Adaption Or Extinction—A New Reality

June 8, 2020

By Stephanie Bogan, Financial Advisor

It is almost certain there will be fewer independent advisory firms in the next 36 months than there are today. Turbulent times and protracted market downturns weed out businesses unprepared for periods of rapid change and increasing complexity—particularly if advisors put their heads down and push things along the way they always have.

This has happened before. The Great Shift from commission revenue to assets under management in the 1990s led to the mass extinction of advisors who made a great living selling high-commission products. The 2000 Tech Wreck eliminated many advisors who succumbed to portfolios heavily weighted to emerging tech firms that measured success in eyeballs rather than profits. The Great Recession killed off financially feeble firms unprepared to withstand a protracted reduction in revenues and saw a distinct thinning of advisors whose value proposition was focused on performance over planning.

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