Pledges run the gamut from practical to whimsical; taxation, meditation mentioned
America's financial advisers are resolved to help clients improve their financial footing in 2011. That resolution dovetails with a goal that many clients have set for themselves.
Indeed, “improving financial situation” is one of the top two New Year's resolutions this year among adults (not surprisingly, losing weight is the other). Globally, 40% of 4,000 people contacted by Survey Sampling International said they were determined to improve their finances in the coming year.
That's no doubt good news for financial advisers, many of whom say they plan on spending more time with clients this year. Mark Petersen, an adviser with Carson Wealth Management Group, said he intends to log more quality time with clients — and that doesn't mean more time in meetings.
“We practice true wealth planning, he said. “That means focusing on the things that money can't buy and death can't take away, like relationships.”
So in 2011, advisers from Carson Wealth Management, which manages $2.6 billion in assets, will spend more time with clients on the golf course, or sharing a bottle of Cabernet or engaging in whatever hobbies a particular client enjoys. The more an adviser knows about the client, the better he or she can help them with their plans, he said.
For David Phillips, an adviser with Estate Planning Specialists, tax topics top his list. He said he plans to help clients take advantage of the $5 million lifetime gift tax allowance from Congress.
The new provisions, signed by President Barack Obama last week, will change the dynamics of the estate planning market for the next two years, he said. The downside for advisers is that there won't be a sense of urgency for people with less than $5 million to create an estate plan that protects assets from taxes, Mr. Phillips added.
Of course, making a New Year's resolution and keeping it are often two different things. Karen Altfest, executive vice president of Altfest Personal Wealth Management, which manages $650 million in assets, said resolutions often don't stick because people aim too high.
“You have to do what you can to accomplish something,” she said, “and not reach for the stars.”
Next year, Ms. Altfest is pledging to arrive at her office earlier, something her firm asked employees to do as well. Workers at the firm will be expected to be in the office by 8:30 a.m.
“I do not lead the pack on that,” she admitted. “I am going to try to be at my desk more often when my staff comes marching in.”
Howard Evensky, a principal with Evensky & Katz, which manages $650 million in client assets, has a slew of organizational and business-related resolutions that he hoped to follow through on in the New Year.
It's a long list. Mr. Evensky's very pragmatic resolutions include clearing out the 1,117 e-mails in his inbox; reading the stack of investment theory books that are piling up on his desk, delegating more daily responsibility to “my extraordinary Next Gen”; and implementing and developing the firm's fiduciary 401(k) plan management offering.
David Tittsworth, on the other hand, has slightly more ephemeral resolutions. The executive director of the Investment Adviser Association said he resolves to “remember that the U.S. is a great country — even when Congress is in session.” He also pledges to take time to “breathe deeply when reviewing SEC regulations.”
