David Stone Talks Volatility and Opportunity on RIA Intel

How Can Advisors Prove Their Value?

These days, saying “The markets are volatile” feels simultaneously both incredibly obvious and like the world’s driest understatement. Volatility isn’t just something we’re experiencing right now, it’s defining how we live in a variety of ways both large and small. When volatility becomes an ingrained part of your daily existence, it’s natural to shy away from risk… it’s natural, but is it helpful?

That’s the subject of RetireOne CEO and co-founder David Stone’s latest piece in RIA Intel, “Volatility Presents Opportunity: Here’s How Advisors Can Prove Their Value in Bumpy Markets.”

In the article, Stone talks about the various risks Americans are facing – sequence-of-return risk, longevity risk, inflation, the increasing unlikelihood that traditional safe havens will be enough – and presents data to back up an understandable conclusion: people are scared of outliving their money. He also suggests a way for advisors to capitalize on an opportunity to do the right thing not only for their clients, but for their business.

Insurance solutions are not only often in clients’ best interests, but insurance and annuity capabilities may contribute to firm AUM growth and revenue growth. Research from Dimensional Fund Advisors reveals that insurance is a key differentiator between bottom quartile and top quartile firms (as measured by Net Promoter Scores). And yet nearly 40% of respondents to the 2022 RIA PARI survey refer insurance to an agent down the street or ignore it altogether.

Partnering with an [outsourced insurance desk] allows advisors to offer advisory insurance options that help them retain control of and transparency into their clients’ financial lives.

It’s becoming increasingly clear that all this market volatility isn’t likely to just go away and let things return to normal. Clients need a plan to weather the storm, and advisors need to be providing that plan. An OID can be a valuable partner in creating that plan for clients.