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9 Discovery Meeting Questions To Find Out What Clients Really Want From You And Align Relationship Expectations

February 18, 2026 07:01 am 0 Comments CATEGORY: Client Trust & Communication

There is a lot of information to gather early on in a relationship between a financial advisor and their new client, from investment statements to risk tolerance data. Given that both parties might be focused initially on creating an initial financial plan and solving any 'pain points' that are on the client's mind, it can be easy to miss out on discussing each side's expectations for the broader relationship (e.g., when it's appropriate for the client to contact the advisor with a question). However, avoiding this conversation can create misaligned assumptions between the advisor and their client, potentially leading to frustration for one or both parties over time.

In this guest post, Meghaan Lurtz, a leading expert on the psychology of financial planning and Professor of Practice at Kansas State University, discusses the potential benefits of taking time early on in the advisor-client relationship to discuss and set clear expectations as well as nine questions advisors can use to get the conversation started and ensure they and their clients are on the same page.

To start, an advisor might ask a new client about their understanding of the advisor's planning process and what to expect regarding formal meetings and other touchpoints. An advisor might also ask about the client's expectations for the relationship, allowing the advisor to highlight areas where client expectations are in line with the advisor's service model and any client expectations that might be unrealistic (e.g., if the client expects the advisor to prepare their tax return but that service isn't offered).

A central issue in the advisor-client relationship is ensuring each party sets expectations for when communication is appropriate, as some clients may be unsure when they're 'allowed' to reach out to their advisor. By starting this conversation, advisors can note when they want clients to reach out (e.g., when they're planning to make a major purchase). This topic can also lead to a discussion of the best modes of communication for each side (e.g., phone versus email) to avoid assumptions that one particular mode is preferred by both the advisor and their client.

This conversation can also be used to set big-picture expectations for the relationship. For example, the advisor might ask their new client what a successful relationship would look like to them (which might include both a number [e.g., a particular retirement savings goal] and a feeling [e.g., a sense of financial freedom]), giving the advisor more information about what the client is seeking from their partnership. Similarly, an advisor might ask what the client wants to be true about their work together over the next year, giving the advisor clarity on shorter-term goals and creating a natural check-in point to see whether each side's expectations are being met. Also, to set expectations before conflict arises, an advisor can ask a client early on about how they would want to handle a potential disagreement with the advisor or between members of a client couple.

Ultimately, the key point is that the client onboarding process is not just about understanding a new client's financial situation and loading this information into the advisor's computer systems, but also represents a valuable opportunity for both the advisor and the client to communicate and discuss their mutual expectations for their work together. Which could result in greater trust and satisfaction for both sides over the course of what will hopefully be a long-term relationship!

Finding Real Uses For AI Tools Not Just To Gain Efficiency But Create More (Customized) Value For Clients: #FASuccess Ep 477 With Christopher Haigh

February 17, 2026 07:03 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Christopher Haigh Podcast Featured Image FAS

Welcome everyone! Welcome to the 477th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Christopher Haigh. Christopher is the CEO of Iconoclastic Capital, an RIA based in Rochester, New York, that oversees approximately $60 million in assets under management for 120 client households.

What's unique about Christopher, though, is how he is using Artificial Intelligence (AI) tools not only to gain greater efficiency (for example by taking notes during client meetings and scanning data from client documents), but also to create high-quality deliverables that convert prospects and wow clients.

In this episode, we talk in-depth about how Christopher was an early adopter of AI-powered note taking software (starting with a generalist tool before transitioning to one designed for financial advisors and now using one integrated with his custodial platform), how Christopher leverages the AI capabilities of his financial planning, investment analysis, and tax planning software to save time on data entry that allows him to provide better planning analyses for clients, and how Christopher uses more generalist AI tools to generate and refine dynamic presentations that give prospects and clients a richer understanding of his firm and its value proposition than more static formats.

We also talk about how Christopher started his RIA after leaving a successful practice in the insurance channel in order to provide fee-only comprehensive planning to his clients (and to have the freedom to create his own unique brand), how Christopher offered his team equity stakes early on (to allow them to participate in the growth of his firm and as a reflection of the challenges of offering industry-competitive salaries as a startup), and how Christopher now generates 150 client leads each year in part by using his website to demonstrate the firm's unique brand (even though it might turn some prospective clients away)

And be certain to listen to the end, where Christopher shares how he balances his desire to leverage new AI capabilities to iterate on his firm's deliverables with the need to offer consistency for his team and clients, why Christopher thinks individuals who received sales training and experience in the insurance channel can make excellent candidates for positions at RIAs (even if they need to build their financial planning skills), and why Christopher wants to grow his firm into an enterprise that can remain independent long after he leaves the business.

So, whether you're interested in learning about practical applications of AI tools that can allow for more engaging client interactions, building a niche around a brand identity, or taking a startup approach to creating a new advisory business, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Christopher Haigh.

The 7 Dimensions Of Risk For Growing Advisory Firms

February 16, 2026 07:01 am 0 Comments CATEGORY: Practice Management, Research

Starting an advisory firm is a bold risk, but even after it is established, growth introduces new and evolving risks that can undermine long-term sustainability if left unexamined. Advisors are trained to assess and manage risk in client portfolios, yet many give far less attention to the risks embedded in their own businesses. As with clients, the goal is not to eliminate all risk, but to align a firm's risk exposure with its goals and capacity – removing unmanaged or misaligned risks while embracing those that offer strategic upside. For firm owners, this requires clarity not only on where the risks lie, but on when to act, when to monitor, and how to prepare for inevitable disruptions.

In this article, Senior Financial Planning Nerd Sydney Squires discusses how advisory firm risk manifests across seven different dimensions, and how advisors can evaluate and integrate risk into their advisory firm in a thoughtful, strategic way as their firms grow.

First, profit margin functions as a firm's shock absorber and growth engine. A healthy margin (ideally around 40%) enables hiring, experimentation, and resilience in down markets, particularly for AUM-based firms that are exposed to market volatility. However, excessive profit retained at the firm level can become a retention risk if compensation growth lags. Introducing variable pay structures can both boost advisor well-being and more closely align team incentives with firm performance.

From there, advisors can consider the various risks and rewards of different service models. For example, recurring revenue provides predictability and stability – and at the same time, many advisory firms integrate AUM into their fee model, which scales well in bull markets, but compresses quickly in downturns. Blended models that combine AUM and planning fees offer more durability, especially when paired with stress-tested revenue scenarios.

Additionally, client types can pose different types of risk. Firms that depend heavily on a few large clients or underprice certain client segments create fragility in their revenue base. Much like concentrated portfolios, these risks require proactive diversification – either by gradually adjusting fees, 'graduating' misaligned clients, or growing segments with similar profiles. And in the realm of client acquisition, many solo or small firm advisors rely heavily on their own time and energy for marketing, creating a bottleneck as the firm scales. As the firm grows, this advisor-centric approach becomes unsustainable. Shifting to scalable marketing channels, outsourcing, or delegating to team members reduces dependency on the lead advisor and lowers long-term acquisition costs.

Finally, advisors may consider the risks inherent in their team structure and capacity. If a firm waits too long to hire, it risks burnout and turnover – yet hiring prematurely also introduces cashflow stress. At the same time, as the firm grows, it is easy for processes to increasingly exist in 'just' one advisor's head. This, in turn, creates a severe risk of turnover or leave of absence! Without process documentation and cross-training, firms are vulnerable to knowledge loss and inconsistent service. Establishing regular process reviews and redundancies improves team resilience and allows firms to scale more confidently.

Ultimately, the key point is that none of these types of risk is inherently bad. Rather, the challenge is for advisory firm owners to embrace 'their' risk that best aligns with their goals. Strategic use of guardrails, backup plans, and market stress testing can help firm owners make more confident and strategic decisions over time. Further, reducing low-reward risks while doubling down on growth-aligned ones allows advisory firms to scale more sustainably. Advisors who understand and intentionally shape their firm's risk profile are better equipped not just to survive, but to grow something uniquely molded to their long-term vision!

Weekend Reading For Financial Planners (February 14–15)

February 13, 2026 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 Charles Schwab's latest RIA compensation report finds that while base salaries remain the largest component of advisor compensation, firms that offer incentive pay have seen more revenue and client growth in recent years than those that don't (notably, these firms also are more likely to have strategic plans and a defined client value proposition, which could play a role in these results as well). Beyond compensation, the survey also found that top-performing firms were more likely to offer an established employee value proposition (including features such as a compelling work setting, emphasis on teamwork, recognition, and connections, and a defined mission statement, culture, and values), suggesting that attracting and retaining high-quality talent (and the follow-on effects for client growth) could mean looking beyond headline salary figures to the broader monetary and non-monetary compensation firms can provide their employees as well.

Also in industry news this week:

A recent SEC settlement shines a light on potential regulatory violations stemming from RIAs' use of "hedge clauses" in their advisory agreements
A survey looking at advisory firm career development finds that internal training and compensation for certifications and continuing education are the most commonly available features of such programs, with a number of advisors seeking less-common offerings, including external coaching

From there, we have several articles on tax planning:

Four red flags that might appear in a prospect's or client's tax return and how advisors can use them to identify future tax-savings opportunities
How financial advisors can help high-income clients duck the "SALT torpedo" that can result in a significantly higher marginal tax rate
The pros and cons of three timing strategies for taking Required Minimum Distributions (RMDs) and how advisors can play a valuable role in ensuring they are taken in a timely and accurate manner

We also have a number of articles on retirement planning:

A recent study finds that annual healthcare costs could be expected to increase at an average annual rate of 5.8%, well above the overall inflation rate
How the growing costs of the Medicare program could lead to significantly higher IRMAA surcharges in the years ahead (increasing the value of income management in retirement)
While lump-sum figures of total healthcare spending in retirement might be scary, in reality these costs often represent a more manageable burden on an annual basis (though still a major line item on many retirees' budgets)

We wrap up with three final articles, all about time management:

Why "time fragmentation" can prevent advisors from focusing on strategic initiatives that could boost long-term growth and how time blocking could be an effective solution
How "hurry sickness" can lead to negative physical and mental effects for busy professionals, and how a task organization system that moves items off an individual's plate can prevent this phenomenon from occurring
Why procrastination isn't necessarily a matter of (a lack of) mental will, but rather a reflection of ambivalence between two choices that each have their own upsides

Enjoy the 'light' reading!

Box Spreads Explained: A (Lower-Interest) Borrowing Alternative To Margin Loans And SBLOCs

February 11, 2026 07:03 am 0 Comments CATEGORY: General Planning

Debt is an important tool in the financial toolbox, and can be very helpful when used in the right way. People often view 'good' debt in terms of loans that are subsidized and/or tax-deductible in some way, such as mortgages and Federal student loans. But some forms of debt can be useful for other planning purposes, such as when an individual needs a bridge loan to put a down payment on a new house while waiting for their old house to be sold, or if they have a large expense coming up like a home renovation or a new vehicle purchase and they want to avoid liquidating investment assets (and incurring capital gains taxes) to pay for it.

There are various types of loans available for these shorter-term borrowing needs, including Home Equity Lines of Credit (HELOCs) backed by the equity in one's home, and margin loans or Securities-Backed Lines of Credit (SBLOCs) secured by the value of the borrower's portfolio assets. While these loans offer some financial flexibility and have lower interest rates than other kinds of personal debt, like credit cards, they still tend to carry higher interest rates than the 'best' types of loans (e.g., mortgages and student loans). Moreover, interest paid on HELOCs, margin loans, and SBLOCs generally isn't tax-deductible, unless they're used for a small subset of purposes (e.g., a HELOC used for home renovations or a margin loan used to buy income-generating investment property).

In recent years, however, a new form of 'synthetic' lending has emerged as a potential alternative to margin loans or SBLOCs for short- and medium-term borrowing: The "box spread". At a high level, the box spread is an options strategy involving four different options contracts (selling a call, buying a put, buying a call, and selling a put), all with the same expiration date. The options contracts are structured so that, regardless of market movements, the 'borrower' is guaranteed to receive a net premium payment at the start of the period and to repay a fixed amount on the options' expiration date. Which makes the box spread effectively a zero-coupon loan where the 'principal', plus interest, is paid back at the end of the loan term. And owing to the fundamental math behind options pricing, the effective 'interest' rate paid on box spread loans tends to be only slightly higher than the interest on Treasury bills, which is far lower than the borrower would likely pay on a margin loan or SBLOC!

The tax treatment of box spread loans creates yet another advantage. Since a box spread effectively creates a net loss on a combination of options contracts, the 'interest' paid is tax-deductible as a capital loss. And because most box spreads qualify as 'non-equity options' under IRC Sec. 1256, a portion of the loan interest is usually deductible in each year that the box spread is in effect – even though the interest isn't actually paid until the options expire and the 'loan' is paid back. All of which means that in comparison to margin loans and SBLOCs, box spread loans have both a lower interest rate, and that interest is tax deductible (although box spread interest is only deductible against capital gains income, which is less of a benefit than being able to deduct against ordinary income – but it's still better than not being able to deduct the interest at all!).

Although options strategies are often risky, the offsetting 'legs' of a box spread mean that there's no inherent market risk from using a box spread – and because the Options Clearing Corporation (OCC) guarantees options contracts, there's very little risk that a counterparty will be unable to pay their portion of the options contract either. The main risk is that the amount to be repaid generally counts against the borrower's margin requirements in their brokerage account. Which means the borrower can borrow up to a certain percentage of the assets in their taxable account (typically 50%), and a severe market drop could trigger a margin call requiring the borrower to add more funds to their account and/or close out the box spread early.

The key point is that while box spreads won't necessarily replace advantageous debt like mortgages and student loans, their combination of low interest rates and tax deductibility can make them a viable alternative to HELOCs, margin loans, and SBLOCs in the shorter-term borrowing sphere. And with new providers starting to pop up that can handle the operational side of box spread borrowing and make it so that advisors don't need to manually construct box spread trades for their clients, they could become much more common in the years ahead as an option to meet clients' borrowing needs.Read More...

Making The Decision To Add A Partner (After Leaving A Partnership Yourself) While Approaching $500M AUM: #FASuccess Ep 476 With Kathy Longo

February 10, 2026 07:05 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Kathy Longo Podcast Preview Image FAS copy

Welcome everyone! Welcome to the 476th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Kathy Longo. Kathy is the founder of Flourish Wealth Management, an RIA based in Edina, Minnesota, that oversees $455 million in assets under management for 163 client households.

What's unique about Kathy, though, is how she decided to add a partner despite leaving a previous partnership within a larger RIA to start a business that she could drive individually.

In this episode, we talk in-depth about how Kathy decided to offer an ownership stake to an advisor on her team to both get the ball rolling on a succession plan that will allow her firm to remain independent and to reward the advisor for his contributions and commitment to the business, why Kathy chose to issue a self-financed loan for her new partner’s buy-in for both tax planning purposes and to better manage debt she had taken on to finance an acquisition, and how Kathy benefited from using an external valuation service not only by receiving an accurate valuation for the firm for her new partner’s buy-in, but also by learning about the key drivers that would propel her firm’s value going forward.

We also talk about how Kathy has found success in the latest stage of her growth journey in part by working with external partners to better define her firm’s culture and values (and align them with its model and career paths), how Kathy has used a recruiting firm and different assessment tools to improve her hiring process and identify candidates that are more likely to fit her firm’s culture, and how Kathy has created better alignment throughout her firm as her team has grown by instituting the Entrepreneurial Operating System (with the support of an external implementer).

And be certain to listen to the end, where Kathy shares how she boosted her firm’s growth through an acquisition (and how she made the transition more manageable by acquiring the clients in tranches rather than all at once), how Kathy has found significant value from working with coaches who can serve as dedicated sources of advice and feedback on both strategic business planning and her own leadership skills, and how Kathy has successfully managed running a firm where her husband is a key employee (including by setting appropriate work/life boundaries).

So, whether you’re interested in learning about starting down the path of an internal succession by adding a partner, managing an acquisition by bringing clients over in tranches, or creating the operational and hiring systems needed to build a lasting firm, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Kathy Longo.