The 80/15/5 Rule For Financial Advisors – Forbes

Written by Gary Campbell

There was a shocking stat being circulated earlier this year. The stat, published in a study by Kitces.com, found that the typical advisor spends less than 20% of their time meeting with clients. If you are a financial advisor, stop everything you are doing and assess where you’ve spent most of your time this past week. If less than 80% of your time was face to face with clients, this is your wake-up call.

Financial advisors are small business owners. Their service is their expertise in the areas of insurance, investments, retirement and financial planning. The revenue-producing activity of financial advisors is to deliver knowledge and information. If you aren’t consistently offering your expertise, you are not maximizing your profitability and may be putting your small business at risk.

Consider other professionals who provide expertise as a service. Doctors, lawyers and counselors need to spend most, if not all, of their time delivering knowledge. Unfortunately, just like doctors, lawyers and counselors, financial advisors lose profit and growth by spending too much time doing things outside their realm of expertise. They may be mired in administrative tasks, compliance oversight, hiring, systems management and marketing, just to name a few.

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By Maria Ordonez
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