Jerry D. Prince

2 weeks ago | fa-mag.com | Jerry D. Prince |Russ Prince

If you want to work with individuals and families whose net worth is $30 million or more, the best way to connect with them is through centers of influence (COIs), typically accountants and trusts and estates (T&E) attorneys. While many wealth managers are aware of this reality, they face several challenges. Some find it difficult to locate accountants or T&E attorneys who work with ultra-wealthy clients, and many struggle to form strategic partnerships with them.

3 weeks ago | fa-mag.com | Russ Prince |Brett Van Bortel |Jerry D. Prince

After three years, a wealth manager with about $100 million in AUM has quintupled that amount. Less than two years later, it reaches $1 billion in AUM. A two-person wealth management team with nearly $500 million in AUM has grown to almost $2.5 billion in three years. A life insurance producer earning nearly $400,000 annually triples her earnings in less than a year and a half. These results arise solely from organic growth.

1 month ago | fa-mag.com | Jerry D. Prince |Russ Prince

Whether a wealth management firm is merging with another or if larger entities, such as RIA aggregators, are acquiring wealth management firms to lower costs and capitalize on their acquisitions, the multiples for these firms remain high and may continue to rise. However, that is, until the music stops, as it inevitably will within a few years. The music will stop as it becomes clear that many “promises” of selling or merging wealth management practices are largely illusory.

1 month ago | fa-mag.com | Jerry D. Prince |Russ Prince

The wealthy increasingly prefer working with multi-family offices to other private wealth industry professionals, such as wealth managers (Exhibit). Moreover, the more affluent the individual or family is, the more inclined they are to work with multi-family offices. The logic is simple: The wealthy seek the same benefits that high-performing single-family offices provide to extremely affluent families. At the same time, there is no universally accepted definition of a family office.

1 month ago | fa-mag.com | Russ Prince |Brett Van Bortel |Jerry D. Prince

Many financial advisors talk about moving upmarket, primarily by working with wealthier clients with more complex situations. A survey of 421 financial advisors shows that 65% want to move upmarket (Exhibit 1). For a comprehensive list of concerns, see “What Are The Key Concerns Of Financial Advisors?” Few financial advisors successfully move upmarket. One significant reason is that many do not want to. Some advisors are quite content working with their current clients.