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#FASuccess Ep 388: Transitioning To Independent RIA With Only $7M Of AUM To Turbocharge Growth With Website Local SEO, With Freeman Linde

June 4, 2024 07:02 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 388th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Freeman Linde. Freeman is the Co-Founder of La Crosse Financial Planning, an RIA based in La Crosse, Wisconsin, that oversees nearly $50 million in assets under management (AUM) for 73 client households.

What's unique about Freeman, though, is how despite the conventional industry view that it takes $10s of millions of AUM to go independent, launched his own RIA with just $7M of AUM (and even that was split with a business partner), and found that the subsequent freedom to build their own SEO-optimized website to market themselves the way they wanted in their local community quickly grew the firm from there to $40M in under 4 years.

In this episode, we talk in-depth about how Freeman used a customized spreadsheet to analyze the financials that ended up favoring operating as an independent RIA rather than under a broker-dealer’s grid and platform fees (in particular the ability to boost long-term profitability by paying expenses as a flat cost rather than as a percentage of revenue), how Freeman’s transition to the RIA channel actually allowed him to raise his AUM fees while still providing clients with lower total costs than they had when he was with the broker-dealer, and how Freeman overcame the potential hurdles to going independent, including rebuilding his tech stack and managing his own compliance (in part by communicating directly with his state regulator).

We also talk about how Freeman has been able to turbocharge growth in his RIA, going from $7 million to now approaching $50 million in AUM in under 4 years, by using a local SEO strategy that emphasizes their status as one of the only fee-only fiduciary firms in their geographic area, why Freeman created 3 different websites targeted at the separate niche markets he and his 2 fellow advisors serve to maximize the SEO value of each one, and how Freeman converts prospects into clients using a structured discovery meeting process that includes giving prospects planning recommendations that they could implement themselves regardless of whether or not they become a client.

And be certain to listen to the end, where Freeman shares how he has attracted clients and won their loyalty by expanding his comprehensive suite of services including in-house tax return preparation (by becoming an Enrolled Agent) and outsourced estate document services using EncorEstate, how Freeman feels that operating as an RIA has allowed him to build a more sustainable business by focusing on existing client relationships with recurring revenue rather than product sales that always kept him on the hunt for the next new client, and why Freeman hopes that more newer advisors will be able to get their start learning firm operations and how to serve clients within a fee-only firm rather than starting out in a product sales role and moving to an RIA later.

So whether you are interested in learning why Freeman chose to operate as an independent RIA over remaining under a broker-dealer, how Freeman used local SEO strategy to turbocharge firm growth, or how expanding services to include in-house tax preparation and outsourced estate planning helped him attract and retain clients, then we hope you enjoy this episode of the Financial Advisor Success podcast with Freeman Linde.

The Latest In Financial #AdvisorTech (June 2024)

June 3, 2024 07:02 am 0 Comments CATEGORY: Technology & Advisor FinTech

Welcome to the June 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 'startup' custodian Altruist has completed a $169 million fundraising round as it continues to rebuild the RIA custodial tech stack layer-by-layer while positioning itself as the biggest RIA custodian built from scratch and solely for advisors – which, while making it the clear #3 custodian behind Charles Schwab and Fidelity, leaves open the question of whether it can grow large enough to challenge the dominant position of the 'Big 2', which are able to leverage their massive retail operations not only for economies of scale but also to create a large pool of potential clients for RIAs to convert or be referred to (making it a less attractive proposition to switch to a custodian that by definition has no retail client base)

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

Communications archiving solution Archive Intel has recently raised $1M in startup capital, as it builds a tool that reflects clients' changing communication preferences by including messaging apps like iMessage and (in the near future) WhatsApp – which raises the question of how long compliance archiving solutions can keep up with an ever-growing number of communications channels before they become more expensive than is worth it for advisors to keep communicating via their clients' preferred medium
Financial planning software platform RightCapital has introduced its own built-in risk tolerance assessment tool, RightRisk, allowing users to embed risk tolerance conversations directly within the financial planning process (and for many, possibly eliminating the need for a standalone risk assessment tool)
Couplr, a white-labeled software tool for creating data-based matches between prospects and advisors, has announced a partnership with the American College of Financial Services – which, while addressing a potential opportunity for better matches than existing lead generation platforms based on clients' unique needs, raises questions about how big of a market there is for Couplr's services given that most firms' main challenge is simply bringing in prospects at all, not just 'good' prospects

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

XY Planning Network has announced that applications are open for its annual AdviceTech Competition, which showcases emerging advisor-facing technology for XYPN's network of planning-centric advisors without the high costs of a traditional exhibitor booth (while also giving potential investors a look at early-stage companies that could fuel the future growth and innovation of the AdvisorTech space)
While the initial wave of hype surrounding AI tools has cooled off amid recognition of their inherent limitations, the potential for AI-based meeting notes tools to eliminate hundreds of hours of advisor work around meeting preparation and follow-up has spawned numerous solutions competing for advisors' business – raising the question of how to actually choose between them when new solutions are popping up continuously and the pace of development is such that today's inferior option might be next year's category leader?

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 (June 1-2)

May 31, 2024 01:15 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 the Financial Planning Association and Money.com are planning to publish a “Best Financial Advisors” list based on advisors’ education, credentials, and experience, as well as harder-to-quantify areas such as trust factors and client communication. Going beyond FPA’s existing PlannerSearch tool, the narrowed-down list is meant to help consumers identify a focused subset of the most reputable planners. Though given that the list will be limited to FPA members who complete a detailed questionnaire, it might not be a truly comprehensive list of the ‘best’ planners… and even more impactfully, could upset current FPA members who pay their dues like every other member but are told they’re “not good enough” to be recognized by their own membership association as one of the “best” to Money.com’s millions of consumers?

Also in industry news this week:

Legislation that has passed through the U.S. House of Representatives and is now being considered in the Senate would increase the number of firms classified as “small entities” and would require the SEC to assess the impact of proposed regulation on this newly enlarged class of investment advisers (which tend to have fewer compliance staff and resources available compared to larger firms)
A recent study indicates that many retirees, particularly those that engage in a “partial retirement”, experience spending volatility at a time when sequence of return risk is the most threatening

From there, we have several articles on tax planning:

The IRS released its annual “Dirty Dozen” list of tax scams, many of which target wealthy individuals, including abuses of certain trusts, monetized installment sales, and improperly valued art donations
How advisors can help clients avoid falling prey to tax scams, from encouraging good cyber hygiene to serving as a second opinion on questionable tax strategies that have been pitched to the client
How advisors can support clients in evaluating the qualitative and quantitative consequences of engaging in geographic arbitrage to reduce their state income tax bills

We also have a number of articles on clients going through a divorce:

How advisors can add value for clients going through the divorce process, from offering an empathetic ear to analyzing the impact of a proposed division of assets
The unique challenges (and rising incidence) of “gray divorce” and the key planning topics for advisors and their clients in this situation to address
The ethical considerations for financial advisors when client couples are going through a divorce

We wrap up with three final articles, all about career satisfaction:

How the concept of the “hedonic treadmill” can help explain why reaching professional goals often leads to fleeting satisfaction, and the alternative practices that can lead to enduring happiness
Why letting go of the “pursuit of happiness” might be more likely to lead to greater contentment than trying to cross off as many items as possible from a ‘to-do’ list
3 mindset shifts that can help advisors find satisfaction from their (incremental) professional accomplishments

Enjoy the ‘light’ reading!

Kitces & Carl Ep 139: When Have You Done ‘Enough’ For Clients (And How Do You Know)

May 30, 2024 07:02 am 0 Comments CATEGORY: Kitces & Carl Podcast

Over the past couple of decades, the financial advice industry has seen a tremendous shift as the focus has evolved away from being primarily transaction-based and towards forming long-term service-based relationships with clients. Yet, one of the hurdles advicers have faced along the way is figuring out how to demonstrate the seemingly intangible value of financial planning as a service. The good news is that the profession has been blessed with an ever-expanding supply of credentials and software solutions to give advicers the tools and opportunities to expand their expertise and create deliverables to demonstrate their value. However, since advicers tend to be service-oriented and enjoy helping their clients in as many ways as possible, the challenge is that there can be a tendency to always do more for clients. Which begs the question: Is there a point at which advicers might be doing too much where they should stop pressing so hard to expand their service menu and even cut back on some items on their client service calendar?

In our 139th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards explore ways for advicers who may feel like they are doing too much for their clients to identify the service offerings they can eliminate, implement strategies for phasing out superfluous services, and think about how their own personal learning journeys fit with their visions for their business.

One challenge that advicers may face when figuring out what they can remove from their service calendars is that it's nearly impossible to get all clients to agree that a certain offering is unnecessary. As while most clients would be perfectly happy without certain services, all it takes is for 1 or 2 to say they want to keep them for advicers to feel obliged to continue delivering them, even if eliminating them might create better efficiencies within the practice or help the advicer achieve a better work-life balance.

One workaround advicers can try is to simply stop doing a 'thing' (e.g., quarterly performance reports) and see if anyone notices... and if they do, it's perfectly okay for the intrepid advicer to say it was simply an oversight. Meanwhile, an even more effective (and data-driven 💙) approach would be sending clients a survey asking them to rate the perceived value of all the services they're receiving. From there, the advicer can jettison the lowest-ranking offering, knowing that the odds of a client moving on in response would be relatively low… and even if they were to leave, then maybe the advicer would get the added benefit of realizing that the client wasn't a good fit after all!

Meanwhile, for advicers on their own learning journey, it's important to note that just because they learn something new doesn't mean they have to bring it into their business. Instead, advicers can (and probably should) stop adding to their business as soon as what they're charging aligns with the value they're delivering. And if, along the way, they find something they do want to add, they can always find a lower-value offering for the new thing to replace.

Ultimately, the key point is that, just as clients can experience 'lifestyle creep' as their earnings increase, so too can advicers experience 'service creep' as their businesses grow… especially since many advicers are hard-wired learners and helpers. The key is understanding that it's okay for advicers to stop stacking on additional services even as they continue to expand their knowledge and expertise. And if there's a question around whether or not they're doing enough, advicers can take stock and observe whether they're getting referrals and if their attrition rates are higher than normal. In the end, the odds are that they'll find they are, indeed, enough!

Why “Deferred Sales Trusts” Can Be A Risky Way To Defer Taxes On A Business Sale

May 29, 2024 07:02 am 0 Comments CATEGORY: Taxes

Small business owners often treat their businesses not only as their source of income during their working years, but also as an asset that can be sold to fund their retirement. And while many businesses can build up substantial value over the years, the downside is that, when that value is realized upon the sale of the business, a large amount of it is treated as taxable income. And for many business sales that create capital gains of more than $500,000, the one-time spike in taxable income created by selling a business can bump the seller into a higher income tax bracket, requiring them to forfeit a significant chunk of their funds needed for retirement to pay their own tax bill on the sale.

One way to reduce the tax impact of selling a small business is by using an installment sale. Under IRC Sec. 453, capital gains on the sale of assets, such as privately held businesses where the payments are spread out over a period of 2 or more years, are deferred until the years when the payments are actually received. Which not only defers the taxes owed on the sale to future years, but can also reduce the absolute amount of tax on the sale by spreading out the tax impact over multiple years and keeping the seller within the lower capital gains tax brackets.

The downside to installment sales, however, is that, being essentially a loan from the seller to the buyer of the business, the seller takes on the risk that the buyer may ultimately be unable to make their payments as required by the installment note. Additionally, it can sometimes be difficult for a business seller to even find a buyer who is willing to agree with them on the terms of an installment note. And furthermore, because an installment sale involves one or more payments being deferred until future years, the seller can't use or invest any of the sales proceeds until they're actually received.

One purported solution to the issues with installment sales that has been promoted by a group of accountants, attorneys, and financial advisors is known as a Deferred Sales Trust (DST), which works by using a third-party (the trust itself) to buy a business or other asset from the seller under an installment agreement, rather than selling directly to the ultimate buyer. The trust then sells the asset to the buyer in a lump-sum transaction and invests the proceeds to pay back the seller under the terms of the installment agreement. As the sales pitch goes, this allows the seller to benefit from installment sale treatment, while eliminating the credit risk of selling to a buyer and giving them at least some ability to choose how the proceeds are invested even before they actually receive them.

However, closer scrutiny of the DST strategy raises significant red flags that aren't included in the sales pitch. For one thing, details of the strategy are kept closely under wraps by the group that promotes and sells DSTs, limiting advisors' ability to vet the DST's legitimacy. Additionally, although DST promoters tout the strategy's ability to eliminate the credit risk of entering an installment agreement directly with a buyer, in reality, the risk is simply shifted to the trust itself: Because the seller cannot be the owner, trustee, or beneficiary of the DST (because doing so would cause the transaction to lose its installment treatment), they are wholly reliant on the trust to be able to make its required installment payments. Meaning that, for example, if the DST trustee mismanaged the sales proceeds and caused them to default on the installment loan, the seller would have no recourse to recover those funds. (While at the same time, any extra funds that are left over after the note is fully paid off go to the DST trustee, not the business seller – a true 'heads I win, tails you lose' proposition.)

In other words, the characteristic that is needed to make DSTs work from a tax perspective – the ceding of all control over the sales proceeds to a third-party trustee – can make them even more risky than a traditional 2-party installment sale. Which is why instead, sellers of small businesses may want to consider other strategies such as structured installment sales (in which the installment note is funded by a large insurance company that has significantly more assets with which to pay off the loan), entering into the installment agreement directly with the buyer, or even simply selling as a lump-sum and taking the entire tax hit in 1 year – which, while being possibly less favorable from a tax perspective, at least ensures that the seller receives all of the sales proceeds to begin with!

#FASuccess Ep 387: Merging A Fast-Growth Firm Into A Much Larger One To Get The Operations Monkeys Off Your Back, With Jenny Martella

May 28, 2024 07:04 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 387th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Jenny Martella. Jenny is a Principal and Wealth Manager at Modera Wealth Management, an RIA based in Westwood, New Jersey, that oversees $12.5 billion in assets under management for approximately 4,700 client households.

What's unique about Jenny, though, is how she and her previous business partner were so successful in the early years of growing their advisory firm, that they decided not to hire up the operations staff they would need to keep up, and instead chose to merge into Modera Wealth, and become smaller partners in the much-larger enterprise, so that they could re-focus on their own strengths of serving clients rather than spending more and more time on firm operations.

In this episode, we talk in-depth about how Jenny and her partner grew their firm from $19 million to $250 million of assets under management in just 7 years, thanks in large part to investing in a professionally designed website that highlighted their status as a women-run fee-only financial planning firm, how Jenny felt an increasing burden of operational responsibilities, from hiring to compliance, as the firm grew and there were more clients to serve, and how Jenny's desire to get these operational monkeys off of her back, as well as a lack of a viable internal successor, led Jenny and her partner to look to merge with a larger firm that would reduce these operational burdens and ensure her clients would be served well no matter her own future career choices.

We also talk about how Jenny and her partner managed the merger process itself, including how Jenny first tried to merge with firms their own size and found that many of them wanted Jenny's firm to be their succession plan, the 'courtship process' that led Jenny and her partner to decide to merge into a much-larger RIA like Modera Wealth Management instead, and how Jenny and her partner used the consulting firm FP Transitions to advise them both on their partnership agreement and on the terms of the sale of their firm.

And be certain to listen to the end, where Jenny shares the challenges she experienced going through a merger into a larger firm, including transitioning clients, learning new technology systems, and the loss of the brand identity and client acquisition pipelines from their previous firm, how Jenny carved out a new role for herself within Modera that not only ensured her clients would continue to be well-served, but also allowed her the impact she wanted to help shape Modera as a whole, and how Jenny maintains a running list of quotes and scripts for herself that helps her find the right words at the right time (or occasionally just some personal inspiration) when communicating with clients.

So, whether you're interested in learning about merging with a larger firm to achieve operational efficiencies, how to overcome the technical and emotional challenges of selling a firm, or how to develop better client communication skills, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Jenny Martella.

How Advisory Firm Owners Can Overcome The Marketing “Capacity Crossroads” And Options For Continuing (Sustainable) Growth

May 27, 2024 07:02 am 0 Comments CATEGORY: Marketing

The first few years of building an advisory firm from scratch are typically the most demanding for solo advisors since this often means putting oneself 'out there' as much as possible – working through lead generation services, trying to network with Centers Of Influence (COIs) and the community at large, and battling through all of the "no" s needed to get a "yes" (and therefore a client). Next comes the challenge of establishing patterns and processes to onboard and retain clients, getting referrals, hiring and training staff, and doing the (very rewarding) work to turn a fledgling firm into a sustainable practice.

However, as the firm matures, many advisors find themselves at the "capacity crossroads", which marks the point when the ongoing demands of running a firm and caring for clients begins to completely fill an advisor's day-to-day schedule and their capacity to continue to find and onboard prospects becomes severely diminished… at least, if the advisor wants to avoid burnout.

There are certainly many aspects to this capacity crossroads, but perhaps an under-discussed factor is that the marketing tactics often used by new business owners to build their advisory firm – COIs, cold-calling, networking, and online referral services – are, in fact, creating blocking points in an advisor's ability to continue to scale their firm's growth. This is because the tactics generally used tend to be time-based marketing tactics, and as the firm's client base and revenue grows, the advisor's time becomes increasingly valuable and in short supply. Furthermore, even though these soft-dollar marketing tactics don't have an associated bottom-line expense that requires payment with hard dollars, they can still be 'expensive' because of how much of the advisor's time they need.

To alleviate this time capacity shortage, advisors have 3 options to reduce time-based expenses and increase money-based expenses, allowing them to regain their (more valuable) time that they can invest into the continued growth of their business. The first is to automate certain tasks/tactics, such as scheduling social media content, project management for recurring tasks, or sending reminder emails for webinars. The second option is to delegate tasks/tactics by handing off certain tasks/tactics to an employee or contractor, often decreasing the soft dollar cost (when the other person's time is less expensive than their own). The third option is to eliminate certain tactics entirely, thus reducing both the hard- and soft-dollar costs.

Ultimately, the key point is that marketing, when limited by an advisor's own time and energy, can only take a firm so far. To get to the next level, advisors can position their firms for success and protect themselves from burnout and overwork by using marketing tactics with decreased dependency on their own time… while still continuing to grow!Read More...

Weekend Reading For Financial Planners (May 25-26)

May 24, 2024 01:45 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 growing cybersecurity threats targeted at the finance industry, the SEC adopted final amendments to Regulation S-P that will require SEC-registered RIAs and other financial firms to develop, implement, and maintain written policies and procedures for an incident response program to detect, respond to, and recover from unauthorized access to or use of customer information. Further, firms will be required to include procedures to notify clients whose sensitive information was or is "reasonably likely" to have been accessed or subject to unauthorized use. And while firms will have between 18 and 24 months to comply with the amendments, adopting strong cyber hygiene practices could help firms proactively mitigate cyber risks, better protecting client data and maintaining the trust of their clients in the process.

Also in industry news this week:

Why the Federal government is proposing new rules targeting the use of donor-advised funds that could impact financial advisors who work closely with them
A recent report indicates that while financial advisory firms prioritize their client experience, they often make such decisions without consulting their clients first

From there, we have several articles on investment planning:

Why the current moment could be an attractive environment for investors considering an allocation to intermediate-term bonds
How fiscal pressures could keep bond yields' higher for longer' and make certain fixed-income investments less attractive
Why market forecasts are often incorrect, even when they are based on seemingly sensible fundamental analyses

We also have a number of articles on practice management:

Financial advisory industry veteran Joe Duran offers a 4-part framework for advisors to achieve greater organic growth in the years ahead
How "embracing discomfort" can help an advisory firm break out of its normal routine and boost its growth trajectory
5 shifts transforming growth for advisory firms, from using technology as a growth driver and capacity builder to leveraging the remote work environment to attract clients regardless of geography

We wrap up with 3 final articles, all about compensation:

Strategies to negotiate a higher salary, from finding senior advocates to lobby on one's behalf to obtaining a competing job offer as leverage during raise discussions with one's current employer
Why autonomy is a key factor in determining job satisfaction and overall wellbeing and what this means for financial advisors
Why one company publishes every employee's salary online and how doing so has helped it and its staff thrive

Enjoy the 'light' reading!

Navigating The FTC’s Ban On (Most) Non-Competes: The New World Of Partnerships And Non-Solicits

May 22, 2024 07:01 am 0 Comments CATEGORY: Regulation & Compliance

Non-compete clauses are common features of employment agreements around the business world and are often used to dissuade companies from 'poaching' another's employees, and/or to prevent employees (at least for a certain time period) from taking the knowledge gained from working at one company to a competitor. Which can allow companies to protect the 'investments' they have made in their employees and maintain continuity amongst their staff.

However, these agreements can also be unduly restrictive towards employees, limiting their ability to advance within their chosen industry, which is especially problematic in skilled professions that might have required years of education and training just to enter in the first place. Further, critics of non-compete agreements argue that they restrict dynamism in the overall economy by making it harder for businesses to hire (as the pool of applicants will be smaller in industries where non-competes are prevalent), and for employees subject to non-competes to start new companies.

With these factors in mind, the Federal Trade Commission (FTC) in April of 2024 announced a final rule banning most non-competes nationwide that is expected to take effect (pending legal challenges) on September 4, 2024. To comply with the rule, employers are required to provide written notice to relevant workers (which include employees and independent contractors, among other categories), letting them know that their non-compete agreements are unenforceable and will not be enforced.

Notably, the ban includes exemptions for "senior executives" who previously had signed a non-compete (new non-competes are banned for all employees, including senior executives) and in the case of a "bona fide sale of a business entity, of the person's ownership interest in a business entity, or of all or substantially all of a business entity's operating assets". This latter exemption means that financial advisors with an ownership interest in their company (even a very small one) could still be subject to a non-compete as a term of the sale of their stake (which could impact how they value receiving an ownership interest in their firm).

Furthermore, the regulation does not prohibit non-solicit agreements (which restrict a departing employee from soliciting the clients of their former employer for a specified time period), which are more common than non-competes in the financial advice industry, meaning that non-solicit agreements can remain in place, and might even become more prevalent amongst firms that are no longer able to enforce non-competes. But because enforcing non-solicits can be less clear-cut than enforcing non-competes (given that it is more difficult to tell whether an individual is actively soliciting their former employer's clients compared to obtaining a job at a competitor or starting their own business), the number of legal battles over non-solicits could increase as their use rises. Which could make it more advantageous for firms and advisors alike to consider a more equitable, cooperative approach than strict on-competes or non-solicits to deciding which clients an advisor can solicit if they do eventually leave the firm.

Ultimately, the key point is that the FTC's ban on non-competes may provide advisors with increased flexibility to move amongst firms within the financial advice industry, while also offering the opportunity for both financial advisory firms and their advisors to revisit their employment agreements… not only to ensure that they comply with the FTC's final rule, but also so that they better meet the needs advisors and their firms!

#FA Success Ep 386: Turning Impostor Syndrome Anxiety Into A Strength That Drives Client Referrals, With Dann Ryan

May 21, 2024 07:04 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 386th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Dann Ryan. Dann is a Managing Partner of Sincerus Advisory, an RIA based in New York City, that oversees approximately $165 million in assets under management for nearly 150 client households.

What's unique about Dann, though, is how he has channeled the anxiety of having imposter syndrome, which still causes him to be nervous before every client meeting (despite having 17 years of experience in the financial advisory business), as a means to hold himself accountable to always be doing the best he can for his clients, which has allowed Dann to build a thriving financial planning business that generates a steady flow of client referrals.

In this episode, we talk in-depth about how Dann and his partner have 5Xed their AUM in the past 5 years thanks to their firm's commitment to quality client service (which has spurred so many referrals that Dann's firm has implemented a waitlist), why Dann has found that referred clients are willing to remain on the waitlist (because they don't mind as much when Dann explains it's because they're already working so hard for their existing clients!), and the reason that Dann's firm has continued to stick with an AUM fee model despite an increasingly financial-planning-centric service offering.

We also talk about how Dann started his career at a fee-only financial advisory firm in the mid-2000s, when such a path wasn't nearly as common as it is today, why Dann believes that the long hours he put in building financial plans as an employee advisor earlier in his career were a positive career investment that gave Dann the skills needed to be an effective lead advisor today, and why Dann, after not getting an opportunity to become a partner at his previous firm, decided to take the leap and break off to start his own firm.

And be certain to listen to the end, where Dann shares his agile approach to the planning process, proactively analyzing planning issues according to a structured quarterly client service calendar while making himself available when issues arise in the interim, why Dann takes a hands-on approach to the investment planning process and is even open to helping clients implement investment ideas they bring to the table instead of talking them out of it, and how Dann's interest in working with a wide range of client types, rather than focusing on a single niche, coupled with his desire to build long-lasting relationships with these clients, has been crucial to managing his imposter syndrome and building a successful career in financial planning.

So, whether you're interested in learning about how to build a career entirely at fee-only firms, the unexpected upsides of impostor syndrome, or how to handle situations where clients bring their own investment ideas to the table, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Dann Ryan.

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#FASuccess Ep 388: Transitioning To Independent RIA With Only $7M Of AUM To Turbocharge Growth With Website Local SEO, With Freeman Linde

The Latest In Financial #AdvisorTech (June 2024)

Weekend Reading For Financial Planners (June 1-2)

Kitces & Carl Ep 139: When Have You Done ‘Enough’ For Clients (And How Do You Know)

Want CE Credit for reading articles like this?

Why “Deferred Sales Trusts” Can Be A Risky Way To Defer Taxes On A Business Sale

#FASuccess Ep 387: Merging A Fast-Growth Firm Into A Much Larger One To Get The Operations Monkeys Off Your Back, With Jenny Martella

How Advisory Firm Owners Can Overcome The Marketing “Capacity Crossroads” And Options For Continuing (Sustainable) Growth

Weekend Reading For Financial Planners (May 25-26)

Want CE Credit for reading articles like this?

Navigating The FTC’s Ban On (Most) Non-Competes: The New World Of Partnerships And Non-Solicits

#FA Success Ep 386: Turning Impostor Syndrome Anxiety Into A Strength That Drives Client Referrals, With Dann Ryan

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