Articles About Kitces & Carl Podcast

The "succession crisis" is a common point of discussion in the financial advice profession. The succession crisis typically refers to two related issues: a lack of general succession plans (for retirement or emergencies), and owner-advisors retiring at a later than ‘typical' age. The former presents a challenge in the event of emergencies, but can also make retirement itself challenging, given that succession plans can take years to execute effectively. Which leads to the latter challenge: even when advisors have a plan in place, they may not execute it in a timely manner and may retire far later than originally planned.

In this 182nd episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss why aging founders may be reluctant to retire… and what younger advisors can do to preserve career momentum. The latest Kitces research on What Actually Contributes To Advisor Wellbeing (2025) provides key insights here: wellbeing and work satisfaction increase with age, which means that in their 60s+, many advisors are at their peak of satisfaction. At this stage, advisors have built deep client relationships, high income, and a rewarding work/life balance. In other words, why would anyone leave when they are maximally satisfied with their work and life?

Yet this dynamic poses a real dilemma for younger advisors seeking to grow. If older advisors have little incentive to exit, how can the next generation gain opportunities to lead? One answer may lie not in forcing succession, but in reframing it. Instead of asking senior advisors to leave, firms can focus on gradual transitions – offloading select clients, creating staged equity pathways, or formalizing ‘elder statesperson' roles that preserve the wisdom and influence of veteran advisors while opening space for new leadership. Just as clients often retire to something rather than from something, the same may apply to advisors; absent a compelling vision for what comes next, many are unlikely to let go of something they love.

Interestingly, the study also found that the happiest advisors are three times more likely to retire than their less-satisfied peers. This may seem counterintuitive, but it points to the role of internal contentment and the concept of ‘enough'. Advisors who are fulfilled by their work and relationships may also be more confident in stepping away when their personal goals have been met – whereas those who chase external metrics like income or firm size may never feel finished. This distinction echoes broader financial planning principles: knowing what's enough, and aligning decisions with core values, is key to a well-lived life and a thoughtful exit. As such, younger advisors may gain more momentum by taking on advisors' least favorite tasks and dimensions of client load. Or, much as they would with clients, advisors may hold a planning meeting to collaboratively brainstorm what the next ten years could look like.

Ultimately, the key point is that succession planning is about more than timeline and ownership… it's also about the deep psychological and emotional dimensions of advisor careers, which tend to be extremely relationship-oriented. As such, advisors may find greater success in planning transitions in roles rather than outright exits. Much like financial planning itself, the most effective transitions come from honest dialogue, aligned incentives, and a shared vision of what comes next – for both clients and advisors alike!

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The vast majority of people build their wealth through markets – and advisors offer crucial advice, insight, and strategy through their investment management services. While these services are helpful in good times, their value is most salient during periods of market turbulence, when advisors must coach their clients through uncertainty and anxiety. Potentially concerning market patterns emerge regularly (and according to some media,"concerning patterns" are emerging all the time), such as the current concern about a potential "AI bubble" that could trigger a correction. This chatter naturally creates concern for clients, who will turn to their advisor for help – placing advisors directly into the recurring 'scary markets' conversation that tests both their investment philosophy and their ability to communicate it effectively.

In this 181st episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss how advisors can lead clients through a "market fears conversation". The challenge for advisors is not to dismiss these concerns reflexively as something "already planned for", which may be technically true but does not alleviate client concerns in the moment they are most fearful.

Instead, effective scary-market conversations begin with empathy, not explanation. Clients typically deliberate internally for days or weeks before bringing their concerns to their advisor, meaning that by the time they call, they are already emotionally activated. Acknowledging that their fear is understandable – and even shared – helps create the psychological safety necessary for productive dialogue. From there, advisors can slow the interaction by creating space between stimulus and response, allowing emotions to settle before triggering action. This deliberate pacing reinforces that the advisor is not reacting defensively or dismissively, but thoughtfully and intentionally.

Now on firmer (and calmer) footing, the advisor can reconnect clients to the deeper foundations of their financial decisions. Revisiting purpose, values, and long-term goals reframes the market discussion away from headlines and toward the reasons the portfolio exists in the first place. From that foundation, advisors can remind clients how their investment process was built: portfolios were designed using long-term historical evidence that already includes periods of extreme uncertainty, speculative excess, and painful drawdowns. While the triggers for market stress change with each 'crisis', the common thread is that such periods eventually resolve, even if the path is uncomfortable. The assumption that markets ultimately recover is not blind optimism; it is the central premise underpinning long-term capital market participation.

Importantly, advisors can also demonstrate that 'staying the course' does not mean doing nothing. Rebalancing, gradually adjusting risk profiles to align with a client's life stage, and maintaining exposure across asset classes enable portfolios to respond systematically without resorting to binary, all-or-nothing bets. This framework helps counter the seductive appeal of going entirely to cash (which introduces a second, often more stressful decision in turn: when to get back in). By walking clients through what 'waiting until the dust settles' would actually look like, advisors can gently show that reentry typically coincides with higher market prices, not lower risk.

Ultimately, these conversations highlight the true value of financial advice during periods of uncertainty. Advisors are not merely portfolio managers, but emotional anchors who help clients navigate fear without making irreversible decisions they may later regret. While the repetition of scary-market discussions can be taxing for advisors, each instance is often the client's first encounter with that level of anxiety. Approaching each conversation with patience, compassion, and intellectual clarity allows advisors to reinforce trust, strengthen relationships, and fulfill their role as steady guides through uncertainty. In doing so, they help clients remain aligned with strategies that are imperfect but enduring – and better positioned to support long-term goals despite the inevitable discomfort along the way!

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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!

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Entering retirement often signals a profound shift in an individual's philosophy, time, and goals. This new chapter is a culmination of decades of diligent labor and saving – and for many, it brings excitement and newfound freedom. However, for some retirees, their diligence in saving makes it difficult to transition into a phase of life where spending down their savings feels appropriate. After years of building strict habits and shaping their identity around not spending, this transition can feel uncomfortable – and some clients may avoid spending beyond their basic needs even when they have activities and experiences they'd like to pursue.

In this 178th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss why some clients 'underspend' in retirement – and how advisors can tactfully encourage them to use their wealth in productive ways that align with their values.

Often, the tendency to underspend is shaped by some portion of a person's identity. Retirees who have built their financial security through disciplined saving often take pride in their frugality. For these clients, just the idea of their net worth declining – regardless of purpose – can create anxiety. In such cases, even the most compelling spreadsheets and projections can fall flat in inspiring change. Instead of reasoning clients into spending, it may be more effective to reframe spending as a new skill to be practiced. Exposure to small, intentional spending – such as treating a friend to coffee or funding a grandchild's sports lesson – helps clients build comfort and confidence incrementally.

At the same time, if advisors project their own values onto a client's retirement goals, it may unintentionally distort the conversation. Some retirees are genuinely content with a simple life and may view indulgences as frivolous or unnecessary. Open-ended questions can help the advisor dig deeper into a client's aspirations and goals, uncovering what they truly value. Sometimes, questions like "What's something you used to love that you haven't done in years?" or "If you had a happiness budget that had to be spent each year, how would you use it?" can unlock conversations that reignite passions or surface meaningful experiences clients have delayed for too long. Alternatively, a client may realize they already have what they want with little else they desire to 'add' to their life. Either way, these discussions can deepen understanding and help clients reframe wealth as a means to fulfillment, not just security.

Ultimately, the opportunity for advisors is to help clients align their money with what matters most – whether that's relationships, personal growth, or experiences. By creating a safe space for dreaming, shifting the narrative around spending from fear to joy, and offering tangible ways to 'practice' using their wealth meaningfully, advisors can help clients live not only more richly in financial terms, but also more fully in retirement!

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As financial advisors progress in their careers (and lives), their attention is often pulled in many directions as opportunities present themselves. Some will be professional, such as speaking engagements or prospect inquiries; others personal, from community service to family obligations. Many of these requests are meaningful and made with good intentions. But if the advisor says "yes" to all of them, the result can be an overcommitted calendar, drained energy, and very little capacity to do the work that moves their businesses and lives forward. At the same time, saying "no" can feel awkward, and many advisors may fear that declining a request might erode the relationship.

In this 177th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss when and how to say "no" in a way that protects capacity, prioritizes what matters most, and actually earns respect in the process.

One of the biggest challenges in learning to say no is the discomfort it can cause, especially in the moment. Saying "yes" feels easy, postponing the consequences that show up later when time and energy are exhausted. However, every "yes" is also an unseen "no" – agreeing to one request today often means turning down (or under-delivering on) a future opportunity or obligation that might be more important. By contrast, saying "no" preserves space for the work, rest, health, and family commitments that are supposed to come first.

To make saying no easier, advisors can build systems that remove the guilt and guesswork from protecting their time and energy. One approach is to create and communicate clear personal filters and capacity limits. For example, establishing minimum client fees or identifying types of work that consistently drain energy. Making these boundaries visible – such as by publishing fee minimums on a website or adding intake checkboxes acknowledging those minimums – helps preempt misaligned requests before they reach the calendar, reducing the emotional labor of saying no in real time. Advisors can even ‘outsource the no' by routing certain requests through an assistant or designated team member, which maintains goodwill while still enforcing boundaries. These tactics can help advisors avoid situations where they may be tempted to compromise their own standards.

Importantly, the skill of saying no also applies inside the firm, especially for associate and support advisors who are just beginning their professional careers. When a junior advisor is asked to take on more than they can do in a given week or do work misaligned with their current goals and priorities, the conversation doesn't need to become confrontational. Instead, the advisor can reflect the trade-off back to their supervisor, reviewing their weekly priorities and measuring different trade-offs. For example, "The priority is to get three plans out each week, and my full schedule is committed to that. If I also take on this new project, something will need to give. Which work should come first?" Framing the conversation around prioritization instead of refusal invites collaboration and keeps the decision with the person who sets expectations.

Ultimately, the key point is that saying no with clarity and grace is not about being rigid or unhelpful; it's about being purposeful. For advisors looking to grow their firms, deepen their client work, or reclaim time for family, every "no" becomes an investment in what they value most. Saying no is a professional and personal skill that allows advisors to lead with intention, protect their energy, and do their most meaningful work!

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The high impact of financial advice on people's lives is often an appealing part of the profession for many advisors who enter the field to help others. Yet, one of the realities of operating a business is that it must be done sustainably. According to Kitces Research and other benchmarking studies, the average annual cost to sustainably serve a client is around $3,000. Most Americans lack the assets or discretionary income to meet those thresholds. This leaves advisors who want to help others in a painful dilemma. On one hand, they may need to say “no” to those who genuinely need help but don't meet the firm's minimums, which can feel deeply unsatisfying – especially in a profession rooted in service. On the other hand, saying yes too often without structure can lead to burnout, unsustainable workloads, and a business model that struggles to thrive.

In this 176th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss how advisors can say yes in a way that is sustainable for both their practice and their wellbeing. One powerful framework is the 'barbell model', coined by Morgen Rochard. Rather than building a practice around average clients, this model allocates capacity at both ends of the spectrum: serving a small number of high-revenue, ideal clients while intentionally reserving a limited number of seats for lower-paying (or pro bono) clients. This helps advisors maintain business profitability while still engaging in the kind of high-impact, purpose-driven work that drew many to the profession in the first place. Crucially, the model works only when it is capacity-constrained – advisors must be disciplined about the number of 'low-revenue' clients served to keep the firm in balance.

Another potential approach is structured group education and financial coaching programs, particularly around focused topics or client niches. For instance, advisors can run regular workshops, courses, or group sessions, providing foundational guidance in a time-efficient and replicable way. These models offer high-leverage ways to say yes without ongoing client commitments and allow advisors to amplify their reach – potentially affecting hundreds of people per year, far beyond what's possible in a traditional one-to-one client structure. Moreover, these group offerings can be handed off to junior staff over time, making them more sustainable and potentially contributing to the training and development of newer advisors through valuable client-facing experience.

A third tactic is time-limited hourly advice – such as offering one-hour consults at a nominal fee, which creates clear boundaries while maximizing impact. By capping the time commitment, advisors maintain control over their schedules and avoid scope creep. Some dedicate a set block of time weekly (e.g., two one-hour consults every Friday) to such sessions, creating a consistent, guilt-free way to give back without derailing their core business. Even though the service isn't financially lucrative, it offers a way to help those in need meaningfully and on the advisor's own terms. This approach can also be a valuable source of practice reps, especially for associate advisors still building confidence and communication skills.

Ultimately, the key point is that it's possible to say yes to more people in need without compromising the sustainability of an advisory business, but doing so requires intentional structure and boundaries. By adopting models such as the barbell strategy, group education, and time-bound hourly advice, advisors can align their desire to serve with the economic realities of running a practice. These models allow advisors to give back in an impactful way, making a lasting difference in the lives of others!

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One of the core challenges of financial planning is that it requires both in-depth technical knowledge and the ability to connect those technical skills to a client’s personal, long-term goals. There are many tools to assist with the technical side, but far fewer to support the personal side – which often represents the deeper motivation behind a client’s decisions and goals, and the greatest opportunity for advisors to do meaningful work for the client. Yet it takes considerable skill and care to begin these conversations in a productive way.

In this 175th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss how Carl’s upcoming book, "Your Money: Reimagining Wealth In 101 Simple Sketches", can serve as a powerful propellant for conversations about what money really means to clients. In this episode, Carl shares several of his illustrations, including the following:

"Real Financial Planning": a Venn diagram of "Your Money" and "Your Life", with the overlap labeled "real financial planning". Financial advisors often help clients navigate money questions through the lens of life questions. Because money and life aren’t either/or issues – they are constantly in conversation with each other, from decisions around careers to decisions about spending. The challenge – and opportunity – for advisors is learning how to navigate both conversations at once.

"Money Isn’t Just Math": contrasting advice from an algorithm (a straight line) with real life (a scrawled mess). While the math behind what a client should do may be (relatively) straightforward, the reality is often more complex. For example, retirement planning doesn’t just mean running the numbers; it also involves navigating complex family situations, evaluating long-term priorities, and balancing the tension between enjoying wealth and preserving it for heirs.

"Range Of Outcomes": showing "Now" as a singular point and "The Future" as many diverging paths. While advisors plan for various contingencies, it’s impossible to predict what will happen between now and the future. Unexpected market changes or life events can alter priorities and plans. One of the core values of good financial advice is that, when change happens, the advisor has helped clients prepare for it – and can help them adapt.

Ultimately, the sketches from Your Money can create an open space for reflection, vulnerability, and connection between clients and their advisors. Used thoughtfully, they can serve as powerful visual aids, gentle encouragement, or simple conversation starters. Most importantly, they invite conversations not just about money itself, but about how it shapes the emotional and practical corners of a client’s life – helping deepen the advisor-client relationship and bringing greater clarity to both money and purpose!

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The profession of financial advice often centers on the logistical, logical outcomes of financial planning – spending down retirement assets, mitigating sequence of return risk, and preparing contingency plans. This data-driven planning is crucial for delivering reliable advice. Yet, at the same time, each financial advisor also carries their own understanding and 'story' around money – which can influence how and why they give financial advice in the first place!

In this 174th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss the 'jobs' they have given money in the past, how those roles shape their present relationship with money, and why advisors may benefit from reflecting on their own money histories relative to the advice they give.

A few central questions can serve as springboards for self-reflection:

• If money walked into the room, what would you ask it?
• If money could talk, what would it say to you?
• What jobs have you asked money to do that it can't really accomplish?

Money can represent many things in individual lives: a tool, a temptation, a distraction, a path to independence, a triumph, and countless other roles. Because it's so central to life – from vocational training and working to budgeting and daily decision-making – it's natural to give money a 'job'. For some, that job is delivering an emotional outcome such as security, safety, or achievement. For others, money may function more simply as a tool. Yet both of these approaches have limitations. Those who expect money to provide certain emotional outcomes may be disappointed when they never earn (or save) 'enough' to yield whatever feelings they seek. And those who view money as the only tool needed to fix all problems – rather than simply one tool among many – may be frustrated when dollars alone don't provide the solution. Still, money can also be intrinsically tied to many positive experiences: independence, opportunities, and the resources to navigate through many life transitions.

Grappling with one's personal money story takes considerable time and energy. Yet, similar to how many therapists undergo therapy themselves to avoid projecting onto clients, advisors may benefit from identifying ways that their own 'money jobs' have shaped their approach to giving financial advice. These questions are not necessarily client-facing on their own, but over time, the themes they raise may emerge naturally in various client conversations as clients explore their own intersections of money and meaning.

Ultimately, the key takeaway is that money, while essential, is still only a tool. Its power comes from being connected to goals and values that transcend it: freedom, impact, meaning, and connection. Advisors who bring awareness to their own money stories are better equipped to help clients navigate theirs. By reflecting on the jobs money has played in their own lives, advisors can create space for clients to find deeper clarity, alignment, and dialogue in the long run!

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When a good-fit prospect comes along, few things feel more discouraging than having them decline to move forward after a productive discovery meeting – not because of any dissatisfaction, but simply because they're not ready to leave their current advisor. These 'soft nos' can feel both frustrating and confusing for advisors, who may be left wondering what they missed – and how to move forward productively.

In this 173rd episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards explore how to handle the disappointment of a promising prospect who chooses to stay with their current advisor, and how these situations can still create opportunities to strengthen the relationship and improve the advisor's own process. While the initial "no" may sting, it also offers an opportunity to reflect, adjust, and position more effectively for the future.

As a starting point, advisors can respond with empathy and professionalism. Instead of pressing for another meeting or probing the prospect's decision, a simple note of gratitude – affirming the door remains open and offering to stay in touch with occasional, relevant insights – helps to preserve goodwill and shows, rather than tells, what responsiveness and value look like in action. From there, a strategic follow-up approach can involve subtly nurturing the relationship without becoming salesy or overbearing. This might include adding them to a tailored newsletter list (with permission), sending personalized commentary on market events or tax changes, or sharing content that directly reflects the prospect's stated concerns or holdings. Communication doesn't have to be frequent – once a quarter is more than enough. By steadily providing thoughtful value – without overselling or overwhelming – advisors can highlight the contrast between themselves and the incumbent advisor who may not be as engaged.

Beyond maintaining contact, these interactions can also serve as useful diagnostic tools for improving the advisor's prospecting process. If a prospect is hesitant to make a change, it may not reflect on the advisor's value proposition at all, but rather on the client's readiness. Asking upfront questions such as, "Have you worked with an advisor before? What was that relationship like?" or "How did you find your current advisor?" can uncover whether the individual has personal ties or long-standing loyalties that make leaving difficult. In some cases, advisors may even ease the transition by offering sample 'break-up' language the prospect can adapt, alleviating anxiety about the awkwardness of ending an established relationship.

Ultimately, a prospect's hesitation is rarely about price or technical expertise and more about readiness and the emotional challenge of transition. By responding to a prospect's "no" with patience, empathy, and a spirit of generosity, advisors can both preserve the relationship and reinforce their reputation as a responsive, values-driven professional – the very traits that prospects will recognize when they are truly ready for a change!

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