Nerd's Eye View blog

#FASuccess Ep 414: Narrowing Down The Focus To Byte-Sized Planning For Tech Employees To 10X To $50M AUM In Just 3 Years, With Eric Franklin

December 3, 2024 07:01 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 414th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Eric Franklin. Eric is the Managing Partner of Prospero Wealth, an RIA based in Seattle, Washington, that oversees $52 million in assets under management for 80 client households.

What's unique about Eric, though, is how he was able to 10X his AUM to $50 million in just 3 years by focusing on working with his ideal target client (employees at big tech firms), which led to him breaking down his planning process into smaller bite-sized chunks… as he found that doing less at a time, stretched out over a longer period of time, was actually more valuable as it avoided overwhelming them, given their especially busy work schedules.

In this episode, we talk in-depth about why Eric focuses on just 2 to 3 planning priorities at a time with clients (rather than addressing the full scope of their financial planning needs) to increase the chances that the clients will actually follow through on implementing them (given their hectic lives), how Eric starts planning engagements by having clients review a list of potential goals (which helps them consider goals they might not have thought of themselves) so he can work with them to identify those that resonate and help them highlight and prioritize the top goals they want to pursue first, and why Eric holds a dedicated meeting to discuss his planning insights before formulating and presenting specific recommendations in a final plan presentation meeting, so that Eric and his clients can come to a mutual understanding of what the client really views as their key priorities.

We also talk about how Eric spurred client growth by focusing on marketing to the types of clients he most enjoyed working with and who generated the most revenue (which turned out to be employees of big tech companies where Eric had a background himself), how Eric found greater marketing success through technical, long-form written content targeted at his ideal target client compared to using more general, prepackaged marketing content, and how Eric has further accelerated the growth in his firm by bringing on new advisors who are also career changers from the tech field and can 'speak the language' of their prospective clients in the industry to build trust with them quickly (despite the advisors themselves being relatively new to advising).

And be certain to listen to the end, where Eric shares how he leverages technology (including RightCapital's task management features and Loom as his video recording software) to efficiently communicate with his busy (but tech-savvy) clients, how Eric decided to make the career change to financial planning after spending 20 years working in tech…first becoming a partner with his former advisor who also worked in tech, before eventually buying him out so Eric could focus on accelerating the growth of the firm, and why Eric encourages career changers interested in financial planning to attend industry conferences to learn industry best practices before starting out on their own.

So, whether you're interested in learning about customizing a planning process to match the time constraints of a firm's ideal target client, marketing through long-form written content, or how to make a career change into financial planning and serve clients who were previously coworkers, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Eric Franklin.

Robinhood Acquires TradePMR To Refer Next-Gen HNW Clients To On-Platform RIAs (And More Of The Latest In Financial #AdvisorTech – December 2024)

December 2, 2024 07:01 am 0 Comments CATEGORY: Technology & Advisor FinTech

Welcome to the December 2024 issue of the Latest News in Financial #AdvisorTech – where we look at the big news, announcements, and underlying trends and developments that are emerging in the world of technology solutions for financial advisors!

This month's edition kicks off with the news that the retail brokerage platform Robinhood is acquiring RIA custodian TradePMR, which appears to be less about Robinhood wanting to compete with the likes of Schwab and Fidelity in the custodial space and more about keeping the assets of its wealthier customers "on-platform" by giving them referrals to advisors who will keep them at Robinhood rather than pulling them to a different custodian (while simultaneously benefiting from the lucrative referral fees that advisors may be willing to pay for referrals from Robinhood's next-generation client base)

From there, the latest highlights also feature a number of other interesting advisor technology announcements, including:

All-in-one platform Advyzon has announced the upcoming launch of Auria, a family office platform targeted at advisors of ultra-high-net-worth clients, which serves to highlight how the gap between technology needs for UHNW and non-UHNW clients is shrinking as alternative assets like hedge funds and private equity become more available to 'mere' mass affluent and HNW clients, which might create more competition for platforms like Addepar and Black Diamond that have made their names working with an exclusively UHNW base
Paid lead generation service SmartAsset has announced the launch of two new prospecting tools, further expanding on its recent rollout of solutions that help advisors with nurturing and marketing to the leads it provides (which serves to highlight the hunger for solutions that can help advisors across the entire marketing funnel, not just on the top end with lead generation or the bottom with marketing and sales)
Zeplyn, an AI-powered meeting note tool, has raised $3 million in seed capital as it seeks to differentiate itself as the "most accurate" AI note taking solution rather than on the breadth of different functions it can perform, which makes sense in an era when advisors are increasingly wanting "best-of-breed" solutions over "all-in-one", though it will still be difficult to stand out as a relatively new provider in what has become a very crowded market for AI meeting notes

Read the analysis about these announcements in this month's column, and a discussion of more trends in advisor technology, including:

Advisor CRM has launched as the latest of what has become an increasing number of CRM tools that seek to improve on the functionality of traditional CRM tools by including more workflow capabilities, automated portfolio management, billing, and other functions, which speaks to the relative dissatisfaction advisors have with the existing options for CRM solutions (although it's still not certain what the 'right' amount of capabilities is that advisors will still be willing to pay for)
Ezra Group, which has been using its proprietary Integration Score to objectively rate the integration capabilities of over 500 AdvisorTech solutions, has announced a new portal where technology providers can enter their own information to update their scores, allowing for faster updating as technologies' capabilities change, and ideally creating more transparency into solutions' actual integration capabilities (and more incentive for providers to improve the depth and usefulness of their integrations with other technology)

And be certain to read to the end, where we have provided an update to our popular "Financial AdvisorTech Solutions Map" (and also added the changes to our AdvisorTech Directory) as well!

*And for #AdvisorTech companies who want to submit their tech announcements for consideration in future issues, please submit to [email protected]!

Weekend Reading For Financial Planners (November 30–December 1)

November 29, 2024 02:00 pm 0 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that a recent study from Cerulli Associates shows that consumer trust in financial services companies has increased significantly over the past decade, with firms that provide a more personalized approach to providing financial advice seeing the best results. Which could prove to be a boon for the financial advice industry as more consumers are willing to entrust their assets to an advisor (while at the same time possibly making it tougher for some advisors to differentiate themselves primarily by how they put their clients' interests first?).

Also in industry news this week:

While many financial advisors are paying close attention to the potential extension of sunsetting measures within the Tax Cuts and Jobs Act (TCJA) in the coming year, legislation related to retirement savings could be on Congress' agenda as well
Fidelity is planning to change the default for its existing RIA non-retirement clients' cash balances from money market funds to its (lower-interest-rate-paying) in-house cash management product in the latest signal that even when firms don't pay platform fees themselves, RIA custodial services aren't truly 'free'

From there, we have several articles on estate planning:

A recent survey indicates that a significant number of families experience inheritance-related strain, which can be mitigated by opening up lines of communication between parents and their children
How encouraging clients to think of their qualitative legacy goals (and not just the dollars and cents of what they what to leave to heirs) can help them overcome psychological barriers to starting meaningful inheritance conversations with their children
5 ways that clients can simplify their estate to ensure that their goals are met and that they don't create additional stress for their survivors

We also have a number of articles on retirement planning:

Why alignment between one's sense of self and the lifestyle structure they operate in is a driving factor in whether an individual will thrive in retirement
Why creating structure around how one will spend their time in retirement (whether through work, hobbies, and/or social activities) can ultimately lead to greater retirement satisfaction
The different ways clients can implement a 'phased retirement' beyond working fewer hours, from creating a "stop doing list" to establishing greater workplace flexibility

We wrap up with 3 final articles, all about planning for the holiday season:

Ideas for hosting a virtual holiday party for staff or clients, from chocolate-tasting classes to hosted virtual trivia events
How financial advisors can ensure their client holiday cards and gifts stand out from the pack
Tips for holiday-themed advisory firm social media content, including the value of video to help prospects and clients get to know firm staff better on a personal level

Enjoy the 'light' reading!

Kitces & Carl Ep 152: Advisory Fee Confidence And Building The Happy-Client Stoke File

November 28, 2024 07:02 am 0 Comments CATEGORY: Kitces & Carl Podcast

How much to charge for financial advice is rarely a decision made lightly. A firm's pricing strategy often reflects both the local market (or niche-related) norms – such as the nearly-ubiquitous 1%. Others may align with broader industry trends, like transitioning to fee-only structures to buffer against market volatility. Still others may choose a hybrid model, combining AUM fees with additional charges for other services like tax planning. Regardless of the pricing structure that firms choose, Kitces research on "How Financial Planners Actually Do Financial Planning" finds that there is a gap in "fee confidence" – while some advisors charge at or beyond "market price", others consistently underprice themselves. This fee confidence gap has large ramifications in the long term, as firms with higher revenues can reinvest in growth – with hiring, marketing, and process improvements – that enhance their value proposition and attracts more prospective clients.

In this episode of Kitces and Carl, Michael Kitces and client communication expert Carl Richards discuss why this fee confidence gap exists, exploring the psychological, competitive, and practical factors that often drive advisors to underprice their services. They also suggest how advisors with unsustainably low fees can shift their mindset, embrace their value, and realign their pricing to reflect both the tangible and intangible value they actually provide to clients.

Developing fee confidence may pose a real challenge, especially for advisors in the early stages of their careers or struggling to 'keep the lights on'. Pricing the impact of financial planning can be challenging, because many of its benefits – like peace of mind – are intangible, compelling in value but difficult to match with an exact price. For newer or less confident advisors, underpricing can seem like a necessary compromise to compete with more established firms. For example, an advisor may think, "The standard advisor charges a 1% AUM fee. But since I'm not as experienced as the average advisor, I'll charge 0.8%", even when they know that this underpricing decision could severely impact business development in the long term!

To develop fee confidence, it may help to begin with gathering external evidence. Researching what peers are charging is a logical first step, but what may be even more effective is reviewing feedback from clients and others who have worked closely with the firm. Have clients described the advice as "life-changing"? Are they raving about the advice and guidance they've received? These affirmations can reinforce the advisor's value, serving as powerful reminders that help the advisor gain the confidence to charge more. Saving such feedback in a "stoke file" – a catch-all collection of notes, comments, and positive feedback – can provide a helpful confidence boost when doubts arise.

Ultimately, though, fee confidence begins internally. And while external feedback can help, an advisor's true confidence comes from recognizing their unique strengths and understanding how they uniquely help their clients. By internalizing this value, advisors can confidently charge what they're truly worth, paving the way for success in the long run!

Enhancing Client Conversations About Charitable Giving: Sample Questions, Scripts, And Tools For Better Engagement

November 27, 2024 07:03 am 0 Comments CATEGORY: General Planning

Charitable giving is an essential aspect of many people's financial lives. Some give through established channels, such as by donating to charities or volunteer work, others may give informally to family members on a regular but less structured basis – and some simply aspire to "do more". Yet, despite the important role that charitable giving can play, studies show that many advisors hesitate to bring up the topic with clients. Advisors may worry about overstepping boundaries or feel uncertain about a client's interest in philanthropy. However, advisors play a critical role in helping clients navigate the complex landscape of charitable giving. By integrating philanthropic planning into their services, advisors can add significant value to client relationships and provide more holistic planning.

In this guest post, Kathleen Rehl, a "reFired" financial planner and educator in philanthropic planning, shares insights, thought-provoking questions, and sample scenarios to help advisors begin and navigate charitable giving conversations, reducing any risk of awkwardness or overstepping.

Introducing the subject of charitable giving may feel daunting. However, with a few thoughtful approaches, these conversations can feel more natural and rewarding for both client and advisors. They can ease into the discussion by normalizing it – such as sharing their own giving experiences like donating a portion of their income or supporting local charities. Open-ended questions, like asking what legacy a client wishes to leave, can also allow the client to share their vision. From there, advisors can offer their technical expertise on strategies and options that a client may not have considered. Resources like handouts or educational videos can also be helpful tools to inform clients – often, many people are simply unaware of the range of possibilities!

Beyond these initial steps, advisors can support clients' charitable goals in other ways, such as by vetting charities that align with their clients' interests or educating them on various giving strategies. Advisors may also introduce tax-advantaged approaches that add value in multiple ways – for example, helping grandparents set up donor-advised funds that support future generations while creating tax benefits. Additionally, life events that change a client's financial circumstances, such as retirement, receiving a windfall, or selling a business, can be ideal opportunities to revisit charitable giving as part of a client's evolving financial and personal goals.

As clients and advisors get deeper into charitable conversations, it may be helpful for clients to create a personal charitable mission statement – a guiding star for their giving decisions during and beyond their lifetimes. These statements often stem from clients' life stories and core values., passions, and most closely held causes. If clients need guidance, advisors can offer a template or list of values to help get them started. Once clarified, these values empower advisors to suggest charitable options that align closely with what matters most to the client.

Ultimately, the key point is that charitable giving conversations create a meaningful space for mutual exploration – where clients can discover and clarify their values and priorities while learning about the various options and vehicles available to support the causes they care about. By encouraging productive philanthropic conversations with clients, advisors not only help clients give with purpose but also deepen client satisfaction and trust. And when clients are enabled to support the causes closest to them, they experience the true impact of a financial plan that aligns with their personal legacy!

#FASuccess Ep 413: Building An Internal Advisor Training Program To Solve The Talent Pipeline As A Growing $4B Advisory Firm, With Kevin Leahy

November 26, 2024 07:04 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 413th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Kevin Leahy. Kevin is the CEO of Connecticut Wealth Management, an RIA based in Farmington, Connecticut, that oversees approximately $4 billion in assets under management for 1,100 client households.

What's unique about Kevin, though, is how his firm has built a systematized internal advisor training program to efficiently onboard young new talent straight out of college, maintaining a strong advisory talent pipeline as his firm has grown to $4 billion in AUM through both organic growth and acquisitions of retiring advisors (whose clients can be transitioned to Kevin's up-and-coming young advisors) while maintaining a high level of service with a relatively low 35-to-1 client-to-advisor ratio.

In this episode, we talk in-depth about how Kevin's firm's new hire training program ramps up through the first 6 months, starting with an initial 90-day stage that uses standardized case studies to teach the firm's financial planning process and how to review and input data into the firm's systems, followed by a second 90-day stage that builds new hires' confidence in their client communication skills by conducting mock client presentations and receiving constructive feedback from peers and current advisors, how Kevin's firm uses a software platform called Playbook Builder to compile training materials (including videos, PowerPoint presentations, and word documents) in a centralized location and create a more systematized onboarding and training process, and how Kevin typically assigns new hires once they have completed this 6-month training program to service teams not based on having complementary skills to the lead advisor, but rather based on having similar strengths to better align the team with its clients' preferred planning style.

We also talk about how Kevin sources entry-level hires not only among recent college graduates, but also from a robust paid internship program that allows his firm to vet interns before committing to a full-time offer, why Kevin's practice of bringing on multiple new hires at one time both keeps the firm ahead of hiring needs and promotes efficiency by allowing these cohorts to go through the training process together, and how Kevin has found that this 6-month training process has paid off (even though the new hires add limited value during this initial training period) as nearly all employees who have gone through this training are still with the firm, saving the firm the time and money in turnover costs it would otherwise face to replace hires that don't work out.

And be certain to listen to the end, where Kevin shares why his hiring process puts a premium on identifying individuals who mesh well with his firm's 8 core values and emphasis on teamwork (and in the case of experienced advisor candidates, weeding out those who might prefer an ‘eat what you kill' approach that doesn't fit in Connecticut Wealth Management's team-oriented culture), why Kevin decided to create a centralized planning team to ensure consistent service for each client even as the firm's average client AUM and complexity grows, and how Kevin's firm has grown not only through acquisitions, but also by increasing its wallet share amongst clients obtained in these deals by demonstrating a higher level of service than they might have previously been accustomed to that leads clients to grow even more with the firm over time.

So, whether you're interested in learning about building an internal advisor training program, how to use an internship program to keep a firm's talent pipeline full, or how to maintain a firm's core values as it grows over time, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Kevin Leahy.

A 3-Step Sales Process To Clearly Demonstrate Financial Planning Value To Prospects

November 25, 2024 07:03 am 0 Comments CATEGORY: Practice Management

Over the past decade, a growing number of advisors have expanded into offering comprehensive financial planning services, reflecting a shift that not only helps them stand out from (increasingly commoditized) portfolio management offerings but also supports clients' broader financial goals. However, comprehensive planning is an intangible service, which can make it challenging for advisors to convey its value – especially when meeting with prospective clients who may be unfamiliar with what 'financial planning' entails. This can be particularly challenging when advisors work with clients who have diverse planning needs.

In this guest post, Taylor Schulte, founder of Define Financial, an independent RIA based in San Diego, CA, shares his approach to overcoming these challenges by selecting a client niche and implementing a 3-step sales process. Together, these strategies have enabled him to clearly demonstrate his value to prospective clients contributing to a remarkable $1 million increase in recurring revenue over just 4 years.

To start, Taylor refined his ideal client profile to focus on those he could best serve: diligent savers over age 50 with a retirement nest egg between $2M and $10M. These clients, typically in or near retirement, face key challenges like reducing taxes, managing investment risk, and maximizing income. With a clear niche, Taylor developed a client-centered sales process focused on value, not on pressure to become a client.

Taylor's process starts even before the first meeting, introducing prospects to the firm and its "Free Retirement Assessment Process". Those interested can then schedule a 20-minute introductory phone call, where Taylor uses a script to determine a potential fit to work together. If both parties agree, they proceed to a 60-minute discovery meeting to explore the prospect's goals and reasons for seeking advice.

After this meeting, Taylor waits 2 weeks before the final review assessment meeting. This timeline not only allows for the prospect to provide their information and Taylor's team to complete the analysis, but also gauges the prospect's commitment to a long-term relationship. In the final 60-minute review, Taylor presents the Retirement Assessment, covering 3 key questions: how to maximize income, lower taxes, and optimize investments in retirement. He also discusses fees and the onboarding process but encourages prospects to "think about it" before deciding – focusing on long-term value over a quick close.

Ultimately, the key point is that developing a structured sales process tailored to the specific needs of a well-defined client niche not only enhances operational efficiency but also builds trust and rapport with prospects. This approach can lead to higher conversion rates while driving substantial revenue growth and profitability. And by aligning services with the priorities of a targeted clientele, advisors can create lasting relationships and build a thriving, sustainable business!

Weekend Reading For Financial Planners (November 23–24)

November 22, 2024 02:00 pm 0 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that amidst a rare change in leadership at Charles Schwab, the outgoing and incoming CEOs hinted at relatively minor changes during remarks for advisors at its annual IMPACT conference this week, including an increased focus on lending services for high-net-worth clients and a desire to expand direct access to cryptoassets. Further, amidst grumbling from some firms, incoming CEO Rick Wurster reiterated a pledge that Schwab (which offers its own direct wealth management services) will not seek to compete for clients with RIAs on its platform, seeing opportunities to pursue prospective clients currently unserved by either group.

Also in industry news this week:

Why the announced acquisition of RIA custodian TradePMR by retail brokerage firm Robinhood could prove to be a boon for RIAs on TradePMR's platform, who could receive a wave of referrals from Robinhood's massive base of next-generation retail clients
How Morningstar is cutting the "Medalist Ratings" of thousands of funds amidst a change to its ratings methodology that could provide advisors with a better picture of forward-looking performance expectations

From there, we have several articles on retirement planning:

A recent survey demonstrates benefits for advisors (and their clients) in specializing in crafting portfolios specifically designed to generate retirement income for clients
How a recent study finds that matching the timing and size of portfolio withdrawals to the income needs of retired clients could allow for greater portfolio sustainability than more fixed approaches
An exploration of the considerations for advisors who want to create 'retirement paychecks' for their clients, from choosing an investment approach to generate sufficient income to deciding how to transform assets in a portfolio to dollars in clients' bank accounts

We also have a number of articles on practice management:

Why offering profits interests could be an attractive way for firms to reward top-performing employees without giving up control of the business
While awarding equity grants is often seen as a way to align employee interests with those of the firm, this practice might not be as attractive for certain employees as it might seem
The challenging questions firms face when creating 'fair' compensation structures, from deciding who is bringing the most value to the firm to considering how (and whether) to issue bonuses during periods of lower firm revenue

We wrap up with three final articles, all about health:

While intermittent fasting has been shown to offer some weight loss benefits, some research suggests it might not be the 'health hack' it was once thought to be
Several scientific studies have found nutritional benefits to eating ice cream, but the true cause of this finding is unclear
Why the purported presence of "Blue Zones", regions whose residents show remarkable longevity, might be due to questionable recordkeeping rather than specific traits of these communities

Enjoy the 'light' reading!

Seeking Best Execution: Understanding The SEC’s Expectations For Advisors To Deliver Best Outcomes For Clients

November 20, 2024 07:01 am 0 Comments CATEGORY: Regulation & Compliance

Investment advisers are fiduciaries that owe a duty of care and loyalty to their clients. One component of this duty of care is an obligation to seek best execution of client securities transactions. While this requirement might sound relatively straightforward, the lack of a single definition for what this duty actually requires can make it challenging for advisers seeking to understand precisely what it means to comply with this responsibility.

One of the best sources of guidance from the Securities and Exchange Commission (SEC) is a 1986 interpretive release that unofficially sets forth a framework for satisfying the fiduciary duty to seek best execution of securities transactions in client accounts. Broadly, the statement says that an adviser should consider the totality of services that it brings to the table, including both quantitative and qualitative factors such as the value of investment research the custodial broker-dealer provides to the adviser, execution capability (i.e., the types of investment products or strategies that a custodial broker-dealer can handle in an accurate and timely fashion), and commission rates (which can include asset-based pricing, platform fees, account activity fees, and more), among others.

The SEC, in its interpretive release, sets an expectation of "periodic and systematic evaluation" (i.e., initial and ongoing due diligence) of the custodial broker-dealer(s) that are used for client securities transactions, indicating that advisers should perform initial due diligence on any new custodial broker-dealer to be used for client securities transactions, and then periodic ongoing due diligence of said custodial broker-dealer thereafter (though the SEC does not prescribe any particular frequency of such evaluations).

Notably, much of the language from the 1986 SEC Interpretive Release was later reiterated in a 2018 SEC Risk Alert and a 2019 SEC Interpretation. These 2 communications suggested that advisers have differing responsibilities depending on whether they are responsible for selecting broker-dealers and executing client trades, which suggests that advisers that have not accepted the responsibility to select custodial broker-dealers on behalf of the client (e.g., because the client voluntarily directs the adviser to execute trades on their behalf at a particular broker of the client’s choosing), or did not recommend such a directed arrangement, is not under an obligation to seek the best execution of client transactions (though the adviser must still disclose the possible downside possibilities of such an arrangement, such as less favorable execution and/or higher costs).

Finally, the SEC Division of Enforcement's extension of best execution principles to advisers' mutual fund share class selection, as evidenced by the string of enforcement actions that resulted from the SEC's iterative Share Class Initiative that originated in 2016, suggests that there is a de facto best execution obligation for an adviser to select the lowest cost share class a client is eligible for within a mutual fund. Which might require advisers to periodically scrub the roster of mutual funds they purchase for clients to confirm that no lower-cost share class alternatives are available and that clients with existing mutual fund holdings are not eligible for a tax-free conversion to a lower-cost share class within the same mutual fund.

Ultimately, the key point is that by remaining mindful of both the quantitative and qualitative factors that the SEC expects to be considered when initially and periodically evaluating such custodial broker-dealers, advisers can ensure they not only fulfill their fiduciary duty to seek the best execution on behalf of their clients but also continue delivering the best possible outcomes!

#FASuccess Ep 412: 3X’ing The Business With No More Than 50 Great Clients By Hyperfocusing On Who You Can Add The Most Value For, With Anjali Jariwala

November 19, 2024 07:03 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 412th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Anjali Jariwala. Anjali is the Founder of FIT Advisors, an RIA based in Torrance, California (but works virtually with clients nationwide) and oversees $65 million in assets under management for 45 client households.

What's unique about Anjali, though, is how she has tripled her annual revenue from $250,000 to $750,000 during the past 6 years, while only adding a net of 10 client households (going from 35 to 45 clients in total), by hyperfocusing into her niches of physicians with complex tax needs and small business owners with $5M–$20M of revenue, offering a combination of advanced financial planning and CFO planning services while raising her fees along the way (to match the additional value she's now able to provide them).

In this episode, we talk in-depth about how Anjali shifted her marketing approach over time from paid advertisements, an area that was very successful for her but had become increasingly competitive for her target clients, to instead building a blog and podcast targeted at her 2 niches, how Anjali was able to attract high-quality prospects by simply centering the content on her blog and podcast on the issues her top 10 existing clients were facing (including both technical planning topics and the emotional aspects of money, to demonstrate both her technical acumen and her ability to relate to their personal experiences with money), and why Anjali then decided to stop blogging and podcasting during the early days of the COVID pandemic, as she not only had to support clients going through a period of financial and emotional strain but also had to deal with stress in her personal life given that her husband worked as a physician navigating COVID exposure with his own patients, and yet Anjali still receives a sufficient flow of prospects today based on the prior blog and podcast content she created that continues to live on… plus client referrals from her now-established client base.

We also talk about how Anjali grew her revenue primarily by not increasing her client headcount (which only rose from 35 to 45 clients over the past 6 years) and instead focused on raising her minimum annual retainer fee from $10,000 to $18,000 per client, why Anjali's current clients and prospects are largely willing to pay this fee given the tailored services she offers clients (from her ability as a CPA to offer advanced tax and CFO-style business planning specifically related to her two niches, to even providing feedback about how best to negotiate their employment agreements for her physician clients), and how Anjali's decision to decide on the number of clients she wanted to work with and a target revenue upfront, rather than pursuing unbounded growth, is what allowed her to effectively value her time and allowed her to focus on the clients for whom she can provide the most value.

And be certain to listen to the end, where Anjali shares why she wishes she had invested more hard dollars in marketing sooner (particularly given the time it can take for tactics like podcasting and blogging to bear fruit in the form of new clients), how Anjali freed up time by not using a TAMP but instead an outsourced Chief Investment Officer to conduct investment research and cue up trades for her to execute, while allowing her to continue to better implement the trades herself to facilitate her customized, tax-efficient client portfolios, and how Anjali is approaching the idea of success, now that she has built a financially thriving practice, in part focusing on being able to pursue her passions and maintain flexibility to meet her professional, personal, and family needs.

So, whether you're interested in learning about building a profitable hyperfocused practice, implementing a marketing approach that reaches a firm's ideal target client, or adding value for clients by offering advanced tax planning, then we hope you enjoy this episode of the Financial Advisor Success Podcast, with Anjali Jariwala.

#FASuccess Ep 414: Narrowing Down The Focus To Byte-Sized Planning For Tech Employees To 10X To $50M AUM In Just 3 Years, With Eric Franklin

Robinhood Acquires TradePMR To Refer Next-Gen HNW Clients To On-Platform RIAs (And More Of The Latest In Financial #AdvisorTech – December 2024)

Weekend Reading For Financial Planners (November 30–December 1)

Kitces & Carl Ep 152: Advisory Fee Confidence And Building The Happy-Client Stoke File

Want CE Credit for reading articles like this?

Enhancing Client Conversations About Charitable Giving: Sample Questions, Scripts, And Tools For Better Engagement

#FASuccess Ep 413: Building An Internal Advisor Training Program To Solve The Talent Pipeline As A Growing $4B Advisory Firm, With Kevin Leahy

A 3-Step Sales Process To Clearly Demonstrate Financial Planning Value To Prospects

Weekend Reading For Financial Planners (November 23–24)

Want CE Credit for reading articles like this?

Seeking Best Execution: Understanding The SEC’s Expectations For Advisors To Deliver Best Outcomes For Clients

#FASuccess Ep 412: 3X’ing The Business With No More Than 50 Great Clients By Hyperfocusing On Who You Can Add The Most Value For, With Anjali Jariwala

Nerd’s Eye View Praise

Nerd’s Eye View Praise

Showcase YOUR Expertise

Stay In Touch

Questions?

Please contact your Firm's Group Admin

Want CE Credit for reading articles like this?

Want CE Credit for reading articles like this?

Nerd’s Eye View Praise

Showcase YOUR Expertise

Stay In Touch

Questions?