Client advisory boards can provide valuable feedback, build relationships INVESTMENT NEWS by Lisa Shidler Delving deeper into what clients want and expect is more than a sound business strategy; it's a matter of survival. For many advisers, a client advisory board, made up of a cross section of their firm's best clients, is an important — and often underutilized — tool that can help strengthen client relationships and lure profitable clients from rivals. “Advisers who have client advisory boards have a huge competitive advantage,” said Mike Watson, director of practice management at TD Ameritrade Inc. “Client advisory boards deepen customer relationships and loyalty.” Gabriel Garcia, managing director of business consulting with Schwab Advisor Services, a unit of The Charles Schwab Corp., agrees that an advisory board can play an integral role in a firm's growth. “As an adviser's business continues to evolve, they need to get feedback from clients,” he said. “Client advisory boards become critically important on many fronts.” Firms of all shapes and sizes can benefit from such boards. In addition to strengthening relationships with clients, advisory boards provide firms with a laboratory where they can test ideas — everything from shifting a firm's focus to hiking fees. A good advisory board may also serve as a sentry for potential problems before they get out of hand. ..... read more

Financial consultants share some of the secrets of the trade. READER'S DIGEST by Michelle Crouch. 1) Certified financial planners and NAPFA-registered financial advisers take a pledge to put their clients' interests ahead of their own, but traditional stockbrokers aren't held to the same standard, even if they've given themselves the title “financial adviser.”   2) Do some digging before you hand me the keys to your future. Use BrokerCheck at finra.org to see if I've been in trouble.   3) If I work on commission, I typically make money whenever you buy a new product, and I've probably got monthly quotas to meet. That's why I always seem to call with something to purchase at the end of the month.   4) I may have other incentives to get you to buy. If I sell to enough people, I could win a trip to the Caribbean, a new laptop, or a big bonus. (The guys behind the product may also have bought my dinner at Morton's last week and sponsored our corporate golf tournament.)   5) Before buying a mutual fund with a load, see if there is a better option. For every fund that has one of these sales charges, there's usually a similar one that doesn't.   6) Be careful with annuities. They pay me big commissions, but they're not a good fit for many clients.   7) Stay away from investments that have a fee to get back out. If you get married, get divorced, change jobs, or move, it can come back ..... read more