Kitces.com - Advancing Knowledge in Financial Planning

“ReFire” Instead Of ‘Just’ Retire: A Framework To Help Clients Plan For Purpose In Retirement

May 28, 2025 07:03 am 0 Comments CATEGORY: Retirement Planning

Retirement has long been associated with leisure, relaxation, and winding down from a long career. But as more individuals confront the emotional realities of this life transition, many find that the absence of structure, socialization, and identity once provided by work can create a gap that traditional retirement planning doesn't fully address.

In this guest post, Kathleen Rehl, a "ReFired" financial advisor and educator in legacy planning, shares a framework to help advisors guide clients through this transition using a more expansive "ReFirement" lens. Drawing from her own encore career and decades of client experience, Kathleen illustrates how retirement can be reframed not as an end, but as a beginning – one centered on fulfillment, self-exploration, and purpose. While the core elements of traditional retirement planning remain (e.g., income streams, cash flow, and lifestyle support), ReFirement builds on this foundation to explore evolving values and aspirations, with the goal of living more intentionally.

Yet even clients who are financially prepared may feel anxious or uncertain about what comes next. ReFirement addresses these concerns by blending financial planning with conversations that create space for safe, reflective exploration. Instead of viewing retirement as a retreat from productivity, clients are invited to see it as a launchpad for creativity, contribution, and personal growth. For many, this phase brings a complex emotional landscape – including grief, identity shifts, or even a lingering sense of disconnection – which can be difficult to process without thoughtful support.

To help clients move forward, advisors can introduce practical tools that invite personal reflection and visualization. These include growth mindset prompts, values exercises, and legacy planning templates designed to help clients clarify what matters most. For example, visual activities like the "Touchstone Poster" or a guided values-ranking worksheet can help clients reconnect with forgotten passions or explore new aspirations. Whether they're exploring mentorship opportunities, creative outlets, or philanthropic goals, many clients find surprising clarity simply by having the space to reflect. Importantly, advisors don't have to guide this process alone – resources from organizations such as the Financial Transitionist Institute (FTI), Money Quotient, and George Kinder's EVOKE Process offer structure to support more meaningful planning conversations. Kathleen also shares a checklist of open-ended prompts that can serve as a roadmmap to help clients envision what a "ReFired" retirement might look like.

Ultimately, the key point is that ReFirement offers a richer, more expansive vision for what retirement can be – not just a phase of rest, but a new opportunity for growth, contribution, and renewal. By helping clients align their financial strategies with their evolving values and aspirations, advisors can create space for deeper conversations and more rewarding outcomes. And in doing so, they don't just prepare clients for what's next; they empower them to step into it with clarity and confidence, and a renewed sense of purpose and joy!

#FASuccess Ep 439: Scaling Financial Planning With Monday.com As A Project Management Hub In Lieu Of Wealthbox CRM, With Alvin Carlos

May 27, 2025 07:02 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 439th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Alvin Carlos. Alvin is the CEO of District Capital Management, an RIA based in Washington, D.C., that generates $850,000 of annual, primarily retainer-based, revenue serving 155 client households.

What's unique about Alvin, though, is how he has grown his firm by using project management software Monday.com as a central hub for financial plan presentations and efficient client task management.

In this episode, we talk in-depth about how Alvin uses Monday.com alongside financial planning software RightCapital (which he uses to run planning projections) to create a task board of common planning recommendations (and the subtasks needed to complete them) to efficiently present clients' financial plans and track their progress completing follow-on tasks, why Alvin recently switched from Wealthbox to Monday.com as his CRM (as he was attracted by Monday's ability for it to seamlessly connect with its project management functionality as well as its mass emailing capabilities), and how Alvin uses AI meeting notes tool Krisp to prepare meeting summaries, transcripts, and lists of action items (and how he found it to be more cost effective than planning-industry-specific notetaking tools).

We also talk about how Alvin is able to profitably serve clients in their 30s and 40s with a primarily retainer-based model by charging a fee based in part on the complexity of their planning needs, how Alvin is able to achieve his goal of serving clients from a variety of financial circumstances by charging a “market price” for higher-income clients and then discounting this fee for those at lower income levels, and how Alvin tracks his firm's Labor Efficiency Ratio to link his staff costs to the revenue they are able to generate (giving him a better idea of when he can bring on new employees while meeting his profitability targets).

And be certain to listen to the end, where Alvin shares how he has used search engine optimization tactics to rise up the search rankings in his local area in part by writing blog posts on the key questions his ideal target clients are asking (and incorporating the keywords they are most likely to search), how Alvin and his business have benefited from joining a local entrepreneur's group (which provides him with both business coaching and peer accountability), and how Alvin has been surprised about how much he has come to enjoy running his business (beyond the actual financial planning work) and how it allows him to create new jobs in the financial planning industry.

So, whether you're interested in learning about using project management software to prepare financial plans and manage follow-on tasks, key metrics to determine firm productivity, or how to leverage content to rise up local search rankings, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Alvin Carlos.

How People Choose An Advisor… And Who’s Looking For A New One

May 26, 2025 07:01 am 0 Comments CATEGORY: Marketing

One of the more intriguing challenges in advisor marketing is that the qualities that attract new clients aren't always the same ones that make long-term advisor-client relationships 'stick'. In other words, while current clients may value certain advisor traits over time, new prospects – who are often still exploring their options – may prioritize something entirely different. This can create a dilemma: Advisors need to market themselves to bring in new business, but the message that resonates with prospects may not reflect the traits that keep clients loyal over time. And with limited time and resources, advisors who want to grow can't afford to opt out of the marketing game. Which means understanding what today's prospects actually want becomes essential.

In this article, Philip Palaveev, CEO and owner of the Ensemble Practice, explores new survey data from investors with $1–$5M in investable assets. The findings offer insight into what attracts clients to advisors, what keeps them in the relationship, and what ultimately leads them to consider switching. This last point is particularly relevant for advisory firms targeting delegator clients within that asset range who haven't previously worked with an advisor. The data suggests this ideal profile is relatively rare – and of those who fit it, only 6% are likely to hire an advisor in the next two years. By contrast, 24% of current clients are considering changing advisors within that same timeframe, highlighting that while retention is common, it's never guaranteed.

Interestingly, prospects who are already in (or who have recently left) advisory relationships tend to have more specific preferences, often shaped by what hasn't worked for them in the past. Events that trigger a search for a new advisor include significant market downturns resulting in portfolio losses, as well as major life changes like divorce, the death of a spouse, relocation, inheritance, or a health scare. While advisors can't prevent these events, they can prepare for them by identifying the potential risks and proactively communicating during times of change.

When it comes to choosing a new advisor, prospects are especially interested in the firm's financial planning approach, investment philosophy, and pricing. Perhaps unsurprisingly, those who are thinking of leaving their current advisor place particular value on the prospective advisory firm team. Which reinforces how difficult it is to be all things to all people while still providing the level of specificity needed to attract prospects – so staying focused on the target client remains essential.

Ultimately, the key point is that advisors may benefit not only from targeting new prospects but also from appealing to current clients who may be quietly considering a change. Being transparent and specific about the firm's philosophy, structure, and approach can go a long way in helping both types of clients find the right fit. And by staying alert to the life changes that often lead clients to consider leaving, advisors can adjust their communication and services to meet potential departures with the kind of connection that keeps relationships strong. And with consistency and proactive communication focused on those actively looking for new relationships, advisors can help to communicate their value in the right way to the right future clients!

Weekend Reading For Financial Planners (May 24–25)

May 23, 2025 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 a recent survey of RIA employee compensation and wellbeing found that advisors appear broadly satisfied with their jobs and (perhaps unsurprisingly) identified a positive correlation between income and happiness at work (though separate research suggests other factors might contribute more to advisor wellbeing). The survey also demonstrates the potential income upside for advisory firm employees who advance in their firms, with CEO respondents reporting average total annual compensation (including salary, cash bonuses, and non-cash compensation) of more than $900,000 (client-facing advisors surveyed had strong earnings as well, with average total compensation of more than $400,000). Altogether, while the pool of respondents was somewhat limited (and appears to skew senior in rank), the survey suggests that financial advice can be a lucrative career, in terms of compensation, a sense of meaning, and overall wellbeing.

Also in industry news this week:

While the latest iteration of Republicans' major tax legislation does not restore financial advisory fees as a potentially deductible expense, a coalition of organizations continue to push for it to be added to future legislation
Charles Schwab announced this week that it is launching a program to help breakaway advisors launch and grow an independent RIA, offering a new option in the market of 'supported independence' platforms

From there, we have several articles on retirement planning:

How Treasury Inflation-Protected Securities (TIPS) can help mitigate inflation risk and maintain a client's purchasing power throughout retirement
Comparing the relative and disadvantages of creating a TIPS 'ladder' versus investing in a TIPS index fund and how advisors can identify which types of clients could benefit from each
How combining a single premium immediate annuity with a TIPS ladder can help mitigate both longevity and inflation risk for a client

We also have a number of articles on practice management:

Why seeking a 'specialist' to fill specific firm needs can often lead to better results for more mature advisory firms than hiring a talented generalist
Considerations for firm founders who are considering hiring their child into the business, including the need to ensure buy-in from key stakeholders
How RIAs can launch effective internship programs, from creating a position that offers the opportunity to perform meaningful work to providing mentorship opportunities to interns

We wrap up with three final articles, all about how to be a better listener:

Four techniques to be a better listener, including the skill of seeking to summarize what a speaker is saying rather than immediately identifying a solution
How interjections such as "huh?" and "mmhmm" can help guide conversations and demonstrate that an individual is paying attention to what a speaker has to say
Techniques for getting back on track when a conversational partner has zoned out

Enjoy the 'light' reading!

Analyzing The Individual Tax Provisions Of The House Republicans’ 2025 Proposed Tax Bill

May 21, 2025 07:01 am 0 Comments CATEGORY: Taxes

On May 12, Republicans on the House Ways and Means Committee released their long-awaited tax legislation proposal. The proposed bill lays out the specifics of Republicans' plans for extending (and adding to) the Tax Cuts and Jobs Act (TCJA), which is scheduled to expire on December 31, 2025.

At a high level, the bill would permanently extend most of the core provisions of TCJA, as well as add a host of new provisions – some modifying existing TCJA tax rules and others creating new ones altogether – most (but not all) of which would take effect temporarily from 2025 through 2028.

Of TCJA's core provisions, a few – like the current marginal tax rates and brackets, elimination of personal exemptions, and the increased Alternative Minimum Tax exemptions – would simply be extended permanently. Meanwhile, others would be extended but with temporary augmentations: For example, the current standard deduction of $15,000 for single filers and $30,000 for joint filers would be made permanent, with a temporary increase of $1,000 for single and $2,000 for joint filers from 2025 through 2028 (along with a "bonus" deduction of $4,000 for taxpayers age 65 and older).

One of the most contentious TCJA provisions, the $10,000 limit on State and Local Tax (SALT) deductions, would remain in place under the proposed legislation, but be raised to $30,000 – though it would be phased back down to as low as $10,000 for higher-income households. Also, for pass-through business owners who have made use of Pass-Through Entity Taxes at the state level to circumvent the SALT deduction limit, the new proposal introduces rules that would curtail such strategies (potentially resulting in some higher-income business owners deducting fewer state and local taxes under the proposed legislation than they have been able to under TCJA).

Also relating to pass-through business owners, the Section 199A deduction for Qualified Business Income (QBI) would be permanently extended under the Republicans' proposed legislation, with two key modifications: First, an increase in the deduction amount from 20% to 23% of QBI; and second, a change in the phaseout rules for higher-income business owners that would notably result in Specialized Service Trade or Business (SSTB) owners not automatically being fully phased out of the deduction once their income surpasses a certain threshold. In combination, these changes could result in a significant tax break for professionals like doctors, attorneys, consultants (and financial advisors!) who earn a substantial amount of their income from SSTBs.

The proposed legislation also includes provisions that President Trump introduced on the 2024 campaign trail, including deductions for tip and overtime income and for up to $10,000 interest on new or refinanced auto loans (although these would only be available from 2025 through 2028). Additionally, the proposal would introduce new categories of eligible 529 plan expenses (including one that would potentially make the cost of attaining and maintaining the CFP designation eligible for 529 plan funds) and reforms to HSA (including doubling the maximum annual contribution to over $16,000 for households with family health coverage). It also creates a new type of savings account for children – Money Account for Growth and Advancement, or "MAGA" accounts – which the Federal government would automatically open and fund with $1,000 for every US citizen born from 2025 through 2028!

The key point is that the House Republicans' proposed bill remains a draft, meaning that many of its provisions could change – or even be eliminated – before final passage. And given Republicans' narrow majorities in both the House and Senate, along with differing opinions on issues such as the SALT cap, clean energy tax credits (which the bill would end in 2026), and the overall impact on the national deficit, the legislative process could involve intense negotiation and extend well into the summer. But for advisors and their clients, the proposal offers a glimpse of what's on the table – and suggests that, at the very least, a permanent extension of most TCJA provisions, along with new tax breaks, remains a distinct possibility.

#FASuccess Ep 438: Boosting Client Retention And Satisfaction By Asking Better Questions As Your Authentic Self, With Nikki Savage

May 20, 2025 07:01 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 438th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Nikki Savage. Nikki is a senior director in the Tampa, Florida, office of the RIA Sequoia Financial Group, where she manages approximately $150 million in assets under management for 100 client households.

What's unique about Nikki, though, is how she has been able to boost client retention and satisfaction by asking key questions that help her reach a deeper level of understanding with prospects and clients and ultimately provide them with a higher level of service.

In this episode, we talk in-depth about how Nikki uses a series of questions to dig deep into a client's background to ensure they feel heard, understood, and cared for, how Nikki views the importance of having a good match between an advisor's strengths and personality and their clients' needs (and why this suggests that not every advisor-client relationship is a good fit), and how Nikki adds a personal touch to client gifts in order to ensure they stand out and cement lasting relationships (improving client retention in the process).

We also talk about how Nikki tends to avoid small talk when starting client meetings, preferring to instead follow up directly on a previously discussed event in their personal lives (demonstrating her ability to see them as unique individuals), Nikki's tactics for addressing mistaken assumptions prospects and clients sometimes bring to the table to calm their nerves during market volatility and keep them focused on their goals, and how Nikki prepares a customized meeting summary and follow-on task list (and has the client acknowledge that it reflects their experience in the meeting as well before it is finalized) to further ensure clients feel heard and understood.

And be certain to listen to the end, where Nikki shares how she creates meaningful in-person events that bring together clients and prospects who fit her ideal client persona to discuss their challenges in a comfortable environment, how Nikki learned how to filter out worthwhile feedback from the constant barrage of (often unsolicited) opinions on how she should operate her practice, and how Nikki's career path has led her to a firm that allows her to build and run her practice in a way that's aligned with her values so she can be her authentic self when meeting with prospects and clients.

So, whether you're interested in learning about how to dig deep into a client's background to build stronger relationships and promote client retention, creating meaningful in-person events that can generate interest from new prospects, or how to build a practice that's aligned with one's values, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Nikki Savage.