by introducing themselves to their clients’ children and beneficiaries.

Article Excerpt:
Advisors are pinning their optimism for growth on demographic change and a continuing bull market, according to a recent survey – but nearly half of the respondents don’t expect to grow at all.  

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