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Weekend Reading For Financial Planners (July 12–13)

July 11, 2025 01:46 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, amidst the growing number of RIAs it supervises, the Securities and Exchange Commission (SEC) is moving ahead with a potential plan to raise the $100 million regulatory assets under management threshold for SEC registration, with the regulator having talks with some state securities regulators (which would bear an increasing regulatory burden if the threshold were lifted and more firms came under their watch) on the issue. While the SEC has not released a formal proposal (which would likely offer advisers and other interested parties a chance to air their views on the issue), such a move could prove frustrating for firms forced to switch to state registration (particularly those with clients spread across state lines) as it would potentially require affected RIAs to register with multiple state regulators and be subject to a varying set of rules depending on which state(s) they are registered in, compared to the more uniform supervision they experience under the SEC.

Also in industry news this week:

A recent survey finds that (unsolicited) client referrals are the top source of new clients for advisors this year, while networking, client appreciation events, and educational events have also proven to be fruitful for some advisors
A survey suggests that some advisors might be underestimating their clients' interest in charitable giving, an area where advisors can potentially offer hard-dollar tax savings for clients

From there, we have several articles on financial planning implications of the "One Big Beautiful Bill Act" (OBBBA):

Potential planning strategies in the wake of the increased State And Local Tax (SALT) cap, (including the potential value of managing income for clients near the phase-out limits)
How the new $6,000 tax deduction for seniors works (and why clients who are delaying claiming Social Security benefits could be in for a pleasant surprise)
Post-OBBBA estate planning strategies for clients across the wealth spectrum and how trusts could be an effective way for some clients to manage income amidst a growing number of phase-out ranges for certain tax benefits

We also have a number of articles on marketing:

Why the value of creating content tailored to an ideal client profile has increased in a world where more individuals are using Artificial Intelligence (AI) tools to find answers to their financial questions
How 'traditional' Search Engine Optimization (SEO) still has value for advisors amidst growing use of AI tools for Internet searches
How advisors can optimize their websites for ChatGPT search and reap the benefits of "Answer Engine Optimization" (AEO)

We wrap up with three final articles, all about social life:

Data show that the time Americans spend on in-person socializing has decreased dramatically over the past several decades, with increased time spent on watching television and using smartphones among the potential causes
Four ways to socialize effectively in one's 30s and beyond, from formalizing social events to 'organizing' friends to identify the most relevant event types for each group
A step-by-step approach to hosting a memorable (and relatively low-stress?) dinner party

Enjoy the 'light' reading!

Kitces & Carl Ep 168: Do You Really Have To Go Deep With Every New Client In The First Meeting?

July 10, 2025 07:02 am 0 Comments CATEGORY: Kitces & Carl Podcast

Kitces & Carl Ep Do You Really Have To Go Deep With Every New Client In The First Meeting

As the financial advice profession has matured, behavioral finance has become an increasingly important element of modern advice. This holistic approach to financial advice, often referred to as life planning, focuses on helping the advisor understand the client’s financial history, deep-seated goals, and overall relationship with money, which can allow for more targeted and comprehensive advice. However, for advisors who want to explore financial psychology with their clients, it may be difficult to determine when – and whether – to go deeper, and how to handle high-emotion conversations gracefully without overwhelming clients.

In this 168th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss the pros and cons of holding financial psychology conversations early in the client (or prospect) relationship – and how to determine whether a deeper exploration of the client’s financial history is appropriate in the first place.

From the prospect’s point of view, it’s easier to not hire a financial advisor than it is to hire one (at least in the short term). Sifting through advisors’ websites, fee schedules, and other information can require substantial effort. While some prospects may seek an advisor’s behavioral coaching – especially if the advisor markets themselves as a behavioral finance expert – the majority are motivated by a specific event that propels them to begin the process. As such, a prospect usually comes to an advisor with one key stressor in mind, and it may feel jarring to hear questions like, "What is your first memory with money?" These questions, though intended to build trust, may inadvertently leave clients feeling disoriented or uncomfortable if they were expecting a more straightforward problem-solving approach.

Instead, advisors may find more success in leading with solving the problem that the client immediately presents, and then, over time, gradually exploring the client’s financial background as trust develops. This process of earning permission to go deeper can take months – or even years! – of consistent, high-quality work. Such an approach may also create a more organic environment for advisors to practice and hone their empathy and behavioral finance skills.

Ultimately, the key point is that starting a financial planning relationship with introspective behavioral finance questions may feel jarring to the client unless the advisor has an express specialty in life planning, and the prospect is expecting that approach. For many prospects, it can be more effective to start by addressing the immediately presenting problem and, once trust has been established, dive to gradually explore their money stories together. And in the meantime, it’s worth remembering that the so-called technical work of financial planning isn’t ‘just’ technical – it often involves an incredible amount of emotional support and can go a long way towards helping clients realize their most important financial goals!

From Acknowledgment To Engagement: Key Questions To Reframe Issues And Get Action When Clients Are Off Track

July 9, 2025 07:01 am 0 Comments CATEGORY: Client Trust & Communication

Financial planning meetings often fall into categories like "Fix Meetings" (where there is an urgent problem that both the advisor and client want to address), 'Fine Meetings' (where everything is on track and the advisor provides reinforcement), or 'Flourish Meetings' (where clients are thriving and the focus is on expanding possibilities). However, another type of meeting occurs when the client isn't in crisis but has clearly drifted off track (e.g., spending more than planned, which could lead to long-term consequences for their financial plan). These Flounder Meetings can be particularly challenging, as the client may not feel the same urgency as the advisor to address the issue. Advisors often recognize the risks ahead and feel a strong responsibility to intervene, but without shared motivation, even well-intentioned conversations can feel stuck or strained.

In these situations, it can be tempting for the advisor to jump into problem-solving mode, telling the client how their current trajectory is unsustainable and recommending changes to get things back on track. But this directive approach can backfire if the client feels judged, causing them to disengage and leaving everyone frustrated. Because even technically sound advice may be ignored if the client doesn't feel respected or involved in the process.

An alternative approach is to make Flounder Meetings more collaborative than corrective. When clients are invited to actively participate in the conversation – instead of passively receive recommendations – they're more likely to engage. Rather than starting the conversation by pointing out the problem, an advisor might begin by encouraging the client to imagine what their life could look like 10 years from now if they continue on their current path. This encourages awareness without assigning blame and creates room for the client to articulate the issue in their own words. Once the situation is collaboratively explored and the problem defined, the advisor can help reframe potential adjustments as meaningful opportunities. For example, rather than warning, "You're on track to run out of money", the advisor might ask, "How could we think about this as a shift that gives you more options, not fewer?"

Guiding a client through a Flounder Meeting often means helping them visualize where their current path is leading, reflect on the trade-offs of staying the course, and reframe adjustments as opportunities for growth. And by framing potential next steps as short-term 'experiments' (e.g., cutting spending by $400 for three months) rather than permanent commitments, the conversation can reduce fear and unlock the momentum needed to take action, all in a natural, supportive way.

Ultimately, the key point is that an effective Flounder Meeting can help clients move from passive acknowledgment to active engagement, building both the desire for change and the confidence to pursue it. It also offers a moment to slow down, reset, and reimagine the future – because a shifting financial life tends to call for renewed alignment, agency, and resilience. These moments when clients felt heard, supported, and empowered to move forward are often the ones they remember most – and when they most recognize the value of having an advisor as a trusted, collaborative partner!

Leveraging Educational YouTube Videos To Drive Hundreds Of New Clients Per Year: #FASuccess Ep 445 With James Conole

July 8, 2025 07:01 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 445th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is James Conole. James is the founder of Root Financial, an RIA based in Encinitas, California, that oversees $1.3 billion in assets under management for 630 client households.

What's unique about James, though, is how his firm has experienced massive growth (expecting to grow its revenue from $4.6 million to more than $10 million in 2025 alone) thanks in part by attracting clients who have engaged with his educational YouTube videos.

In this episode, we talk in-depth about how James found that transitioning from audio and video content covering general personal finance topics to material specifically for his ideal target clients (pre-retirees and retirees with at least $2 million in investible assets) initially led to fewer viewers but ultimately to more interested prospects, why James views consistency (in his case, posting a new YouTube video weekly) and depth of content (to differentiate his videos from others covering more surface-level material) as keys to his success attracting clients through this medium, and how James has created a separate YouTube channel that offers prospective clients (and potential employees) a behind-the-scenes look at how Root operates and the people behind it (giving these groups a better idea of what they could expect if they work with the firm).

We also talk about how James (once his firm started to receive a strong flow of leads) increased the friction involved for prospects to schedule an introductory meeting by requiring them to fill out a short form on their financial situation and disclosing the firms fees and asset minimums (leading to a higher percentage of meetings with good-fit prospects), how James firm transitioned from a three-meeting sales process to what it calls a "one-meeting close" (enabled in part by prospects already being familiar with the firm and how it operates based on their experience with its YouTube videos), and how James established a standardized system of five meeting types (in order, discovery, income, investments, retirement and tax projections, and security) to efficiently onboard new clients as the firm grows.

And be certain to listen to the end, where James shares how instituting a $2 million asset minimum for clients allows the firm to reinvest more aggressively (particularly into new staff to handle its rapid client growth) and position itself to potentially create a service for less wealthy clients down the line, how James firm standardized advisor training into its "Root University" program (which leverages tech tools like Monday.com and Loom to provide a consistent and scalable training experience), and how James is working to establish a strong company culture in a remote working environment (including by holding annual company retreats and smaller in-person gatherings among members of individual teams).

So, whether youre interested in learning about leveraging YouTube to increase the number of inbound leads who are already familiar with you and your firm, executing a more efficient prospect-to-client conversion process, or creating a tech-centric training system to ensure consistent service across advisors within the firm, then we hope you enjoy this episode of the Financial Advisor Success podcast, with James Conole.

Wealthbox Signals Plan To Move Upmarket After Selling $200M Majority Stake (And More Of The Latest In Financial #AdvisorTech – July 2025)

July 7, 2025 07:02 am 0 Comments CATEGORY: Technology & Advisor FinTech

Welcome to the July 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 CRM provider Wealthbox has sold a majority stake in itself to PE firm Sixth Street, marking a new phase in its growth from having a customer base primarily concentrated among small and midsize RIA firms to an increasing focus on larger enterprise firms – which on the one hand is a necessary step in the growth cycle of a technology startup as its existing users grow larger and much of its untapped market lies among bigger enterprises; but which also raises the questions of what changes it will make to compete with platforms like Salesforce among enterprise firms (e.g., enhancing its customization or workflow capabilities), as well as whether focusing more on larger firms will cause it to lose some of the innovative spark that came from rapidly iterating based on the feedback from individual users (which was part of what helped it grow so popular to begin with)!

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

Envestnet has agreed to a deal to sell the data aggregation provider Yodlee, which Envestnet bought for $590 million in a much-scrutinized deal 10 years ago – which both encapsulates Envestnet's struggles to make its many technology acquisitions add up to more than the sum of their parts (which Envestnet is now starting to undo by divesting from those acquisitions under its new owner Bain Capital) as well as the broader failure of data aggregation to live up to its early promise
Canadian financial planning software Conquest Planning has raised $80 million as it aims to make inroads into the U.S. market while differentiating on its AI-driven "Strategic Advice Manager" that automatically suggests (and even recommends) planning strategies based on client inputs – which could serve as an interesting test as to whether U.S. advisors will have any interest in AI-embedded financial planning software or whether they see it as encroaching on their own value proposition
NerdWallet has purchased an RIA to serve clients who find NerdWallet via its trove of personal finance content, while also rolling out an "advisor matching" lead generation program to refer prospects out to other advisors, which both highlights the huge business opportunity in lead generation (in that a platform that can effectively bring in prospective clients can monetize them both by funneling them to its own RIA and by selling them to other advisors), but also raises questions about the conflicts of interest that occur when an advisor matching program matches clients with its own in-house advisors!

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

As technology providers are increasingly building or acquiring AI notetaking tools to integrate into their own solutions (often for no extra cost beyond the base subscription for the underlying software), there is becoming less and less need to use a standalone AI notetaker – which means that the existing standalone providers will likely need to find more ways to enhance their value, or face struggles amid the increasing commoditization of AI notetaking
The proliferation of new AdvisorTech solutions over the years has led many to speculate that the industry is overdue for consolidation or contraction – and yet the more likely scenario is that the pace of growth increases going forward as no-code developing tools lower the barriers to building and releasing software… which on the one hand will make it even more difficult to navigate the software options on the market, but on the other hand will help to better highlight the gaps where existing solutions are failing to serve advisors' needs and increase the overall quality of AdvisorTech going forward!

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 (July 5–6)

July 4, 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 Congress has passed highly anticipated tax legislation, making 'permanent' (i.e., without a scheduled sunset) the lower individual tax rates enacted as part of the 2017 Tax Cuts and Jobs Act (TCJA), increasing the estate and gift tax exemption (which was scheduled to revert to approximately $7.14 million next year) to $15 million in 2026, and raising the limit on the deductibility of State And Local Taxes (SALT) to $40,000 (though this measure is scheduled to revert to the current $10,000 in 2030 and begins to phase out for consumers with more than $500,000 of income), among many other measures. Which will ultimately provide greater tax planning certainty to advisors and their clients for 2025 and beyond (and avoid the year-end rush they faced with the late-December passage of TCJA in 2017).

Also in industry news this week:

A recent survey of wealth management firm leaders found that while respondents were confident in their abilities, many are facing challenges finding the right people for their teams and creating time to support them
RIAs are being targeted by a phishing attack impersonating an SEC official, highlighting the value of vigilance and staff training in the face of varied cybersecurity risks

From there, we have several articles on retirement planning:

How population-wide life expectancy statistics can provide misleading estimates when it comes to choosing a specific client's life expectancy for financial planning purposes
The cognitive biases that can lead clients to underestimate their life expectancy and affect their financial decision-making
How financial advisors can add value for client couples by assessing both longevity and mortality risk when creating retirement income plans

We also have a number of articles on practice management:

Why taking a proactive approach can help an aspiring successor show a firm founder how they can be an effective partner in helping the firm grow into the future
A look into the range of financing options available for advisors looking to buy an equity stake in their firm without making a large, lump-sum payment
How some founders are turning to "synthetic equity" programs to create incentives to attract and retain talent without giving up control over the firm

We wrap up with three final articles, all about (financial) independence:

While many clients might say they have a goal of financial independence, this concept can mean very different things to different individuals (and can change over time)
Why pursuing an extreme version of financial independence could lead to a less enjoyable and meaningful lifestyle, and how alternative approaches can provide a sense of freedom without having to make some of these sacrifices
How to cultivate a sense of independence that goes beyond financial means and extends to the ability to live life on one's own terms

Enjoy the 'light' reading!