In this week’s blog roundup we talk all things inflation, practice tips for advisors seeking independence, strategies to get your clients to actually take your advice, and our weekly market insights.
Rusty’s Monday Morning Insights
In this week’s “Monday Morning Insights,” Orion Portfolio Solutions’ Chief Investment Strategist Rusty Vanneman reviews the bottom line on the potential tax impact from President Biden’s plan, which he predicts will dominate headlines for a while. Keep investors at ease by reading our insights here.
Check out Rusty’s market review.
Portfolio Recipes: Brinker Capital and Main Management
With an inflation scare in the air, financial advisors are faced with the challenge of how to best protect their clients. At Orion, we have the answer—pair together Brinker Capital Investments’ & Main Management’s strategies to best balance clients’ portfolios.
Create the perfect portfolio recipe to aid clients amidst inflation.
Go-To Tactics That’ll Get Clients to Take Your Advice
Do you think of yourself as a leader? In the second installment of our Advisor Lifecycle series, find out why being one is so critical to your role as a financial advisor, and how you can use Dr. Daniel Crosby’s six pillars of influence to help guide your clients to better outcomes.
Become an improved leader today.
Magnus Financial Group’s 7 Best Practice Tips
Our Breakaway Spotlight series continues, and this time, with Michael Schwartz, CEO and Founder of Magnus Financial Group. We dive into his best practice tips and valuable insights for advisors interested in going down the path to independence.
Learn Michael’s top seven insights you need to know.
Ready to Watch and Learn? We keep a library of on-demand webinars. Click here to watch one whenever you’d like!
1500-OAT-5/3/2021
Welcome to #FinTok: The Viral Space That’s Bridging the Gap with Young Investors2020 was a smorgasbord of momentous events and experiences, from nationwide shutdowns and market volatility to virtual hang outs and toilet paper shortages. Amidst the uncertainty and unpredictability of the COVID-19 pandemic, many households across the nation turned to TikTok, a video-sharing social platform, as a therapeutic outlet, means for entertainment, news source, and even go-to resource for financial advice.
TikTok, released in 2016 under a different title, started off as a space for users to show off self-produced, 15 to 60-second videos through choreographed dance challenges, lip syncs, comedic skits, and memes. It has since developed into a lifestyle guidebook where people look to influencers for tutorials on almost every genre, including beauty, health, fitness, travel, and food.
The social media giant, which has amassed close to 700 million users and over 2 billion app downloads, grew in popularity in 2018 and continued to gain traction during the global pandemic. So much so, it outperformed established competitors like YouTube, Facebook, and Instagram. As users found respite in TikTok, the social network evolved into a worldwide phenomenon.
While people took to the app to post fun dance videos and mouth-watering recipes, finance also joined the ranks. The viral niche, known as FinTok, offers free self-help content on personal finances and investing for young investors; however, it has also attracted criticism with its unrealistic and impulsive suggestions that leave uninformed investors vulnerable to the dangers of misinformation.
On the other hand, industry experts can use this as an opportunity to clear the noise, and in turn, find new means to target potential clientele. For financial veterans, FinTok just might be the answer.
What is FinTok?
Finktok, also referred to as Financial TikTok or StockTok, is a subcommunity of TikTok users who provide advice, education, and discussions on personal finance in short clips. Videos are created by influencers and self-proclaimed experts, and span a variety of topics. “How to organize your money.” “Do these things to grow your ????.” “Should you take out a loan to invest?” “What’s a Roth IRA?” “7 stocks to buy and hold FOREVER ????????.”
The use of emojis, energetic and captivating content creators, and get-rich-quick messaging easily draws in users. At the time the article was written, #FinTok has been viewed 274.3M times, while the related #StockTok has reached 966.6M views. Stocks, at 2.9B views, and Investing, at 2.2B views, are also extremely popular hashtags. It’s not stopping either, as numbers continue to grow with each hour.
This past year’s market volatility and economic uncertainty further increased user interest in the world of investing, and younger generations, who saw the pandemic’s direct effect on their household, also want to guarantee themselves future financial security. Currently, 62 percent of active users on TikTok are aged 10 to 29 and spend an average of 42 minutes on the social platform. The ability to watch numerous videos in a short timeframe and consume information at a fast pace makes the app become even more influential.
Some are even acting on dangerous advice, despite not verifying the information, and are swept up in the possibility of gaining quick returns. This can place young investors at risk and put them on the path to a volatile financial future.
Dangers of Viral FinTokers
On the surface, FinTok is promoting financial literacy amongst younger generations and introducing them to education they may not have received in school. According to the National Financial Educators Council’s 2017 study, more than half of young adults surveyed agreed that a money management course would benefit their lives more than other high school courses.
The fear of not having financial security and the lack of education is real, and the desire for knowledge exists. But like all things on the Internet, not everything can be trusted. As FinTokers continue to upload free content hourly, new investors are faced with the challenges of distinguishing credibility and navigating the traps of misinformation, myths, and scams.
And there’s a lot of it out there. Paxful, a global cryptocurrency trading platform based in New York City, analyzed thousands of videos from popular FinTokers and found one in seven videos were misleading and didn’t include a disclaimer. People were either encouraged to invest in specific stocks or shares, make an investment based on the idea that they would make more money in the end, or invest a specific amount of their savings or income.
Millions of followers—about 9.46M to be exact—who’ve been exposed to misleading information leaves additional room for concern and many to question if debacles such as GameStop (GME) and AMC Theatres can strike once again.
A Doorway for Finance Veterans
The influence, reach, and potential on FinTok is endless, creating an inviting space for seasoned advisors to enter the platform. They have the chance to properly educate the next generation of investors and simultaneously get in front of them in a way they haven’t been able to.
We’ve listed five ways advisors can seize the FinTok opportunity.
- Create an account and start making content
First and foremost, you must be on TikTok to reach young investors. Sign up, create your account, and get started making videos. Even if they are not the flashiest in the beginning and don’t incorporate the use of transitions, filters, effects, and music, the content will speak for itself. In due time, you will learn TikTok’s creative tricks and feel confident making entertaining posts, but you won’t get there until you start. Create an introductory post explaining who you are, your background, and your experience to establish validity. Users who know a little about you can quickly trust you and turn to you over those who haven’t mentioned their history in the field. - Develop a content calendar
After you’ve published your first video introducing yourself in 60 seconds or less (talk about speed interviewing), take the time to develop a content calendar for yourself with topics and themes that you plan to post throughout the week. If you would like to focus on myth-busters, dedicate each video to a common financial myth that inexperienced investors may fall for. If you would like to increase financial literacy, break down each month into mini-lesson plans on financial planning, investing, and so forth. You won’t find yourself scrambling each week for content and will have a queue of ideas that can be recorded. Posting videos often creates consistency, which is key for garnering a devoted audience. - Utilize the power of trends and headlines
It seems like anyone and everyone was talking GME this past February, and if you weren’t discussing it, you must have been living under a rock. With breaking headlines generating a lot of buzz, what better time to join in on the discussions? These industry-related trends can provide more materials for FinTok videos, but also allow you to reach even more investors who care about the topics.The International Monetary Fund’s latest global economic outlook is another example that could portray nicely through video and provide talking points. Keep your eyes peeled and use important headlines to help your voice stand out. - Implement relevant hashtags
If there’s one focal takeaway from this article it’s the impact of the FinTok and StockTok hashtags. This will help you organically reach app users who are looking for this specific type of content. Are you talking about Roth IRAs or thematic investing? Add those hashtags in your post description. Do you want to target people interested in stocks? Use #stocks and see your video views gain attraction. - Take advantage of TikTok advertising
While organic videos can start getting your name out there, promoted pieces will expand your reach. TikTok Ads platform allows you to select up to 20 keywords to describe your website to best match you with the appropriate audience and select targeting options for your ad (location, age, gender, languages, interests, and more). You’ll be able to set your budget and start reaching the right folks.
If you’re looking for modern strategies to connect with a new generation of investors, TikTok and the FinTok niche may be just what you’ve been looking for. Use these five tips to get started and set yourself apart from competitors.
1343-OAT-04/20/2021
The nation has slowly readjusted back into former routines of everyday life, from attending doctor’s appointments to shopping inside physical stores and dining outside of restaurants. While people are adapting to the world again, they still face uncertainty and concern each time they leave their house.
Similarly, investors are also recovering from stress and anxiety, as they, too, assimilate into a new norm. Market volatility and increased unemployment rates caused by the COVID-19 pandemic have diluted their confidence, hindered their financial plans, and left them with doubts about how to move forward.
This intense fear surrounding economic disruption has given rise to the need for financial therapy—a form of psychotherapy that combines financial planning services with mental health treatment. People are finding themselves in need of a shoulder to lean on for more than just financial guidance.
During the early effects of the coronavirus, you may have experienced an influx of panic-stricken calls from your own clients who turned to you with their worries. It’s likely they discussed fears of losing a job, inability to pay bills or debts, or depleting their savings accounts. It’s also likely that you spent much time consoling them before assisting with their assets.
According to research conducted by the Kinder Institute, advisors reported spending about 25% of their time with clients on non-financial issues, with another 74% stating that their clients became emotionally distraught—crying, sobbing, trembling, or acting violently.
The need for economic and emotional support during these unprecedented times is high, and, although you may not be a financial therapist, you can implement several strategies to provide guidance. By jumping in and placing clients at the forefront of effective solutions, you can help ease anxieties and restore their trust, while simultaneously showcasing the value you offer.
Here are several ways you can help ease your clients’ stressors:
Revisit Clients’ Financial Plans
With or without a pandemic, life happens, and circumstances change; your clients will continue to experience new horizons that can impact their current financial plans.
Remind your investors that it may be necessary to adjust their financial goals, including long-term cash flow projections. Ensure they’re asking themselves important questions, like if their savings amount or emergency funds have been impacted, if their expense levels have increased or possibly decreased, or if their finances will be impacted if the coronavirus continues through the next six months to a year. It’s imperative that your clients engage in these conversations and review various scenarios so they feel prepared for anything.
To help guide your clients, Orion’s new client portal offers a full picture of their accounts, financial plans, and investment performance, making it more efficient for them to update where needed. If you’re interested in learning more, click here.
Facilitate Thoughtful Conversations
When times are rough, people tend to handle their emotions one of two ways: contact a trusted source to discuss the personal matter, or internalize the situation and attempt to handle it on their own. While you may have already witnessed the former with several investors reaching out, think about those who haven’t. Communication is the key to letting your clients know that you value them and are here for them.
There are several ways to facilitate conversation with clients. You can contact them directly on the phone, or create a thoughtful email that can be easily templated and used for widespread outreach. If you would like to take a more detailed approach to weigh engagement and response rates, turn to Orion’s new marketing solution, Market*r. There, you can create content campaigns around thoughtful messaging that offer relevant risk tolerance and financial planning strategies, along with market updates, equipped with direct call-to-action buttons that will drive readers to your financial planning workflows.
Our team can walk you through a demo for additional information surrounding Market*r’s capabilities and how it can assist you and your clients.
Remain Informed
When we dial a family member, friend, colleague, or coworker when faced with a difficult decision, it’s because we value their opinion and trust their perspective. When investors contact advisors, it’s for similar reasons—they’re looking to you for your expertise and knowledge.
Being connected to all that is happening in the market is important now more than ever, and at Orion, we want to give you the resources you need to stay up-to-date. We created our Market Volatility Command Center for this reason, which will aid you in conversations with clients who may have concerns. You’ll discover weekly videos that feature key industry experts, written commentary from Orion’s Investment management team, and insights from strategic partners.
Hopefully, in the coming months, our world will feel less daunting and stressful. When clients start to feel more grounded, they’ll remember you cared not only about their assets in a time of need, but also about their overall well-being.
Ready to learn more about how you can guide your clients and assist them with their portfolios? Get in touch with us today!
2446-OAS-09/23/2020
How to Get Started With the New Orion Client PortalEach day, people find themselves mulling over thousands of thoughts and questions. What should I make for dinner? When should I tackle this project? How can I get around this traffic? Did I remember to lock the front door?
At Orion, we make sure to not add to the laundry list of concerns. With our newly improved Client Portal, we help provide your clients with a one-stop experience, so they never have to face an overwhelming number of personal financial management portal options. Instead, clients can access everything they need through a single portal for a complete picture of their financial lives. They’ll always know where their accounts are, how they are performing, and most importantly, how they are progressing towards their financial goals—without a question.
The upgraded, redesigned tool fuses our legacy client portal with the client portal available through Orion Planning platform (formerly known as Advizr) for a seamless experience. Clients can aggregate their accounts when needed, view important investment data, automate account openings, and store essential documents without having to work out of various systems.
This direct process will give you a leg up, too. You can begin increasing revenue, enhance your client engagement, and improve your clients’ overall experience. To transition to the new Orion Client Portal today, follow these five simple steps:
Step One: Contact Our Support Team
If you haven’t already set yourself up in the Orion Planning Platform, contact our Support Team who will help get you signed up today. Our team will grant you access to the platform and help get you acquainted quickly, answering any questions you may have during the process. You can also reference our FAQ, available here, for additional assistance.
Step Two: Share the Exciting News
Now is a great time to reach out to your clients to let them know that their online portal experience is about to get even better. We created several pre-built client communication templates your team can leverage as you connect with them. To help make your outreach process easier and more effective, we also developed several customizable fact sheets, presentations, and email announcements that are editable to fit your needs. Check them out here.
Step Three: Connect Your Clients
To officially transition all your clients onto the new portal, reconnect with our Planning Support Team, who will do all the work behind the scenes, using a redirect we built into the system. That way, once your team is ready to “flip the switch,” all your clients will be redirected to the new portal using their original login and credentials as before. They will be able to locate their investment data, documents, and account balances—all in one place.
Step Four: Customize Your Clients’ Portals
Now is a great time to get your clients settled before they’re exploring the portal themselves by choosing what they have access to. Simply click on your client’s name at the top left-hand corner of their plan, then select “Configure Access” at the very top of the dropdown menu. From there, you can toggle what they can or cannot specifically access, such as their current finances, financial plan, profile, documents, assistance from an advisor, and credit monitoring.
After determining the configuration of the portal for your client, be sure to review the settings you’ve applied. Click on the “Preview Client Portal” link, which can be found at the bottom of the “Configure Access” page. The link will provide a preview of your client’s experience, displaying exactly what they will see when they log in.
Step Five: Encourage Portal Onboarding
Before your clients can begin reviewing their plans, they will need to complete onboarding, which requires each of them to input data for a specific goal you select. To get this process started, visit the “Configure Access” page of their profile and toggle on the “Onboarding” selection, then choose which goal you would like your clients to fill out, such as retirement workflow or comprehensive workflow. When your clients first log on, they will be required to enter the necessary information to move forward.
Once they input their data, turn off the onboarding feature, so your clients can jump right into their dashboard for a review of their financial planning of performance data. Keep in mind, if the onboarding toggle is accidentally left on, they will always be taken to a data entry area upon logging in.
Experience a Stronger Advisor-Client Relationship
Engaged clients are happy, loyal clients. With the new client portal at their fingertips, your clients are empowered to always stay invested in their journey toward financial wellness.
Within the portal, clients can view financial planning and portfolio data side-by-side, helping to draw the valuable connection between progress toward goals and investment strategy. Video chat, co-browsing, and screen sharing services offered through the portal make it easy for you and your clients to stay in touch—and, ultimately, collaborate together.
As a comprehensive, modern, and intuitive tool, the new client portal does more than enhance the client experience: it seamlessly places you at the center of your clients’ financial well-being.
Do you want to strengthen your client relationships and get involved in their financial well-being? Click here to contact our support team and get started in our Orion Client Portal today!
If you’re interested in our portal but not yet working with Orion, let’s talk. Click here to schedule a demo with our team. We can’t wait to help you!
2298-OAS-09/02/2020