To avoid burnout, ditch old habits

Steadily rising markets have helped registered investment advisers expand their businesses and increase profits. According to the Charles Schwab Corp.’s 2014 benchmarking survey, RIAs of all sizes have recorded remarkable growth since the market lows of 2009, with median compound annual growth of 12.8% in assets under management and 13.6% in revenue.

But with great success can come great stress. Health Magazine included financial adviser in its list of 10 careers with the highest rates of depression. As the magazine points out, most of us feel anxious when dealing with our finances or retirement planning. Imagine having to do that with millions of dollars of other people’s money.

A recent survey from Adhesion Wealth Advisor Solutions found that, though their revenue has been rising since 2009, RIAs are feeling more pressure than ever before. Seventy-nine percent of those surveyed rated the stress level of their job at seven or higher (out of 10), while 63% said it had increased over the past year. Conclusion — success has its price.

Many things cause RIA stress, from working 60-hour weeks with no end in sight to struggling to find and retain the talent to support growth.

The positive is that RIAs are aware of the challenge, and many have devised ways to manage stress. In fact, they are actively evaluating their own practices, identifying sources of stress and adopting strategies that help them cope with or lower their stress levels.

YOUR OWN WORST ENEMY

In fact, RIAs have brought much of the angst on themselves.

Their firms are growing in AUM and adding clients while investment solutions continue to evolve, but many still run their business the same way they did five years ago. Or they have put a little money into practice management solutions but haven’t had the time to learn how to take full advantage of their capabilities.

Many advisers spend so much time overseeing operational or back-office duties that client relationships and new business get short shrift. And in terms of work-life balance, they increasingly miss out on time with their families.

Here are some tips for reducing stress levels at work and, in turn, improving your overall quality of life:

Tip 1: Stop being your own assistant. If you are doing tasks that can be done by an assistant, hire one. If you consider your hourly fees, the benefits of getting capable help are obvious. It probably will take time to determine which duties you can delegate and to allow yourself to do so, but the time you get back will be invaluable.

If you don’t want to make a staffing commitment, consider hiring a part-time intern from a local college. They’ll get experience, and you can breathe a little easier.

Tip 2: Outsource your back office. In-house operations may make sense if your assets under management top $3 billion. Otherwise, a number of turnkey asset management platforms offer access to sophisticated research, reporting, asset allocation, compliance and analytics.

Tip 3: Outsource investments. There are literally thousands of investment options available to RIAs, including roughly 6,000 mutual funds, 2,000 exchange-traded funds and 650 ETF strategists.

Researching and conducting due diligence on each would be impossible for any one person, while an investment outsourcer gives an RIA access to investment research and due diligence on separately managed accounts, alternative investments, mutual funds and ETFs, portfolio management, performance reporting and billing.

Tip 4: Exercise. Every health professional will tell you that exercise reduces stress and restores energy. But many of us pencil it into our agenda as an “if time allows” item, and the gym bag sits undisturbed for weeks.

Set a specific time for exercise daily or every other day, and treat it as you would a client meeting: Don’t make other appointments, and don’t take calls.

Tip 5: Leave the office at the office. Who isn’t guilty of forgetting this important rule? As business owners, we tend to think about our work differently than employees. You’ve invested time, money and energy into this business, and no one else will ever take better care of your baby than you will.

In the end, however, your life away from that desk and outside those walls matters most.

So give yourself permission to unplug. And if you still don’t feel that’s possible, review tips one through three.

Michael Stier is CEO and president of Adhesion Wealth Advisor Solutions, a hybrid TAMP.

Related Topics: Practice Management