Nerd's Eye View Articles On Practice Management For Advisors

Delegate Your Least-Favorite Work By Hiring Your Opposite (Not Your Mini-me)

November 24, 2025 07:01 am 0 Comments CATEGORY: Practice Management, Research

Hiring a new employee brings the promise of delegation and an increase to the hiring advisor's individual capacity. Yet despite the promise that hiring offers, many firms struggle to see a meaningful lift from new team members. What often appears to be an onboarding issue – slow ramp-up, mismatched expectations, or underperformance – is more accurately a hiring issue. In an industry where talent is scarce and the cost of a bad hire is high, selecting the right person for the right role is one of the most strategic decisions an advisory firm can make. And counterintuitively, long-term growth may depend not on hiring someone like the advisor, but someone fundamentally different.

In this article, Sydney Squires, Senior Financial Planning Nerd, describes the potential pitfalls of hiring someone too much like themselves and how to ensure that the new hire is inclined toward their role – most often, by hiring their opposite.

Employees who are too similar in aptitude to their manager often gravitate toward the same work, leaving essential but unappealing tasks untouched. This can lead to one of three unsatisfactory outcomes: the advisor ends up keeping the tasks they intended to offload, an additional hire is made prematurely to handle the gap, or the new employee exits due to misalignment – all of which reduce efficiency and hurt firm profitability. Instead, sustainable delegation and firm growth come from hiring someone whose strengths and interests are the advisor's weaknesses. This strategy increases the likelihood that the new hire will not only accept the delegated work but also take ownership of it and improve it over time.

To maximize hiring effectiveness, tools like the Working Genius framework offer a structured way to assess candidates' natural inclinations and identify how their strengths map to the job responsibilities. By first determining which tasks need to be delegated, then identifying the personality traits and aptitudes needed to perform them well, managers can attract candidates whose native genius aligns with the firm's operational gaps. This increases not only the likelihood of long-term retention but also the odds that the employee will innovate and streamline processes that previously stalled firm growth.

When interviewing for a role, asking questions about the candidates' favorite work and what they enjoy can also be instructive. Someone who loves brainstorming and big picture work may struggle with a role that is solely checklist-oriented – and vice versa. Working Genius or other assessments can articulate a candidate's potential strengths in a structured, relatively unbiased way.

Ultimately, delegating to someone who finds joy and energy in tasks the manager finds draining not only boosts morale but leads to more effective execution and even innovation. Over time, this symbiotic dynamic allows the advisor to redirect focus toward higher-impact activities like business development, while empowering the new hire to refine processes and assume greater responsibility. When hiring decisions are driven by strategic self-awareness and intentional role design, advisors unlock a virtuous cycle of trust, delegation, and growth. The result is not only a more efficient firm, but a more fulfilled team – and a founder who can spend more time in their own zone of genius, building the business they envisioned in the first place!

Hiring Advisory Firm Employees For The Long Term: How To (Efficiently) Screen For The Right Culture Fit

November 10, 2025 07:03 am 0 Comments CATEGORY: Practice Management

Hiring in a financial planning firm often represents an important inflection point, where the decision to expand headcount can temporarily strain profit margins in the pursuit of long-term growth. But the investment of time, training, and onboarding resources often only pays off if the newly hired employee stays for the long-term. Firms dedicate an immense amount of time and resources to the hiring process, often focusing on ascertaining an employee's technical and communication skills. However, technical competency and enthusiasm for the day-to-day work may not be enough to guarantee a long-term fit. In fact, when it comes to long-term retention, little matters more than culture fit – how an employee fits within a firm's culture.

In this article, Senior Financial Planning Nerd Sydney Squires discusses how hiring advisors can crystallize their firm's culture and screen prospective hires for cultural fit. Culture, broadly defined as 'how things get done' in a workplace, encompasses far more than stated values. It includes everyday policies, interpersonal dynamics, feedback styles, and even rituals or unspoken norms. These elements shape the employee experience and influence whether someone feels a sense of belonging and purpose – both of which are highly correlated with advisor wellbeing, according to Kitces Research. In particular, feeling comfortable being oneself at work and having autonomy over one's schedule are significant drivers of job satisfaction. Accordingly, hiring employees who align with the firm's values and culture increases the odds they will stay, grow, and contribute over time – rather than quietly disengage or exit prematurely.

This approach can also be applied upstream in the hiring funnel: by embedding cultural signals into job postings or firm websites – such as mentioning team rituals, core values, or preferred traits – firms can attract candidates who resonate with their ethos, while others can self-select out. The interview process itself can be structured to balance both technical competence and culture fit. Culture-focused questions can include asking candidates about their approach to ethical dilemmas, their learning styles, or their favorite work projects. Follow-up prompts like "What happened next?" or "Why did that matter to you?" help draw out authentic, reflective responses. Managers can also use brief work samples to observe a candidate's behavior and values in action.

Ultimately, cultural fit doesn't mean homogeneity or hiring in one's own image; diversity of thought, background, and aptitude strengthen a firm's capacity to grow and adapt. The key point is that clearly identifying core behavioral expectations and values that shape how people work together, and hiring individuals who are both capable and willing to work within those boundaries, can meaningfully enhance employee engagement and retention. Firms that build hiring processes around both aptitude and alignment are far more likely to assemble resilient, high-functioning teams that thrive over time!

Charging For Estate Planning And Document Prep: Navigating Regulatory Hurdles And Real Pricing Benchmarks From Kitces Research

October 20, 2025 07:02 am 0 Comments CATEGORY: Practice Management, Research

While estate planning has long been an integral part of the financial planning process, most advisors' roles have historically been limited to identifying the need for documents and referring clients to attorneys. New technologies, however, are transforming how advisors approach estate planning by allowing them to go deeper—both through enhanced visualization and modeling tools and, more recently, through document preparation platforms that enable clients to complete core legal documents within an advisor-supported environment. Kitces Research projects that by 2026, nearly half of advisors will employ technology to support their estate planning.

Between 2024 and 2026, 1 in 10 advisors are projected to incorporate tech to support estate planning for the first time. As advisors expand their involvement, many face questions about whether to charge for these services – and if so, how to structure those fees.

Some firms may choose not to charge, integrating estate planning into their existing service offerings as a value-add to increase client loyalty, strengthen multi-generational relationships, or differentiate themselves in the marketplace. For firms intent on charging, concerns typically center on avoiding the Unauthorized Practice of Law (UPL), justifying fees to regulators and clients, and uncertainty about how much to charge. Each of these concerns, however, is surmountable. Advisors can generally avoid UPL by refraining from drafting documents or giving dispositive legal recommendations, and instead focus on providing education, modeling, and facilitating client-directed document creation via third-party tools. These platforms often include built-in guardrails that prevent advisors from crossing into legal advice while still delivering meaningful client value to justify a fee.

Advisors who do choose to charge for estate planning typically follow one of four approaches: 1) bundling it into AUM fees; 2) bundling it into existing planning fees, 3) adding a dedicated estate planning tier to their fee schedules, or 4) charging a flat estate planning fee. The most appropriate pricing method depends on whether estate planning is positioned as a core service for all clients or as an optional offering for a select group. Broad integration often supports modest, across-the-board increases in AUM or planning fees, while limited use is better aligned with tiered or flat-fee models, in which increased fees apply only to clients using these services. For advisors uncertain about how much to charge, benchmarking data is offered for each of these pricing structures.

Crucially, advisors adding estate planning services must also communicate the change effectively to clients. When estate planning is introduced as a value-add within an existing service offering, messaging can be straightforward and positive, emphasizing the new offering. If estate planning is offered as part of a separate tier or standalone fee, the tone can be more invitational, putting the decision in the clients' hands and clarifying that they pay only if they choose to use the service. Finally, for advisors implementing estate planning across their entire client base and raising fees as a result, a value-centric approach works best, focusing on the additional benefits clients will receive.

Ultimately, the key point is that estate planning services – whether traditional scenario modeling or technology-supported document preparation – can provide meaningful value sufficient to justify a fee. By determining the right pricing structure and communicating changes clearly and empathetically, advisors can deliver added value, ensure they're fairly compensated for the additional work involved, and confidently provide these services within regulatory boundaries – helping clients build clarity, confidence, and peace of mind!

6 Ways To Delegate To Get Faster ROI From Your New Associate Advisor

October 13, 2025 07:03 am 0 Comments CATEGORY: Practice Management

Many advisory firm owners face a dilemma as they reach capacity: they know they need help with planning work and would like to hire an associate advisor, but they may be uncertain about what, exactly, to delegate. Since associate advisors rarely prospect or manage their own clients today, it can feel challenging for firm owners to envision what the associate would do full time that would provide a real return on investment. Without a clear delegation strategy, though, both the lead advisor and the associate both risk running into frustrations, inefficiencies, and missed opportunities for growth.

In this article, senior financial planning nerd Sydney Squires explores how small firms can accelerate ROI on associate advisors. The key is to delegate in ways that reduce the senior advisor's time spent per client. Doing so frees the lead advisor to focus on business development, deepen relationships with complex clients, or simply avoid burnout. Kitces Research finds that solo advisors typically spend about 20 hours per first-year client, but with support staff, that time can drop by 25%. Even if an associate takes longer to complete a task, the time saved for the lead advisor still translates to a net gain – especially when reinvested in higher-value activities. A partial delegation approach – where the associate owns tasks within clear review guardrails – helps manage risk while steadily building confidence and capability.

To facilitate this ramp-up, five functional areas stand out as ripe for early delegation: client onboarding, meeting preparation and recurring plan updates, post-meeting follow-up, incoming client requests, and firm-specific “advisor odds and ends”. Onboarding tasks like data entry, identifying insurance or planning gaps, and building preliminary recommendations help associates learn the firm's process while contributing meaningfully. Meeting prep and recurring plan maintenance tasks create repeatable opportunities to train on client strategy and support the advisor's client-facing time. Follow-up work – such as reviewing AI-generated notes, assigning action items, and drafting communications – further embeds the associate into the service model. Handling incoming client requests and CRM updates allows them to build judgment around common client needs, while owning certain 'miscellaneous' advisor tasks (like reviewing estate documents or tracking planning deadlines) frees up the lead advisor to focus on more strategic work.

Successful delegation, however, requires intentional structure. A phased model – progressing from observation, to guided work, to synchronous review, and eventually to asynchronous or conditional reviews – ensures that associates progress systematically, while the lead advisor retains appropriate oversight. When paired with clear benchmarks, this model supports learning and accountability, prevents premature autonomy, and keeps work consistently moving off the senior advisor's plate – all while building a confident, competent future advisor who is better prepared for advancement.

Ultimately, early-stage associate advisors don't need to be fully self-sufficient to generate ROI – they simply need opportunities to do meaningful work in a supervised, structured way. When lead advisors approach delegation as a tool to expand capacity – not as a demand for perfect execution – firms can begin seeing returns within months, not years. With a deliberate onboarding path and well-defined responsibilities, associate advisors can become an investment in sustainable firm growth!

The 4 Key Drivers Of Advisor Productivity: How The ‘Right’ Team Unlocks New Growth

September 29, 2025 07:03 am 0 Comments CATEGORY: Practice Management, Research

Most advisors actively seek to become more productive – that is, to generate more revenue for every person on their team, even when that 'team' is just a solo advisor in business for themselves. For many, improving productivity is often equated with working longer hours, adopting better technology, or earning another advanced designation. However, according to the latest Kitces Research report on Advisor Productivity, none of these rank among the four key drivers of advisor productivity identified in the research. In this article, Kitces Director of Advisor Research Mark Tenenbaum outlines these four drivers – implementing the right team structure, client affluence, optimizing face time with clients, and pricing confidence – and explains the significance of each for success.

Notably, these four drivers are not equally important. The single most critical driver of advisor productivity is implementing the right team structure. This starts with simply having a team at all – evident in the fact that the median unsupported solo advisor generates 64% less revenue than solo advisors with support. The most successful configuration is the three-person 'Triangle Team', consisting of a Senior Advisor supported by an Associate Advisor and a Client Service Associate (CSA). Triangle Teams generate the highest revenue per advisor and per employee, providing Senior Advisors with the leverage to grow while avoiding the inefficiencies common in larger teams.

Implementing the right team structure – having a team and ensuring the right mix of roles – is the most important driver because it is the foundation that enables success across the other three key drivers. This can be seen with the second driver – client affluence – when considering how higher-net-worth clients typically have more complex financial needs – such as estate planning and charitable giving structures – and the willingness and financial resources to hire advisors capable of managing that complexity. However, as client affluence increases, advisors struggle to scale their services alone; multi-member teams become essential for delivering the depth of service these clients expect.

A similar dynamic is also present for the third driver – optimizing client face time. Top-performing advisors spend about 24% of their time in client meetings, compared to just 17% for their typical peers. The importance of client meetings in driving productivity is unsurprising, as this is where prospects become clients, existing clients reveal new needs (such as navigating a divorce or managing an inheritance), ongoing interaction reinforces the client's sense of being valued, and referrals often arise through conversations like, "I have a friend who's anxious about retirement—can I tell her to reach out to you?" Support staff free advisors to spend more time with clients and focus on client engagement without compromising quality or risking burnout.

The fourth driver is pricing confidence – the ability to set and enforce appropriate fees and minimums. Firms that implement AUM minimums or confidently charge fees aligned with their value consistently outperform those that don't. While this may seem separate from team support, it ultimately ties back to it: Pricing confidence depends on delivering a premium service promise. This involves not only offering comprehensive financial planning but doing so with consistency, thoroughness, and responsiveness – all of which depend on a well-coordinated team.

Ultimately, the key point is that while technology, credentials, and individual effort will always contribute to a successful advisory practice, the most important factor is deliberately structuring teams so advisors can focus their energy where it matters most – serving clients, deepening relationships, and driving the firm forward. Put simply, the most productive firms are those that build the right teams so their advisors can truly focus on being advisors!

9 Rights (And Wrongs) In the First 9 Years Of Building An RIA

September 22, 2025 07:04 am 0 Comments CATEGORY: Practice Management

For many financial advisors, the journey of building a firm from scratch is a blend of idealism, grit, and inevitable growing pains. The early years in particular are fraught with challenges that make survival difficult. However, for those who persist, the reward can be a firm – and a team – that reflects the founder's values and supports their lifestyle.

In this article, Shawn Tydlaska, founder of Ballast Point Financial Planning, candidly shares the wins and lessons from his first nine years of entrepreneurship. He offers a grounded, honest account of building a multi-advisor firm from scratch – without a client base, personal brand, or local network – while navigating the complex realities of leadership, growth, starting a family, and self-worth. Now he leads a $130 million AUM firm serving over 130 households and reflects on both the strategic decisions that fueled his firm's growth and the missteps that tested his leadership and mental health along the way.

One of the most pivotal decisions was simply starting. Unable to find a salaried role aligned with his desire to serve younger clients, Shawn embraced an "accidental entrepreneur" path, launching his firm in 2016 after a marketing internship at Personal Capital. With modest personal overhead and strong intrinsic motivation, he minimized his overhead, meeting clients in coffee shops and libraries. And with few tech solutions designed for his clientele at the time, he built custom Excel templates for spending plans, equity compensation, and cash flow – tools that met the real-world planning needs of younger clients better than traditional retirement-centric software.

As the firm grew, so did the challenges of scaling a team. Shawn recounts the struggles of 'right-sizing' staffing to revenue, as well as the need for infrastructure to support people once they are hired. Career tracks, sabbatical policies, HR calendars, and feedback loops became essential to guiding the team and building a team culture – and so did learning how to transfer client relationships to developing advisors.

Alongside the professional journey came personal highs and lows: defining success on his own terms, adjusting to fatherhood, and working to balance health, family demands, and ambition in a shifting world. Through therapy, self-reflection, and personal growth, Shawn found greater clarity about what matters most to him.

Ultimately, the journey highlights the importance of aligning vision, values, and structure over time. Despite earlier ambitions focused on 'going big', his current definition of success emphasizes sustainability: building a firm that supports his team, nurtures his family, and creates space for meaningful work – without losing himself in the process. Looking ahead, part of his vision includes building on his work as co-founder of the BLX Internship Program, which provides internship opportunities for underrepresented groups in financial planning, and expands into creating infrastructure to address the broader industry challenges around accessibility and advisor development to offer opportunities to more aspiring planners!

Associate Advisors, 9 Ways To Stand Out In Your First 90 Days

September 15, 2025 07:02 am 0 Comments CATEGORY: Practice Management

Starting a new role as an associate advisor can be exciting – and nerve-racking. The onboarding period, which typically lasts between 90 days and six months, represents a critical window for associate advisors to demonstrate their value to the firm. There's a lot to learn in those early days, and even with a structured onboarding process, new advisors still carry much of the responsibility for absorbing procedures, taking initiative, and finding ways to contribute – often while they're still learning the ropes!

In this article, Senior Financial Planning Nerd Sydney Squires details how associate advisors can develop the required skills and make a strong impression during their onboarding period.

During onboarding, advisors are typically evaluated in two broad areas. The first is technical competence: the ability to learn the skills required for the role. This involves learning through shadowing and observation, following workflows and processes, and increasing responsibility with hands-on execution. The second is cultural fit. While more subjective, this part of the manager's evaluation is just as important – and often shaped by the associate advisor's communication style and interpersonal skills.

Thankfully, there are many strategies for associate advisors to set themselves up for success. For example, preparing for meetings by reviewing a client's background in advance, showing up on time, and proactively building relationships with colleagues, especially those in complementary roles, all go a long way in gaining context and building early trust within the advisory firm. Asking thoughtful questions to delve into client meeting strategies can help advisors transform their passive observation into a deeper understanding of the firm's client communication style. And since new advisors often bring fresh eyes to established systems, identifying inefficiencies and opportunities for improvement in processes can provide surprising value.

When roadblocks arise, proactively attempting to solve problems before asking for help is another subtle but powerful way to demonstrate initiative and learning. And when their managers are overwhelmed, offering to take on one of their smaller pain points can make a difference not only in helping the advisor learn but also in alleviating their manager's load – further demonstrating their value to the firm.

Ultimately, the key point is that mindset makes a tremendous difference during the onboarding period. Advisors who embrace curiosity, flexibility, and growth are more likely to find the transition more manageable – and more rewarding. The first 90 days are not about perfection but about steady, visible progress. And by focusing on showing up reliably, engaging thoughtfully, and easing their manager's load, new advisors can lay a strong foundation for long-term success!

The 3 Concerns Keeping $25M+ Families Up at Night

August 18, 2025 07:01 am 0 Comments CATEGORY: Practice Management

Nerds Eye View Ep The Three Concerns Keeping M Families Up at Night

Many advisors focus on attracting and serving high net worth individuals and families, and with only a limited number of such clients to go around, this can be a competitive space. The higher net worth that a family has, the more that an advisory firm has to stand out in order to gain them as clients. However, advisors who can speak directly to the concerns of this client niche can give themselves a unique – and differentiating – advantage to best serve this segment of the population!

In this 'hybrid' video-based article, Michael Kitces and John Bowen, CEO and founder of CEG Worldwide and CEG Insights (formerly Spectrem Group), dive into CEG's extensive data on what ultra-high net worth (UHNW) families are really worried about and how advisors can serve this group more effectively.

The first major concern is macroeconomic risk. Nearly 80% of UHNW families worry about inflation, market volatility, and geopolitical instability. While they recognize that no advisor can control these forces themselves, most families expect proactive strategies, clear communication, and coordinated access to top-tier specialists who can help them navigate economic uncertainty. Many families seek bespoke guidance at a high level of service on topics such as alternative investments, charitable planning, and estate planning. At the same time, expectations for investment returns have moderated, with many clients content with ‘just’ 6%-8% returns on investment if their portfolio comes with strong principal protection. For advisors, the new challenge lies in clearly aligning their investment philosophy with a client’s concerns: Perhaps by maintaining a consistent strategic allocation or by making tactical adjustments, but in either case showing an awareness of what’s going on in the world and an understanding of how to manage to the current reality.

The second concern for these families centers on security and legacy. Beyond market risk, UHNW families fear threats such as litigation, divorce, and cyberattacks. Multi-generational wealth transfer raises the additional challenge of "will my heirs squander it?": More than three-quarters of UHNW families worry about wasteful heirs and want advisors to engage their children and grandchildren early to prepare them for stewardship responsibilities. At times, this may even extend to creating governance structures (sometimes formalized as family constitutions) that define decision-making and preserve values. Cybersecurity has also emerged as a priority, with many willing to pay for specialized protection, which gives advisors who can connect clients with the right services the opportunity to provide peace of mind without necessarily being cybersecurity experts themselves.

The third concern is quality of life and significance. Many in this wealth bracket are older and acutely aware that without health, wealth is less meaningful. They want access to concierge health and longevity services, along with strategies to ensure that their wealth supports a purposeful, multi-generational legacy. Advisors in this space must think less like "family CFOs" and more like general managers, orchestrating vetted specialists across legal, tax, investment, insurance, philanthropy, and wellness. Importantly, these teams don’t need to be built in-house; clients simply want a coordinated, high-caliber network that works seamlessly on their behalf.

For advisors, moving into the UHNW segment is not a matter of scaling up existing mass-affluent practices or building out more and more in-house services. Instead, it requires fewer but deeper client relationships and robust external partnerships to connect clients with a vetted team of experts to meet their needs. Serving UHNW also demands a proactive, holistic approach that addresses not just financial needs, but also family dynamics, personal security, and quality of life.

Ultimately, the reward of serving UHNW clients is both financial and professional – commanding higher fees for delivering truly differentiated value in a space where 60% of successful entrepreneurs are open to changing advisors within the next two years. Advisors willing to embrace this shift can position themselves as indispensable partners in protecting fortunes, guiding families, and helping clients live lives of lasting significance!

Find Your ‘Cyborg Advisor’ Sweet Spot: Blend AI Into Your Firm By Understanding How Clients Make Financial Decisions

August 13, 2025 07:01 am 0 Comments CATEGORY: Practice Management, Technology & Advisor FinTech

Financial advice and technology have grown alongside each other – as technology has evolved and expanded, so too have advisory firm services. And as trading, portfolio rebalancing, and financial plan construction have become more efficient, advisors have increasingly focused on holistic advice, financial psychology, and behavioral coaching to complement their technical expertise. Now, with the rapid growth of AI across the financial services industry, questions about whether technology might one day replace human advisors are taking on renewed importance.

In this article, Derek Tharp, Lead Researcher at Kitces.com and Associate Professor of Finance at the University of Southern Maine, explores how advisors can use AI as a tool to augment – not replace – their advice and client relationships. While AI excels at tasks like prediction and computation, it struggles to understand human values, especially since people often don't have a clear or consistent understanding of their own. A client's reluctance to invest in equities or delay Social Security, for instance, may stem from deep-seated beliefs, personal preferences, or a mix of both. And as advisors know, financial advice often goes beyond identifying the 'correct' or 'most optimal' answer – it's also about connection, reassurance, and helping clients uncover their true priorities. While AI can mimic language patterns and simulate empathy, it lacks the lived human perspective necessary for genuine emotional resonance – which can limit the trust clients are willing to place in it, especially when navigating sensitive or complex life decisions.

That said, AI brings real strengths – particularly in data analysis, operational consistency, and computational efficiency. Tools powered by Large Language Models (LLMs) can summarize meeting notes, automate routine communications, and eventually synthesize insights across disparate systems. Advisors adopting these tools will need to ensure that the AI's output is current and that the technology integrates well with their workflows. But when used thoughtfully, AI can help advisors be more present, especially in client meetings!

This emerging hybrid model of the 'cyborg advisor' blends the technical precision of machines with the emotional intelligence and nuanced judgment of human professionals. Looking ahead, AI integration may center around CRMs, financial planning software, document management systems, or middleware AI assistants. Each approach has advantages and tradeoffs. Financial planning software may be particularly well-positioned to become the central hub, with its ability to generate accurate projections and precisely modeled planning scenarios. But CRMs, with their centralized data and integration potential, also have a strong case – especially if they expand their planning functionality. Whatever the tool, these systems can help advisors work smarter, provide more value to clients, and enhance the planning process – all without compromising the integrity of human judgment.

Ultimately, financial planning is rooted in trust, empathy, and the ability to navigate personal values – with a foundation of technical knowledge. As advice continues to evolve, advisors can combine their human strengths with the efficiency of AI to create better client outcomes. Those who embrace this hybrid approach – using AI to enhance, rather than replace, their capabilities – will be well-positioned to thrive in the changing landscape of financial advice!

How 3-Member “Triangle Teams” Maximize Per-Advisor and Per-Employee Revenue (Latest From Kitces Research)

August 11, 2025 07:01 am 0 Comments CATEGORY: Practice Management, Research

The smallest advisory firms – especially those run by unsupported solo advisors – often find that early success brings growing operational demands that strain their time, energy, and wellbeing. Yet after adding team members to grow their firms, many advisors discover that their capacity challenges are replaced by new inefficiencies stemming from the need to coordinate across multiple people, leaving them without the calendar control they had hoped to gain.

In this article, Mark Tenenbaum, Kitces.com's Director of Advisor Research, explores findings from the latest Kitces Research study on advisor productivity, "How Financial Planners Actually Do Financial Planning". The research highlights that the three-member "Triangle Team" – consisting of one lead advisor and two support staff, typically a Client Service Associate and an Associate Advisor – tends to be the most effective team structure for maximizing productivity. The typical Triangle Teams produce an impressive $1.2 million in average revenue per advisor and $412,000 per employee, outperforming all other team configurations, which adds Service Advisors but results in lower productivity per advisor and per employee.

The success of Triangle Teams lies in their ability to balance what Kitces Research describes as the "leverage-coordination trade-off". Smaller teams consisting of one or two members inherently avoid the coordination challenges that increase with team size, but they often lack the staffing leverage needed to free up the Senior Advisor to focus on business development. By contrast, larger teams provide advisors with this leverage, but their additional seats often fail to translate into productivity gains because they introduce two key inefficiencies relating to coordinating across too many members: the "Management Tax" and the "Shared-Clients Tax".

These two inefficiencies take shape in distinct but compounding ways. The Management Tax occurs when Senior Advisors must spend more time onboarding, training, and managing staff – time that doesn't scale with team size. The Shared-Clients Tax arises when multiple lead advisors serve the same clients, requiring additional meetings, handoffs, and coordination that detract from client-facing work. Triangle Teams strike the optimal balance: Two support staff provide enough leverage to offload lower-value tasks while staying lean enough to avoid excessive coordination demands.

For solo or two-member practices, moving toward a 1+2 Triangle Team structure can be a strategic path to growth. Hiring a CSA first, followed by an Associate Advisor, can significantly boost productivity – if timed between the "profitability wall" (when hiring becomes financially viable) and the "capacity wall" (when help becomes urgently necessary). Proactive planning and structured onboarding – especially for Associate Advisors – are essential for success.

Larger teams that aren't positioned to reduce headcount can still improve efficiency by implementing systematized workflows and quarterly client service calendars. Defined processes ease the delegation burden on Senior Advisors, while quarterly client service calendars help prevent overservicing and clarify responsibilities. According to Kitces Research, teams that use four planning periods per year – each focused on a single planning domain – tend to achieve the best mix of client value and internal efficiency.

Ultimately, while three-member Triangle Teams can be a powerful model for enhancing productivity, each firm has the opportunity to define the team structure that best supports its unique mission and the lives its advisors want to lead. Whether the goal is to scale revenue, create more time for client relationships, or design a business that sustains a fulfilling lifestyle, understanding the trade-offs between leverage, coordination, and growth can help advisors make satisfying decisions with greater clarity and confidence!