In the world of financial services, referrals are the gold standard for acquiring new clients. They come with the “borrowed trust” of the referring friend or family member and typically meet the minimum AUM requirement because they run in the same circles as your current clients. With the rise of AI clogging up other forms of digital communication, the value of a referral is increasing. So, do you need to wine and dine your best clients to get more referrals? You can if you want, but at the heart of it, getting more referrals all starts with providing an exceptional client experience.

What does a great client experience even look like?

Most advisors know that they have to go beyond the numbers to be able to really help their clients. To build a comprehensive plan for someone, they must get clear on their goals, dreams, challenges, greatest financial fears, greatest strengths, and more.

Understanding your clients’ needs, preferences, and life goals is the cornerstone of personalized communication. But for most advisors, this is par for the course. How can you build a comprehensive financial plan without knowing these three things?

This means going beyond the numbers to truly get to know your clients. Regular check-ins are crucial. These can be scheduled quarterly reviews or informal touchpoints just to see how things are going.

Tailored advice based on these interactions makes clients feel valued and understood. When it comes to the client experience in wealth management, it’s about making each client feel like they are your only client. For example, if a client mentions a significant life event, like a child going off to college or an upcoming retirement, make a note of it and follow up with relevant advice and support. This level of attention builds strong, trust-based relationships.

Mario and I attended a conference last year where one of the guest speakers spoke about creating an unforgettable client experience and there was something she said that really stuck with us. She said, imagine if your client could rate you on a scale of 1-10 after every interaction, sort of the way you can do with Uber. Would that client give you a high rating? If you’re doubtful or saying no, it might mean some adjustments should be made to how you do things. Sure, maybe it is because you don’t have enough time or are busy trying to onboard that new hire or have surge meetings coming up. But think about this when you meet with your clients: “How can I get a 10-star rating every time?” Now, we know this is shooting for the moon, but hey. At least if you shoot for the moon and miss, you’ll land among the stars. Small improvements over time can make all the difference.

Streamlining Processes

Efficiency is another big one. It is the key to providing a high level of service without burning out. How are you using technology to handle routine tasks such as scheduling, document management, or logging meeting notes? Having the right technology not only saves time but also reduces the likelihood of errors.

Implementing a robust CRM system can help you keep track of client interactions, preferences, and important dates. Automation tools can send out reminders for meetings, birthdays, or important financial deadlines. By streamlining these processes, you can free up time to focus on what really matters: building deeper relationships with your clients.

Proactive Client Management

Anticipating clients’ needs and addressing potential issues before they become problems is a hallmark of exceptional service. This means staying ahead of market trends, regulatory changes, and other factors that could impact your clients’ financial well-being. But regularly reviewing and adjusting your clients’ portfolios can be a huge vampire on your time. Not to mention sending out timely updates and insights that are relevant to their specific situations. For instance, if a new tax law is about to be implemented, you may want to inform your clients in advance and advise them on how it might affect their financial plans.

But let’s be real, this is yet another task on your growing to-do list and you already wear so many hats. And from a numbers perspective, hiring in-house isn’t always the best answer. In fact, there are fewer cases where hiring in-house outweighs using an Outsourced CIO to fill those gaps and open time on your calendar. Imagine having a go-to partner to answer questions you might not know the answer to (and won’t be able to find without hours of research). With East Bay, our clients are able to access a private library of information to use at their disposal, either for their own edification or to share with their clients. And in some situations, our advisors even ask us to sit in on meetings when they are super keen on the investment topic the client is interested in learning about. There are simply so many ways that we can support advisors when it comes to investment management and client education and support. In short, hiring a Fractional Chief Investment Officer, or Outsourced Chief Investment Officer (OCIO) provider like East Bay is one of the most proactive moves you can make.

Creating a Welcoming Atmosphere

Every interaction with your clients should be pleasant and professional, whether it’s in person or virtual. This starts with creating a welcoming atmosphere in your office and extends to your online presence. Ensure your office space is comfortable and inviting, with amenities like refreshments and a pleasant waiting area.

For virtual interactions, invest in high-quality video conferencing tools and make sure your online portals are user-friendly. Promptly return calls and emails, and always be courteous and respectful. A welcoming atmosphere helps clients feel at ease and reinforces their decision to trust you with their financial future.

If you’re unsure if your virtual space looks professional, there are a ton of resources on YouTube about how to look like a pro on camera. With a few small upgrades like adding a ring light or investing in a microphone, you can really improve the look and feel of your virtual client and prospect calls.

Delegating and Elevating

Delegating and elevating is about focusing on what you do best and delegating the rest. For many advisors, this means concentrating on financial planning and client relationships rather than getting bogged down in the minutiae of portfolio and investment management. If you want to focus solely on planning without spending hours on research, an Outsourced Chief Investment Officer (OCIO) might be the perfect solution. A Fractional CIO can handle the complexities of investment management, allowing you to dedicate more time to your clients and deliver a higher level of personalized service. This not only improves your efficiency but also enhances the overall client experience. Less falls through the cracks and clients grow ever more confident in your ability to serve them.

Benefits of Working with a Fractional CIO like East Bay

By prioritizing personalized communication, streamlining processes, being proactive, creating a welcoming atmosphere, and embracing the concept of delegating and elevating, you can significantly elevate your client experience. When clients feel genuinely cared for and well-served, they are more likely to share their positive experiences with friends and family. This leads to a steady stream of high-quality referrals, helping your business grow sustainably and with the right kind of clients. An exceptional client experience not only fosters loyalty but also transforms your clients into enthusiastic advocates for your services.

In the world of financial services, referrals are the gold standard for acquiring new clients. They come with the “borrowed trust” of the referring friend or family member and typically meet the minimum AUM requirement because they run in the same circles as your current clients. With the rise of AI clogging up other forms of digital communication, the value of a referral is increasing. So, do you need to wine and dine your best clients to get more referrals? You can if you want, but it all starts with providing an exceptional client experience.

Personalized Communication

Understanding your clients’ needs, preferences, and life goals is the cornerstone of personalized communication. This means going beyond the numbers to truly get to know your clients. Regular check-ins are crucial. These can be scheduled quarterly reviews or informal touchpoints just to see how things are going.

Tailored advice based on these interactions makes clients feel valued and understood. When it comes to the client experience in wealth management, it’s about making each client feel like they are your only client. For example, if a client mentions a significant life event, like a child going off to college or an upcoming retirement, make a note of it and follow up with relevant advice and support. This level of attention builds strong, trust-based relationships.

Mario and I attended a conference last year where one of the guest speakers spoke about creating an unforgettable client experience and there was something she said that really stuck with us. She said, imagine if your client could rate you on a scale of 1-10 after every interaction, sort of the way you can do with Uber. Would that client give you a high rating? If you’re doubtful or saying no, it might mean some adjustments should be made to how you do things. Sure, maybe it is because you don’t have enough time or are busy trying to onboard that new hire or have surge meetings coming up. But think about this when you meet with your clients: “How can I get a 10-star rating every time?” Now, we know this is shooting for the moon, but hey. At least if you shoot for the moon and miss, you’ll land among the stars. Small improvements over time can make all the difference.

Streamlining Processes

Efficiency is another big one. It is the key to providing a high level of service without burning out. How are you using technology to handle routine tasks such as scheduling, document management, or logging meeting notes? Having the right technology not only saves time but also reduces the likelihood of errors.
Implementing a robust CRM system can help you keep track of client interactions, preferences, and important dates. Automation tools can send out reminders for meetings, birthdays, or important financial deadlines. By streamlining these processes, you can free up time to focus on what really matters: building deeper relationships with your clients.

Proactive Client Management

Anticipating clients’ needs and addressing potential issues before they become problems is a hallmark of exceptional service. This means staying ahead of market trends, regulatory changes, and other factors that could impact your clients’ financial well-being. But regularly reviewing and adjusting your clients’ portfolios can be a huge vampire on your time. Not to mention sending out timely updates and insights that are relevant to their specific situations. For instance, if a new tax law is about to be implemented, you may want to inform your clients in advance and advise them on how it might affect their financial plans.
But let’s be honest, this is yet another task on your growing to-do list and you already wear so many hats. And from a numbers perspective, hiring in-house isn’t always the best answer. In fact, there are fewer cases where hiring in-house outweighs using an Outsourced CIO to fill those gaps and open time on your calendar. Imagine having a go-to partner to answer questions you might not know the answer to (and won’t be able to find without hours of research). With East Bay, our clients are able to access a private library of information to use at their disposal, either for their own edification or to share with their clients. And in some situations, our advisors even ask us to sit in on meetings when they are super keen on the investment topic the client is interested in learning about. There are simply so many ways that we can support advisors when it comes to investment management and client education and support. In short, hiring an OCIO provider like East Bay is one of the most proactive moves you can take.

Creating a Welcoming Atmosphere

Every interaction with your clients should be pleasant and professional, whether it’s in person or virtual. This starts with creating a welcoming atmosphere in your office and extends to your online presence. Ensure your office space is comfortable and inviting, with amenities like refreshments and a pleasant waiting area.
For virtual interactions, invest in high-quality video conferencing tools and make sure your online portals are user-friendly. Promptly return calls and emails, and always be courteous and respectful. A welcoming atmosphere helps clients feel at ease and reinforces their decision to trust you with their financial future.
If you’re unsure if your virtual space looks professional, there are a ton of resources on YouTube about how to look like a pro on camera. With a few small upgrades like adding a ring light or investing in a microphone, you can really improve the look and feel of your virtual client and prospect calls.

Delegating and Elevating

Delegating and elevating is about focusing on what you do best and delegating the rest. For many advisors, this means concentrating on financial planning and client relationships rather than getting bogged down in the minutiae of portfolio and investment management. If you want to focus solely on planning without wasting hours on researching,, and adjusting portfolios, an Outsourced Chief Investment Officer (OCIO) might be the perfect solution. An OCIO can handle the complexities of investment management, allowing you to dedicate more time to your clients and deliver a higher level of personalized service. This not only improves your efficiency but also enhances the overall client experience. Less falls through the cracks and clients grow ever more confident in your ability to serve them.

Benefits of Working with East Bay Investment Solutions

By prioritizing personalized communication, streamlining processes, being proactive, creating a welcoming atmosphere, and embracing the concept of delegating and elevating, you can significantly elevate your client experience. When clients feel genuinely cared for and well-served, they are more likely to share their positive experiences with friends and family. This leads to a steady stream of high-quality referrals, helping your business grow sustainably and with the right kind of clients. An exceptional client experience not only fosters loyalty but also transforms your clients into enthusiastic advocates for your services.
If nothing else, our clients are very vocal about how we’ve improved their client experiences and helped them grow.

“I will say from the beginning East Bay exceeded my expectations, and I feel the value you provide to my clients has only increased as my firm has grown. My firm’s AUM has nearly tripled over (our first three years together), and I’m sure East Bay has been part of the reason why.” – David M., CFP®, Founder

In response to our communication about Silicon Valley Bank collapse

“I just wanted to follow up and let you know that we all found your timely SVB piece to be very valuable. As you know, we turned it into a blog post and sent out comms to our clients- all with a quicker turnaround than normal. We are looking forward to using more of your content as we dig more into our own marketing and communications push. Steve in particular mentioned how much he enjoyed how clearly and simply this recent piece was written.” – Aaron B., CFP®, CPWA®

If you’re ready to get back to planning and improve the great client service you’re already providing, let’s talk. Schedule your complimentary intro call to learn if we’re right for you.

Or, if you’re not sure you’re ready, simply take our “Is an OCIO Right for Me?” Quiz here.

We look forward to welcoming you into the East Bay community.

These testimonials are from current or past East Bay clients who were not compensated for their testimonials and no conflict of interest exists between these clients and East Bay Investment Solutions.

In the dynamic world of financial advising, some advisors stand out by propelling their practices to new heights of success and client satisfaction. What sets these fast-growing advisors apart? Often, it’s their strategic decision to embrace outsourcing for investment management—a transformative choice that enhances both client relationships and operational efficiency.

Let’s explore the shared characteristics of these rapidly growing advisors and see how their innovative approaches are reshaping the advisory landscape.

1. Focused Client Interactions

Imagine your daily schedule cleared of cumbersome asset management tasks, now filled instead with deep, meaningful client interactions. According to industry insights, 61% of advisors cite “freeing up time” as the top reason for using external investment management capabilities. This time saved allows advisors to focus on truly understanding and meeting their clients’ unique financial aspirations— a cornerstone for building lasting relationships and achieving high client retention and satisfaction.

2. Leveraging Expertise for Enhanced Services

Fast-growing advisors often have one thing in common: they provide superior, customized investment solutions previously beyond their capacity due to limited resources. By outsourcing, advisors gain exposure to a diverse portfolio of high-quality investment strategies managed by experts. This partnership not only expands the scope of their offerings but also solidifies client trust and loyalty, which are crucial for sustaining and growing a successful practice.

3. Building Deeper Connections

The best-performing advisors understand the importance of evolving client interactions from transactional exchanges to profound, impactful communications. With the logistical side of investments managed by outsourcing partners, advisors can concentrate on discussions that resonate on a deeper emotional level—about life changes, retirement aspirations, and legacy planning. This deeper engagement significantly enhances client retention and attracts new clients seeking personalized advisory experiences.

4. Personal and Professional Fulfillment

The journey to exceptional growth is not only about external achievements but also about personal satisfaction. Outsourcing markedly improves advisors’ work-life balance, with 95% reporting reduced stress and more time for individual pursuits. This balance is crucial for maintaining passion and dedication in their professional roles, ensuring that each day is productive and fulfilling.

5. Proactive Adaptability

Advisors who experience rapid growth are often characterized by their ability to quickly anticipate and adapt to market changes and client needs. They use the insights and support gained from their outsourcing partners to stay ahead of trends, offering proactive solutions that address both current and future financial challenges faced by their clients.

A Strategic Path Forward

Becoming a top-performing financial advisor involves a blend of innovative practices, deep client commitment, and operational excellence. The fastest-growing advisors leverage these elements to meet and exceed their clients’ expectations, setting new benchmarks in the financial advisory sector. As the industry evolves, embracing these strategies could be your key to unlocking exceptional growth and client loyalty.

For advisors poised to elevate their practice, exploring a partnership with a leading outsourcing firm might just be the catalyst needed to join the ranks of the fastest-growing advisors in the industry. If you’re ready, let’s talk.

Imagine a world where the role of a financial advisor is no longer defined by the daily operational burdens that consume their time but by their ability to connect with and deeply impact their clients’ lives. This is the transformative potential of investment management outsourcing, a strategic shift that liberates advisors from mundane tasks, allowing them to focus on what truly matters—their clients.

Tailoring Your Practice for Greater Impact

Picture this: a workday without the burden of back-to-back administrative tasks. Instead, you have scheduled deep-dive sessions with clients to explore their long-term visions. Outsourcing the technical functions of asset management liberates you to concentrate on developing tailored financial strategies that closely align with your clients’ aspirations. This not only simplifies your operations but also elevates your role from a financial advisor to a trusted life advisor.

A recent Deloitte survey supports this transformation, highlighting that most organizations experience enhanced operational efficiency and better resource allocation through outsourcing. This efficiency isn’t just about doing the same with less; it’s about doing more with what you have—redirecting your time and efforts towards what truly adds value to your client relationships and personal satisfaction.

Elevating Client Service with Expert Backing

Now, imagine the confidence of consistently offering top-tier, customized investment solutions without having to think about resource limitations. Outsourcing provides access to a broad spectrum of high-caliber investment strategies managed by experts. This capability not only enriches your service offerings but significantly strengthens the trust and loyalty of your clients, providing them with peace of mind and satisfaction that their financial futures are in capable hands.

Transforming Operations with Strategic Outsourcing

Envision an operational structure where efficiency and effectiveness are the norms, not the goals. Outsourcing streamlines your business processes, reducing operational and financial advisors cost and enhancing compliance protocols. This strategic shift allows you to allocate more resources towards growth initiatives, such as market expansion or service diversification, setting your practice apart in a competitive industry.

Deepening Relationships Through Focused Interactions

With the logistical load managed by your outsourcing partner, your client meetings can now delve into deeper discussions about life changes, retirement plans, and legacy goals. This shift from transactional to meaningful interactions can significantly enhance client retention and attract new referrals seeking a more personalized advisory experience.

A study by DALBAR Inc. supports the importance of these deepened interactions. During the market volatility following the COVID-19 crisis, 86% of investors reported increased confidence in their financial advisors who maintained proactive communication. Additionally, 87% of these investors said they were more likely to retain their advisors, underscoring the critical role of engaging meaningfully and regularly with clients, especially during challenging times.

This enhanced engagement enriches your relationships, boosting client retention by demonstrating that you are not just a financial advisor but a committed partner in their financial well-being.

Redefining Personal and Professional Satisfaction

Finally, imagine a career where personal satisfaction and professional achievements are not in conflict, but rather complement each other. According to a study by an independent research firm, 95% of advisors reported having a better work-life balance as a result of outsourcing. This statistic emphasizes the fact that outsourcing allows you to free up your schedule and reduce stress, leading to a healthier work-life balance. This newfound balance can rejuvenate your approach to work, improve your client interactions, and reignite your passion for your career, making each day more fulfilling and impactful.

Embracing Outsourcing for a Future-Ready Advisory Practice

The shift towards outsourcing in financial advising is not just about keeping up with industry trends—it’s about pioneering a movement prioritizing effective, client-centered service. For advisors considering this strategic transformation, the partnership with a seasoned outsourcing firm like ours doesn’t just promise enhanced operational capabilities—it offers a reimagined way of doing business that places client relationships and advisor satisfaction at the forefront.

For advisors ready to step into this promising future, exploring a partnership with a leading outsourcing firm could be the next pivotal step in your professional journey. Let’s talk.

The allure of a stock that skyrockets in value can be intoxicating. However, holding a large position in a single company, a concentrated stock position, exposes your portfolio to significant risk. Imagine all your eggs in one basket – if the company falters, your entire portfolio suffers. Fortunately, there are strategies you can employ to diversify your holdings and spread that risk.

What Exactly is a Concentrated Stock Position?

A concentrated stock position is when a significant chunk of your investment portfolio—often thought of as 10 % or more—is tied up in a single company’s stock. There are many ways to end up with a concentrated stock position, such as inheriting shares, receiving equity-based compensation from your employer, or simply investing heavily in one particular company.

Here are some key strategies to diversify a concentrated stock position:

Gradual Selling and Strategic Reinvestment

The most straightforward approach is to gradually sell a portion of your concentrated holding and reinvest the proceeds into a diversified portfolio. This allows you to capture some of the gains from the stock while mitigating risk. Here’s how to approach this:

Develop a selling schedule: Determine a set amount or percentage of your holdings to sell at regular intervals. This could be weekly, monthly, or quarterly, depending on your comfort level and the stock’s volatility.

Choose diversification targets: Based on your risk tolerance and conversations with your advisor, invest the proceeds into a diversified asset allocation.

Potential tax implications: Consider the tax implications of selling. If the stock has appreciated significantly, you may incur capital gains taxes. Consult with a tax advisor to understand your tax liability and explore strategies to minimize it.

Tax-Advantaged Gifting

Gifting a portion of your concentrated stock position to family members or charitable organizations can be a win-win strategy. It reduces your portfolio concentration and potentially offers tax benefits:

Family gifting: Gifting shares to family members allows you to gradually transfer wealth while potentially reducing your estate tax burden. Annual gift tax exclusions will enable you to transfer a certain amount of assets tax-free. Consult with a tax advisor to understand the current limits and potential tax implications.

Charitable donations: Donating appreciated stock to a qualified charity allows you to deduct the full fair market value of the stock from your taxes, potentially reducing your tax liability. Consult with a tax advisor to understand the current limits and potential tax implications.

Utilizing Options Strategies 

Options contracts offer more complex strategies for experienced investors to hedge their existing positions or generate income. Here are three common methods, but remember, these may involve significant risk and require a thorough understanding of options:

Selling covered calls: You sell call options on your stock, granting the buyer the right to purchase your shares at a specific price by a certain date. If the stock price rises and the option is exercised, you are obligated to sell your shares at the predetermined price. By selling the covered call options, the seller is able to generate income.

Buying put options: This strategy helps protect your downside risk. Put options give you the right to sell your shares at a specific price by a certain date. If the stock price falls significantly, you can exercise the put option and sell your shares at the predetermined price, limiting your losses.

Collar: This strategy is a combination of both selling a covered call and buying a put option.  In theory, the income received from selling the covered call allows the investor to pay for at least some of the cost of the put option.

Exchange Funds

Exchange funds allow for diversification from a concentrated stock position into units of a more diversified pool of securities, an Exchange Fund  (Note: exchange funds are different vehicles from exchange traded funds, or ETFs).   There may be differences among exchange funds but it is expected that investors must be qualified purchasers (QPs) in order to participate.  In addition, the exchange fund must have capacity to accept the particular security the investor is looking to diversify away from.  Also, it is strongly suggested to speak with a tax professional to fully understand any tax consequences.

Separately Managed Account (direct indexing)

The use of a separately managed account (SMA) is another way to help diversify away from a concentrated stock position.  For example, with direct indexing (the SMA is the investment vehicle used), the investor would hold a number of individual stocks that aim to replicate a particular index.  Through holding the individual stocks, the investor would be able to sell any of the stocks that have losses and use those losses to offset any capital gains from selling the concentrated stock position. Consult with a tax advisor to understand the current limits and potential tax implications.

Holding and Managing Around the Concentrated Position

If you have a firm conviction in the long-term prospects of the company, you might consider holding onto the stock while building a diversified portfolio around it:

Focus on core portfolio construction: Invest in a diversified mix of assets based on your risk tolerance and time horizon. This could include a combination of index funds and actively managed mutual funds and bonds.

Rebalance periodically: Over time, the weightings of your assets will inevitably shift. Regularly rebalance your portfolio to ensure it aligns with your target asset allocation.

Monitor your overall risk profile: While the concentrated position remains, monitor its impact on your overall portfolio risk. Consider adjusting your diversification strategy if the concentrated position becomes a disproportionately large share of your portfolio.

Step-up in cost basis: Finally, if you hold the security until your death, the cost basis of the security receives a “step-up” in cost basis for those inheriting the asset, potentially reducing capital gains exposure.

East Bay Investment Solutions cannot provide tax advice and would recommend speaking with a tax professional before implementing any of these possible solutions.