Nerd's Eye View blog

Attracting More Ultra-HNW Clients By Taking The Time To Due Diligence More Alternative Investments: #FASuccess Ep 448 With Monish Verma

July 29, 2025 07:04 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 448th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Monish Verma. Monish is the CEO of Vardhan Wealth Management, a dba of the RIA Summit Financial and based in Farmington Hills, Michigan, that oversees $560 million in assets under management for 225 client households.

What's unique about Monish, though, is how his firm goes deep in evaluating portfolios and alternative investment opportunities to find potential matches for particular client needs to attract and serve a high-net-worth clientele.

In this episode, we talk in-depth about how Monish takes time to educate clients on the different types of alternative investment products and how they might fit with their portfolio and goals, how Monish's firm conducts significant due diligence on a wide range of alternative investment products and providers to ensure they are the right fit for a client's portfolio, and how Monish finds that taking the extra time to conduct sufficient due diligence, educate clients, and explain his recommendations has led to strong client retention and referrals.

We also talk about how Monish convinces high-net-worth prospects (who typically already have a financial advisor) to move to his firm by going deeper into portfolio analysis and having a regular cadence of touchpoints than their current advisor, how Monish introduces prospects to current clients (with each side's permission) to discuss the client's experience working with his firm and investing in private markets, and how Monish "interviews" prospects (and hopes they do the same to him) to increase the chances that they will be a good long-term fit for each other (and how he is willing to let certain prospects go if they might not be a good match).

And be certain to listen to the end, where Monish shares his journey of leaving the wirehouse world to go independent (and how he brought 97% of his clients and 115% of their assets with him in the process), how Monish talked to more than a dozen RIA aggregator platforms before landing with Summit Financial (which offered him the opportunity to share in the profits of other firms on the platform in return for an equity stake in his business), and how Monish found that breaking away from the wirehouse world has given him the freedom to run his own business in the way he wants (including who to grow with, how to educate clients, how to price, and who to serve) while still getting back-office and other support in a variety of areas from his RIA platform.

So, whether you're interested in learning about incorporating alternative investments into client portfolios to attract high-net-worth clients, best practices in explaining the function and types of alternative investments to clients, or the process of breaking away from a wirehouse to go independent, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Monish Verma.

Why Risk Tolerance Questionnaires Can Be Powerful For Prospects (Not Just Clients)

July 28, 2025 07:02 am 0 Comments CATEGORY: Marketing

For the last 20 years, Risk Tolerance Questionnaires (RTQs) have served as a standard tool in the advisory space for assessing a client's long-term attitudes and behavior toward investment risk. Yet despite their widespread use, many advisors remain unsatisfied with current RTQ technology. The newest Kitces Research on The Technology That Financial Advisors Actually Use (And Like), presented for the first time in this article, found that while risk tolerance tools are considered important, satisfaction continues to lag – highlighting a disconnect between the perceived value of these tools and how they're currently being used.

One overlooked reason for this dissatisfaction may be that RTQs are often used only after a client relationship has already been established – by which point most advisors are already applying a holistic approach to align a client's portfolio with their risk tolerance, goals, and reactions toward market volatility. And at that stage, a client's true perspective on risk may no longer be fully reflected by their behavior, as their risk attitudes may be filtered through the ongoing presence of their financial advisor – making the value of the RTQ less clear.

However, when used earlier in the process – before the relationship begins – RTQs can serve a different and perhaps more powerful role. Rather than simply measuring risk to inform portfolio design, they can help prospects recognize overlooked risks in their current portfolio, along with the gap between how they understand risk and how they actually behave. This, in turn, helps clarify the financial advisor's value by illustrating how their services can address these gaps. When used at the prospecting stage, RTQs can offer a tangible, personal reason for people who are otherwise 'on the fence' about hiring an advisor – serving as effective self-persuasion tools that allow prospects to articulate their own reasons for seeking advice.

To use RTQs as an effective prospecting tool, three elements are especially important: 1) Personal data inputs to make results feel relevant and accurate; 2) a clear (but brief) explanation of how risk is being scored, to build trust in the methodology; and 3) a visible connection between the results and the advisor's recommendations, so prospects can see the difference between their current approach and the guidance available.

Ultimately, the key point is that RTQs can be most effective when used with investment-focused prospects – not clients. When results are framed in a way that feels personal and actionable, RTQs can help prospects identify their concerns, recognize what's at stake, and clarify their own reasons for engaging a financial advisor – without needing to be explicitly persuaded of the value of financial advice. And for those who are open to working with an advisor but haven't yet found a reason to take the first step, that shift may be all it takes to move them from ambivalence to action!

Weekend Reading For Financial Planners (July 26–27)

July 25, 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 Charles Schwab's annual RIA benchmarking study found that median firm AUM increased 16.6% in 2024, with revenue up by 17.6%. While some of these gains can be attributed to strong market performance, firms also boosted their organic growth during the year, with firms with less than $250M AUM showing 9.2% net organic growth and larger firms seeing 5.0% growth (while RIAs as a whole also maintained a 97% client retention rate). In the report, Schwab also identified key traits of "top performing" firms (including having a defined ideal client persona and a defined client value proposition) and the key strategic initiatives respondents plan to pursue (with generating client referrals topping the list for the third consecutive year, followed by recruiting new staff).

Also in industry news this week:

A recent report highlights the rapid growth of RIA "consolidators", with advisors seeking them out for compliance and succession support, though concerns about a potential loss of autonomy and independence from joining one remain
The Treasury has delayed until 2028 the effective date for a proposed Anti-Money Laundering (AML) rule that would have affected most SEC-registered RIAs and plans to revisit the substance of the rule to perhaps tailor it more specifically to focus on businesses that face the greatest AML risk

From there, we have several articles on tax planning:

The One Big Beautiful Bill Act (OBBBA) has made the Section 199A tax deduction permanent (i.e., without a scheduled sunset date), potentially benefiting not only business-owner clients but also those who own REITs in their portfolios as well
The OBBBA has also made permanent the Qualified Opportunity Zone program (albeit with a narrower scope and updated rules), providing some clients with the chance to defer gains on the sale of certain investment property
How charitable planning considerations might change under the OBBBA, from the new 0.5% AGI 'floor' on the deductibility of charitable contributions that starts in 2026 to the ability of non-itemizers to potentially get a tax benefit for (at least some of) their charitable gifts

We also have a number of articles on retirement planning:

How financial advisors can help clients explore their funding options amidst an expected increase in the costs of long-term care in the coming years
The planning considerations surrounding unpaid care, from the benefits of creating a formalized care plan well in advance of a need to cash flow planning for younger clients who might be responsible for (unpaid) caregiving in the future
An analysis of the options for advisors and their clients who face a premium increase on their long-term care insurance policies

We wrap up with three final articles, all about travel:

Why flexibility is the key to saving on flights, from flying on less popular days of the week to traveling during "shoulder season"
How State Department employees created an online system that allows many Americans to renew their passports online in as little as 15 minutes (and achieved overwhelmingly positive reviews in the process)
Amidst crowding in many airport lounges, some airlines and credit card companies are looking to open smaller lounges offering more casual, grab-and-go options for their customers

Enjoy the 'light' reading!

Kitces & Carl Ep 169: IS There A Future Of Financial Planning In The AI Era?

July 24, 2025 07:03 am 0 Comments CATEGORY: Kitces & Carl Podcast

From the advent of personal computers and the Internet to smartphones and sophisticated financial software, the profession of financial advice has always been in continual dialogue with technology. However, the rapid rise of artificial intelligence has brought a deeper wave of disruption to the financial advice profession. As clients increasingly expect seamless, automated financial solutions – what might be thought of as ‘self-driving money’ – advisors are left to consider how their roles are evolving and where they can continue to add value.

In this 169th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss how AI will reshape the tasks advisors perform and the value they bring to client relationships. Looking back across the decades, the foundational elements of financial planning have remained surprisingly consistent – from discovery meetings to financial plan presentations – as advisors have striven to help people make sense of their financial lives. In fact, as technology solutions have become more sophisticated, some advisors now serve fewer clients more comprehensively.

AI will likely accelerate this trend – not by replacing advisors, but by automating some of the mechanical aspects of planning, including cash flow modeling, tax optimization, and investment rebalancing. As the mechanical side becomes more optimized, the human side of financial advice increasingly becomes the true differentiator. Clients rarely have clear, static goals; their values and priorities evolve over time. Helping clients articulate what matters, navigate trade-offs, and stay emotionally aligned with their plans is a task that remains uniquely human, since even with perfect data and perfect modeling, planning decisions must still be made within the messy context of real lives!

Technical expertise remains essential – not because it alone creates value, but because it underpins the confidence and judgment needed to evaluate outputs, catch errors, and guide clients through complex decisions. In our current era of financial advice, the internet and early iterations of AI can solve many prospective clients’ problems. However, a core segment of the population will always be delegation-oriented, while others will face financial situations so complex that they require an expert’s help. This dynamic may deepen over time; as ‘basic’ financial planning questions become easier to access, the bar for an advisor’s competency may continue to rise. Which means that deeper specialization – whether in a subset of clients or a specific set of financial problems – may help advisors differentiate themselves in the long term.

Ultimately, the key point is that as AI evolves, so will financial advice, stretching advisors to embrace both technical competence and human connection. In the years ahead, the advisors who stand out will help their clients better understand who they themselves are, what they want, and how to leverage their financial resources to get there!

Saying “I Don’t Know” With Confidence In Client Meetings – And Still Strengthen Trust

July 23, 2025 07:02 am 0 Comments CATEGORY: Client Trust & Communication

For newer financial advisors, few situations feel more daunting than being asked a question in a client meeting that they can't confidently answer. In these high-pressure moments, the fear of appearing unprepared or inexperienced can be overwhelming – particularly when trying to earn the trust of both senior advisors and clients. Importantly, these moments of uncertainty are not only inevitable, they're also pivotal opportunities for professional growth. When handled skillfully, saying "I don't know" can actually enhance – not undermine – credibility, build trust, and reinforce the advisor's long-term value.

In this article, Sydney Squires, Senior Financial Planning Nerd, describes how early-career advisors can reframe their mindset around not knowing an answer on the spot and see moments of uncertainty not as threats, but as meaningful opportunities to build trust and demonstrate maturity. After all, even with a solid technical foundation, no one can recall every detail on demand. Advisors who are early in their careers may still be establishing credibility with clients, which can make even small stumbles feel momentous. However, what truly builds trust over time is how they navigate these moments, not whether they avoid them altogether. When a question arises that an advisor doesn't know the answer to, it helps to start by calmly acknowledging the question, asking a few additional questions to further examine the details of the client's scenario, and then committing to follow up within a reasonable timeframe. After the meeting, the advisor can follow through as promised by researching the answer and providing a thoughtful response.

Advisors can also spend time outside of calls honing their client meeting skills. For example, if clients frequently ask similar questions, advisors may want to adjust how they explain certain concepts, dive deeper into their own education, or create client-friendly resources. They may also ask for feedback, participate in mock meetings, and reflect on areas for improvement. At the same time, advisors who struggle with perfectionism or impostor syndrome may find themselves over-preparing for meetings or replaying every misstep afterward. In these scenarios, it may help to distinguish between self-perceived mistakes and actual points of feedback provided by supervisors or even clients. Over time, combining proactive preparation with regular practice can help advisors grow their confidence and effectiveness.

The ability to say "I don't know" with poise is a crucial skill for financial advisors. Clients rarely expect perfection; what they do expect is a thoughtful, honest advisor who will follow through with reliable guidance. By reframing these moments as opportunities, advisors can cultivate stronger relationships and deepen client trust over time. With the right mindset and communication tools, even the most uncomfortable questions become chances to demonstrate integrity, diligence, and genuine care – qualities that define a great advisor!

Getting A Healthy Flow Of New Clients From Centers Of Influence By Addressing The Referral Risk They Fear The Most: #FASuccess Ep 447 With Dan Allison

July 22, 2025 07:03 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 447th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Dan Allison. Dan is the owner of The Exchange, a virtual content platform and community focused on helping financial advisors master client acquisition and relationship building.

What's unique about Dan, though, is how he coaches advisors to generate more leads from Centers Of Influence (COIs) such as CPAs and attorneys by building trusting relationships to reduce the professional risk that the COIs take when referring one of their clients to a financial advisor.

In this episode, we talk in-depth about how Dan sees the first meeting with a potential COI partner as an opportunity for a financial advisor to explain their value proposition and to learn how the COI serves their clients (in part to understand whether the COI provides service at a similarly high level as the advisor), why Dan finds that (given the time needed for a financial advisor to demonstrate their competency and trustworthiness to a COI partner) it can sometimes take up to a couple years for COI relationships to lead to client referrals, and how Dan finds value (when referrals do come in) in having the referred prospect tell the COI they work with the value the financial advisor provided (which can dramatically reduce the level of risk in the COI's mind of referring additional clients).

We also talk about how Dan views COI relationships as an opportunity for mutual education (giving financial advisors the opportunity to show their expertise while also gaining valuable insights from the COI that they can apply with their current clients), how Dan sees value in setting up a regular cadence of touchpoints to stay top-of-mind with potential COI partners (which could entail in-person meetings and regular emails to share content of interest for a specific COI), and how Dan has seen advisors succeed by setting up “COI Mastermind Groups” that include professionals in a variety of fields and offer the opportunity to both gain knowledge from the other participants (for example by discussing common client planning issues) and build stronger relationships with potential referral partners.

And be certain to listen to the end, where Dan shares why the best COI relationships are often with those who specifically work with an advisor's ideal target client (for example, an advisor working with business owners might seek out M&A experts as potential COI partners), why Dan believes asking for referrals doesn't have to be “salesy” (as many clients and COI partners might be eager to refer but don't know how to), and how Dan came to discover the value of charging what he's worth (even if it meant that some people said no along the way).

So, whether you're interested in learning about building stronger relationships with COIs, creating a cadence of touchpoints with COI partners, or how to skillfully ask for referrals, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Dan Allison.

Your Feedback Requested – Reader Survey For Nerd’s Eye View (2025)

July 21, 2025 07:02 am 0 Comments CATEGORY: Nerd's Eye View

It is often said that "the only thing constant is change", which pairs well with the common financial advisor philosophy, "if you’re not growing, you’re dying". The end result of this dynamic is that even when advisory firms are successful and clients are well served, we’re constantly on the lookout for what we could be doing differently to serve clients better, and have to remain constantly vigilant to threats from the changing landscape (from volatile markets to the rise of AI).

And the same holds true for Kitces.com and our Nerd’s Eye View blog as well. Even as our readership (and listenership, and viewership) has grown over the years, and our reader retention remains incredibly high, we remain ever vigilant about the changing landscape and how we can still improve further, whether it’s refining how we deliver the articles, podcasts, and videos that we do, exploring alternative content formats or approaches, or figuring out how to best leverage AI ourselves, to better serve all of you, our advicer readers.

And so every year, we ask you – our readers – for feedback about what you want to make this website even better for you, to ensure we stay on the right track in adding value to the advicer community and making financial advisors better and more successful. And especially after the amount of change over the past few years, from expanding our podcasts to YouTube (and creating a new "Best Advisor Podcasts" list), to building an AdvisorTech Directory to complement (and provide more information than) our popular AdvisorTech Map, to the rollout of our Annual IAR Ethics CE Day… we’re more eager than ever for your feedback about how we’re doing, where we can improve, your thoughts about some new ideas we’re considering, and your feedback about what else we could be doing to help the advicer community.

Because we really do take your feedback seriously. Over the years, Nerd’s Eye View reader feedback has shaped everything from the visual design of the blog (from its original dense small font!), to the ongoing expansion of our Members section from offering CFP to now CPE credits for CPAs and IAR CE for RIAs that can be earned by reading Nerd's Eye View blog articles, the launch of the Financial Advisor Success podcast, our popular "Master List" of all the major Financial Advisor conferences and Best Books for Advisors, and now the coming rebuilding of our Members Section by the end of this year (to be followed by a design refresh of our Nerd’s Eye View blog in 2026!).

So regardless of what kind of reader you are: an advisor or someone who works in an advisory firm home office, an individual consumer who reads this blog for your own benefit, a CPA, attorney, or another related professional that works with financial advisors, or you're associated with a vendor who serves advisors... I hope you'll participate in this year's survey. It's only 13 feedback questions, should take no more than a few minutes, and will remain open until the end of next week.

Thanks in advance for taking a few minutes to access our Reader Survey below, and share your feedback! 😊

Weekend Reading For Financial Planners (July 19–20)

July 18, 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 by Vanguard found while only 38% of investors reported considering time savings when signing up to receive financial advice, 76% of clients report saving time from working with an advisor (with a median of two hours per week, or more than 100 hours per year), suggesting that advisors can sell their value not only through the financial and emotional benefits that they can provide (which are also reflected in the survey results), but also by showing how working with them could be an effective way for clients to 'buy' time (a practice that has been shown as an effective way to convert money into greater happiness).

Also in industry news this week:

A recent survey finds that next-generation employees at broker-dealers are looking for improvements in branding and social media promotion from their firms as they look to build their own practices and take the reins from a rapidly graying advisor population
RIA M&A volume hit a record in the first half of 2025, with particular demand for mid- and large-sized sellers and amidst continued private equity interest in the space

From there, we have several articles on tax planning:

Why the "One Big Beautiful Bill Act" (OBBBA)'s phase-out ranges for certain deductions might impact financial advisors' Roth conversions analyses going forward
How advisors can offer clients value by correctly timing Roth conversions and Required Minimum Distributions (RMDs) to avoid potential penalties or excess contributions
How annual evaluations of the potential benefits of Roth conversions versus capital gains harvesting can allow advisors to demonstrate ongoing value and help their clients lower their lifetime tax bills

We also have a number of articles on practice management:

Six trends in advisor recruitment, including an increased focus among transitioning advisors on earning equity stakes and finding a good cultural fit with a new firm
Five key roles for firms looking to scale effectively, from a visionary leader to a 'rainmaker' who attracts new clients to technicians who create advanced planning analyses
How using case studies during the hiring screening process can help a firm better analyze candidates' skills and allow candidates to better understand the demands of the position they're considering

We wrap up with three final articles, all about wellness:

How AI tools like ChatGPT can serve as a nutrition 'coach' that tracks progress, offers meal ideas, and provides encouragement over time
How engaging in short "exercise snacks" throughout the day can keep the body moving and promote strength even when one doesn't have enough time for a longer workout
Why maintaining good posture can offer psychological and physical benefit and how simple daily practices can help improve it

Enjoy the 'light' reading!

Breaking Down The “One Big Beautiful Bill Act”: Impact Of New Laws On Tax Planning

July 16, 2025 07:02 am 0 Comments CATEGORY: Taxes

After years of anxiety over the scheduled sunset of the Tax Cuts and Jobs Act (TCJA) at the end of 2025, the widely anticipated legislation extending and replacing TCJA – also known as the "One Big Beautiful Bill Act" (OBBBA) – was signed into law on July 4, 2025.

At its core, OBBBA makes permanent many of the provisions of the original TCJA, including TCJA's tax brackets, increased standard deduction, Section 199A deduction for Qualified Business Income (QBI), and increased Child Tax Credit. All of these receive minor tweaks but remain substantially the same as they were under TCJA. However, the $10,000 limitation on State And Local Tax (SALT) deductions is temporarily increased to $40,000 under the new law. Higher-income households may see this deduction phased back down to the $10,000 limit, and all households will again be subject to the $10,000 SALT cap beginning in 2030.

Additionally, OBBBA introduces several new below-the-line tax deductions while amending numerous others. The new law introduces a temporary $6,000 deduction for seniors age 65+, deductions of up to $25,000 of income from tips and overtime wages, and up to $10,000 of interest paid on qualifying auto loans. All of these provisions take effect from 2025 through 2028. Among several changes to itemized deductions, the new law most notably introduces a 0.5%-of-AGI 'floor' on charitable contributions, reducing the deductible value of amounts donated to charity. It also imposes a new limitation for taxpayers in the 37% tax bracket, capping the 'value' of itemized deductions to 35% of taxable income.

Also included are a host of other tax changes, including (but not limited to) reduced phaseout thresholds and a faster phaseout rate for the Alternative Minimum Tax (AMT) exemption, an expansion of eligible 529 plan expenses to cover K–12 materials and postsecondary credentials, and an extension of the Qualified Opportunity Zone program. The law also increases the gift and estate tax exclusion to $15 million per person and creates a new "Trump account", a type of IRA that can be funded at a young age (and without any earned income).

Ultimately, while many of the individual provisions under OBBBA are relatively minor changes from existing law, together they represent a substantial shift in tax policy – one that adds a significant amount of complexity to tax planning with the number of new deductions, phaseout rules, and effective dates governing OBBBA's provisions. Which will make it all the more valuable for advisors to understand how their clients stand to be impacted by the new rules, so they engage in proactive planning that takes all the new (and old) rules into account and translates them into actionable strategies for their clients!

Getting Known In Your Local (Facebook Group) Community To Quickly Add $30M In The First 2 Years: #FASuccess Ep 446 With Misty Lynch

July 15, 2025 07:02 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 446th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Misty Lynch. Misty is the owner of Sound View Financial Advisors, an RIA based in Walpole, Massachusetts, that oversees $46 million in assets under management for approximately 100 client households.

What's unique about Misty, though, is how she grew her AUM by $30 million in 2 years in part by being recognized as a financial planning expert within Facebook groups for her ideal target clients of small business owners and families in her local area.

In this episode, we talk in-depth about how Misty gained recognition in key Facebook groups (for example the Boston Business Women’s group) not necessarily by promoting her own business or content but rather by being recommended by group members who were already familiar with her work, how Misty started creating personal finance blog content while she was still working in a corporate role at a broker-dealer (which gave her a running start when she did make the transition to client-facing advisor), and how Misty started a podcast that gave her access to key centers of influence (such as estate planning and student loan planning attorneys) and led to referrals from these professionals down the line.

We also talk about how Misty jump-started her firm ownership journey by buying a firm from a retiring advisor (which helped her avoid the time and effort involved in registering a firm from scratch), how Misty raised the fees on the firm’s legacy clients with little pushback and created an ongoing service and fee model that reflected her desire to (profitably) have long-term relationships with clients, and how Misty made the decision to make her first hire to provide additional support during a period of rapid growth (helping her ensure that current clients remained engaged as she onboarded a number of new clients).

And be certain to listen to the end, where Misty shares how she earned a life coaching certification that has helped her ask better questions to recognize clients’ money mindsets (which eventually led to her writing a book on the topic, further enhancing her reputation), why Misty previously ‘chased’ financial designations in an attempt to make herself more credentialed as a relatively young advisor (but eventually recognized that she was already ‘good enough’ to serve clients even without the various initials listed after her name), and how Misty transitioned from viewing success as a matter of personal and firm metrics and instead as a feeling that she’s doing good work and is living her life in the way she wants to.

So, whether you’re interested in learning about generating prospect leads through Facebook groups, jump-starting the firm ownership journey by buying a retiring advisor’s practice, or creating content across a variety of platforms, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Misty Lynch.