The introductory meeting is a high-stakes moment for both advisors and prospects, often nerve-wracking for both sides. Advisors must decide how to present themselves, respond to questions, explain complex issues in an engaging way, and propose and explain their long-term proposition. And at the same time, prospects are likely to feel vulnerable and equally nervous with their own set of concerns – how to present themselves to the advisor, what questions to ask, and how to explain their issues while still feeling competent. For many, this may be their first-ever meeting with a financial advisor, adding another layer of uncertainty (and potential anxiety) beyond simply evaluating fit.

In the 157th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss how advisors can alleviate a prospect's anxiety by setting clear expectations for the introductory meeting – both in terms of logistics and emotional preparedness. They highlight how even small details – such as providing directions, clarifying meeting logistics, or outlining the purpose of the conversation – can help prospects feel more in control, making the experience smoother and more productive for both parties.

For most prospects, showing up comfortably and feeling their very best can be challenging when they don't know what to expect – whether it's where to park, how formal the meeting will be, or whether they need to bring any financial documents. While these details might seem minor, they can create unnecessary stress in the lead-up to the meeting. Even prospects who have met with advisors before may find that every firm runs a slightly different introductory meeting. By taking a moment to provide clarity, advisors can make a meaningful difference in setting the right tone and allowing prospects to engage with confidence.

One effective way to alleviate some of the nervousness is to give prospects a clear outline of the call in advance of the meeting. This roadmap can be as simple as a brief email (or similar document) covering basic logistics and setting clear expectations. The email may discuss practical details like directions, parking, and dress code, and include a brief meeting agenda with potential next steps. It may also include a list of which documents to review, bring, or – perhaps just as crucially – not bring. These small but thoughtful details can offer reassurance to prospects, helping to reduce pre-meeting anxiety and allowing them to focus on the conversation itself.

Ultimately, the key point is that small, intentional efforts to reduce uncertainty can go a long way in helping a firm stand out. As while prospects are often bracing themselves for a high-pressure sales pitch, a well-crafted pre-meeting email immediately signals a different experience – one that prioritizes comfort, clarity, and meaningful dialogue. By eliminating distractions and providing a clear roadmap that outlines expectations in advance, advisors can help settle a prospect's nerves the day of the meeting – which, in turn, can lead to more productive conversations and stronger client relationships!

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Since the emergence of Artificial Intelligence (AI) in the mainstream technological landscape, conversations about which areas of the financial planning industry would be most likely impacted by AI have proliferated. These discussions have ranged from questioning whether everyone would be out of a job in five years to wondering if anything of substance would change at all. However, as the public’s understanding of AI has developed, the common consensus has largely shifted to the understanding that while processes may change, the expertise and human connection offered by specialists like financial advisors will be hard to replace. In fact, AI currently seems most likely to develop into a tool that advisors can use in many parts of practice. Which, in turn, poses the question – where can AI be most effectively used as a way for advisors to leverage their time and creativity?

In the 156th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss how they use AI tools such as ChatGPT to expedite their creative and strategic processes – and how to ‘ask’ ChatGPT better questions to get more effective and relevant answers.

Perhaps one of the most impressive capabilities of programs like ChatGPT lies in their ability to serve as brainstorming partners. To use them effectively, it can be helpful to assign ChatGPT a role (e.g., “You are my executive producer” or “You are a marketing director”) and define a clear objective. Providing sample documents or links to sources for tone or substance may be helpful. For example, advisors can attach their typical “first prospect meeting” agenda, give ChatGPT the role of business development coach, and ask for feedback and what to do differently.

That being said, a common frustration when using ChatGPT or similar programs for brainstorming is that the first responses may not be exactly what is hoped for. Rather than expecting a perfect ‘call and response’, the process can be approached more as an iterative dialogue. Sharing initial thoughts, providing feedback, and curating further – such as asking variations of “I really like [this idea]; can you tell me more about it for an audience of [specific type of client]…?” – can guide ChatGPT toward more tailored results. The advisor and AI can then collaborate further to create a stronger and more relevant offering. Additionally, many AI programs now ‘remember’ what was asked of them across sessions, making it easier to build on previous conversations and reach increasingly insightful responses over time!

The key point is that with some patience and guidance, ChatGPT can be a powerful tool for enhancing many aspects of an advisory firm’s operations. Whether it’s used to help with marketing, drafting email responses, summarizing content, reviewing data analyses, or even providing feedback on client surveys, the potential applications are vast. Ultimately, the only true limitation of AI’s potential is ‘just’ a question of imagination!

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While financial advisors offer valuable services for their clients, it can sometimes be challenging to gauge how much clients actually value those services. On one hand, a client's willingness to pay an ongoing fee for financial advice suggests that they find the advisor's services worthwhile. On the other hand, the term "financial advice" often refers to much more than asset allocation and wealth management. Many firms also offer regular meetings, webinars, client portals, and other services to enhance the client experience. Yet, with so many services available, it isn't always clear which ones truly make a meaningful difference.

In the 155th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss how advisors can look beyond engagement metrics to understand which services have the greatest impact on their clients' experience.

Engagement metrics are often used to gauge how much value a client derives from their financial advisory firm's services. For many advisors, a shift in engagement – such as a long-term client requesting fewer meetings – can be a cause for concern, as it might raise red flags signaling disengagement or even a potential move to another advisory firm. However, changes in behavior like this don't always indicate a problem. For instance, the same client wanting to reduce their meeting frequency from three times a year to just once might reflect not a loss of interest, but instead increased peace of mind, trust in the advisor, or confidence that if anything urgent comes up, they will connect with each other anyway.

This principle extends across many aspects of a firm's value proposition, from client newsletters to account log-in frequency to other common metrics of interest. While offering valuable resources to clients can make a difference, providing too many options risks overwhelming the client. Rather than reinforce the advisor's value, excessive offerings might even be a turn-off for the client, detracting from their overall experience.

This tendency to 'over-service' often comes from good intentions of providing great service and justifying the fee for financial advice, and advisors may hesitate to scale back out of concern for removing something clients value (e.g., a monthly newsletter they enjoy reading even if they never reply). To better understand what truly resonates with clients, advisors may find it worthwhile simply to start by asking. For example, sending a client engagement survey or talking with clients can provide meaningful insights. Similarly, investigating offerings that clients don't engage with – such as document vaults that they rarely use – can reveal where advisors can focus less effort, giving them more time to focus on what really does make a difference.

Ultimately, the key point is that traditional engagement metrics may fall short in capturing the true value clients place on financial advisory services. And, in a world where clients are increasingly busy and advisors face competing demands, the real opportunity lies in figuring out what truly matters to clients. By identifying the services that create the most meaningful connections and deliver the greatest impact, advisors can allocate their time and energy where it matters most – deepening trust, enhancing the client experience, and strengthening long-term relationships!

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Just a few decades ago, giving financial advice was largely a manual process – printing lengthy financial plans, processing physical checks, and managing paper files. Then, technology evolved, introducing tools like Excel, the internet, and sophisticated financial planning and CRM software that transformed how advisors deliver financial advice. Today, AI is poised to drive another transformation in financial planning – but where will AI create the most change, and where is the human advisor still indispensable?

In the 154th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss the opportunities and limitations of AI in financial advice, exploring how technology can enhance advisors' work and where its boundaries lie.

AI offers exciting possibilities as a brainstorming partner, editor, and copywriter. Advisors may find it particularly useful for drafting meeting notes, creating summary emails, generating marketing ideas, and analyzing client data for actionable insights. However, while AI programs excel at addressing technical tasks and making data-driven decisions, they often fall short in areas of ambiguity. Many client concerns are deeply personal, requiring empathy, trust, and a nuanced understanding of complex emotional and financial situations. Questions like "What's the best way to divide my estate among grandchildren with different life circumstances?" don't have clear, calculable answers. Instead, they demand thoughtful conversations rooted in the client's values. These conversations are often emotional and vulnerable, requiring a sense of safety built on years of trust that technology simply can't replicate.

Despite the significant efficiencies technology has introduced, the time saved by advisors has often been reinvested into enhancing plans and services, raising the bar for client expectations while leaving advisory firm margins relatively unchanged. While the advisor's role has remained remarkably consistent, even as support tasks have been streamlined through automation, there is still a real opportunity for advisors to use technology to focus on relationship-building and delivering unique personal value. Delegating and automating routine tasks allows advisors to spend more time guiding clients through the emotional and complex challenges of financial planning – work that requires an intimate connection and a deep understanding of each client's unique situation.

The key point is that AI and other technological tools can provide significant support, they ultimately cannot replace the empathy and personalized problem-solving skills that form the foundation of the client/advisor relationship. As technology continues to evolve, advisors can seek opportunities to delegate or automate tasks, freeing up more time to do what only they can do: applying their financial knowledge to provide personalized guidance, while navigating complex emotions and building lasting relationships!

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There's an old joke in the financial planning industry that the ideal client is "anyone with a pulse". For advisors just starting out, that sentiment often rings true – every prospect willing to pay for their service feels like an opportunity. However, as their firms mature, advisors often notice a divide manifesting between newer clients paying higher fees and 'legacy clients' from the early days paying discounted rates. Continuing to serve these legacy clients can strain firm resources, limit profitability, and slow growth. Which can leave advisors grappling with the trade-off between gratitude for early supporters – clients who were willing to 'bet' on them during the firm's fledgling days – and the increasing demands of running a sustainable, profitable business. This balancing act becomes even more demanding as advisors' services and fees evolve, creating a growing gap between legacy client contributions and the cost of maintaining those relationships.

In this 153rd episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss how advisors can navigate the challenge of managing underpaying clients. They explore why financial 'spreadsheet' metrics often fail to account for the emotional realities of these decisions – such as the loyalty advisors feel toward long-standing clients – and how advisors can approach this common business dilemma with greater balance and thoughtfulness.

For many advisors, determining what to do with legacy clients paying discounted rates can feel at odds with their purpose: helping people. Yet every client relationship demands resources – from staff time to infrastructure to meeting hours – and taking on too many underpaying clients can leave advisors stretched too thin. This strain doesn't just affect business growth and service quality. Over time, it can even affect the advisor's well-being, as the demands (and stressors!) take a physical and emotional toll.

Advisors facing "too much work for too many clients for too little dollars" can start by assessing the trade-offs. Saying "yes" to underpaying clients often means saying 'no' to higher-paying opportunities, greater work-life flexibility, or long-term firm growth. What matters most is making this decision consciously, with clarity and intention. Advisors who take the time to reflect on their choices can better align their decisions with their goals and values. And, in many cases, legacy clients may be willing to adjust their fees to match current service levels, providing the firm with resources to serve more clients without stretching thin.

Ultimately, there's no one-size-fits-all solution. The key point is that whichever path an advisor chooses – graduating clients, right-sizing fees, or even making no adjustments –  what matters most is that the decision is made intentionally. After all, there is a lot of power that comes with 'choosing' that course of action. Every path brings its own challenges – and its own rewards – but by taking ownership of the decision, advisors can move forward with clarity and confidence!

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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 & 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!

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As the financial advice industry began shifting from a sales-based model to a more sustainable asset management approach, advisors found their roles shifting along with it. With revenue rooted in more predictable, recurring income, many advisors were able to step off the relentless 'treadmill' of constant sales, allowing them to invest in growth by hiring staff and delegating tasks. Effective delegation, in turn, created a positive cycle, freeing advisors from lower-value activities so they could work on building and scaling their firms. "Delegate and let go" became a common mantra, with advisors encouraged to focus only on the highest-value tasks. Yet, even for advisors who understand the value of delegation, actually letting go is often easier said than done.

In the 151st episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss the psychological challenges advisors often face when it comes to delegating tasks and the strategies that can make delegation more effective.

Despite the potential upsides of delegation, advisors typically face 3 psychological hurdles to overcome in order to delegate effectively. First, it can be hard to imagine that doing all of an advisor's least favorite tasks would be someone else's dream job (after all, if doing those tasks were so enjoyable, then advisors wouldn't be trying to delegate them in the first place!). Second, people generally enjoy working with those similar to themselves, which can make it tempting to hire a 'mini-me' with similar strengths and inclinations. However, doing so can unintentionally reinforce the advisor's reluctance to delegate disliked tasks. Finally, even if an advisor dislikes a particular task, they may still be the fastest (and most skilled) at completing it, creating an argument for the advisor to continue doing it. Together, these elements create a compelling case for not delegating at all. In reality, though, holding onto these less-favored, non-growth-related tasks can limit a firm's long-term capacity to scale.

The first 2 barriers can be addressed by hiring an 'opposite', rather than a 'mini-me'. For example, while it might seem natural to hire someone similar, bringing in someone who has complementary strengths – such as an operations-focused person who thrives on detailed follow-through – ensures that tasks the advisor may find draining are handled by someone who enjoys them. The third barrier – that no one else can complete a task as well or as quickly as the advisor – may hold true and can be challenging to overcome. Yet, advisors may still benefit from delegating the work, as once a task is offloaded, an advisor's time is freed up for more productive work – or even for taking additional time off! A highly leveraged advisor has more flexibility in shaping their day-to-day business operations.

Ultimately, advisors aiming to delegate effectively can benefit from focusing on a new hire's ideal strengths and aptitudes. Hiring and working with an 'opposite' can feel counterintuitive at first – a checklist-oriented person, for example, may 'just' complete their assigned tasks without exploring beyond the to-do list, which could feel foreign to an ideas-driven advisor. However, this dynamic can also be incredibly freeing. After all, someone who enjoys a particular set of tasks is more likely to take ownership and improve that process – and, by extension, contribute to the firm's long-term success!

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For many years, the traditional career track for financial advisors has been an 'eat what you kill' model – where advisors must independently find, convert, and manage their own clients. As such, it isn't uncommon for an advisor's first few years to be characterized by long hours, high rejection rates, and low pay. For many, this can be a stressfully prolonged period that typically eases only as advisors build their client base and establish themselves in the industry. However, the scarcity-driven habits that helped them survive their stressful early years may not serve them effectively in their current state. In fact, these habits may even inhibit their growth, making it harder for them to scale their firm in alignment with their long-term vision.

In the 150th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards explore how advisors can acknowledge the psychological habits formed during prolonged high-stress periods and intentionally move beyond them to continue to achieve sustained growth.

When stress arises, especially in the early years, many advisors often do whatever it takes to pull through and build their business. But a scarcity-driven mindset can linger, long after the immediate pressures have faded. This mindset might manifest in subtle ways – like the reluctance to raise client minimums out of fear that new clients won't come, even when capacity is maxed out. At this point, the narrative of survival can keep advisors tethered to past habits, even when logistically, an advisor may be well past that point and their current reality calls for a different approach.

To shift from survival mode to a mindset geared for growth, a first step might be to take stock of the firm's logistical reality: cash flow, client load, and overall business capacity. This can help advisors move from reactive habits to proactive strategies. A helpful question that advisors can ask themselves is, "What would it take to feel secure in this scenario?" Sometimes, a few targeted risk-hedging steps can provide a sense of security. In other circumstances, it may be more helpful to acknowledge the gut-level response to stressful situations – the same survival instinct that got the advisor 'here'. However, getting 'there' – to the next stage of growth – requires noticing, acknowledging, and then rewiring those instinctive responses.

Importantly, it's not just about making technical adjustments; it's more about a shift in mindset. It's the ability to internalize success and recognize that the survival instincts, once crucial, might now be holding back progress. Letting go of those old habits means freeing up mental and emotional space to envision new possibilities for the firm's future.

Ultimately, the key point is that survival strategies, while essential in the early stages of an advisor's journey, may not align with the realities of a growing and thriving firm. Sometimes, internalizing that an advisor has 'made it' is not always easy, but it's a milestone worth celebrating. Embracing this recognition allows advisors to ask the more exciting question, "What comes next?" This shift isn't just about growing a business – it's about building a vision that truly aligns with long-term goals, creating the freedom to innovate and adapt with clarity and purpose!

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Launching an advisory firm can be a daunting endeavor, requiring advisors to take on significant financial and responsibility with no guarantees of success. Given these challenges, advisors may consider bringing on a business partner to share both the costs and the burden of decision-making. By pairing with a partner in the firm's early days, advisors can benefit from their business partner not just by having someone to split costs and risks with, but also to consult with as a sounding board and strategic partner across the highs and lows of launching a business. While this can be an appealing option, it's important to recognize that not all partnerships are created equal, and a business partner may not always be the best solution for challenges advisors are trying to solve.

In the 149th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss the common fears that advisors often face when considering a business partner, explore alternative solutions to address these concerns, and explain when joining forces with another advisor may be a good idea.

For advisors contemplating a partnership, the key question is often, "What are you solving for?" For example, if an advisor's main concern is the high upfront operational costs, they may want to explore fractional solutions to lower the prices of issues. Advisors have more options than ever before to address these costs independently. Some of these solutions include fractional compliance, administrative, and even office space, which can all significantly reduce expenses and manage up-front costs without the need for a business partner.

Another common issue is the sense of loneliness and isolation that comes with 'hanging one's own shingle' and launching a solo firm. In this case, advisors may benefit from joining "launch groups" through organizations like XYPN or even their broker/dealer, where they can find resources, solutions, and camaraderie to build community without splitting equity or the need to make business decisions together with a partner. Other options – such as mindfulness practices or study groups – can also help advisors manage the emotional toll of running a business on their own.

However, there are times when a business partner is essential to successfully launching a business, especially when both parties share the same vision and excitement for building the firm. When their vision and excitement align, a partnership can be a powerful force for working together to build a thriving business in the long-term!

Ultimately, the key point is that while there will be some issues that can be solved with a business partner, not all necessarily should be. Whether an advisor seeks a business partner or finds support through peer groups and fractional services, finding like-minded people who are "in it together" can make all the difference in managing the stress of launching and running a successful firm!

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"Building in public" is a common piece of advice for tackling new challenges – whether launching content, starting a business, or setting personal or professional goals – as public commitment fosters accountability and motivation, tapping into the human desire to avoid embarrassment. While this approach can be effective, it ultimately poses its own difficulties;  for example, when stakes are public, advisors may feel pressured to endlessly perfect their offerings and over-commit their time and resources before knowing what really works. Alternatively, they may avoid public commitment altogether to sidestep this pressure.

In the 148th episode of Kitces & Carl, Michael Kitces and Carl Richards discuss how advisors looking to try something new can overcome mental roadblocks and take action… without feeling the pressure to publicly announce their plans first.

As a starting point, it may be helpful to remember that, for better or worse… few people pay attention to someone's early public efforts. For example, firm owners often spend an immense amount of time on marketing before referrals or prospects begin to flow in. Most new offerings don't come with a built-in audience. The reality is that, more often than not, recognition for one's 'new' offering tends to come long after the offering was launched, which is why we often hear the phrase about taking 10 years to become an overnight success. On the one hand, it may feel defeating ("What's the point if no one cares?"); on the other, it can feel liberating ("I can build anything I want, and few will notice if I fail.").

The benefit of this slow recognition is that it gives advisors time to refine their product… as long as they start. The desire to create a polished product that matches what clients want is important (and a part of how an advisor has gotten so far) but can also inhibit advisors from getting started in the first place. From that end, it may be helpful for advisors who struggle to start to create a "Version 0" – a version built with release in mind, but not a commitment to a finalized, perfected end product. For example, an advisor creating new video content may record "Version 0" videos, where rather than focusing on perfecting sound, light, and other design elements, they ‘just' turn on their camera and follow a brief script. After recording, they may find that Version 0 is actually good enough to release! And once "Version 0" is out, observing who shows up and engages can inform the advisor about what their audience truly cares about.

The key point is that if advisors can ‘just' begin by iterating new offerings, the process of releasing them gives the advisor space to refine what truly resonates with clients – ultimately leading to a great, relevant product!

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