In many ways, it’s the best of times for advisors, according to IRA specialist Ed Slott.
In opening his 2019 Instant IRA Success Workshop in Las Vegas on Friday, Slott said that the evolving U.S. tax code and ongoing generational wealth transfers makes an advisor’s knowledge and expertise indispensible to their clients.
“People have no problem paying someone who they think is valuable, and planning is at a premium,” said Slott.
Advisors face a problem, though, said Slott: Their clients don’t always know the value that the advisor is providing. To help advisors solve this problem, he proposed seven ways that they can differentiate themselves to clients and prospects.
1. Don’t compete on price or performance.
Like many advisor educators, Slott emphasizes that the value in financial planning is in an advisor’s knowledge and ability to cultivate relationships.
“Compete on being a valued advisor who knows what you’re talking about,” said Slott. “Show how much you’re saving them in real dollars. That puts a value on your servces.”
As the financial planning industry moves from investments to planning, “ideas and solutions are the new currency,” said Slott.
2. Be a proactive, educated advisor.
Slott, a veteran of the accounting field himself, lamented that most accountants are forced to look backwards during tax season at all of the mistakes their clients made throughout the year. Planners, on the other hand, have the ability to look forward and put in place solutions that avoid these mistakes.