Smaller financial advisors are flirting with the idea of integrating their services with other small firms as a way to combat challenges they are facing as a result of the financial crisis. "With the market these days, the smaller guy isn't going to make it," Neil Netoskie, employee benefit specialist, senior v.p. and manager of
Compass Retirement Solutions, said.
Netoskie added one reason in particular to join forces would be if an advisor has areas of expertise that would be helpful to other firms in the region. "If they have specialization, then it's a good reason to combine." He said specific knowledge of the 401(k) industry is in high demand right now from smaller firms because they often don't have advisors with experience to deal with a crisis.
Diana Schutter, principal of St. Paul, Minn.-based advisory firm Berthel Schutter, told DCSPA she is looking to combine efforts and ideas with smaller firms.
Craig Patterson, financial consultant with The Advisory Group San Francisco, said in the past six months there have been few firms in the area, which he declined to name, who have expressed interest in pooling their resources with his firm.
