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4 Ways And 5 Charts To Talk Tariffs With Clients With Empathy And Strategy

April 16, 2025 07:01 am 0 Comments CATEGORY: Client Trust & Communication

The White House's tariff policies have dominated headlines in recent weeks, raising concerns among investors, consumers, and businesses. A rapid sequence of policy announcements and reversals has created volatility across nearly every asset class, with the S&P 500 falling to near-bear-market levels before rebounding sharply. In these moments, the conversations that advisors have with their clients play a crucial role in helping clients maintain perspective, avoid emotional decisions, and stay committed to their long-term financial plans. While clients may ask about the short-term impacts of the tariffs, many concerns are more deeply rooted in long-term goals.

In this article, James Liu, CEO of Clearnomics, and Sydney Squires, Senior Financial Planning Nerd, address how advisors can navigate tariff-related conversations by leading with empathy, listening carefully to clients' concerns, and framing the conversation in a way that helps clients feel calm and grounded.

For clients reaching out in distress, starting with facts may be counterproductive; when clients are overwhelmed, they may not be in a mindset to absorb information. Instead, allowing them to fully voice their fears can build trust and help them feel understood. Using mirroring language (e.g., repeating a client's own key words to affirm what they're feeling) and asking thoughtful follow-up questions are two techniques advisors can use to create that space. Once the emotional groundwork is laid, the conversation can shift to exploring the potential implications of tariffs and re-centering the focus on long-term goals.

Many clients may be bracing for higher prices, as even a minimum level of tariffs could affect a wide range of goods through an interconnected global supply chain. In these conversations, advisors can provide context by pointing to recent years in which trade deals softened the impact of earlier tariff announcements. The current environment also presents an opportunity for advisors to emphasize the benefits of diversification – how it has helped protect client portfolios from the worst of recent market declines while still allowing them to participate in market gains. No diversification strategy can eliminate all risk, but advisors can acknowledge that market declines don't feel good while affirming that a client's plan is still on track.

Finally, volatile markets offer a powerful opportunity for advisors to reinforce the value of financial advice. Market pullbacks may create openings for tax-loss harvesting, 'discounted' Roth conversions, and portfolio rebalancing – allowing clients to focus on what they can still control, even when headlines feel overwhelming.

Ultimately, the key point is that the current economic climate presents a wide range of possible outcomes – and while many news headlines may emphasize the negatives, there are positive scenarios on the horizon as well. When advisors can balance empathy with facts, clients can leave conversations feeling both heard and prepared for whatever comes next!

#FASuccess Ep 433: When You 10X Your Advisory Firm To Over $20M Of Revenue…And Want To 10X Again, With Cameron Passmore

April 15, 2025 07:03 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Cameron Passmore Podcast Featured Image FAS

Welcome everyone! Welcome to the 433rd episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Cameron Passmore. Cameron is the CEO of PWL Capital, a wealth management firm based in Ottawa, Canada, that oversees just over $5 billion Canadian dollars (or approximately $3.5B U.S. dollars) in assets under management for 2,400 client households.

What's unique about Cameron, though, is how, after 10X'ing the firm's revenue (from $2 million to more than $20 million) over the course of the past decade as an independent, his firm decided that combining with a larger financial conglomerate would provide the best opportunity for the business to achieve its next round of 10X growth in the decade to come.

In this episode, we talk in-depth about how Cameron's firm experienced significant client and revenue growth by serving the CEO and employees of e-commerce platform Shopify early on in its growth path (eventually leading to massive AUM growth after the company's IPO), how Cameron's firm managed to generate over 1,100 inbound leads resulting in more than 200 new clients in just the past year driven primarily by its thought leadership content (including the Rational Reminder podcast, a YouTube channel, and white papers), and how Cameron's planning focus and passive investing approach has helped his firm stand out amongst the bank- and brokerage-dominated Canadian financial advice market.

We also talk about how Cameron's firm (after achieving its 10X revenue growth) conducted an exercise to envision ways to achieve its next round of 10X growth to be what he calls a “company of consequence” that could help change the landscape for financial advice in Canada, why Cameron turned down acquisition interest from firms that were primarily focused on the financial incentives of M&A but ultimately took a deal that was more focused on the opportunity to grow the impact of his business, and how Cameron's firm ultimately decided to sell to the U.S.-based business and financial services conglomerate OneDigital to provide the financial backing and corporate connections to support PWL Capital in its next growth phase (including through acquisitions of its own with other like-minded firms in Canada).

And be certain to listen to the end, where Cameron shares why his firm invested heavily into internal data management (including investing in an institutional quality “data lake”) not to reduce its technology costs, but rather to create tools that reflect the firm's planning approach and the client experience it wants to create, how Cameron's firm leverages planning teams consisting of a lead advisor, financial planning associate, and operations specialist (with Cameron and other firm leaders available to assist when necessary) that can serve 175 client households and generate approximately $1 to $1.5 million U.S. dollars in revenue, and how Cameron's willingness to just meet and get to know other advisors, businesses, and content creators, without having a specific goal in mind, has led to multiple serendipitous business opportunities throughout his career.

So, whether you're interested in learning about engaging on a new growth path after already achieving significant growth as a firm, investing in internal data management capabilities, or the process of evaluating acquisition offers, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Cameron Passmore.

A 3-Meeting Framework To Vet And Establish Productive COI Relationships

April 14, 2025 07:02 am 0 Comments CATEGORY: Marketing

Centers Of Influence (COIs) play a vital role in the growth and service capabilities of a financial advisory firm. When cultivated with care, these relationships can become valuable sources of client referrals and collaborative insight – especially because COIs and advisors often work with similar client profiles. However, establishing these relationships isn't always easy. Advisors must first identify potential COI relationships, then find a way to get 'in the room' with them, assess for mutual fit, and set clear expectations for building a long-term, productive partnership.

In this article, Tiffany Charles, Chief Growth Officer at Destiny Capital, and Kitces.com Senior Financial Planning Nerd Sydney Squires offer a thoughtful framework for approaching COI relationship development with greater intentionality. Drawing from Tiffany's real-world process, they provide not only practical guidance for building productive COI partnerships, but also strategic insights into why a more structured approach can lead to stronger, more sustainable results. The goal is to help advisors move beyond surface-level networking and into truly collaborative relationships that can benefit both professionals – and the clients they serve.

As a starting point, recognizing that COI prospecting deserves the same level of structure and care as client prospecting is crucial to developing fruitful COI relationships. When initial meetings are focused solely on small talk with only a vague mention of "doing business together", the results often lead to little, if any, follow-through. Tiffany's process, by contrast, begins with those who are already within her own – and her clients' – network and progresses over a three-meeting framework that lends structure to the early stages of a COI relationship while creating space for genuine connection, thoughtful evaluation, and meaningful alignment.

The first meeting is focused on building rapport and conducting an initial assessment. It serves as an introductory conversation with COIs who may be a valuable resource, with the primary goal of exploring values, communication styles, ideal client profile, and experience working with other professionals. In the second meeting, the goal is for both the advisor and COI to deepen their understanding of each other's services and client experiences, comparing ideal clients, service models, and overall business value propositions. If there's alignment and mutual interest, a third meeting is arranged to commit to a working relationship – agreeing on shared goals, referral expectations, and how to communicate effectively moving forward. From there, Tiffany recommends evaluating the relationship at regular six-month intervals to evaluate what's working and where opportunities for deeper collaboration might be possible.

Ultimately, the key point is that COI relationships can flourish when there's a shared commitment to collaboration, clarity, and long-term value. By following a repeatable process and prioritizing genuine alignment, advisors can build COI partnerships that don't just generate referrals – they help both professionals grow together and better serve the clients they support!

Weekend Reading For Financial Planners (April 12–13)

April 11, 2025 02:02 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 U.S. Senate has confirmed Paul Atkins to be the next Chair of the Securities and Exchange Commission (SEC). In terms of enforcement actions, Atkins is expected to prioritize instances of investor harm and be less inclined to issue sanctions for technical rule violations (which were more frequent under previous SEC Chair Gary Gensler). In addition, Atkins' arrival could also mean the end of the pending RIA outsourcing and custody rules proposed under Gensler, a reduced focus on monitoring advisors' off-channel communications, and a new regulatory framework for digital assets.

Also in industry news this week:

NASAA this week approved model rule amendments that would restrict the use of the titles "advisor" and "adviser" by broker-dealers (and their registered representatives) who are not also dually registered as investment advisers, which, if adopted by state regulators, would largely bring state rules on this issue in line with the Federal Regulation Best Interest
The SEC is reviewing the current $100 million asset threshold for registering with the regulator (rather than at the state level) with the potential to increase it (bringing more RIAs under state purview) as the number and size of RIAs has risen since the threshold was last lifted more than a decade ago

From there, we have several articles on managing market turmoil:

How having a written investment plan, leveraging automations, and being diversified across assets and strategies can help clients weather chaotic markets
A ranking of 10 sources of emergency cash, from liquid savings and low-risk taxable assets to margin loans and credit cards
How financial advisors can help clients feel like they are taking (constructive) action amidst a rapidly changing market environment

We also have a number of articles on client communication:

Why "compassionate objectivity" could be a better option than empathy to allow advisors to connect with nervous clients without risking their own mental health
How affirmations can help hesitant prospects and clients overcome the fear of being judged by their advisor and move them toward action
A list of questions advisors can use to foster understanding with clients (rather than simple agreement)

We wrap up with three final articles, all about ways to reduce stress:

Actions both firms and advisors can take to prevent burnout during stressful periods
Why stepping away from the desk for unqualified relaxation can ultimately lead to higher productivity
The value of "de-prioritizing" in order to focus on to-do list items that are truly important and time-sensitive

Enjoy the 'light' reading!

Inspired Discovery: Asking Vision Questions To Focus On Clients’ “Ideal Self”

April 9, 2025 07:04 am 0 Comments CATEGORY: Client Trust & Communication

It's natural for advisors to begin discovery meetings by asking questions about a client's current financial situation – understanding cash flow, debt, investments, risk tolerance, or even the burning tax concern that brought them to the advisor's door in the first place is crucial for financial planning. However, starting with these questions can have unintended consequences. Psychologically, when people assess their current reality, they tend to see what's missing – focusing on limitations and risks rather than what's possible.

Beginning discovery meetings by discussing financial concerns can trigger what psychologists call the Negative Emotional Attractor (NEA) – a psychological and physiological state linked to stress, problem-solving, and risk aversion. Which can narrow the client's cognitive focus, making them more likely to fixate on short-term issues rather than long-term growth, feel defensive, resist new ideas that challenge their current financial habits, and ultimately heighten their anxiety rather than inspire action.

By contrast, when advisors activate the Positive Emotional Attractor (PEA) – a state triggered by conversations about a person's ideal self, hopes, and possibilities – clients respond in a far more productive way. They become more open to new ideas, engaging more deeply in the financial planning process and feeling more motivated to take action.

With this in mind, opening meetings with "vision" questions that activate the PEA state – rather than "numbers-based" questions that encourage clients to focus on their current situation – can help clients create an emotional bridge between financial goals and personal fulfillment. For instance, rather than starting a conversation by asking, "How much do you need for retirement?" (which focuses a client on numbers and the possibility that they might not have saved enough), an advisor might instead ask, "What does an ideal retirement look like for you?" (which allows the client to first articulate their positive vision for retirement). Vision-oriented questions can also help clients clarify what they want from an advisor (e.g., "What qualities or values would you like to see in our partnership?") and view financial planning as a way to support the life they envision – helping them align their resources with what matters most (e.g., "How would having a clear financial plan help you become the person you aspire to be?").

After focusing on a client's "ideal self" through vision questions at the beginning of a discovery meeting, the next step is to guide the client gently toward their current financial reality. During this "real self" portion of the conversation, advisors can use reflective, nonjudgmental questions to explore the client's real self (e.g., "What financial decisions have helped you move toward this vision?"). Finally, closing the discovery meeting by summarizing key takeaways, identifying one or two meaningful next steps, and reinforcing financial planning as an ongoing process that supports their long-term goals can leave clients feeling clear, motivated, and excited about the financial planning process.

Ultimately, the key point is that financial planning is about more than numbers – it's about helping clients create a life that aligns with their values, aspirations, and long-term goals. By restructuring discovery meetings to start with vision-oriented questions that encourage ideal-self conversations, advisors can transform the planning process from a technical discussion into an inspiring and deeply meaningful personal journey. Framing the conversation this way doesn't ignore financial realities – it ensures that financial decisions are grounded in purpose, increasing engagement and long-term commitment to financial planning!

#FASuccess Ep 432: Crafting “Input Deliverables” That Show Financial Planning Value To Clients Without Creating Busy-Work, With Seth Scott

April 8, 2025 07:03 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 432nd episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Seth Scott. Seth is the founder of Heartwood Financial Planning, an advisory firm affiliated with PlanMember Securities Corporation that is based in Fresno, California, and oversees approximately $100 million in assets under management for 850 client households.

What's unique about Seth, though, is how he has created what he calls an "input deliverable" that allows him to demonstrate value more tangibly to his ideal prospects by helping them solve a key tax planning pain point… but without the time-consuming busywork of having to create a separate output for each individual client household.

In this episode, we talk in-depth about how Seth built and provides his input deliverable (which calculates the appropriate amount of tax-exempt housing allowance pastors can take based on their individual circumstances, and even prepares a request and subsequent resolution that the Church's Board can then use) to demonstrate his expertise to prospective clients in the ministry, how Seth saves time by using this "input deliverable" (which he only has to create once, with prospects filling out their information in it themselves to get the output they can use) compared to creating an "output deliverable" (where an advisor has to collect and organize data and produce the deliverable document separately for each prospect), and how Seth's willingness to give this deliverable away to prospects allows him to get his foot in the door with his target clients for when they're (eventually) ready for a more holistic planning relationship.

We also talk about Seth's journey to financial planning as a career changer (after finding that previous jobs in urban planning and real estate either took too much time away from his family or weren't compatible with his values), how Seth's connection with a family friend eventually led him to assume the books of business of three retiring advisors under a vesting earn-out agreement that didn't require him to commit capital upfront, and how Seth uses the revenue generated from serving a broad base of clients through the vesting agreement as the business-building runway to "keep the lights on" as he grows his long-term ideal client base of working with pastors and their churches.

And be certain to listen to the end, where Seth shares how he decided to become a Certified Tax Preparer after buying a retiring advisor's tax practice (and why he is planning to earn the Enrolled Agent license to gain more specialized training to better serve his clients' tax preparation needs), how Seth is gaining inroads with churches (and their pastors) by helping them set up 403(b)(9) retirement plans that require little upfront cost on the church's part and offer their pastors unique tax benefits, and how Seth's faith has helped him weather the ups and downs of the major life transitions that come with a career change, taking over more than 800 clients to serve, and looking to what he wants his long-term ideal practice to be.

So, whether you're interested in learning about creating "input deliverables" that can demonstrate an advisor's value to clients and prospects alike, a path to serving a large client base soon after career changing into the financial advice profession, or how to gain inroads with clients in a specific profession, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Seth Scott.