feed - Part 35

Announcing The New Kitces CFP Certification Scholarship List

May 24, 2021 07:08 am 0 Comments CATEGORY: Nerd's Eye View

As huge swaths of the financial planning industry have shifted from focusing on commission-based sales to providing client-centric comprehensive planning as true financial ‘advicers’, proving one’s chops to break into the financial planning industry has only become more difficult. CFP certification, which was once considered the industry ‘gold standard’, is increasingly becoming a base-level minimum requirement as firms strive to hire better and more capable new advisors. While this shift has served to create a legitimate 'barrier to entry' with higher minimum standards for competency, and has arguably elevated the overall service provided to clients, the fact that many employers now require having one’s CFP certification as a prerequisite for employment means that many new and aspiring financial planners now face costly intensive requirements just to enter the profession.

In other words, the struggle to attain CFP certification, along with completing the robust education requirements, is not just a matter of mastering the academic challenges of the subject material; it also involves managing large expenses that cover tuition (not just for the 6 specific financial planning classes required by the CFP Board, but also for coursework to obtain an undergraduate degree as well, which are often taken by students as two separate curricula), registration for CFP exam fees, and costs associated with CFP exam preparation programs (not to mention the ‘soft’ costs of taking time off from work and sacrificing personal and family time to study and prepare for the CFP exam!).

For those already in the financial planning profession, there is a chance their firm will agree to cover some (or perhaps all) of the costs required for gaining CFP certification. Yet because the CFP marks are increasingly required in order to apply for paraplanner and associate advisor jobs in the first place, employer assistance is less and less feasible as a means to support pursuit of the CFP marks. Accordingly, for those who have not yet entered the industry (or whose firms will not finance the cost), CFP scholarship programs are becoming a key resource to help the individual manage expenses. Scholarship funding for those pursuing the CFP marks generally focus on three areas: 1) Tuition or expenses related to the CFP Board’s 6-course education requirement (which is what the majority of current scholarships provide funding for); 2) CFP exam preparation courses; and 3) Registration fees for the CFP exam itself.

Ironically, though, while scholarships are offered by a wide range of organizations - from the membership associations, to corporate scholarship programs, to educational institutions themselves - there is a paradoxical challenge that more and more aspiring CFP certificants struggle to find dollars to cover the costs of CFP education and certification, even as a large number of CFP scholarship programs struggle to find enough applicants for their available scholarships!

Enter the Kitces.com CFP Certification Scholarship Database, which has collected all the available information on 186 CFP scholarship awards across 39 CFP scholarship programs available for aspiring CFP professionals trying to break into the industry (as well as seasoned financial advisors looking to earn their CFP marks). The database is structured to help prospective planners filter by background and location to find the scholarship that fits their needs, from merit-based programs to needs-based scholarships and those designed to support under-represented populations.

For scholarship applicants, winning an award can make a measured difference not only in their capacity to take the CFP exam, but also in future networking and career opportunities. This is because many scholarship applications are reviewed by a committee of practitioners who are actively looking for future employees. And since the application can impact both immediate and long-term opportunities, creating a strong, memorable submission is essential. Depending on the scholarship, many aspects may be considered, but good academic performance, solid references, and basic professionalism can go a long way.

Ultimately, as the financial planning industry grows, it will not only become more competitive for prospective financial advisors, but also for hiring employers looking to find the best of the best. While there are still many gaps in the scholarships available to aspiring financial planners, firms have the opportunity to create their own scholarships to help fill these gaps. Which can be beneficial not only for the firms creating scholarships (as they provide good branding opportunities to increase a firm’s visibility and can also help firms attract high-achieving and motivated employees), but for aspiring CFP professionals and students of financial planning as well. And with the introduction of the Kitces.com CFP certification scholarship list, we also aim to help bridge the gap by guiding those who are looking to join the profession to the support they need to realize their educational and professional goals!

Kitces & Carl Ep 60: The Training That Service Advisors Need To Get To The Next Level

May 20, 2021 07:02 am 0 Comments CATEGORY: Kitces & Carl Podcast

For most of the financial advice industry’s history, financial advisors’ success first hinged on survival… which meant getting enough clients to generate enough revenue to survive. Which meant those who survived typically had exceptional “people skills”, which gave them a leg up when convincing people to purchase whatever financial products their companies sold (even with limited industry experience). However, as the industry has become less about financial products sales transactions and more about ongoing advice relationships, financial advisory firms have increasingly needed to hire “support” advisors whose job isn’t to bring in new business, but rather to service (and be awesome for) existing clients. The good news is that these pathways have led to wider opportunities for people to enter the profession (even and especially if they aren’t necessarily business-development oriented). But because bringing in new clients is harder than keeping existing ones, those who do the former inevitably earn more than the latter. Which means that support advisors who decide that they want to level up their careers often have to learn the interpersonal skills necessary to develop (and lead) client relationships.

In our 60th episode of Kitces & Carl, Michael Kitces and financial advisor communication expert Carl Richards discuss some steps that support advisors with limited client experience can take to learn how to communicate effectively, habits they can adopt to develop their own approach when taking point on client relationships, and ways they can position themselves within their firm to get the opportunity to expand their role.

As a starting point, it’s important to recognize the amount of progress that the industry has made in prioritizing ongoing relationships with clients and that there's no longer just one pathway into financial planning as a career. And it’s equally important to acknowledge the fact that advisors can craft a very rewarding career as a support advisor without worrying about bringing in new business. However, for those support advisors who do want to move into a lead role, developing solid communication skills is key. And while not everyone is born with the proverbial gift of gab, the good news is that striking up a conversation, listening actively, asking good questions, and building rapport are all skills that can be learned.

Accordingly, initial steps that advisors can take include joining groups and taking courses designed specifically to help get people comfortable speaking with (and in front of) strangers, communicating effectively in professional settings, and thinking quickly to respond in real-time to the unexpected (or incongruous). Some examples include Toastmasters and Dale Carnegie (for public speaking and professional training, respectively), as well as improv classes, where advisors can practice responding genuinely to what’s happening “in the moment”.

Other proactive measures service advisors can take to learn how to lead client relationships is to seek out opportunities to sit in on meetings with lead advisors (especially discovery meetings where the client/advisor relationship is just taking shape), not necessarily with an eye towards participating in the meeting, but rather simply as a silent observer to listen and absorb as much as possible. From there, advisors can look for opportunities to develop a ‘mini-specialization’ proficiency in a particular planning topic (think ESG investing, equity compensation planning, or student loan planning) and become their firm’s internal expert for a subject that’s impactful for their clients (which can help get them invited into more client meetings!).

Ultimately, the key point is that there are specific actions that support advisors can take to give themselves the tools they need (beyond “just” solid technical chops) to move into a lead advisor role. Becoming a good communicator is an essential first step, and lead advisors within the firm can be great resources to learn from as well—but developing unique expertise and bringing additional value to clients can really give those looking to advance their careers a big leg up!

Weekend Reading for Financial Planners (May 15-16)

May 14, 2021 02:58 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 Department of Labor has withdrawn its proposed new Independent Contractor Rule, that would have made it easier for many firms to treat their "gig economy" workers as contractors and not employees (an increasingly controversial issue), but also would have further cemented the treatment of independent advisors as independent contractors with their platforms... leading the Financial Services Institute to join in a lawsuit challenging the withdrawal of the rule as the independent broker-dealer advocacy organization pushes to preserve contractor status for independent advisors.

Also in the industry news this week is an emerging debate between Riskalyze and various "portfolio stress testing" competitors about what is the best way to evaluate a client's risk tolerance and the prospective risk of a proposed portfolio.

From there, we have several interesting articles on retirement:

The Social Security Administration is testing a new, shorter version of the Social Security statement that would more clearly highlight the increase in retirement benefits for each year that they're delayed
How the SECURE Act has impaired the outlook for trusteed IRAs (and where they're still worth considering)
The rise of aging-in-place technologies is increasing how long seniors stay in their homes... which may be quickly leading to an overbuilding glut of senior housing
The rise of automatic enrollment 401(k) plans is leading to a rise in early withdrawals and 401(k) loans (that lapse), raising questions of whether the industry may be pushing too hard to automatically enroll those who really can't afford to save?

We've also included a number of articles on credit cards and cash flow planning:

The pandemic is leading to the largest ever pullback in the use of credit cards and may be spawning a new era of credit responsibility (and a new surge of credit card issuers marketing to get more people to sign up for new cards!)
Considerations when swapping to one of the 'hot' new credit card deals and giving up a long-standing credit card (that may be a foundational pillar in one's credit score)
How keeping significant cash on hand (or in the bank) may be a significant drag on returns but a worthwhile trade-off to sleep well at night?

We wrap up with three final articles, all around the theme of the emerging in-person/virtual hybrid work environment:

How to think about the kinds of tasks that should return to being in person, versus the ones that might be better suited to remain virtual
Tips for recognizing team members in a virtual environment (when you can't just call everyone into the break room or gather around a desk to celebrate a win)
How advisory firms are shifting in their own business approach with clients now that offices are re-opening to in-person meetings, but it turns out not all clients want to return to in-person!

Enjoy the 'light' reading!

Preparing Clients For Action By Confronting Their Fear Of Failure

May 12, 2021 07:06 am 0 Comments CATEGORY: Client Trust & Communication

Change is a constant reality of our lives. In some cases, change beyond our control occurs in the world, and we have little choice but to respond. In other cases, the change is something that we wish to initiate to improve our own situation. Yet, the reality is that, in either case, change is hard. So much so that it is not uncommon for us to fail in our initial efforts to make a change. Unfortunately, though, such experiences with failed attempts at change (or lapses after a change had seemingly taken hold) can result in feelings of dread and frustration when we consider a future change, as we potentially get stuck thinking about past efforts that may have been unsuccessful and lose confidence that we’ll be successful this time. Which raises the question: when change is hard, and failure and relapses are common, what can financial advisors do to help clients overcome fear and reluctance, negative self-talk and doubt, and actually implement the action steps they need to take to achieve their goals?

In order to address the negative self-talk that can preclude clients from taking action on their financial plans, financial advisors can encourage their clients to openly share and discuss their frustrations, feelings about their past efforts at change, and the things that make them nervous about moving forward. While these conversations may be difficult to initiate, worksheet tools adapted from the Transtheoretical Model (TTM) of change can provide advisors and clients with a valuable opportunity to examine specific reasons that create frustration for the client. And by closely examining how the client’s feelings and attitudes around past efforts influence their ability to implement change, advisors can help clients understand how considering unsuccessful past efforts as lessons and planning opportunities (rather than as failures!) can be highly effective in removing negative self-talk roadblocks. By adjusting their perspective around past attempts and the opportunity for planning that they present, clients may also improve their self-image and, ultimately, build financial self-efficacy.

Advisors can also help clients by exploring the emotional significance of their goals to strengthen their commitment to change. Because understanding the emotional reasons behind a goal tends to be a much more powerful motivator than simply relying on willpower and trying to tackle goals that have little (if any) personal significance for clients. Goals that are based on the notion that they simply seem like the sensible or ‘right’ things to pursue will be much harder to commit to, in contrast to those that have personally significant reasons that bring some form of emotional satisfaction. To this end, another worksheet tool adapted from TTM offers advisors a resource to initiate conversations with clients to elucidate why pursuing their goals is personally meaningful to them and the reasons that implementing change to achieve those goals is so important on an emotional level. And this conscious understanding and contemplation of the emotional significance of goals can reveal highly compelling reasons for clients to stick to their commitment to implement change over the long run.

Ultimately, the key point is that by understanding the various roadblocks typically associated with each stage of the change process, such as negative self-talk and dread that arise in the Preparation stage, advisors can engage their clients in specifically structured discussions that help them navigate through change. Helping clients successfully move past the Preparation stage will reward financial advisors with seeing their clients through to the final Action stage, where clients will be fully prepared to finally take action to implement the changes they need to realize their financial goals!

#FA Success Ep 228: Accelerating Growth By Paying To Outsource Lead Generation And Prospect Follow-Up, With Jeremy Keil

May 11, 2021 07:02 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome back to the 228^th episode of the Financial Advisor Success Podcast!

My guest on today’s podcast is Jeremy Keil. Jeremy is the founder of Keil Financial Partners, a hybrid-RIA located in Milwaukee, Wisconsin that manages $85 million for 170 clients.

What’s unique about Jeremy, though, is that he’s been able to double his firm’s size over the past two years not by prospecting more aggressively but by leveraging two external lead generation services, SmartAsset and Wiseradvisor, and then outsourcing all the follow-up outreach to those leads so he only spends time meeting with qualified prospects who want to meet with him (in addition to focusing the rest of his time on his existing clients and other needs of the business).

In this episode, we talk in-depth about why Jeremy feels that spending as much as 15% of his gross revenue on marketing generates a good ROI as long as he can generate 15% organic growth from that marketing spend, why Jeremy focused on his branding and refining his retirement planning niche to make sure his messaging resonated with his target audience first, and how Jeremy’s been able to compound the benefits of purchasing leads by publishing a wide array of digital marketing content to nurture those leads in his marketing funnel.

We also talk about Jeremy’s passion for helping his clients with their retirement planning, how he differentiates himself from other advisors focused on retirees by using a “decision-based” financial planning approach that prioritizes those factors that his clients can control (or, at least, influence), why Jeremy has chosen to eschew more mainstream financial planning software packages and instead uses a combination of Income Solver and Holistiplan in tandem to map out his clients’ retirement income and tax planning needs, and how Jeremy has been able to increase his firm’s growth trajectory by building on a number of leads he’s received from SmartAsset to develop expertise in the unique planning needs of local employees of Harley-Davidson.

And be certain to listen to the end, where Jeremy shares how his focus on offering more well-targeted services for his particular niche clientele allows him to charge slightly higher-than-industry-average fees, how Jeremy emphasizes the value of financial planning over investment management work by quickly lowering his AUM fee schedule down as account sizes grow, why Jeremy has found that the pandemic has improved the data-gathering phase of the initial client relationship (and why he’ll keep that process fully virtual even after things return to “normal”), and why Jeremy feels that his most valuable client deliverable isn’t a physical plan that they can hold in their hands, but the post-meeting follow-up email that helps them focus on the steps they’ll be taking next.

And so whether you’re interested in how Jeremy leverages lead generation services to create consistent growth, how he utilizes Holistiplan and Income Solver to help his clients plan for their retirement, or how he budgets for his marketing expenses, then we hope you enjoy this episode of the Financial Advisor Success Podcast with Jeremy Keil.

Kitces & Carl Ep 59: The Time-Finding Trap – How Do You Find The Time To Get More Time Efficient?

May 6, 2021 07:05 am 3 Comments CATEGORY: Kitces & Carl Podcast

Over the past several years, the ever-expanding technological landscape has given financial advisors a plethora of tools that they can use to expand their reach, market their services, communicate with and serve their clients, and manage and grow their businesses. Yet, those same technological tools that have been so useful for advisors (i.e., email, social media, team communication platforms, CRMs, etc.) can also serve as irresistible distractions that can fill an advisors’ days with low-impact tasks as they react to an endless stream of notifications and, in the process, end out sacrificing their ability to do the things that can move their practices forward and allow them to do their best work for their clients. Which raises the question: how can financial advisors create the space in their schedules for high-impact work and actually leverage technology to do so (instead of sacrificing real productivity for ‘unnecessary’ responsiveness)?

In our 59th episode of Kitces & Carl, Michael Kitces and financial advisor communication expert Carl Richards discuss a key framework that advisors can use to prioritize their tasks, actionable strategies to create an environment that’s conducive to spending sufficient time on those things that are the most important, and how to manage their own natural tendencies to get distracted by life’s constant stream of interruptions.

The best place to start is by using the task prioritization framework introduced by Steven Covey over 30 years ago, which uses a container to represent the unalterable amount of time that we all have in any given day or week. The container, as the analogy goes, can be filled with rocks (the big, important stuff that moves us forward), pebbles (which are the things that have to get done but don’t necessarily move the proverbial needle), and sand (which is just the constant stream of communication and distraction). And the challenge that every advisor faces is that, if they don’t actually prioritize their rocks, then the sand and pebbles will naturally fill up all the available space in their container (which is why it’s easy to feel as if there’s never enough time to tackle the big rocks).

From there, the best way for advisors to make time for their rocks is to put it on their calendar… not mentally earmark a slot at some point during the week to get around to the rock, but literally book the time on the calendar, just like it was a meeting with a big client that can’t get moved or interrupted. Because when something inevitably comes up, advisors can (without missing a beat) respond that the time slot is already booked on their calendar. And, in order to create an environment conducive to the sort of deep concentration that working on rocks requires, advisors can turn off all incoming email and text notifications and set messaging apps on Do Not Disturb.

After making rocks a priority and eliminating distractions comes the hardest part, which is maintaining focus to actually do the work (and avoid the temptation of taking a quick look for any messages that may have come in). Maintaining focus, just like any other worthwhile endeavor, requires practice, but one effective strategy to get started is by setting milestones, and when a milestone is reached, the advisor can take a break and do something pleasurable (like going for a walk or getting an afternoon coffee).

Ultimately, the key point is that advisors who want more time to tackle the important things that will push themselves, their clients, and their businesses forward can start by actually booking time on their calendar to force time to be made. And if that causes issues because other urgent tasks aren’t happening, then the next logical step is to find someone to help handle them. Because, at the end of the day, there will always be more things to do than anyone has time for, and advisors who don’t actively take control of their calendar will always find themselves reacting to the sand and never have enough room for rocks. Or, put another way, no one has a magic machine that allows them to do more than anyone else. Rather, the real secret of time management isn’t about being more efficient; it’s about making the things that matter most (but aren’t necessarily the most urgent) the real priority.

#FASuccess Ep 227: Achieving Financial Security By Serving 50 Great Clients In Your (LGTBQ) Community, With Leighann Miko

May 4, 2021 07:05 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome back to the 227^th episode of the Financial Advisor Success Podcast!

My guest on today’s podcast is Leighann Miko. Leighann is the founder of Equalis Financial, a fully virtual advisory firm offering ongoing financial planning services for nearly $500/month and currently serving 45 creatives within the LGTBQ community.

What’s unique about Leighann, though, is that she’s been able to realize financial security for the first time in her own life by focusing on serving a niche community that she belongs to herself, for whom she helps create their own financial stability despite the uncertainties around their income streams.

In this episode, we talk in-depth about how Leighann emphasizes her planning-centric services by charging a financial planning fee of nearly $500/month and then including the first $500,000 of investments management as a part of that planning fee (with an AUM fee of just 60 basis points over that threshold), how bringing asset management into her service offering has helped create some additional stickiness for her financial planning clients, why she enlisted the help of a copywriter to clearly communicate on her website her process and value proposition to help create buy-in from new clients, and the screening process Leighann implemented that requires prospective clients to acknowledge that they understand what their planning fees are going to be before they’re able to book a second meeting with her.

We also talk about how Leighann has implemented George Kinder’s EVOKE process into her practice (and adapted his famous three questions to apply specifically for the LGBTQ creatives she serves), how Leighann weaves their answers into a vision meeting to paint a clear picture of what they want their lives to look like, which is then followed by an Obstacles meeting where Leighann and her clients set a game plan for anything that could get in the way of them realizing that vision, and how Leighann’s own experiences as a member of the LGTBQ community has helped her better understand and provide unique and differentiated services for the clients she serves given their own struggles with the income uncertainty that comes from working as a creative in Los Angeles.

And be sure to listen until the end, where Leighann shares her own story about how her family’s money insecurities growing up pushed her towards a career in financial planning, how a failed succession plan left her deep in debt but still ended out being the catalyst to push her to launch her own firm, and how the success Leighann has found as a business owner serving no more than 50 clients has given her the financial security she was seeking, the opportunity to donate a portion of her annual profits to charity, and the chance to look ahead to ways that she can pay that success forward to others entering the financial planning profession.

And so whether you’re interested in learning about the work that Leighann does for the LGTBQ community, the deep meaning she finds in being able to create financial security for both herself and her clients, or what comes next for her as she looks to pay her success forward, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Leighann Miko.

Weekend Reading for Financial Planners (May 1-2)

April 30, 2021 02:58 pm 0 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with a recap of the key provisions in President Biden's new "American Families Plan", which includes not only a wide range of provisions regarding child care and education for children, but also a number of "revenue-raisers" of significant pertinence to financial advisors, from higher top ordinary income tax brackets, to a new (much-higher) top capital gains rate, and the elimination of step-up-in-basis rules that would cause all unrealized gains to become taxable as capital gains at death.

In addition, there are several additional articles around this week's tax proposals, including:

How estate planning may begin to change if step-up-in-basis really is eliminated
How the concentration of wealth in equities is leading tax policy to shift away from raising ordinary income tax rates and towards rising long-term capital gains rates in particular

From there, we have several interesting articles on retirement:

While retirement is traditionally viewed as the end of work, considering the positives of work (from having a sense of identity to a purpose to get up every morning) may actually provide the key to what leads to a happy retirement
Increasing longevity, along with an increase in our "productive" years, is leading to a rethinking of work and when we "should" retire
Living longer in our later years is leading to a rise in how many people live long enough to experience a cognitive decline, creating a focal issue for financial advisors who are often the first to observe such issues in their clients

We've also included a number of practice management articles on the theme of improving services to clients:

Why the real key to understanding what clients want isn't just about getting feedback on what you're doing but client input about what they actually want
The limitations of being a data-driven firm when it comes to figuring out what clients might want that the firm is not already doing (and therefore can't be evaluated in the existing data)
How the best firms adopting more technology are not using it to expedite client interactions but to free up time for more meaningful interactions instead

We wrap up with three final articles, all around the theme of the ongoing evolution of the advice business itself:

Why higher standards for financial advisors could actually increase growth and retention rates (as consumers are more likely to seek out a financial advisor in the first place when they have more financial trust in advisors)
The challenges of emerging "point and click" credentials and why it's important to distinguish between advisor certificates and actual certification
How the coming decade may witness a transformation of the planning profession, from how firms leverage technology to how the world of advisors is regulated (or, alternatively, begins to peer-review and regulate itself?)

Enjoy the 'light' reading!

#FASuccess Ep 226: Building CPA Alliances To Reach A More Affluent Clientele To Serve, With Paul Saganey

April 27, 2021 07:02 am 2 Comments CATEGORY: Financial Advisor Success Podcast

Welcome back to the 226th episode of the Financial Advisor Success Podcast!

My guest on today’s podcast is Paul Saganey. Paul is the President and Founder of Integrated Partners, a hybrid RIA headquartered in Waltham, Massachusetts that manages over $10 billion for about 18,000 affluent clients.

What’s unique about Paul, though, is how he’s generated hypergrowth for his firm through building strategic alliances with accountants, acting as a resource for CPA firms to build out their own “financial services divisions”, where Integrated Partners supports behind the scenes and the CPAs can remain the “heroes” for their clients throughout the process.

In this episode, we talk in depth about how Paul learned early in his career about the power of referrals from professionals with established relationships when he was an insurance agent creating estate plans for the high-net-worth clients of wirehouse advisors, how Paul expanded that model and generated initial success by doing financial and estate plans for partners at CPA firms, why it became clear for Paul that he needed to get really clear up front that while the CPAs still “owned” the client relationship, it was Paul’s responsibility to actually make and implement the recommendations, and how client relationships change when professionals each charge a separate fee for their respective services.

We also talk about the importance Paul places on being product- and solution-agnostic and having a platform where he can remain product- and solution-agnostic, his key decision in 2016 to re-examine his business model and ultimately form his own RIA (and how that set the stage for him to change his vision for his firm to gain a national reach), and the tremendous growth that Paul is now generating by attracting outside advisory firms who want to “tuck in” to Integrated’s CPA referral program and get themselves in front of higher-net-worth clients.

And be sure to listen to the end, where Paul discusses how “moving up the complexity curve” by working with wealthier clients helps advisors fight the “fear” of fee compression (as they are able to more consistently charge higher fees for providing advice on more complex needs), Paul’s vision for coming years for Integrated Partners to expand their reach by doubling the number of CPA firms that they partner with, and the “Who Not How” methodology that Paul has used throughout his career to not only become a better business leader, but find ways to collaborate with others to create synergies.

So whether you’re interested in learning how Paul built out Integrated Partners’ CPA strategic alliance program, how he’s leveraged that program to expand nationally, or why working with wealthier clients can help advisors combat the fear of fee compression, then I hope you enjoy this episode of the Financial Advisor Success podcast with Paul Saganey.

#FASuccess Ep 225: Generating A Positive Marketing ROI With Direct Mail Seminar Events, With Matt Gulbransen

April 20, 2021 07:06 am 3 Comments CATEGORY: Financial Advisor Success Podcast

Welcome back to the 225th episode of the Financial Advisor Success Podcast!

My guest on today’s podcast is Matt Gulbransen. Matt is the President of Pine Grove Financial Group, an RIA in Minnesota that manages over $550 million for about 325 families.

What’s unique about Matt, though, is that despite the widely held belief that direct mail and educational seminars have gone the way of the dinosaur, he has continued over the past decade to see positive marketing results from using direct mail to fill seats at in-person seminar events geared towards educating people about planning for the plethora of life transitions they face as they approach retirement… and then convincing them to work with him to navigate those retirement transitions.

In this episode, we talk in-depth about the ROI that can still be generated from a marketing funnel built around direct mail seminars, Matt’s key realization around why fear-based marketing will only get you so far and doesn’t ultimately help clients move forward to do business, the reason Matt started to charge an upfront planning fee for new clients as he gained traction with his seminars as a means of demonstrating that the work he and his team was doing had value, how Matt has adapted his process in a world where in-person events haven’t happened for a year, and why Matt feels that pre-retirees and retirees are still an attractive target market despite the level of competition in the niche.

We also talk about the way Matt has been able to leverage a relatively lean (at least by industry standards) team of nine people to service $550M of AUM by building out workflows and integrations within their tech stack in order to become ultra-efficient at their most common tasks, why the firm’s desire to focus on tax-savvy household-level allocations led Matt to choose 55IP as their core portfolio management software instead of more popular alternatives, and the various other technology tools that Matt’s firm has implemented to support “tax alpha” as a key value-add they bring to their clients (especially given that Matt and his clients live in a high-tax state).

And be sure to listen to the end, where Matt shares the challenges of starting his career as a young advisor at a wirehouse, how the challenges of prospecting led Matt to shift to the bank channel that had a more captive audience of prospects that could be referred to him, how it was Matt’s initial success with seminar marketing and the realization that he could grow an advisory firm without having a big-name brand behind him that eventually led him to launch his RIA, and how Matt has started to further scale the efficiencies he’s already built in his practice by bringing on outside advisor teams who are able to bolt on seamlessly to his system.

So whether you’re interested in learning how direct mail is still a viable means of attracting qualified prospects, how advisors can still use seminars to demonstrate the value of financial planning, or how Matt has been able to manage a relatively lean team with workflows and automations, then we hope you enjoy this episode of the Financial Advisor Success podcast with Matt Gulbransen.