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Navigating Accelerated Succession When Cancer Forces An Early Retirement: #FASuccess Ep 468 With Kay Dee Cole

December 16, 2025 07:01 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 468th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Kay Dee Cole. Kay Dee is the founder of Clarity Wealth Development, an RIA based in Corvallis, Oregon, that oversees approximately $200 million in assets under management for 220 client households.

What's unique about Kay Dee, though, is how she has navigated an accelerated succession plan within a growing firm after experiencing a recurrence of cancer and deciding to transition away from the business.

In this episode, we talk in-depth about how Kay Dee initially sold a minority stake in her firm (using a seller-financed loan) to her Chief Operating Officer (who had taken many aspects of running the business off of Kay Dee's plate) with plans to increase the stake over time, how Kay Dee's cancer recurrence has led her to speed up the equity transition, with her planning to give other firm employees the chance to buy in as well, and how Kay Dee is thinking through whether to hold on to the seller-financed loans (which could create stress by continuing to tie her to the business and its success even though she's retired) and how this decision will impact her own finances.

We also talk about how Kay Dee initiated a four-meeting process to transfer her clients to other advisors in her firm (with a senior advisor leading the first meeting and giving the other advisor an increasing role until they are ready to lead the relationship), how Kay Dee and other “first chair” advisors have regular one-on-ones with more junior advisors throughout this transition process to review previous client meetings and to game plan together for the next one (allowing both sides to gauge the junior advisor's readiness to take on more responsibility), and how Kay Dee communicated this advisor transition plan to clients and made them aware of her condition and plans to retire (only losing a few clients [who were likely planning to leave anyway] in the process).

And be certain to listen to the end, where Kay Dee shares how her firm has created four client segments based on AUM to ensure the level of service being provided (for instance, number of meetings per year or the seniority of advisor they're working with) is in line with the fees they pay (helping it double its AUM to $200 million in 5 years), how Kay Dee's adoption of the Entrepreneurial Operating System and its principles has helped her build more durable structures for her firm (amidst the ongoing transition) and open up lines of communication with her partner and employees, and how Kay Dee has found success in part by prioritizing in-person interactions with fellow advisors and industry professionals (whether at conferences or informally for coffee chats), allowing her to gain new insights and build relationships in a way that's harder to replicate in an online environment.

So, whether you're interested in learning about creating an adaptable succession plan to prepare for unforeseen circumstances, transitioning clients to new advisors while maintaining high retention, or segmenting clients into different service models to ensure profitability, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Kay Dee Cole.

How Much To Pay An Associate Advisor? Using Industry Benchmarking To Design A Competitive Compensation Package

December 15, 2025 07:03 am 0 Comments CATEGORY: Practice Management, Research

Determining how much to pay a new associate advisor can be one of the most critical – and complex – decisions a growing advisory firm makes. Compensation not only influences who applies for a position but also sets the tone for the productivity required by that employee: paying too little may limit candidate quality or long-term retention, while overpaying can hinder profitability unless the employee delivers commensurate value. Given the financial and operational ripple effects of these decisions, firms must strike a careful balance between competitiveness and sustainability in designing compensation packages for early-career advisors.

In this article, Senior Financial Planning Nerd Sydney Squires discusses industry trends for associate advisor compensation – including variable pay tied to firm or individual performance, core benefits such as healthcare and retirement plans, and non-financial motivators such as career development and firm culture – and how hiring firms can use this information to create a competitive offer.

While base salaries remain the foundation of compensation, data from the latest Kitces Research on Advisor Wellbeing shows that most advisors received some level of incentive pay. Overall, most incentive structures are tied either to firm revenue or to individual qualitative performance, with the latter slightly more common.

Additionally, benefits play a substantial role in candidate decision-making. Across the industry, larger firms tend to offer more robust benefit packages, including comprehensive health insurance and higher employer retirement plan contributions, while smaller firms often differentiate through day-to-day flexibility and personalized offerings. Health insurance is near-universal among mid-to-large firms, and retirement benefits like 401(k) plans with employer contributions are increasingly viewed as baseline expectations. Meanwhile, offerings such as parental leave, professional development stipends, wellness subsidies, and generous PTO policies can serve as tiebreakers in a competitive labor market – though these are often more accessible to firms with deeper resources or more mature infrastructure. Likewise, benefits like parental leave are increasingly expected – with over 70% of firms offering some form of paid leave – and can influence both recruitment and long-term retention, especially among younger professionals planning for major life transitions.

Remote and flexible work arrangements also continue to shape the employee experience. While fully remote roles are less common than they once were, flexibility remains a highly valued perk, especially among early-career professionals. At the same time, fully remote associate advisor roles may limit on-the-job learning and mentorship opportunities, which are critical for professional growth. Thus, firms can remain competitive even with in-office expectations by offering moderate flexibility in hours or schedules.

Ultimately, compensation is both a strategic and cultural signal. For small but growing firms, it's rarely feasible to offer everything at once. But by thoughtfully designing a compensation package that blends competitive pay, scalable incentives, and high-impact benefits, advisory firms can attract strong associate advisor candidates while aligning their compensation philosophy with firm values and long-term growth plans. As expectations continue to evolve, firms that stay attuned to what early-career professionals value – and communicate their offerings transparently – will be best positioned to recruit, retain, and grow talent that fuels the firm's future!

Weekend Reading For Financial Planners (December 13–14)

December 12, 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 study of RIAs with at least $100 million in AUM finds that those who made at least one acquisition during the past five years tended to have stronger AUM growth during the past three years (net of market performance) than those that did not. While assets brought in via acquisition(s) no doubt played a role in this finding, the report noted that the success of a particular acquisition (in terms of boosting long-run growth) can vary significantly depending on how well the acquiror integrates the selling firm. Which suggests that while an acquisition can provide a boost to AUM, completing a deal successfully isn't just about meeting the sale price, but also putting in the time and effort to ensure the two organizations come together with as few disruptions as possible (leading to greater client and employee retention in the process).

Also in industry news this week:

A study finds that advisory firms looking to serve ultra-high-net-worth clients are adding new services (including business planning, foundation management, and concierge services) and are often increasing their fees (or charging separately for particular services) to reflect the additional time and hard-dollar investment required to provide them
FINRA in its annual oversight report specifically calls out potential areas of concern regarding the use of AI tools, including 'hallucinations' that could lead to inaccurate advice and the use of AI 'agents' that could take unwanted or incorrect actions on behalf of an advisor

From there, we have several articles on retirement planning:

An analysis finds that the 'traditional' Social Security claiming advice for client couples doesn't necessarily apply when the spouses make similar incomes or are very close in age
Why the 'widow tax hit' might not be as severe as might be assumed, with the loss of income from a deceased spouse frequently having a much larger influence on the surviving spouse's lifestyle
While many client couples assume they will retire simultaneously, survey data suggest that only a small minority do so, suggesting a valuable role for financial advisors in helping clients talk through how they might handle a staggered retirement

We also have a number of articles on charitable giving:

How a "Giving Power" metric can help advisors and their clients better understand the most efficient (and inefficient) ways to donate to charity
How offering charitable planning services not only can help clients make the best use of their charitable dollars, but also potentially allow advisors to differentiate themselves from other advice providers who don't focus on this planning area
Questions, scripts, and tools financial advisors can use to improve engagement with clients when it comes to charitable planning

We wrap up with three final articles, all about leadership and culture:

Six ways leaders can build their team's self-confidence, from giving employees autonomy to setting clear and consistent standards
A case study in how one company added more clarity, objectivity, and communication to its hiring process, leading to higher-quality hires and greater employee retention
The value for firm founders and executives of celebrating personal accomplishments, from reducing stress to incentivizing progress towards their next goal

Enjoy the 'light' reading!

Holding Back From Hiring Associate Advisors Out Of Fear They’re Just Going To Move On: Kitces & Carl 179

December 11, 2025 07:03 am 0 Comments CATEGORY: Kitces & Carl Podcast

For many advisory firm owners, hiring their first associate advisor marks a meaningful milestone, opening the door to new delegation capacity, mentorship opportunities, and expanded productivity. At first, the relationship tends to be mutually beneficial – the associate is eager to learn, and the firm owner needs to delegate and expand their capacity. After a few years, though, the associate advisor will naturally want to move upward and either manage their own clients or delve into more specialized planning work. This progression often reveals a critical gap, as the firm may not have built a clear path for career advancement. Which leaves many firm owners facing a critical crossroads: do they stay small and accept that the associate will eventually move on? Or do they grow into a multi-advisor firm and navigate the productivity and infrastructure challenges that accompany that growth?

In this 179th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss how an advisory firm can facilitate an associate advisor's career growth in ways that align with long-term productivity.

Firms effectively have two viable paths forward. One option is to build a multi-advisor business intentionally, with clearly defined growth tracks, equity participation, and focused advisor 'pods'. When the decision is made deliberately and based on what the founder truly desires and is building toward, this can be a highly productive growth path. But if the firm is primarily driven by a desire to keep a talented associate, the firm may inadvertently create inefficiencies that inhibit long-term productivity – such as sharing clients between advisors and retaining clients who don't match the firm's required fee schedule.

Alternatively, firm owners who prefer to remain solo can adopt a residency-style model, where the associate advisor is brought in to work with the firm for a defined three- to five-year period before moving on to their next opportunity. When this arrangement is communicated clearly from the outset, it can become a win-win for both parties, creating a positive and predictable transition process. Systematic process documentation, structured handoffs, and planned knowledge transfer allow for smooth transitions and preserve firm operations, all while allowing the firm owner to train successors without expanding managerial complexity.

Ultimately, the key point is that few associate advisors set out to remain 'forever' associates at their firms. The real decision for firm owners is which tradeoffs they prefer: planning for associate advisor turnover so the firm can stay small, or taking on the additional operational and managerial commitments required to grow a team. The good news is that, with some planning, both options can lead to meaningful, sustainable work – for both the associate advisor and the long-term firm!

Navigating Divorce, Ethical Challenges, And Conflicts When Client Couples Announce They’re Divorcing

December 10, 2025 07:02 am 0 Comments CATEGORY: Ethics

Because financial advisors often work with clients for many years or even decades, it's not uncommon for them to encounter client couples who decide to divorce. Marital conflict between clients can create a host of ethical dilemmas for financial advisors – situations that, if mishandled, could lead to breaches of fiduciary duty or even disciplinary actions from governing bodies such as CFP Board. Recognizing the prevalence and complexity of these issues, CFP Board has released guidance on how advisors should navigate divorce and other marital conflicts in alignment with the Code of Ethics and Standards of Conflict. Given the high stakes of managing these situations, advisors benefit from understanding the ethical challenges that can arise, knowing their firm's policies and fiduciary obligations to both spouses, and proactively addressing potential conflicts of interest before they occur.

Notably, working with client couples involves ethical considerations, even when the couple's relationship is strong. For instance, an advisor may communicate more frequently with the spouse who is more financially involved, while the other partner might not attend regular meetings. Over time, this can lead to advice or financial plans that don't reflect the preferences of both partners and, in some cases, to transactions that one spouse might disagree with (which could ultimately lead not just to conflict for the couple but to liability challenges for the advisor, as well). With this in mind, engaging with both partners consistently, clarifying how accounts are structured, and maintaining strong documentation practices – including accurate and comprehensive meeting notes – can help advisors ensure they are fully meeting their fiduciary obligations.

When a client couple does announce they're planning to divorce, advisors must decide how to work ethically with one or both partners while adhering to the terms of their engagement letter, firm policies, and all relevant compliance requirements. One helpful approach is to outline the options for how the advisory relationship may proceed and to immediately review current withdrawal authorizations on all accounts under management.

If both spouses choose to continue working with the same advisor, the engagement scope should be formally redefined. This step provides clear and transparent communication to both parties about what services the advisor will and will not provide during the divorce process. Nevertheless, even if an advisor strives to remain neutral, offering advice to only one spouse – or maintaining more frequent communication with one over the other – can create a disadvantage for the other. Advisors must carefully consider whether they can truly remain impartial, particularly if they have developed a closer relationship with one spouse.

If the advisor continues working with only one spouse, the joint engagement must be formally terminated and replaced with a new agreement with the remaining client. Once the new engagement is established, confidentiality becomes even more critical, as the advisor must avoid disclosing information shared by the departing spouse during the prior joint engagement. Upholding privacy not only reinforces fiduciary duty but also demonstrates professional integrity during what's often an emotionally difficult time for clients.

Ultimately, the key point is that divorce can create upheaval not only in a couple's relationship but also in the advisor-client relationship, presenting new ethical challenges around privacy, loyalty, and scope of engagement. Establishing clear structures – from documenting actions and decisions to defining firm policies for handling marital status changes – helps advisors uphold their fiduciary duty, protect client trust, and minimize the risk of regulatory or disciplinary consequences.

Crafting Effective Conversations To Build Business Development Rapport With Prospects: #FASuccess Ep 467 With Derrick Kinney

December 9, 2025 07:03 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 467th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Derrick Kinney. Derrick is the founder of Success For Advisors, a speaking and coaching firm that helps financial advisors communicate more effectively with prospects and clients.

What's unique about Derrick, though, is how his approach encourages advisors to find an immediately relatable pain point for their prospective clients and then show how they help their clients solve similar problems (without actually solving the prospect’s issue until they become a client).

In this episode, we talk in-depth about how Derrick encourages advisors to create a pitch that begins with a "You know how…" statement that is an instantly relatable problem for a prospect, how Derrick sees value in using a "low and slow" speaking style to demonstrate the advisor’s seriousness in solving the prospect’s particular problem, and how Derrick finds that advisors can help move prospects from an initial encounter to an in-person or video "visit" by offering to continue to explore their pain point (without directly asking for a meeting in the short-term, which could make it seem like the advisor doesn’t have much other business).

We also talk about how Derrick approaches the first "visit" after an initial encounter with a prospect by asking what he calls "million dollar questions" (for example, "What would be the greatest service that we could provide for you?"), how Derrick then transitions into asking deeper, more personal questions (for example, "What would you say is the biggest financial mistake you’ve ever made") by first giving them "pre-meaning" and letting them know it will be a personal question (and giving them permission not to answer if they don’t want to), and how Derrick finds that advisors can effectively show a prospect how they can solve their specific problem by sharing stories from current clients and then asking "Is that something you’d like my help with?" (rather than outlining a specific solution for them, which he finds can reduce their urgency to continue on the path to becoming a client).

And be certain to listen to the end, where Derrick shares how advisors who engage in what he calls "scheduled spontaneity" by finding ways to engage with their best clients monthly can lead to better retention of this key group, how Derrick finds that younger advisors can turn their relative youth into an asset by proactively addressing their age with prospects and discussing how their particular skills (for example in leveraging technology or relating to the needs of an older prospect’s children or grandchildren) can lead to better service for their clients, and how Derrick has ultimately found success not only in his own businesses (including building and selling an advisory practice), but also by passing on his entrepreneurial spirit to his own children, who have all started businesses themselves without him necessarily encouraging them to do so.

So, whether you’re interested in learning about creating effective introductions when meeting prospects for the first time, asking effective questions to discover a prospect’s pain point, or how sharing client success stories can help a prospect see that you’re the best advisor to meet their unique needs, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Derrick Kinney.

The New Capacity Crossroads: How Technology Is Changing The Timing Of An Advisory Firm’s First Hire(s)

December 8, 2025 07:03 am 0 Comments CATEGORY: Practice Management, Research

Advisors launching their own firms often wear every hat – from marketing to compliance to client service – and while solo practice offers flexibility, it also comes with inevitable limits on time and energy. Eventually, growing client demands push the advisor to a key decision point: remain solo or hire the firm's first employee? Historically, the "capacity crossroads" emerged around $250,000 to $400,000 in annual revenue, or 30–40 clients. This crossroads also implies a risk, as hiring too early can lead to financial strain, while hiring too late can result in burnout and a decline in service quality. For growth-minded advisors, the first hire is not a matter of "if", but a question of "when" – and advances in technology are rapidly shifting that timeline.

In this article, Sydney Squires, Senior Financial Planning Nerd, discusses how technology has shifted the 'new' capacity crossroads for advisors looking to make their first hires. Data from Kitces Research indicate that hiring patterns have undergone notable changes in just a few years. In 2022, most firms made their first hire at $200,000–$300,000 in revenue, and the second at $400,000–$500,000. By 2024, those thresholds had risen: the first hire now often occurs between $250,000–$400,000, and the second between $600,000–$800,000. More telling, however, is the dramatic increase in productivity between those milestones. In 2022, firms with one support hire serviced 86 clients and generated $517,500 in revenue; by 2024, comparable firms handled 111 clients and earned $591,000, despite lower revenue per client. This jump highlights how much more effective teams have become, particularly when leveraging automation and process improvements.

This evolution is tied closely to the nature of advisory firm work. While front-office tasks like client meetings are resistant to automation and retain fixed time demands, middle- and back-office tasks – such as scheduling, meeting prep, and follow-up – are increasingly streamlined through technology and delegation. Today's first hire spends far less time on these tasks than they would have even a few years ago, thanks to tools like AI-generated meeting notes, automated email summaries, and scheduling software. These time savings not only boost the productivity of support staff but also free up lead advisors to focus on high-value, revenue-generating client work.

The result is a compounding effect: advisors can push their capacity threshold further before needing to hire, and when they do bring on help, they can leverage that new employee far more effectively. This trend is expected to continue as AI and automation technology advance, though limitations remain. Most advisors still view technology as a way to enhance efficiency, not replace human interaction, particularly in client-facing roles. As such, growth-focused firms will still need to hire eventually, but technology-savvy advisors can delay that decision until their firms are on stronger financial footing, reducing risk and maximizing return on investment.

Ultimately, the capacity crossroads can be extended and shaped by the advisor's willingness and ability to optimize operations. Those who embrace technology and process improvement can extend their capacity and delay hiring, while others may benefit more by hiring operationally strong staff who can build those systems for them. Regardless of approach, the key is a mindset of continual refinement – because as firms grow more efficient, they also create space to offer more value, serve more clients, and scale more sustainably!

Weekend Reading For Financial Planners (December 6–7)

December 5, 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 CFP Board survey finds that while the vast majority of advisors believe their clients are confident in their ability to achieve their short- and long-term goals, many of these clients are feeling cautious or uncertain as the new year approaches, with political and economic concerns weighing on their minds. Nonetheless, amidst this backdrop, many advisors appear to be taking the opportunity to empower their clients by encouraging them take action on areas that they can control (e.g., tax planning in the wake of the One Big Beautiful Bill Act) rather than focus on an uncertain (and uncontrollable) external environment.

Also in industry news this week:

Research from Cerulli finds that while advisors are offering increasingly comprehensive planning services, clients aren't necessarily using all of them (or perhaps don't recognize the full scope of work their advisor is performing on their behalf)
A survey from Fidelity finds a gap between aging parents and their children when it comes to communication around estate and long-term care planning, presenting a potential opportunity for advisors to encourage such conversations to ensure that clients' plans in these areas are executed seamlessly when the need arises

From there, we have several articles on insurance and tax planning:

How the scheduled expiration of the 'enhanced' Premium Tax Credit for Affordable Care Act marketplace health insurance plans could lead to significant premium hikes for clients, particularly those whose income exceeds a key threshold for eligibility
The planning opportunities advisors and affected clients can consider to maintain eligibility for the Premium Tax Credit, including strategic retirement account contributions and income timing for working clients and careful distribution management for retired clients
Why the increased cost of health insurance costs is a particularly thorny issue for clients who retire early, and how advisors can increase the chances that these clients will be prepared for a range of contingencies

We also have a number of articles on client communication:

How financial advisors tend to play a variety of roles in different client situations, from a "mirror" who helps clients clarify their goals to an "intellectual sparring partner" who helps clients understand the pros and cons of different courses of action
How advisors can apply the psychological practice of "chunking" to help clients focus on the big picture of their financial situation rather than focus on short-run market challenges
Why offering too much "emotional empathy" for clients could lead to advisor burnout and how using more "cognitive empathy" could help clients make it through challenging situations without overstressing their advisor as well

We wrap up with three final articles, all about practical uses of Artificial Intelligence (AI) tools:

While a new crop of AI-powered tools can help professionals organize busy email accounts and draft responses to relatively simple requests, they so far haven't been able to crack the code of replying to more complex matters that require the "tacit knowledge" and experience of those using these tools
Driverless ride-hailing service Waymo has expanded within and across cities, potentially offering a new competitor into this market (and possibly improving safety in the process), though it faces challenges in scaling and achieving broader adoption
How general and retailer-specific AI tools can help shoppers save time (and find the best deal) this holiday season

Enjoy the 'light' reading!

How The SEC Is ACTUALLY Enforcing The Marketing Rule: A Checklist To Ensure Compliance Policies Meet The Mark

December 3, 2025 07:02 am 0 Comments CATEGORY: Marketing, Regulation & Compliance

As financial advisers strive to communicate value and differentiate themselves in a competitive landscape, the SEC's new Marketing Rule has significantly reshaped the compliance obligations tied to how firms advertise and promote their services. Now, three years into its implementation, the rule has proven to be more than a technicality: it represents a foundational component of the SEC's regulatory framework. With several high-profile enforcement actions already announced, it's increasingly clear that the SEC considers Marketing Rule compliance a top-tier priority. The rule fundamentally redefines how firms communicate with prospects and clients, making it essential for advisers to engage directly with the rule's requirements rather than delegate them entirely to compliance departments.

In this article, Isaac Mamaysky, Partner of Potomac Law Group and Cofounder of QuantStreet Capital, explores the key takeaways from the SEC's enforcement of the Marketing Rule – and how advisory firms can implement their marketing strategies confidently without fear of regulatory action.

At its core, the Marketing Rule reinforces the general anti-fraud principles that underlie the Federal securities laws. These principles include ensuring that advertising is not misleading, material statements of fact can be substantiated, and all investment advice is presented in a way that is fair and balanced.. The rule also governs how performance results can be presented in advertisements and how advisers may use client testimonials and third-party endorsements.

However, in the years since the Marketing Rule's compliance date, the SEC's enforcement activity has also underscored the areas of greatest regulatory focus. Hypothetical performance – especially when shared via publicly accessible websites – has consistently triggered enforcement actions, highlighting concerns about misleading unsophisticated investors. Firms have been penalized for sharing backtested or model performance with general audiences without vetting the recipients. The SEC has also brought charges over unsubstantiated claims, misuse of third-party ratings without proper disclosure, and paid endorsements or testimonials lacking requisite transparency. Collectively, these actions reflect a broader regulatory theme: marketing practices must reflect not only technical compliance but also fair, honest, and substantiated communication consistent with investor protection goals.

Advisers can take several steps to assess and reinforce their marketing compliance. Reviewing the Marketing Rule itself – surprisingly accessible at under 3,500 words – can help clarify its intent and applicability. Updating compliance manuals to reflect the new rule, rather than legacy advertising and solicitation guidance, is essential. From there, a detailed checklist covering definitions, prohibited practices, disclosures, performance standards, and documentation can help ensure policies are comprehensive and current. Testing those policies against hypothetical scenarios – such as athlete endorsements, mass mailings of hypothetical performance, or adviser-requested online reviews – can further refine understanding and reveal implementation gaps.

Ultimately, the key point is that the Marketing Rule is now firmly entrenched in the compliance expectations governing advisory firms' external communications. Advisers who approach the rule not as a compliance formality but as a guidepost for transparency and professionalism will be better positioned to communicate effectively, avoid regulatory pitfalls, and strengthen client trust. By aligning marketing practices with both the letter and spirit of the rule, advisers can elevate their messaging and reinforce the integrity at the heart of every great client relationship!

Doubling AUM From Under $300M To Over $600M In 3.5 Years By Making Investments To Systematize For Scale: #FASuccess Ep 466 With Morgan Nichols

December 2, 2025 07:02 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 466th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Morgan Nichols. Morgan is the CEO of LifeBranch Wealth Partners, an independent broker-dealer practice based in Grapevine, Texas, that oversees approximately $630 million in assets under management for 830 client households.

What's unique about Morgan, though, is how she has been willing to make hard-dollar investments in her firm that have pinched profit margins in the short run but have allowed her to double the size of her firm in three and a half years and set it up to reach her $2 billion AUM goal.

In this episode, we talk in-depth about how Morgan strives to hire new team members before a need becomes critical (even though each new hire is costly) to both ensure a consistent level of client service and provide her additional capacity as her client base grows, how Morgan invested $20,000 in rebranding her firm (including moving away from having her last name as the company name) to better reflect what it offers clients and to attract new advisors in the process, and how Morgan made the decision to bring on on a business development director (one of the more expensive roles she’s hired) a move that has paid off both through his ability to network and to train other team members on business development best practices.

We also talk about how Morgan created defined career paths for employees to show how they can advance in the firm as they develop their client service and business development capabilities and build their technical expertise (including CFP certification as well as portfolio management and behavioral finance credentials), how Morgan crafted compensation models that reflect the desire for stability amongst more junior employees (in the form of a larger base salary) and more upside potential for those bringing in and serving new clients for the firm, and how Morgan is now rolling out a long-term incentive plan to give employees a chance to grow their total compensation alongside the firm’s success (while also incentivizing them to stay with the firm over the long haul).

And be certain to listen to the end, where Morgan shares how she holds group training sessions that include case study discussion where team members shares ideas on how they would handle a particular scenario (allowing more junior employees to contribute their own ideas and learn from multiple senior advisors), how Morgan’s participation in a coaching group of fellow female entrepreneurs has helped her weather the hard times on her journey and ultimately move her business forward, and how Morgan, at a time when many advisors are moving towards the RIA channel, has decided to remain with a broker-dealer due in part to the infrastructure and compliance support that allow her to spend more time focusing on the client experience and growing her business.

So, whether you’re interested in learning about weighing the tradeoffs of investing hard dollars in an advisory business, creating career paths and compensation models to attract and retain the employees needed to help a firm scale, or about the benefits of building a network of like-minded advisors and professionals to serve as sounding boards and a support network through the challenges of growing a business, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Morgan Nichols.

Navigating Accelerated Succession When Cancer Forces An Early Retirement: #FASuccess Ep 468 With Kay Dee Cole

How Much To Pay An Associate Advisor? Using Industry Benchmarking To Design A Competitive Compensation Package

Weekend Reading For Financial Planners (December 13–14)

Holding Back From Hiring Associate Advisors Out Of Fear They’re Just Going To Move On: Kitces & Carl 179

Read More...

Want CE Credit for reading articles like this?

Navigating Divorce, Ethical Challenges, And Conflicts When Client Couples Announce They’re Divorcing

Crafting Effective Conversations To Build Business Development Rapport With Prospects: #FASuccess Ep 467 With Derrick Kinney

The New Capacity Crossroads: How Technology Is Changing The Timing Of An Advisory Firm’s First Hire(s)

Weekend Reading For Financial Planners (December 6–7)

Want CE Credit for reading articles like this?

How The SEC Is ACTUALLY Enforcing The Marketing Rule: A Checklist To Ensure Compliance Policies Meet The Mark

Doubling AUM From Under $300M To Over $600M In 3.5 Years By Making Investments To Systematize For Scale: #FASuccess Ep 466 With Morgan Nichols

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