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RightCapital Introduces Prospecting Tool For Narrower Financial Plans (And More Of The Latest In Financial #AdvisorTech – September 2025)

September 1, 2025 07:03 am 0 Comments CATEGORY: Technology & Advisor FinTech

Welcome to the September 2025 issue of the Latest News in Financial #AdvisorTech – where we look at the big news, announcements, and underlying trends and developments that are emerging in the world of technology solutions for financial advisors!

This month's edition kicks off with the news that RightCapital has introduced RightExpress, a feature of its financial planning software that allows advisors to create narrower single-topic financial plans for prospective clients as a way to demonstrate their value without building a full comprehensive plan – which on the one hand could be an effective way for advisors to more efficiently show their value by focusing on the one or two topics that their prospects care about the most, but on the other hand could struggle (as similar 'simplified' planning tools have in the past) if it streamlines the planning so much that it loses its ability to demonstrate the advisor's value.

From there, the latest highlights also feature a number of other interesting advisor technology announcements, including:

Altruist has announced the launch of a new subscription model where clients can get increased cash rates, tax loss harvesting, and discounted model marketplace funds in exchange for a 12 bps per year fee – which while being a step towards a more transparent fee model for custody, doesn't quite embrace a 'pure' fee-for-custody model that would avoid the opacity and unevenness of the traditional custodial revenue model
Tax planning platform TaxStatus has unveiled a new lead generation solution for enterprise firms, giving advisors access to a trove of tax information directly from the IRS to better understand prospective clients' financial situation – though the question remains how many prospective clients will be comfortable sharing their IRS tax data with a financial advisor before they've even started working with them?
"All-In-One" digital marketing platform FMG Suite has been acquired by private equity firm GTCR, signaling that FMG Suite could use its fresh capital to continue its long stretch of growth by acquisition by snapping up smaller digital marketing platforms (even though it's still figuring out how to integrate all its existing pieces in a way that satisfies its users)

Read the analysis about these announcements in this month's column, and a discussion of more trends in advisor technology, including:

AI-driven prospecting provider FINNY has announced several new tools to ease the process of identifying, qualifying, and contacting prospective clients – although it's an open question as to how many advisors are really looking for a better prospecting experience, when most advisors are focused on getting to the point where they don't need to do outbound prospecting to begin with?
As enterprise advisory firms that have grown and merged over the years have an increasing need to address their "technical debt", an emerging use case of AI is in making meaningful efficiency improvements without the cost of rebuilding systems from scratch – although the persistence of the underlying technical issues means that AI might simply serve as a short-term patch for a longer-term problem

And be certain to read to the end, where we have provided an update to our popular "Financial AdvisorTech Solutions Map" (and also added the changes to our AdvisorTech Directory) as well!

*To submit a request for inclusion or updates on the Financial Advisor FinTech Solutions Map and AdvisorTech Directory, please share information on the solution at the AdvisorTech Map submission form.

Weekend Reading For Financial Planners (August 30–31)

August 29, 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 study found that the pool of wealth controlled by High-Net-Worth (HNW) individuals (with investible assets over $5 million) is expected to hit $30 trillion by 2028 alongside an increasing number of HNW households, presenting a growing opportunity for advisors to serve this group. Nonetheless, given competition among firms to do so, the report also indicates that firms are offering an increasing number of services that are valued by these clients (e.g., charitable planning and trust administration), suggesting that some firms are attempting to show how they're 'different' through their service offering (though Kitces Research data suggest they will want to ensure they are receiving commensurate compensation given the increased staffing and time often required to provide these services!).

Also in industry news this week:

An analysis indicates that SEC enforcement actions have dropped significantly over the past several months compared to the same period last year, with recent cases frequently involving investor fraud related to securities offerings and investment advisers
A survey suggests that advisory firms not only are using referrals to find new clients, but also new employees as well

From there, we have several articles on retirement planning:

A review of common client case studies shows that the devil is in the details when it comes to deciding whether to make Roth contributions and conversions
Why the value of a (partial) Roth conversion is calculated using (true) marginal tax rates that take into account factors beyond a client's current and future Federal income tax brackets
How advisors can evaluate Roth conversion analysis software to ensure it covers the full range of variables that can determine the impact of a potential conversion

We also have a number of articles on client communication:

Best practices in storytelling, which can help financial advisors build a stronger emotional connection with prospects and clients
Why summarizing clients' comments back to them can help ensure that they feel understood by their advisor and build greater trust in the process
How financial advisors can use the tools of rhetoric to market and scale their practices efficiently

We wrap up with three final articles, all about the psychology of wealth:

How financial advisors can offer value for clients by helping them avoid the risks of trying to "get rich twice"
While prospects or clients who receive a financial windfall might be focused on maximizing the after-tax dollar value of the assets they've received, advisors can play a valuable role in encouraging them to consider how they actually want the money to impact their life
How building significant wealth can bring on a new set of problems to clients and how advisors are well-positioned to help them avoid potential pitfalls

Enjoy the 'light' reading!

The Risks Of AI Meeting Notetakers: Evaluating Accuracy And Data Privacy In Tools

August 27, 2025 07:02 am 0 Comments CATEGORY: Technology & Advisor FinTech

For financial advisors, maintaining accurate and comprehensive client meeting notes has long been a core – albeit time-consuming – component of effective and compliant practice management. While many advisors acknowledge the value of documenting what was discussed and agreed upon in client meetings, in reality, there is a difficult tradeoff between taking accurate notes while also staying fully present in sometimes emotional or complex conversations (or alternatively, 'brain dumping' notes after the meeting, which relies on the advisor remembering everything discussed in the meeting clearly enough to write an accurate meeting note). But with the rise of AI-powered meeting note tools, advisors may no longer need to choose between these competing priorities. Yet, even as these tools promise to transform how advisors handle meeting notes and follow-up tasks, they also introduce new risks around data privacy and output accuracy that fiduciary advisors must thoughtfully manage.

AI meeting notetakers seek to eliminate the inherent tension between focusing on client conversations and capturing detailed notes by automatically transcribing the meeting dialogue and summarizing key points and follow-up items. These tools – whether general-purpose (like Fathom, Fireflies, or Zoom's AI assistant) or industry-specific (like Jump, Finmate AI, or Zocks) – aim to generate structured, actionable records of meetings that advisors can use for compliance, follow-up, and CRM documentation. When functioning properly, these tools can (at least in theory) not only improve advisors' efficiency by automating much of the follow-up work from each meeting, but also improve the quality of advice and implementation by helping ensure that nothing slips through the cracks.

Still, these benefits come with tradeoffs. First is the risk of the AI tool inaccurately transcribing or summarizing the meeting. Although most AI tools are highly accurate in transcribing meeting dialogue (with many achieving near-perfect dictation), they can struggle in other ways. For example, unlike human notetakers, AI models generally don't detect sarcasm, emotion, or nonverbal cues – limitations that can result in critical misunderstandings, such as incorrectly recorded recommendations or missed follow-up items. Advisors must therefore be vigilant in reviewing and editing AI-generated notes to ensure accuracy and completeness, particularly when tasks are auto-generated and delegated downstream to a team. Moreover, advisors can improve AI effectiveness by using clear and unambiguous communication and confirming key decisions during meetings (both of which are best practices even when the advisor isn't relying on AI-generated meeting notes).

Data privacy and management also present risks for advisors using AI meeting note tools. Because AI tools often capture and process sensitive client information, advisors must carefully evaluate how these platforms store, share, and secure that data. Some tools offer more privacy-conscious options (like user-controlled data exports or real-time note generation that doesn't store audio) while others may ingest data from outside sources like CRMs and planning software to enhance their capabilities. Regardless of the feature set, advisors should seek client consent before using AI recording tools, especially in states that require dual-party consent for meeting recordings, and assess whether a tool's data practices align with their firm's security and compliance standards. Conducting due diligence on which data is collected and how it's used can help advisors match a tool's capabilities and data collection practices to the requirements needed for it to actually do what the advisor needs it to.

Ultimately, the emergence of AI meeting note tools reflects a broader evolution in how technology can support financial planning professionalism. These tools offer advisors – particularly solo practitioners or those without extensive support teams – a more cost-effective way to improve documentation and reduce operational friction. But like any tool, their effectiveness depends on how well they are implemented, reviewed, and integrated into an advisor's workflow. All of which means that advisors are best served with a cautiously optimistic approach toward AI notetakers, with both a clear understanding of the tools' limitations and a recognition of how they could, if used properly, raise the bar for the quality of advice they give. Because, as with all planning tools, the goal isn't just efficiency – it's about delivering better outcomes through more thoughtful, human-centered advice.

Growing From $200M To $1.4B In 5 Years By Spending 15% Of Revenue On Marketing (That Still Works): #FASuccess Ep 452 With Gabriel Shahin

August 26, 2025 07:03 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Gabriel Shahin Podcast Featured Image FAS

Welcome everyone! Welcome to the 452nd episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Gabriel Shahin. Gabriel is the CEO of Falcon Wealth Planning, an RIA based in Ontario, California, that oversees $1.4 billion in assets under management for 1,500 client households.

What's unique about Gabriel, though, is how his firm has grown from $200 million to $1.4 billion of AUM in just five years by generating 2,500 leads a month (that lead to 450 to 500 new clients onboarded annually), in part by spending approximately 15% of firm revenue on marketing each year.

In this episode, we talk in-depth about how Gabriel's firm invests the most marketing dollars in advertising on Google (which is the top source of its leads and clients) and increases the effectiveness of this spend by creating dedicated landing pages and lead magnets targeted at different search keywords, how Gabriel's firm has created educational content for its website (in written, audio, and video formats) that not only helps with search engine optimization, but also with answer engine optimization (amidst the growing popularity of AI search), and how Gabriel also has found success investing marketing dollars on a range of advisor lead-generation tools (and improves the success rate of this tactic by employing staff members who are responsible for quickly responding to new leads from these sources).

We also talk about how Gabriel's firm uses a personality-typing system to match prospects with an appropriate member of its business development team and with the advisors who will ultimately serve them when they become clients, how Gabriel employs a revenue-based compensation structure for advisors (allowing them to grow their compensation as they work with more, and wealthier, clients, with a salary floor for those starting to build their client bases), and how Gabriel ultimately views the advisors on his team as his biggest "clients" (given that they are one of the keys for the firm to be able to serve even more clients in the future).

And be certain to listen to the end, where Gabriel shares why he's willing to invest in hiring and technology spending not just based on his firm's current needs but rather where he wants the firm to be in the future, why Gabriel's firm charges an above-average fee to its clients (starting at 2% of AUM and only reaching 1% at approximately $3 million of AUM) based on the high level of service he believes his firm provides (particularly in helping clients find tax savings opportunities), and how Gabriel's growth over the past several years has come after building a team that can effectively attract and serve clients (without him personally being at the center of these initiatives), allowing him to focus on his role leading the firm into the future.

So, whether you're interested in learning about the potential return of making significant hard-dollar investments in marketing, leveraging Google and dedicated landing pages to attract prospects, or the challenges of growing AUM by a billion dollars organically in just five years, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Gabriel Shahin.

Why Teams (Not Tech) Consistently Reduce Administrative Burdens, Make Advisors Happier, And Boost Revenue (Latest From Kitces Research)

August 25, 2025 07:02 am 0 Comments CATEGORY: Planning Profession, Research

When asking financial advisors about what they love most about their jobs, common answers include the ability to help clients live their best lives, the opportunity to build lasting relationships, and the intellectual challenge of analyzing complex planning problems. One answer that rarely makes the list is administrative work, which not only feels like drudgery in itself but also takes time away from more engaging tasks. Which explains why data from the Kitces Research Study on Advisor Wellbeing show a negative correlation between weekly hours spent on administrative work and wellbeing for Senior Advisors (i.e., those with higher administrative burdens tend to report lower levels of wellbeing).

Two options available to advisors for reducing this administrative burden include investing in technology (e.g., software that can automate or expedite tasks) and/or adding team support (e.g., hiring a Client Service Associate [CSA]). However, given the costs of either solution, advisors will want assurance that such investments actually reduce their administrative load – and ideally contribute to greater wellbeing.

Perhaps counterintuitively, data from our forthcoming Kitces Research on Advisor Technology – shared here as an early preview of the full study – indicate that solo firms investing more heavily in tech tools designed for administrative work do not consistently spend less time on this work or report higher levels of wellbeing. In fact, amongst Senior Advisors surveyed, adopting additional technology applications was actually negatively correlated with wellbeing. Importantly, this isn't a warning against adopting advisor technology tools altogether; rather, Kitces Research suggests that such tools are more effective when used to improve the client experience, allowing advisors to attract and serve higher-value clients that increase the firm's revenue productivity. Put simply, when technology is applied to enhance value rather than just to chase efficiency, greater efficiency often ends up following anyway!

By contrast, the data on adding team support tell a clear and consistent story: advisors with staff to support them spend less time on administrative work and are happier for it. For example, unsupported solo Senior Advisors spend 8.6% of their working hours on administrative tasks. That figure declines to 7.4% with the first support hire (typically a CSA) and further to 5.9% with the second hire (typically an Associate Advisor). In addition to reducing the advisor's administrative burden, these hires also expand capacity to bring on new clients (and the revenue they provide). In fact, Kitces Research data show that while the median unsupported solo advisor generates $182,500 in revenue, supported solo advisors generate more than $500,000! Together, these factors likely contribute to the finding that advisor wellbeing improves with the first hire and sees another boost with the second.

Ultimately, advisors looking to reduce their administrative burden – and improve their wellbeing in the process – are more likely to see greater returns from hiring support staff than from adding efficiency-focused technology. Nevertheless, because certain advisor technology tools can enhance client service (and, in turn, help attract higher-value clients who increase revenue productivity), investments in both areas can pay off for a firm's bottom line – and the advisor's wellbeing!

Weekend Reading For Financial Planners (August 23–24)

August 22, 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 Americans who plan to hire an advisor in the next five years indicates that while referrals from friends and family remain the most common way individuals seek out a financial advisor, nearly all perform additional research on the advisor, including by seeking out online reviews and the advisor's website. When considering an advisor's reputation, top factors cited by respondents included transparency in fees and services, professional certifications and credentials, and positive online reviews on an independent website, among other areas. The survey also found broad openness amongst respondents for their advisor using Artificial Intelligence (AI)-powered tools for a variety of functions, including fraud detection and meeting notetaking, though they expressed more reservations about using AI for automated investment decisions (suggesting an opportunity for advisors to leverage their ability to relate to clients on a human level while taking advantage of some of the capabilities AI can offer).

Also in industry news this week:

A survey indicating Americans remain broadly worried about receiving their scheduled Social Security benefits suggests a valuable role for financial advisors in helping them understand the "true" state of the Social Security system and how potential legislative changes could impact their benefits and the taxes they pay
A report indicates that RIA M&A hit a fresh high in the first half of 2025 and suggests that amidst continued strong demand from buyers, the supply of selling firms will likely drive the pace of deals in the coming months

From there, we have several articles on retirement planning:

A seven-step process that can help clients estimate their expected cash flow needs in retirement more accurately than common rules of thumb
How the scheduled end of enhanced Affordable Care Act premium subsidies could increase the expenses of many early retirees and others with these health insurance policies
How reframing risk in retirement as "over- and under-spending" could help clients better understand the tradeoffs they face than a "success versus failure" framework

We also have a number of articles on marketing:

The potential value for financial advisors of having "channel focus" in marketing, going all-in on a single marketing channel rather than inconsistently focusing on several tactics
How some advisors are using Instagram to meet their target clients "where they are" on social media and to demonstrate their expertise and personalities
While many advisors focus on marketing tactics to reach potential clients around the country, both analog and digital marketing tools can allow advisors to tap into a potential client base closer to home

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

A recent study suggests that taking 7,000 steps each day could be a 'sweet spot' for improved health outcomes
An analysis suggests that it's never too late to get the health benefits of an active lifestyle, with benefits accruing both to those who maintain a workout regimen and those who start fresh
Six ways to build a consistent exercise routine, from finding an accountability partner to using apps that offer rewards for sticking to a workout plan

Enjoy the 'light' reading!