Michael Kitces: 8 Ways Planners Can Earn More Income in Less Time
1.Choose a specialization.
Echoing comments he made in a recent webinar on scaling advisory practices, Kitces said that, regardless of field, “specialists make more than generalists,” whether you’re looking at accounting, law, medicine or just about any other professional field.
“We’re now seeing a similar trend beginning to emerge amongst financial advisors” who select niche areas and create specializations, said Kitces, “particularly those who are at the top of their game in the top specializations, are often now generating income at the levels of specialist doctors and attorneys.”
The top 10% highest earning advisors who don’t have a specialization earn as much as $400,000 a year in take-home pay compared to almost $700,000 of income that the top 10% with specializations make, he went on to say. “Granted, anybody who’s at the top of their game is making some pretty good money, but those who are at the top of their game and specialized are earning 50 to 100% more.”
Having a specialty also makes planning more efficient, he said. If an advisor has done financial planning for over 20 ExxonMobil executives, for example, that advisor is bound to be more knowledgeable about such clients and able to complete their planning strategies faster.
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