RJ and Makay

Based on a recently published article by Financial Planning.com and according to findings from the latest Russell’s Financial Professional Outlook, financial advisors are turning to annuities, using tactical asset allocation, and continuing to move to fee-based business models as they cope with the sluggish economic climate. In addition, about 45% of advisors report decreased margins and increased investor risk aversion by moving transactional clients to fee-based accounts.

Given that some advisors began replacing lost business by shifting to transactional models, researchers were surprised that the move toward fee-based models sustained momentum during the market downturn, according to Phill Rogerson, managing director of consulting and client service for Russell Investments.