New Year's Resolutions


It’s that time of year again when people start talking about their New Year’s Resolutions.  Unfortunately it is difficult to predict the events that will impact our life a year in advance.  My sage confidant surprised me last week when he asked me about my 2019 resolutions.  Rather than pushing back I have decided to focus this week's blog on my hopes for 2019.  Characterizing them as hopes can be helpful for advisors and investors.  Here are my hopes for us in 2019.


Rolodex

All RIA firms want to grow.  Most realize that there are two types of growth - inorganic and organic.  Both types of growth depend on a recruiters' and an advisors' contacts.  Evaluating how robust these contacts are separates good from great professionals.  Unfortunately most professionals believe their contacts are gold.  Inorganic growth falls short when the new advisor signs the contract but the mistakes don't show up until later.  Successful organic growth strategies look good on paper but they require the monitoring and support of the experienced professional that created the plans.  Sounds like we need more than a Rolodex.  The challenge is that deciding what contacts can work with our firm's client friendly business model. Most business models have proven ineffective when clients and advisors are unable to wait for the results.



Training

When the firm commits to a business model they should shift their focus to organic growth.  Effective organic growth requires a good training regime.  My old firm created The Sanctuary Institute and offered video training on a YouTube channel.  The best training I have experienced is by Seth Godin.  Seth's book This is Marketing is enhanced by an online portal where readers can share and comment on their experiences using the concepts presented in the book.  I often reference the portal to remind me of concepts and opinions that are ranked by the portal.  My personal resolution to to start a Podcast.  I hope that writing about this resolution will push me to JUST DO IT!



Dalbar

Dalbar studies love market volatility.  Recent volatility can cause many investors to panic at the wrong time.  We should remember how we felt over the last few weeks and use those memories when we answer the risk tolerance questionaires. The emotional impact of the Financial Crisis lasted several years.  Our hope is that we should chronicle our emotions and actions during the recent market swoon.  Journalling could be a good New Year's resolution.  



I hope all of your dreams are realized in 2019. Thank you for reading our blog.

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