Calculating the Cost Of Servicing Small Accounts And Setting Smart Minimums

The Rainmaker Multiplier On-Demand Podcast

Calculating the Cost Of Servicing Small Accounts And Setting Smart Minimums

In This Episode

There will come a time when continuing to serve the needs of smaller accounts or those outside of your target audience will no longer serve the needs of your firm. In this Coffee Break with C2P, host Jason L Smith addresses the challenges of managing small accounts as your firm continues to grow and how setting account minimums can help you hone in on your ideal client base. Joined by experienced professionals, Bryan Bibbo, AIF, NSSA, BPC, Lead Advisor, President, and CFO at JL Smith Holistic Wealth Management, and Greg Hammer, CEO and President of Hammer Financial Group, the three discuss the financial strain of servicing small accounts and the strategic implementation of account minimums to enhance your firm’s efficiency and overall client satisfaction.

Key Topics Discussed:

  • The Financial Impact of Small Accounts: Exploring the true cost of servicing small accounts and the challenges it presents.
  • Establishing Account Minimums: The process and rationale behind setting firm minimums to ensure sustainable business operations.
  • Strategic Client Reallocation: Benefits of transferring smaller accounts to advisors who can provide the necessary attention and service.
  • Balancing Service Quality and Firm Profitability: How to maintain high service standards while managing costs effectively.
  • Work-Life Balance for Advisors: The importance of creating a sustainable work environment for advisors by managing client loads.
  • Effective Client Communication: Strategies for transparently communicating service limitations and alternatives to clients.
  • Practical Solutions for Smaller Accounts: Offering actionable advice for clients with smaller portfolios, including recommending fixed-rate investments and passive ETF portfolios.

Tune in to learn how you can follow in these advisors’ footsteps and optimize your client relationships by setting smart account minimums.

Calculating the Cost Of Servicing Small Accounts And Setting Smart Minimums

About the Guests

Bryan Bibbo, AIF, NSSA, BPC, serves as President, CFO, and Lead Advisor at JL Smith Holistic Wealth Management, focusing on retirement planning, estate, and financial income planning. Since 2015, he has provided financial education and retirement planning strategies to residents in Northeast Ohio. His client base includes successful professionals, business owners, and retirees seeking to develop financial strategies for wealth optimization and securing a reliable income source during retirement. Bryan is committed to ensuring his clients’ financial plans are both comprehensive and adaptable, allowing for peace of mind regarding their financial futures.

He holds various professional licenses and designations, including Life and Health Insurance, Series 65, and the Annual Filing Season Program (AFSP) with the Internal Revenue Service. His specialized designations include National Social Security Advisor, Accredited Investment Fiduciary, and Bucket Plan Certified®. Bryan advocates for a holistic retirement plan that addresses key areas such as withdrawals, taxes, risk tolerance, long-term care mitigation, and inflation, emphasizing the importance of flexibility to adjust plans according to changes in laws, taxes, and the economy.

Greg Hammer is an experienced financial advisor and entrepreneur with over two decades in the financial services industry. After graduating from Yale University with a Bachelor’s degree in Applied Mathematics, Hammer began his career in 1992. In 2004, he founded Hammer Financial Group, Inc., an independent financial advisory firm providing comprehensive wealth management, income planning, legacy planning, tax preparation, and Medicare planning services.

Hammer has built a successful holistic practice, serving over 2,200 tax clients and 800 financial advisory clients annually. He is recognized for his comprehensive advising approach, integrating financial, insurance, and tax planning under one roof. Hammer has received accolades such as being named a top five candidate for 2014 Advisor of the Year by Retirement Advisor magazine. He is an Ed Slott Master Elite IRA Advisor and has qualified for the Million Dollar Round Table’s Top of the Table. Beyond his professional endeavors, Hammer is actively involved in his local community, serving on boards and supporting charitable organizations.