Time to Reboot
While they might be optimistic, RIAs have been stressed. More than half
of RIAs said their quality of life was hurt by the
financial downturn, according to the survey commissioned by TD
AMERITRADE Institutional, a custodian for independent advisers and
division of TD AMERITRADE Holding Corporation (see “Advisers Feel Market Stress” and “Tips for Managing Through the Crisis”).
Finances, mental health, and hours worked are areas where advisers felt
stretched.
It seems many advisers want to get their personal lives back in order.
In the New Year, 42% of polled advisers said they want to spend more
time with family and friends, improve their health (31%), enjoy more
leisure time (31%), reach a new level in their career (29%), acquire
new professional skills (18%), get finances in order (15%), and
participate in public service (14%).
As far as business goals, the advisers are focused on business growth
(68%), increased client satisfaction (39%), and improved profitability
(31%) in the next 12 months.
Looking ahead to 2010, regulation weighs heaviest on the minds of RIAs.
Regulatory change (42%) tops the list of business concerns over the
next 12 months again, up nearly 25% since last quarter. Other major
concerns include the macro-economic environment (35%), profitability
(31%), business growth, and managing risk (each 26%), according
to TD AMERITRADE.
RIAs cited the following as largest obstacles to meeting business goals
next year: personnel issues (33%), insufficient processes and
procedures (21%), and poor time management (21%).
Spending Up
RIAs are spending in some areas and holding back in others. The survey
found that advisers are making investments in technology (62%),
marketing (53%), and client appreciation activities (35%). However,
they are cutting other expenses such as travel (62%) and salaries and
bonuses (45%).
Seven in 10 advisers surveyed avoided cost-cutting this past quarter.
Fifty-three percent made no changes, 28% decreased spending, and 19%
increased spending.
Maritz, Inc., surveyed 501 RIAs between August 26 and September 8 on behalf of TD AMERITRADE Institutional.
Ellie Behling