Executive Summary
It is with mixed feelings that today I face my 37th birthday – a unique milestone for me, as it marks the maximum age threshold for NexGen, a group I helped to co-found 10 years ago (with the original inauspicious name of "Mouseketeers"!), and for which I was perhaps the most ardent advocate for having a maximum age as a requirement for membership. Now, a decade later and with no small amount of irony, I find myself being “forced out” – or as I like to put it, “graduating” – under the very age-based rule I fought so hard to keep in place early on. For me, today is a day of change, of transition, and of rebirth as I close the book on one decade of my life, and open to the next.
However, while I do have some mixed feelings about today, I have to admit that I have zero regrets for having pushed for this NexGen membership criterion that has become my own NexGen membership demise. In point of fact, I think in retrospect we set the age limit too high, and something around age 33 would have been better (kudos NAPFA Genesis for getting this right). The point of the age limit was to ensure that the NexGen membership could remain relevant to each other, yet the world changes fast enough that for someone who starts at age 22 straight out of college (as I did), the 22-year-olds coming into the profession 10 years later already face a new reality that is substantively different. I certainly witnessed this in my own context; when I started as an advisor, I was cold-calling to offer sales of Variable Universal Life and the forgettable-but-not Munder NetNet fund, and there were just a handful of undergraduate programs teaching financial planning at all. Within a few years I was fortunate enough to become the Director of Financial Planning at Pinnacle Advisory Group, but it literally took four more years after that before I met another person who even had a similar job title, as most firms were too small to have any depth of professional planning staff (much less the infrastructure to necessity a “director”). What a difference a decade can make in how advisory firms are staffed and operated!
Accordingly, looking back I’m actually thankful that we kept the age limit in place; putting it there has ensured that the group remains focused on the issues of “young” planners entering the profession, as it was intended. Without an age limit, the group would have “aged” as we did, and simply become a snapshot-in-time group of us Gen Xers who started in the business in the late 1990s and early 2000s. Instead, those of us who started NexGen and were its early members have “aged out”, moved on to our own study groups and finding other ways of connecting, and NexGen has already almost fully completed its own demographic change from being a “Gen Xer” group to being led by Millennials. Thanks to the age limit, the NexGen group is constantly forced to reinvent itself with new (youthful) leadership, preserving the integrity of its original intent through times of change, and going through a continual process of rebirth.
I suppose the theme of “rebirth” is particularly apropos, as my NexGen graduation today has a feeling of rebirth to me, of transition from one stage to the next, of closing the book on one chapter of my (professional) life and turning to the first page of the next. Fortunately, the passage of a decade has not sapped my energy – to the contrary, back then I merely had one job and role, as a Director of Financial Planning... a startling level of simplicity compared to all the businesses in which I’m involved today.
Notwithstanding the growing complexity, the passion I had when NexGen was created for for bringing young people into the financial planning profession and seeing them succeed as financial planners has not waned; instead, over the past 5 years we created New Planner Recruiting, more recently a new Jobs Board for financial planners called JobsFP, and this year launched XY Planning Network which has already catapulted forward in just over 7 months to nearly 50 of the most energized and exciting young planners who I truly believe will play a material role in shaping and reshaping the financial planning profession over the next 10 years. If anything, my greatest challenge today is that I see so much opportunity in our emerging profession, that it’s difficult to focus on picking just a few things to do at a time to help it along. Not surprisingly, I already have a few new business ideas cooking for 2015 - stay tuned!
Yet while 2015 may be a year of rebirth for me, I feel compelled to recognize what a (re)birth NexGen brought to me a decade ago. Looking back 10 years, at the time I would have never predicted I’d be doing… well, pretty much anything that I’m actually doing today. When 2004 started, I was already several years into my career, but I had never given a public speech nor written an article (I would do both for the first time that year), I had never held a position of volunteer leadership (which I would also do for the first time that year with the FPA Maryland chapter, but never accepted a position of NexGen leadership for personal fear of my ‘leadership inexperience’), I had never founded a business (and at the time insisted that I never would), and I had no idea that there was a community of other young financial planners going through the same kinds of career struggles and uncertainty that I was at the time and who would provide such transformative support for me. And as the photo below from the first NexGen conference shows, I didn’t even know about blue shirts yet.
What a difference a decade can make. So much changes in 10 years. I'm actually thankful I didn't set goals, as I never would have predicted how much my life has changed. And I can’t wait to see what the next decade holds in store.
My Birthday Wish: As most of you know, I’m not one for material goods – I can’t even tolerate buying a variety of clothing! But if you have a moment, I’d love it if you could just share one story of how this blog and its content has impacted you. Maybe it was a client situation, or something in your own career/business life, or just a personal moment of revelation. In a world where there can be so much negative, I’d really appreciate it if you could help me celebrate today as a day of rebirth by simply sharing a story of how this content helped you to help a client (or yourself) through a similar moment of (positive) change and rebirth! Thanks! 🙂
PS- Thanks and credit to Ramit Sethi for this wonderful blogger-birthday-wish idea!
This blog helped inspire me to leave the comfort and relative safety of my insurance-centric broker dealer and start a retirement income focused RIA.
Benjamin,
Wow, what a transition! Thanks for sharing!
Dare I ask… how’s the new RIA going so far? 🙂
– Michael
About two months in, and I’m still on the right side of the dirt! I had +95% of my clients decide to follow me. I guess they were as tired of insurance sales as I was.
Happy Birthday, Michael! I just found your blog a couple of months ago, but it has become daily reading for me as I pursue my lifelong interest in financial planning and consider entering the profession. Thanks!
Thanks Linden! I hope it continues to be helpful! 🙂
– Michael
Happy Birthday, Michael. This blog opened my eyes to the fee-only world and inspired me to leave my hybrid RIA, drop my series 7, and launch my own fee-only firm. I know now, without question, that my clients are in the best possible situation to succeed. Thank you for all that you do here – keep it up!
You can’t kudos NAPFA Genesis as a whole – I take all the credit for age 33! 🙂
In all seriousness, your clean, easy-to-read writing style encouraged me to remain human as I expressed that side of myself as well. In doing so, it has led to opportunities both in writing, but also as a result, that wouldn’t have come along otherwise.
Keep doing what you’re doing, but remember to keep some margin in your life to enjoy those precious girls of yours. Congrats on aging out – I’ll be calling you next year when I hit 33 and Genesis kicks me out.
Dave,
Ha, thanks for clarifying on Genesis. I wasn’t positive who internally there had set the age limit when it was created. But yeah, kudos to you for getting it ‘right’ I think (or at least, more right than we got it at age 37!). 😉
Looking forward to having you join us in the “has-been” club next year! 🙂
– Michael
Happy Birthday Michael! I started following you around four years ago (I’m 28 now). When I first started taking my financial planning classes at school, the topic was still “new” and all my classmates thought we were going to graduate into a sales firm. Your blog, along with everything else you have done, has inspired me in believing that I can succeed at such a young age in this profession. Lastly, I know that reading and following your writing puts me in the top echelon of knowledge when it comes to financial planning and your passion for this field is contagious! Congrats on the birthday and thank you for everything you have done.
Thanks so much for the kind words Steven! I hope this content continues to be helpful and inspirational for you! 🙂
– Michael
I’ll be a career switcher at the ripe age 31, and your blog always rekindles my love affair with financial planning. That might be hyperbole, but it does keep my curiosity going.
On a personal level, it gives me, who hasn’t accomplished anything of note, hope that the introverted and good ones can in fact do well in this industry.
I hope I can pay your ideas to me forward some day.
Bryan,
Don’t underestimate the power of what you can accomplish in this industry as an introvert. Yes, as an emerging profession “rooted” in sales, the stereotypical financial advisor does embody the stereotypical extrovert ideal… but times are changing, and there are more and more opportunities for all of us to be successful and contribute our own skills and the gifts that have been given to us!
– Michael
Thanks. The changing landscape has me equally excited and terrified: excited to be a part of the difference, and terrified if our hard work was in vain. Hopefully we, the current Nexgen, can push egos aside and correctly finish what was started. Overall, I think we’ve only started to scratch the surface of what “financial planner” actually means.
I am, uh, considerably over the age of 37, but I just gotta say that you are a must-read for me, whether that be through your blog or elsewhere. I think you have a lot to feel good about when it comes to your contributions in this field.
Thanks so much Pat! I hope it continues to be helpful! 🙂
Happy Birthday Michael! A “timely” article for me as I just turned 60!!! I have been sharing some of your articles on our blog at BrokerHunter, so thanks for your contributions! Your articles are always in-depth, informative & helpful. Keep up the good work; you don’t know how many people you affect daily!
Thanks so much Tina! I hope the articles continue to be helpful for your readership as well! Thanks for helping to spread the word! 🙂
– Michael
Michael, although I have used info from your blog and other materials countless times over the years that’s not what came to mind as I read your blog today. What did come up for me was the day we met, which was at Retreat in Colorado Springs in 2004. You sat down next to me at lunch and we had a wonderful conversation. Elizabeth was sitting on my left, earnestly in conversation with someone (as usual) whom I’ve long forgotten. After you left, she asked me who I was talking to and I told her it was a young man from Maryland who was the Director of FP at his firm. She asked, how’s he doing – is he struggling? I replied, no, actually I think he might be one of the brightest young planners to join this profession in quite some time (paraphrasing, of course). For once in my life I was prophetic. Happy birthday, my friend!
Michael,
Ha, that’s fantastic!
I still have a lot of fond memories of my first time at Retreat in Colorado Springs. Not only did we meet there, but I still remember that towards the end of the conference, there was a gathering for people who were interested in joining the National Board. Elizabeth was hosting the conversation, and it included young innocent little me at my first conference, and 3 others who were all respected veterans of the industry and all of whom ultimately did join the National Board over the past decade. I remember, quite clearly, that although I was CLEARLY the young interloper of the group, and was really there just trying to learn everything I could about this organization I had just “discovered” for myself (and having no business at that time trying to learn how to get onto the National board!), Elizabeth accorded me the exact same respect in that conversation as everyone else – something that often felt lacking for those of us in NexGen in the early days. It was a powerful experience of FPA inclusiveness from Elizabeth, that has vividly stuck with me to this day.
– Michael
Michael, happy birthday!
The biggest impact that this blog has had on me was encouraging me to attend the NexGen Gathering this past year. Now at 33 I regret not having been involved in this group earlier. I have already started a study group of like minded young professionals and will not hold back from seeking involvement in the small niches that make up our wonderful profession. Cheers!
Donnie,
Thrilled to hear the NexGen conference was so positive for you this past year! Sorry you didn’t join us even earlier for this, but the good news is that you’ve got a few more years before you get the royal boot as I am now! 🙂
– Michael
Happy birthday, Michael! I am 28 years old, and currently going to school while working as an assistant to an experienced financial planner and transitioning into this career field after over 8 years in the Marines. Thanks for taking the initiative to help start NexGen, I’ve been starting to become more active in our local San Diego chapter over the last few months and it has already been extraordinarily useful. I’ve also learned quite a bit from reading your blog and hearing you speak twice, I appreciate that your content is much more specifically tailored to financial planning than what I’m getting in most of my classes at school. You have a gift for making complicated topics seem very easy to understand. So, are you starting to put together the plans to start a “LastGen” or “PrevGen” organization yet? 🙂
Steven,.
Thanks for the kind words, and for your own service! I hope our little profession will be a good landing place for you after the Marines!
Glad to hear the NexGen presence is growing in San Diego. Hopefully I’ll have some time to spend with just the FPA San Diego NexGen folks the next time I’m in town to speak! 🙂
– Michael
Remember when we had a great AMT discussion about disqualifying dispositions for ISOs… back in 2007? Those were good times my founding friend!:) enjoy your birthday with your ladies!
Heh, time flies indeed David!
Happy birthday Michael. Thanks very much for the gifts you have given us all with the thoughtful very high level contributions you routinely make here to the conversation which is our evolving profession. I may not always agree, but that doesn’t matter – the only one I never disagree with is my wife. Whether I agree, or not, your postings are always well argued, well thought out, and thought provoking — and always very much appreciated.
As for “aging out”, trust me on this one, 37 is a very long way from getting old. I’m from the generation that did that when we turned 30 — and once we got over the trauma of that milestone nothing really changed.
Thanks again for all your gifts to us that so enrich our profession.
Thanks David!
It’s funny what turns into “notable milestones” or not, eh?
– Michael
Wishing you a great birthday and a great year! I only started reading your blog and newsletter a couple of months ago. Finally, I feel that I am really “earning” my CE credits through your newsletter quizzes and learning something that is relevant to financial planning. You are an excellent writer and thought leader in this field.
Karen,
Ha, thanks. It’s a shame that it’s so hard for us to actually find “continuing education” that actually teaches us something, eh? That’s a problem I hope to continue to solve, more and more, in the coming years!
– Michael
Happy Birthday, Michael! I really appreciate the diversity of and thoughtfulness of your writing. I’m also thankful for your guest posts by Alan and Sophia. I’m not sure I’d have my own RIA right now if your blog did not exist. Thanks for your leadership and passion.
Ben,
That’s awesome. Glad to hear the content (and guest content) here was able to empower you to launch your own firm! Wow! 🙂
– Michael
I bumped into your name looking for information on annuities. I signed up for your Nerds Eye View and have enjoyed you views. I am embarrassed to say I don’t know nexgen. I am at the point of trying to start a web site and writing and wanting to speak out. You have given be much hope on things I want to accomplish. Happy B- Day! look forward to the next post.
Paul,
Glad to hear the content has been helpful! Good luck to you in launching your own site and starting to write. Just remember – it’s a marathon, not a sprint. 🙂
– Michael
Happy birthday wishes Michael. Your writings and musings keep me challanged and thoughtful. Seems this is the least a client should expect from his/her financial planner so I’m a better planner for it. I’m sending you good wishes and I hope that all you want in life comes your way.
Thanks for the kind words Bryan!
Michael,
Very Happy Birthday! I can’t believe you are only 37!!
Your blog has been helpful in many ways. You have prompted me to consider and be aware of so many different issues….fees and how to disclose them, niches, many planning topics, withdrawal rates….the list would be very long.
I would like to thank you for your contribution to our industry, as an excellent resource who is approachable and willing to discuss and exchange thoughts. You are truly to be commended!
In addition to your detailed blog writing, your weekly email is an extremely valuable compilation of practical, technical and thought provoking articles.
For all of the above, I am a better advisor because of your dedication and efforts. Thank you!
Thanks Brad! I hope it continues to be helpful!
Nerd is the Word. Happy Birthday, Michael. As we wrote on the Wealthbox CRM blog when we announced your becoming an advisor to our company, our path to you was in researching the financial advisor market via Google. Nerd’s Eye View is such a great resource. The abundance of your words are only outmatched by their insightfulness, and the industry is lucky to have them and you. Cheers!
– John, Dan, and the team at Gotham Tech Labs | NYC
Happy birthday to my fellow scorpion!
Happy Birthday, Michael. You have inspired me personally and professionally. There is great breadth and depth in the content you have provided through this blog. However, I have been most impressed by your personal responses to the random questions I have e-mailed you over the past seven years. Thank you and keep up the hard work. Financial advisors around the world are all better because of it. See you tomorrow at FPA OC! David
Thanks so much David! See you soon at the FPA OC meeting! 🙂
Happy Birthday Michael! I don’t know how you find the time to do all you do, but it is much appreciated. It is great to have such an awesome site/blog that we can direct new (and experienced) advisors to so they can fill their minds with this abundance of useful info.
Michael,
Your entry in our contact manager is dated 17 September 2004 – very early days. We had corresponded and then met in person at an FPA annual conference.
I was impressed by your alphabet soup of educational achievements, most of which were already there. However, as you will probably remember, I was particularly impressed that you had a psychology degree and by your achievements in contract bridge and karate. Clearly, here was a special talent and beneath that nerdy surface there was a very interesting human being.
Fast forward 10 years and it is clear that the special talent is an extraordinary talent. Your list of achievements over this decade and your contributions to the advisory industry and the financial planning profession and discipline are second to none in any decade. When I see the volume of your activities and output I find it hard to believe you haven’t successfully cloned yourself at least once.
As you know, we promote you, your newsletter and your blog globally. There simply isn’t a Michael Kitces anywhere else.
And to top it all off, you’re still a good bloke and all your successes haven’t gone to your head.
More power to you. Roll on the next decade.
Geoff
Michael,
If you are only 37, you will probably live to be 137. A perfect candidate for an annuity!
All the best.
Whew I hope so Steve. So much that could get done with another 100 years to write! 🙂
– Michael
Michael,
Happy Birthday and Thank you! This column has helped me in my personal retirement planning (and advice to friends) with all you creatively bring forward about sequence of return risk, efficacy of annuities, life expectancies, and on and on! I am really having fun with the math with your guidance, too.
Michael, What I love the most about your teachings is your insight. You make us look at issues from a different perspective, and keep us older planners from getting stuck in outdated methodology. For me personally, you keep me on my toes. I’ve always said that when I quit learning, I’m done, so thank you for helping me continue to learn. I hope I’m here doing this when I’m 80 and still learning.
Happy Birthday, and thank you for what you bring to our profession. It was a pleasure meeting you this fall, and I hope we have other opportunities to spend time together in the coming years.
Thanks so much Kim! 🙂
Michael:
I just turned 57 on November 9, so just think of your next 20 years! One of the best compliments I can give you is that your weekend reading compilation is a must read for me, joining Barron’s and the Saturday edition of the Wall Street Journal. You tackle very relevant, and many times, complex subjects that we all deal with. Keep it up!
Michael, what I appreciate about you and everything you write is your unrelenting focus on best practices, and that any plan is only as good as the way it’s communicated.
In the relatively short time I’ve been practicing on my own, your writing and research has significantly shaped the way I plan for and communicate with clients.
Belated Happy Birthday, Michael. I never got a chance to “graduate” from NexGen. As I told my chapter NexGen leader, they’d need a 2X factor to include me! Keep up the great work. I can appreciate how you evolved when I examine where I was in my modest practice 20 years ago.
Hope the birthday was a good one! And i’d have to agree with you, I think 37 is a high age cap for NexGen. But then again..I think age and experience coupled together really determine who may or may not fit in with the group. All the best
Michael,
I have learned so much from your blog. I appreciate that you tackle issues practitioners face with an unbiased point of view and when appropriate back your thoughts with empirical evidence. Your blog is a great resource (helped me evaluate guaranteed minimum withdrawal benefit of annuities) and has also directed me to others with valuable insight (ex. Wade Pfau). Thank you!