feed - Part 10

Weekend Reading For Financial Planners (December 30-31)

December 29, 2023 02:00 pm 0 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that the S&P 500 index is on pace to return around 24% in 2023, defying expectations that investors had early this year for weak growth and high volatility – which underscores both the unpredictability of markets in the short term and the need to diversify in order to defend against that unpredictability in the long term.

Also in industry news this week:

After the Massachusetts state regulators proposed a regulation that would require businesses to provide accurate up-front pricing information before a customer provides any personal information, life insurance industry groups have requested an exemption from the rule (since insurers need to have at least some of the customer's personal health information in order to provide an accurate life insurance policy quote)
The National Association of Insurance Commissioners has adopted a Model Bulletin stating that insurers are liable for any discrimination or other regulatory violations that might result from using artificial intelligence technology to make underwriting decisions, raising the question of whether the opportunity of AI is worth the risk of financial or criminal liability if the technology proves to have racial or other biases

From there, we have several articles on practice management:

Why advisory firm leaders can better improve their practice by taking time to identify the real problems impacting the firm, rather than focusing on implementing solutions that may not actually solve the real issues at play
Why the topic of bonuses for non-owner employees can lead to heated discussions between owners, and what firm leaders can do to ensure that everyone can be heard before a decision is made
Although advisors often survey their clients to gain valuable feedback on their firms' client experience, it's harder to get insight into the preferences of those whom the advisor wants to be clients (but aren't) – which may be different from what makes their current clients happy

We also have a number of articles on retirement planning:

How staying retired after taking an early retirement can be difficult, although the reasons change over time from primarily financial to primarily non-financial concerns
Although it's easy to look back on previous eras as being better than our own, there has really never been a better time than today to plan for retirement (since most eras in history didn't have a "retirement" to look forward to at all)
While people often work in order to enjoy more leisure time in retirement, the reality for many people is that their leisure time is much more valuable when they're younger, when they have young kids and parents who are still healthy – meaning it's worth considering a mid-career pause, even at the cost of working a little later into life

We wrap up with 3 final articles, all about pursuing growth and achievement in work and life:

In today's increasingly systematized world, companies that can find a more human-centric way to do business can succeed by conjuring up feelings of "love" in their customers and employees (as in, "I loved that!")
Although past achievements can seem almost predetermined in hindsight, in reality, almost any achievement requires patience, a willingness to learn from mistakes, and a lot of hard work – and so when struggling with current challenges, it's worth reflecting on how those traits helped with other achievements in the past
While high ambition and a little bit of 'craziness' are often needed to achieve far-reaching goals, it's also possible to be distracted by chasing too many goals at once – requiring a narrower focus, fewer distractions, and a little bit of practicality in order to fully embrace the 'crazy'

Enjoy the 'light' reading!

The Best Of Weekend Reading 2023: Top 25 Articles You Might Have Missed

December 25, 2023 07:01 am 0 Comments CATEGORY: Weekend Reading

Each week in Weekend Reading For Financial Planners, we seek to bring you synopses and commentaries on 12 articles covering news for financial advisors including topics covering technical planning, practice management, advisor marketing, career development, and more. And as 2023 draws to a close, we wanted to highlight 25 of the most popular and insightful articles that were featured throughout the year (that you might have missed!).

We start with several articles on retirement planning:

Data showing where American retirees currently stand, from their average net worth to how they spend each hour of the day
How, according to a recent study, delaying Social Security benefits typically leads to greater lifetime wealth than claiming benefits early in order to reduce portfolio withdrawals
Why common advisor concerns about Monte Carlo analysis are more about the software tools they use rather than the technique itself

From there, we have several articles on investment planning:

Why holding on to stocks, rather than moving to cash, could be a smart move, even if a recession is expected to occur
A recent study found that investors lagged the performance of the funds in which they invested by 1.7% per year over the past decade, suggesting a potential role for advisors in helping them overcome this "behavior gap"

We also have a number of articles on cash flow planning:

Why it can be valuable for clients to consider the 'hidden' costs of buying a vacation home before jumping into a purchase
What being "upper-middle class" actually means in dollar terms
A recent study suggests a causal connection between married couples who use a joint bank account and increased relationship happiness
How setting a spending cap can help couples reduce money conflicts and enjoy more guilt-free spending

We continue with 3 articles on tax planning:

How advisors can help clients take advantage of the 0% long-term capital gains tax bracket
How IRMAA surcharges, while a nuisance, tend to represent a relatively small percentage of a retiree's income
How advisors can help clients reduce the amount of their Social Security benefits (and overall income) subject to taxation

Next, we have a few articles on insurance planning:

How advisors can add value for clients by helping them make better Medicare decisions
Why high-deductible health plans with paired HSAs could be the most cost-effective and tax-efficient health insurance option for many clients
Why an advisor decided to buy an indexed universal life insurance policy for himself

We also have a number of articles on practice management:

10 'harsh' lessons one business owner learned on his entrepreneurial path and how they apply to financial advisors
What actions advisory firm owners can take when they find they have too much work on their plate
Why stressed-out firm owners might consider downsizing their client base rather than selling their firm

From there, we have several articles on financial advisor marketing:

Why ChatGPT could be a valuable tool to support advisor marketing, from creating ad copy to drafting prospect emails
How offering a "second-opinion service" can help advisors generate more referrals from clients and centers of influence
How to optimize the 5 most important pages on an advisory firm website

We wrap up with 3 final articles, all about career development:

How a series of mental exercises can help individuals build resilience and overcome challenges they face
How both "macro" and "micro" focus can contribute to productive, fulfilling work
How cultivating a sense of moxie can help individuals address "impostor syndrome"
Why showing poise, the combination of style and substance, is often at the heart of a successful career

Thanks for letting us be a part of your reading list each week and we'll look forward to highlighting more insightful articles in 2024!

2023 Highlights – The Top 22 Nerd’s Eye View Blog Posts You Might Have Missed

December 18, 2023 07:02 am 0 Comments CATEGORY: Nerd's Eye View

As 2023 comes to a close, I am once again so thankful to all of you, the ever-growing number of readers who continue to regularly visit this Nerd's Eye View Blog (and share the content with your friends and colleagues, which we greatly appreciate!).

We recognize (and appreciate!) that this blog – its articles and podcasts – is a regular habit for tens of thousands of advisors, but that not everyone has the time or opportunity to read every blog post or listen to every podcast that is released from Nerd's Eye View throughout the year. As many of you noted in response to our Reader Surveys, most of you choose which content to read or listen to based on headlines and topics that are of interest (and skip the rest). Yet in practice, this means that an article once missed is often never seen again, 'overwritten' (or at least bumped out of your Inbox!) by the next day's, week's, and month's worth of content that comes along.

Accordingly, just as I did last year, and in 2021, 2020, 2019, 2018, 2017, 2016, 2015, and 2014, I've compiled for you this Highlights List of our top 22 articles in 2023 that you might have missed, along with a few of our most popular episodes of "Kitces & Carl" and the "Financial Advisor Success" podcasts. So whether you're new to the blog and #FASuccess (and Kitces & Carl) podcasts and haven't searched through the Archives yet, or simply haven't had the time to keep up with everything, I hope that some of these will (still) be useful for you! And as always, I hope you'll take a moment to share podcast episodes and articles of interest with your friends and colleagues as well!

Don't miss our Annual Guides as well – including our list of the "10 Best Financial Advisor Conferences To Attend in 2024", the ever-popular annual "2023 Reading List of Best Books For Financial Advisors", and our increasingly popular Financial Advisor "FinTech" Solutions Map and AdvisorTech Directory!

In the meantime, I hope you're having a safe and happy holiday season. Thanks again for the opportunity to serve you in 2023, and I hope you enjoy all the new features and resources we'll be rolling out in 2024 (and beyond!), too!

Weekend Reading For Financial Planners (December 16-17)

December 15, 2023 02:00 pm 0 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "Weekend Reading For Financial Planners" - this week’s edition kicks off with the news that this week's round of public hearings on the Department of Labor's proposed new fiduciary rule featured fierce opposition from the brokerage and insurance industries – which, while unsurprising given those industries' stance against the DoL's previous fiduciary rule (which ultimately caused it to be struck down in court in 2018), nonetheless highlights the debate over what constitutes a relationship of "trust and confidence" that rises to a fiduciary standard, and whether broker-dealer representatives and insurance agents who hold out as advisors should continue to be regulated 'just' as product salespeople when they aren't actually giving advice.

Also in industry news this week:

Most businesses that operate in the U.S., including partnerships, LLCs, and corporations, will soon be required to report specific information on their "beneficial owners" to the Treasury Department – which notably includes all state-registered RIA firms, as well as potentially many businesses owned by clients of financial advisors
Pontera has raised $60 million in venture capital funding, highlighting the growing advisor demand for its technology for directly managing clients' 401(k) plan assets (while raising questions about whether its success will spawn future competition that could temper its growth expectations)

From there, we have several articles on practice management:

As organizations grow, employees often struggle with issues such as stretched capacity, skill gaps, and burnout, which makes it important for leaders to be attentive to the issues their employees face and to have solutions available to address those issues directly
Although performance reviews after a challenging year can be a difficult process, managers can help take them in a more positive direction by being clear about the company's future (and the employee's place within it)
For solo advisors, the decision of whether or not to hire an employee can be a difficult one, but hiring may be at least worth considering to ensure that clients can continue being served either in the event of an unexpected incapacitation or when they ultimately decide to retire

We also have a number of articles on retirement:

For people over age 70 1/2, making a Qualified Charitable Distribution from an IRA can have significant tax benefits – so much so that they're worth the often-cumbersome process required to make the contribution itself
Although bonds are currently an attractive option for retirement income given today's higher interest rates, immediate annuities can potentially provide even higher yields, making them worth considering for retirees who are likely to (at least) reach their life expectancy
Although many people focus on tax brackets when deciding which accounts to withdraw from in retirement, a strategy around managing the "effective marginal tax rate" can add material after-tax value to a client's retirement savings

We wrap up with 3 final articles, all about health and wellness:

How the true secret to so-called "Blue Zones" with high concentrations of people who live beyond 100 years old might not be diet, climate, or lifestyle, but bad data
How runners can improve their training and even race times by incorporating short interludes of walking into their run
How the science of the way our nervous system is involved with digestion can uncover the key to treating and preventing digestive disorders

Enjoy the ‘light’ reading!

#FA Success Ep 363: Finding The Best Networking Approach For Prospects (And New Career Opportunities), With Christa Madison

December 12, 2023 07:02 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Christa Madison Podcast Featured Image FAS

Welcome back to the 363rd episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Christa Madison. Christa is the Managing Director of Financial Planning and Business Development at Sebold Capital, a fee-only RIA based in Chicago, Illinois, which manages $300M across more than 100 client households.

What's unique about Christa, though, is how she used her business development and networking skills to overcome the challenges that sprung up when, through a combination of personal and professional shifts, she found herself building her book of business from scratch, 3 separate times, and how she leveraged those pivots as an opportunity to account for how her own skills and competencies had changed and grow into larger (and more lucrative) opportunities.

In this episode, we talk in-depth about how Christa's start in insurance sales at Northwestern Mutual brought both successes in building a book of younger clients just beginning their career journeys, and challenges as she struggled to hit sales goals when her young clientele were more interested in starting Roth IRAs and didn't need much insurance yet, how Christa's intensive networking event schedule and simple but uniquely branded way of following up allowed her to feed into a '10-3-1' prospecting pipeline (in which on average, for every 10 prospects she approached, 3 were interested, and 1 became a client) and continually rebuild her book of business when she transitioned roles, and how despite her skillset at networking, Christa still found after having to start over 3 times that it takes 3 years, on average, for her prospecting to start to grow from scratch into its own robust referral network.

We also talk about how Christa overcame the unique challenge of maintaining professional momentum while building a family, which prompted her to step into contracting roles when she needed more flexibility and out of them when she needed more stability, how when faced with the need to find a new opportunity Christa leveraged her networking skills to find and then just walk into the lobbies of 20 local-area firms until she found one that was interested in hiring her (and got the job!), and the reason that Christa ultimately decided that as she approached her 3rd time building a book of business, she wanted to build it in the RIA channel instead.

And be certain to listen to the end, where Christa discusses why she feels that her background and early experience in the insurance channel made her a stronger financial advisor (and why she worries that advisory firms today may be underestimating the value of those experiences), how Christa's willingness to 'start over' as a paraplanner in a fee-only firm led her on the promotional fast-track to become the director of 2 departments, and how Christa found that no matter where she went, her people-first prospecting approach helped her grow a client base, especially amongst those in need of financial guidance who lacked support because they weren't 'top of the top' financial prospects for other financial advisors but were more than able to allow her to successfully grow her own practice.

So, whether you're interested in how Christa successfully navigated a reboot of her own career multiple times, how Christa adapted her services to meet the needs of young clientele who don't fit a 'traditional' client mold, or how Christa maintained career propulsion while her personal life demands evolved over time, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Christa Madison.

Announcing More Webinars And IAR CE In 2024 And The State Of The (Nerd’s Eye View) Blog

December 11, 2023 07:03 am 0 Comments CATEGORY: Nerd's Eye View

For most financial advisors, 2023 was a year of rebound and reinvestment, as markets bounced back from the turbulence of 2022, and expanded profit margins allowed advisory firms room to reinvest back into the services and value they're providing clients to make sure their retention stays strong in the future. Here at Kitces.com, we've similarly been in the midst of a reinvestment process in 2023, setting the foundation so that we can give even more back to the Financial Advicer community, as we continue to expand our "Team of Nerds" beyond just myself with more writers and more speakers, and develop and refine our Q-N-R standards to ensure that everything you get from Kitces.com is Quality, Nerdy, and Relevant… a standard for all Kitces content, even if it's not created by Michael.

And in the coming year, we're going to make sure that even more of that Kitces content is eligible for not only the full range of CE credit for CFP, CPA, and the other various professional designations, but also the ever-expanding IAR CE obligation. Which, thanks to the new rollouts in both California and Florida in 2024, will mean nearly half of all financial advisors who are IARs will need to fulfill the new IAR CE requirement in 2024… as once an advicer has half a dozen clients in any of the 17 states or the District of Columbia, they have to comply with the new IAR CE rules. And a lot of advicers have more than 5 clients in Florida!

In practice, this means that we'll be bringing back our popular IAR Ethics CE Day in 2024 (save the date for August 29th!), expanding IAR CE credits to apply to our monthly live webinars (in addition to our written blog content and recorded webinars), increasing the cadence of our webinars from monthly to offering 2 every month (on the 1st and 3rd Tuesday of each month… with the recording still available for those who can't attend live), and continuing to cross-apply our Kitces content for all the other types of CE you may need as well (so you can check all the boxes at once!). Though we are implementing a small $20/year increase (from $169 to $189 per year) in the price of the Members Section to help manage the cost of rising staff salaries in the midst of inflation over the past 2 years, and to further reinvest into our Platform team to make site improvements so our content is faster to load and easier to navigate.

In the meantime, we remain committed to delivering the ongoing cadence of content that you've become accustomed to from Kitces. In 2024 we'll again feature our Marketing Summit (save the date for April 25th!) and our Financial Planning Value Summit, we'll be rolling out 2 new Advicer Research studies (on Marketing and on Productivity, as we wrap up the 2023 study on Wellbeing in the coming weeks), and we'll be building a new Kitces Course on Optimizing Roth Conversions (to complement our course on Optimizing Social Security) to be released in mid-2024.

If you (or anyone you know) wants to join our Team of Nerds, stay tuned for more openings in 2024 as well, as we anticipate hiring a new Associate Financial Planning Nerd, an Operations Associate, a new Director of Product and Platform, and a Director of Advisor Research. We'll be listing these as they become available on our Kitces Career Opportunities page, or you can sign up for our separate Career Opportunities mailing list (via that Opportunities page) to be notified when new positions open up!

Ultimately, though, the focus remains the same as it always has been – on our mission to "Make Financial Advicers Better, and More Successful" – through our 4 strategic pillars of creating Navigational resources, insightful Education, original Research, and skills Development for financial advisors (and yes, our organizational strategy really does spell out N-E-R-D 😊). I hope you'll continue to come along with us on the journey in 2024!

#FA Success Ep 362: Developing Associate Advisor Compensation Plans And Career Tracks To Scale Capacity Past $1.5B AUM, With Jeff Brown

December 5, 2023 07:02 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome back to the 362nd episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Jeff Brown. Jeff is the President of Stratos Private Wealth, an RIA based in San Diego, California, that oversees almost $1.5 billion in assets under management for just over 350 client households.

What's unique about Jeff, though, is how his firm has developed associate advisor compensation plans and career tracks, with well-defined Level 1, Level 2, and Level 3 performance indicators of exactly what those advisors should be able to accomplish at each stage of their career progression towards becoming a lead advisor (which is allowing the firm to train and develop its future senior advisors from the ground up).

In this episode, we talk in-depth about why Jeff decided on a growth strategy of having the firm generate prospects for its lead advisors and how it allowed them to hire and develop advisors that better connect with and serve (and retain) clients instead, the unique performance review plan and scoring system that Jeff implemented to both highlight when his associate advisors were ready for a promotion and is used to calculate their bonuses, and how the firm has leveraged client referrals, content creation, social media, and M&A to bring in clients for its advisors on the way to growing to nearly $1.5 billion of AUM (and is now increasing the firm's marketing budget and hiring a dedicated marketing professional to help further expand his firm's reach).

We also talk about how Jeff transitioned from the wirehouse world to start his own RIA and how, after feeling initially overwhelmed by everything from selecting technology to leasing office space, he chose the supported independence model offered by Stratos Wealth Partners, the mental shift from focusing on income to enterprise value that led Jeff to sell a minority stake, and subsequently a majority of his firm to Stratos, and how becoming an employee of the firm Jeff previously owned has actually been energizing for him as he works to expand the opportunity beyond his own firm and build out an entire unified private wealth platform under the Stratos umbrella.

And be certain to listen to the end, where Jeff shares how a bad partnership breakup earlier in his career has changed the way he views and creates partnership and operating agreements today, why Jeff wishes he had set bigger goals for himself earlier in his career and revels in how many different ways there are to build a successful advisory business (despite naysayers who say "you can't do it that way"), and why Jeff recommends that young advisors decide early on in their careers whether they want to pursue an employee advisor path or build a firm of their own as they evaluate their own career risk and return preferences.

So, whether you're interested in learning about how to build associate advisor compensation plans and career tracks, how to leverage a multi-faceted marketing approach to generate client leads, or what it looks like to roll up into a larger RIA, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Jeff Brown.

Weekend Reading For Financial Planners (December 2-3)

December 1, 2023 02:00 pm 0 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that the U.S. Supreme Court heard arguments this week in the case of SEC v. Jarkesy, which in a narrow sense focuses on the SEC's use of in-house Administrative Law Judges to hear securities law cases rather than traditional Federal jury trials, but in a broader sense could call into question the SEC's (and other government agencies') authority to make rules and enforce laws in the absence of specific guidance from Congress in how to do so, making it of great significance for financial advisors regulated by the SEC.

Also in industry news this week:

As part of its proposed (revised) fiduciary rule, the Department of Labor is seeking comment on whether professionals using titles like "financial planner" and "wealth manager" are considered to hold themselves out in a position of trust and confidence (and therefore ought to be automatically treated as an ERISA fiduciary for the purposes of retirement investing advice)
A new study from Advisor360 finds that the majority of "next generation" advisors welcome the use of AI tools for communicating and collaborating with clients, but firm restrictions and regulatory concerns are holding many of them back from using AI in practice

From there, we have several articles on practice management:

Although advisor benchmarking studies are common ways to gauge advisory firm performance, the answer to whether a firm is truly successful lies in how it is meeting the goals set by the firm's own leaders
Newer advisors who find their careers (and compensation) stagnating at the firm that initially hired them are increasingly leaving to seek better opportunities, putting pressure on firms to offer higher pay and a clear path for career advancement
When an advisor moves from one RIA to another, a non-compete or non-solicit agreement can make it difficult to rebuild the advisor's business; however, there may be ways to settle between old and new firms in a way that keeps everyone happy

We also have a number of articles on money and family relationships:

Why many couples' arguments about money often stem from far deeper disagreements (and what advisors can do when they get caught in the middle of arguments that go beyond money)
Although talking to family members about wealth and estate planning can help ensure one's wishes are carried out after they are gone, some people end up regretting the conversation if it's spontaneous and unplanned – making a more structured and intentional conversation (or series of conversations) a better way to communicate the meaning and purpose of family wealth
Data show that the majority of heterosexual couples in the top 1% of net worth have the husband as the sole breadwinner (with the wife not earning any income), echoing a power imbalance between men and women both at home and in the workplace

We wrap up with 3 final articles, all about financial wisdom:

Why people are so driven by desire for the things they can't have (and why that isn't always a bad thing)
The lessons that real estate investor Sam Zell, who passed away in May, can teach about spotting opportunities and managing risk
A reminiscence on the legacy and wisdom of Berkshire Hathaway vice-chair Charlie Munger, who also passed away this week

Enjoy the 'light' reading!

Advice Engagement Tools For A More Dynamic VIP (Visualization, Interaction, and Process) Planning Experience

November 29, 2023 07:01 am 0 Comments CATEGORY: Technology & Advisor FinTech

The traditional way that most financial planning has been offered was for an advisor to create "The Plan": a comprehensive document outlining a client's financial strategy that was delivered either on a one-time basis or updated annually. However, as the industry has shifted towards an ongoing relationship model, advisors have felt compelled to demonstrate consistent value to their clients throughout the year. The problem, however, is that a typical client's big-picture financial situation doesn't tend to change much from year to year, and the process of updating "The Plan" entails intensive document review and time-consuming data entry. Which means that updating a client's financial plan more frequently would offer little additional value to the client and would be very inefficient for the advisor.

As a result, tools have emerged that are designed to keep clients engaged in the financial planning process throughout the year, addressing the inefficiency and time burden of frequently updating the full financial plan itself. Recent Kitces Research on Advisor Technology indicates that while these newer Advice Engagement tools are not yet widely adopted among advisors (likely due at least in part to the newness of the category overall), most advisors who do use advice engagement software tend to like it – which in turn suggests that as more advisors become familiar with advice engagement tools, the rate of adoption will increase as advisors see the potential for a more dynamic ongoing financial planning process.

Broadly, advice engagement tools incorporate 3 key elements that enhance the process of financial planning: First, they use visualization tools to simplify complex and abstract financial planning concepts for clients. Second, they facilitate clear and organized communication between the advisor and client to ensure that important information is effectively conveyed. And third, advice engagement tools help clients understand where they stand in the financial planning process itself – and, most importantly, what comes next – to provide a clear roadmap and prepare the client for what lies ahead. The current tools in the Advice Engagement category vary in their use of Visualization, Interaction, and Process (VIP) elements, offering advisors the option to tailor the technology to the client experience that they desire.

Which means that for advisors considering adopting advice engagement technology, the process starts with deciding which engagement elements can do the most to enhance the advisor's existing financial planning. For many advisors, tools that help to define and navigate the planning process for clients can be the most valuable starting point, with interaction fostering more dynamic communication and visualization delivering information in an impactful, meaningful way.

Ultimately, as financial advice continues to steer away from static plans and towards a more dynamic planning relationship with clients, advisors will increasingly benefit from tools that can help them not only analyze and project financial data, but also deliver information to clients more effectively. Because as the increasing adoption and high satisfaction of advice engagement tools show, giving clients a "VIP" experience really does increase their engagement not only with the advisor, creating a deeper client-advisor relationship, but also with the financial planning process itself, making both client and advisor more successful in the long run!

How Financial Advicers Can Write, Publish, And Distribute Their Own Book To Create A More Effective Impression On Prospective Clients

November 27, 2023 07:07 am 0 Comments CATEGORY: Personal/Career Development

One of the main goals of financial advisors who market themselves is to build a foundation of trust with their prospective clients so that they feel comfortable in discussing often-sensitive financial topics and ultimately acting on the advisor's recommendations. The challenge, though, is that advisors usually have only a short amount of time to build this trust, and while advisors can use different channels (e.g., their websites, newsletters, and social media) to demonstrate their expertise, these channels often don't give advisors enough time or space to convey what makes them ultimately worth hiring. This is because telling the full story of an advisor's background, philosophy, and expertise could easily fill up a book; in fact, many advisors have written books to share their knowledge and experience, which can establish them as trustworthy and desirable professionals for prospects to seek out.

In this guest post, Michael Levin, a New York Times bestselling author and ghostwriter, writes about how financial advisors can make a more effective impression on prospective clients by writing, publishing, and distributing a book that establishes their authority, confidence, and, above all, trust.

When writing a book, the first goal is to make the reader feel like the author understands them, which draws them in and makes them want to know more about the author. Establishing that the author understands the reader's problems (e.g., through examples of how the author has solved those problems for others) early on in the book creates a connection with the reader. And because of this rapport, the reader will want to listen to the advisor's story. Put differently, since people care (and want to read) about their own problems, then by extension, they care about the people who understand and can solve those problems, too.

After creating the initial connection, the next goal for the author is to establish expertise in a captivating way. One way to do this is to create value on every page by giving readers clear and authoritative information that they can actually use. Some advisors may be wary of giving away too much information and providing the tools that readers could use to do everything themselves (rather than hiring the advisor). However, in reality, there's almost always more that could be said when a current or prospective client is in the room with the advisor. So, while advisors may want to avoid providing so much information as to be overwhelming to nonexpert readers, being otherwise as generous as possible (for instance, by outlining a detailed process to solve a specific problem) can develop a sense of gratitude in the reader, while giving them a glimpse of what could await them if they became a client.

Finally, as with many other forms of marketing, ending the book with a call to action makes it clear to the reader what they can do next. A brief, clear description of the types of clients the advisor works with, the services provided, and what to expect after the client's initial outreach helps the reader understand whether they might be a good fit as a client and how they can become one (which, if they've made it to the end of the book, they hopefully want to!).

The key point is that while an advisor's book can showcase the advisor's expertise and empathy, the story's real hero is the reader, not the advisor. By keeping the reader and their challenges front and center, the author demonstrates relevant expertise and encourages the reader to trust them with their problems. And when the reader can see themselves reflected in the pages of the book, they'll want to know more about how that advisor can be a part of their journey!