Financial Advisor Success Ep 169: Combating Advisory Fee Compression By Unbundling Investment Management And Financial Planning Fees with Alexandra Levi
Mar 24, 2020
Alexandra Levi, founder and managing partner of Element Financial Group who built a planning-forward hybrid RIA, explains unbundling planning and investment fees. She discusses setting renewable planning retainers, using tech to scale planning, running virtual quarterly check-ins, and how she found a business partner and platform fit. Practical moves to protect revenue and grow a planning-first firm.
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Turned Down A Merger Over A Lifetime Noncompete
- Alexandra walked away from merging into a five-partner firm because they demanded a lifetime non-compete and majority control.
- That split led her to call Joanann and cofound Element Financial Group instead.
Big Firm Compliance Can Penalize Sophisticated Planning
- Large insurance/brokerage firms often treat sophisticated planning as a compliance liability rather than an asset due to scale.
- That mismatch pushed Levy to leave and build an independent planning-focused firm where compliance supports, not restricts, advanced advice.
Hire A Recruiter To Vet Broker Dealers
- Use a recruiter when vetting broker-dealers to efficiently evaluate cultural fit and services.
- Levy hired Mindy Diamond to shortlist six BDs, then toured platforms and chose Commonwealth for planning-friendly compliance and support.