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Adding $80M To Your Practice In 7 Years By Providing Financial Education Through Local Seminars: #FASuccess Ep 450 With Ryan Morrissey

August 12, 2025 07:02 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 450th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Ryan Morrissey. Ryan is the founder of Morrissey Wealth Management, an RIA based in North Haven, Connecticut, that oversees $140 million in assets under management for 150 client households.

What's unique about Ryan, though, is how he has added $80 million of client assets during the past seven years primarily by holding in-person educational retirement planning seminars that attract his ideal target client.

In this episode, we talk in-depth about how Ryan organizes his seminars as two three-hour classes held over the course of two weeks (which gives him plenty of time to build a personal connection with attendees), how Ryan offers a personal consultation to seminar participants as an optional third “session” (framing it as something they have already paid for as part of the class fee), and how Ryan typically gets two new clients from each class session (representing an average total of $1.7 million in assets) generating revenue that exceeds his costs for holding the seminars in their first year with his firm alone.

We also talk about how Ryan gets logistical support for his seminars by offering them through local public adult education programs (which secure appropriate classroom space and facilitate participant registration), how Ryan has found that charging for the seminars has led to greater participant engagement (and why he’s willing to let the adult education programs keep the registration fees from his seminars given the revenue that comes from new clients who find him through the classes), and how Ryan markets his seminars by sending mailers targeted at households in his area that fit his target age and wealth profile.

And be certain to listen to the end, where Ryan shares his experiences working in the wirehouse, independent broker-dealer, and RIA channels (and how he’s thrived after gaining the independence that firm ownership can provide), how Ryan has navigated ongoing compliance obligations as an independent RIA (first successfully handling it by himself and now working with a compliance firm as he’s passed the threshold for SEC registration), and how Ryan ultimately experienced significant client and AUM growth after making the leap to firm ownership, going fee-only, and simplifying his service and investment planning offerings.

So, whether you’re interested in learning about how to organize effective in-person educational seminars, finding key outsourcing partners to reduce the time needed to put them on, or getting a strong return (in the form of new clients) on marketing dollars spent on promoting seminars, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Ryan Morrissey.

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!

Weekend Reading For Financial Planners (August 9–10)

August 8, 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 report from The Ensemble Practice finds that advisory firms are in a period of "prosperous stagnation" with strong profitability (with the firms surveyed showing a record average operating profit margin of 39.2% in 2024) but organic growth falling short of targets (an average of 3.1% below the average firm growth goal of 10.0%). The report suggests that while many firms have streamlined operations and experienced tailwinds from strong equity markets the past couple years, bringing on new clients has been a challenge for some (highlighting that fast-growing firms tend to allocate larger shares of their budgets to marketing, expenditures which could crimp profitability in the short run but lead to greater opportunities in the long run).

Also in industry news this week:

Artificial Intelligence (AI), anti-money laundering, and cybersecurity top the list of concerns amongst RIA compliance officers, according to a recent survey, as firms adjust to a rapidly evolving technological and regulatory environment
An Executive Order signed this week intends to clear the way for 401(k)s to be able to offer private equity, cryptocurrencies, and other alternative assets in their investment lineups

From there, we have several articles on retirement planning:

The potential value of incorporating "income risk" (which can be a particular concern for clients nearing retirement, as well as those just staring out) when considering client portfolio allocations
Four ways to beat "sequence of return risk", including incorporating flexible spending rules, holding "buffer" assets, and more
Why a "rising equity glidepath" in retirement can improve client outcomes and how advisors can effectively communicate this (perhaps counterintuitive) strategy to clients

We also have a number of articles on practice management:

Why establishing a strong firm culture is not just a matter of having an established mission and values, but is also a matter of understanding the employee experience and getting buy-in from all team members
How an effective firm-wide retreat can both bring the team closer together and give the business a clearer sense of direction for the coming months
How establishing a "Culture Committee" helped one firm improve employee morale and retention after a particularly stressful period

We wrap up with three final articles, all about college planning:

Eight to-dos for clients and their children heading to college this fall, from ensuring proper insurance coverage to getting key legal documents in place
How the Common Data Set document can help families find colleges where their student might receive a generous merit aid award
How a student's post-college success is determined by factors that go well beyond the prestige of the school they attend

Enjoy the 'light' reading!

Helping Clients Navigate AI Career Challenges By Building Financial Planning Resiliency: Kitces & Carl Ep 170

August 7, 2025 07:03 am 0 Comments CATEGORY: Kitces & Carl Podcast

AI's increasing development and integration in the workplace presents many opportunities for increased efficiency and production – and, with that efficiency, the potential for significant disruption to those working in highly-automatable industries. As these changes accelerate, many clients may begin to fear not just job displacement, but full-blown career obsolescence. Unlike a temporary market downturn, this type of uncertainty can feel more existential, raising difficult questions about professional identity and long-term viability.

In the 170th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards explore how financial advisors can support clients whose careers may be disrupted by the rise of artificial intelligence. While AI may or may not reach the level of job elimination that some fear, it does represent an irreducible uncertainty – a risk that can't be fully defined or planned around, especially in fields such as law and software engineering. And when faced with such irreducible uncertainty, the most effective approach is not necessarily to aim for detailed prediction, but instead to focus on simplification, adaptability, and resilience. In this context, planning shifts from optimizing for known risks to preparing for unknown disruptions.

One core strategy is to simplify wherever possible – reducing discretionary spending, trimming financial commitments, increasing liquidity, and revisiting allocation choices with a focus on flexibility rather than long-term growth. For example, instead of maximizing tax efficiency through pre-tax retirement contributions, clients may choose to allocate more toward savings vehicles that can be accessed without penalties if needed. Shifting to more conservative, liquid investments can also create optionality to fund retraining, bridge career transitions, or launch entirely new ventures in less automatable fields. Similarly, clients concerned about AI-related disruption may opt to delay large purchases until there's more clarity around how their industry will be affected.

Helping clients navigate AI-related disruption reinforces the advisor's role not only as a financial expert but also as a trusted thinking partner. Clients facing career instability – or even a loss of professional identity – need space to voice their concerns and explore potential paths forward. Often, simple questions like, "What might happen next?" or "How would we need to prepare for that?" can open up space for meaningful reflection and reveal tangible next steps. In this way, advisors can help clients balance long-term uncertainty with shorter-term action – anchoring their sense of agency when outcomes remain unclear.

Ultimately, the key point is that it's difficult to predict how AI will reshape specific career fields. For clients whose livelihoods may be at risk, advisors can work collaboratively to create an individualized, practical plan to reduce the financial strain of potential career disruption. That kind of planning can offer clients substantive peace of mind, ensuring that they understand their options amidst an ever-changing landscape – all while giving the advisor a chance to reaffirm their value in a rapidly evolving world!

Creating An Alternative Custody Fee Model To Offer Advisors Better Fiduciary Alignment

August 6, 2025 07:03 am 0 Comments CATEGORY: Regulation & Compliance

Financial advisors at RIAs have a fiduciary obligation to their clients, which includes both a Duty of Loyalty (to avoid – or at least disclose and take steps to mitigate – any conflicts of interest) and a Duty of Care (to act with prudence when making investment recommendations, considering both their investment opportunity and benefits along with the associated costs). However, while certain costs (e.g., fund expense ratios or ticket charges on trades) are relatively transparent, RIA custodians also earn revenue in various ways from client portfolios in exchange for the custodian's services. Which means RIAs that place clients at a particular RIA custodial platform also have a fiduciary obligation to ensure that their clients are paying reasonable expenses to the platform in exchange for the services they receive. That said, when it comes to RIA custodians, there is no explicit fee for services – nor really any way to determine the total costs clients actually pay (i.e., that their RIA custodian earns) for custodial-related services – making it difficult for firms to determine whether their current custodial relationships are truly aligned with their fiduciary obligation to their clients.

Notably, RIAs aren't necessarily required to choose the lowest-cost custodial option for their clients. Nonetheless, if an RIA did choose a more expensive one, the firm would, at a minimum, have a fiduciary obligation to justify why that option was chosen and how it would benefit the client (e.g., a particular custodian might offer superior technology to execute trades and better service to resolve client issues). Though, given the lack of price transparency amongst custodians, such a calculation is again nearly impossible to make!

With the current RIA custody model creating challenges for advisory firms to fulfill their fiduciary responsibilities to their clients – and putting their interests at odds with those of the custodians they work with (with a firm trying to minimize custodian-related client costs and the custodian having an interest in generating more revenue from each RIA client) – both RIA firms and custodians have an interest in finding an alternative.

One possible option would be for the RIA custodian to charge a basis-point fee to each client of RIAs on its platform, equal to the average fees they're earning under the current model (so the custodian continues to earn the revenue it needs to provide its services), and then apply a credit to the client's statement for any other revenue the custodian is earning. In many cases, this might fully offset the custodial fee anyway, but it would be done at the client's discretion as to how they wish to pay! In turn, custodians would be incentivized to better 'stock the shelves' of their custodial platform with unique offerings (e.g., highest-yielding cash sweeps, lower-cost investment products) to attract advisors and their clients to the platform to pay the fee (and thus grow their own assets).

While the concept of such an 'upside-down' fiduciary model for RIA custody is relatively straightforward to re-align the interests of the custodian, the advisor, and their client, doing so would come with non-trivial complexities and questions – not only in terms of systems but also in determining fairness to RIAs and their clients. For example, a custodian would have to determine whether the statement credit would be allocated across all clients on their platform at the client, account, or individual holding level. Also, such a move could lead to uncomfortable conversations for advisors (e.g., if they choose a more expensive custodian that provides them with practice management support or client referrals, which benefit the advisory firm but don't actually benefit the client that incurred the cost).

Though, arguably the biggest challenge of instituting a basis-point fee and statement credit system is behavioral. Simply put, clients (and their advisors) aren't used to paying an outright fee for custody. And when something has been provided for 'free' for so long, any fee – no matter how reasonable – can induce sticker shock (even if much, or even all, of the fee is being rebated through the statement credits)! Though notably, the entire evolution of the RIA movement for the past 20 years has been the transition from opaque commissions (on investment products) to transparent advisory fees, which consumers have ultimately come to prefer because of the better alignment with their advisor… suggesting that, in the long run, custodians stand to benefit from a more fiduciary pricing model for RIA custody in the same manner that RIAs themselves have benefited in the marketplace.

Ultimately, the key point is that the current RIA custody model presents fiduciary challenges for advisors, who have no feasible way to compare the costs for their clients of different custodians they might work with to ensure clients are receiving benefits commensurate with their cost (as custodial revenue yield, and thus pricing, can vary significantly from one platform to another). Which suggests that an alternative approach – pairing a clear basis-point fee for the client with statement credits for revenue generated by their use of custodial services – not only offers greater transparency in the costs for custodial services but also better aligns the interests of clients, advisors, and the custodians they work with. And, in the end, that alignment would allow advisors to more effectively fulfill their fiduciary obligations to clients!

Growing To $2B AUM Organically By Setting High Client Service Standards (And Really Sticking To Them!): #FASuccess Ep 449 With Michelle Perry Higgins

August 5, 2025 07:03 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 449th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Michelle Perry Higgins. Michelle is a principal of California Financial Advisors, an RIA based in San Ramon, California, that oversees $2 billion in assets under management for approximately 1,500 client households.

What's unique about Michelle, though, is how her firm has grown to $2 billion of AUM entirely organically and has achieved a greater than 99% client retention rate, in part by setting high standards for client service (and sticking to them over time).

In this episode, we talk in-depth about how Michelle prioritizes her clients' time (ensuring they never wait more than 5 minutes for a meeting and always receive a same-day call back when they contact the office), how Michelle created what she calls an "Everything Binder" that allows clients to put all of their key information in one place (providing clients with peace of mind by easing the transition for loved ones if the client becomes incapacitated or passes away), and how Michelle builds a half hour into her schedule after client meetings to record notes into her CRM so that she doesn't forget any important messages the client communicated during their conversation.

We also talk about how Michelle has achieved strong client satisfaction by spending the majority of time during meetings listening to what they have to say (and avoiding jargon when it comes time for her to discuss technical planning topics), how Michelle seeks to go a level deeper when talking to clients about their personal lives (for example, not just asking about where they went on vacation but also whether they had any money conflicts during the trip), and how Michelle ends each client meeting by asking whether there are any issues the client wants to talk through (which may or may not be financial-related and helps her gauge their satisfaction with her service).

And be certain to listen to the end, where Michelle shares how she has built California Financial Advisors with three of her partners over the course of 30-plus years (and why they maintain an "eat what you kill" approach towards compensation), how Michelle has found significant value from operating an internship program (both professionally by identifying talented students who could become the next generation of advisors at her firm, and personally by being able to mentor aspiring advisors), and how Michelle has navigated the challenges of being successful as a financial advisor and as a parent at the same time (including the joys she's had and the sacrifices she's made along the way).

So, whether you're interested in learning about setting and maintaining high client service standards, fostering deeper client conversations, or making a partnership last over multiple decades, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Michelle Perry Higgins.

Nitrogen Launches Its Own AI Notetaker (And More Of The Latest In Financial #AdvisorTech – August 2025)

August 4, 2025 07:03 am 0 Comments CATEGORY: Technology & Advisor FinTech

Welcome to the August 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 Nitrogen (formerly Riskalyze) has launched its own native AI meeting notes tool, becoming the latest in a series of existing technology platforms to offer its own embedded AI notetaker – while putting more pressure on the host of standalone AI meeting note solutions that have cropped up in the last two years, since there is becoming less and less reason for advisors to use a third party notetaking tool when they already have solutions embedded in the technology that they already use.

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

New research has shown that while increased efficiency through better integration capabilities make advisors happier and more satisfied with their technology, those efficiency gains don't necessarily translate into productivity in terms of increased revenue per advisor or team member – suggesting that while advisors dissatisfied with their technology should seek out tools with better integration, those who want to be more productive should instead focus on better leveraging their staff support and/or providing higher value advice (to clients who are willing to pay for it!)
Meeting management technology provider GReminders has launched what it describes as an AI agent to help streamline meeting preparation and follow-up tasks, but what it seems to do in reality is to simply automate a series of already defined and systematized – raising the question of how much advisors really need 'agentic' AI that can handle unstructured tasks when so many of their processes are already structured enough to be automated by simpler technology?
Anthropic has released an enterprise-grade version of its Claude AI platform specifically for financial services and investment research, which could be a bad sign for the many AI investment research startups that have appeared over the last year as they could find themselves squeezed between Claude on the institutional side and Morningstar, YCharts, and Kwanti on the independent RIA side, leaving them with little remaining market share for themselves

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

EncorEstate Plans has announced a new partnership with virtual estate planning firm eLegacy to provide state-specific attorney review and legal advice for the estate documents created on its platform, suggesting that EncorEstate is further leaning into the human-driven approach it has taken to technology-enabled estate plan creation (in contrast to other platforms like Wealth.com, Trust & Will, and Vanilla which have focused more on automated document creation with less human involvement)
MyStockOptions.com has launched a new advisor referral service on its website, allowing readers of its technical articles on equity compensation planning to search for and contact advisors who can help them with their specific needs, underscoring the opportunity that financial media platforms have in referring leads to advisory firms that would prefer to pay someone to provide leads to them over going out to find leads on their own

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 2–3)

August 1, 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 the North American Securities Administrators Association (NASAA) has proposed an updated Model Rule that would allow state-registered advisors to use testimonials in their marketing materials, four years after the SEC issued its Marketing Rule allowing testimonials for SEC-registered advisors – which would, if finalized and adopted into states' securities regulations, finally resolve the discrepancy between the testimonial rules for advisors registered with the SEC (and states that chose to conform to the SEC rule) and those registered in states that continue to ban testimonials in marketing.

Also in industry news this week:

A recent study projects that, despite the anticipated wave of retirements among Boomer advisors, advisor headcounts in the RIA channel will actually rise in the coming years as those retirements spur M&A activity that tends to favor firms moving from the broker-dealer channel over to the RIA side
New data from FINRA and the SEC show that the overall movement of advisors from broker-dealers to the RIA channel shows no signs of slowing down, and with the number of broker-dealer representatives still greatly outnumbering RIA advisors, the trend could even accelerate in the near future

From there, we have several articles on tax planning under the One Big Beautiful Bill Act (OBBBA):

While OBBBA introduced three new deductions for qualified tips, overtime wages, and auto loan interest, a maze of narrow restrictions on those deductions means that not everyone who thinks they'll be eligible to take the new deductions will actually be able to
OBBBA made several amendments to the rules for Qualified Small Business Stock (QSBS) under Sec. 1202, most notably increasing the maximum QSBS gain exclusion to $15 million, creating a large potential tax windfall for the relatively few startup founders, employees, and investors holding QSBS
OBBBA introduced new eligible expenses for 529 plan withdrawals, as well as an entirely new type of 'Trump' account for retirement savings on behalf of minor children, further expanding the range of savings options available for parents looking to put away funds on their children's behalf

We also have a number of articles on advisor technology:

How concrete use cases have emerged in recent years for how AI tools can benefit advisors – although importantly, the time and cost savings represented by AI have less of an impact on advisor productivity than providing high quality advice and charging and appropriate amount for it!
How generative AI tools introduce new risks to advisory firms including providing clients with false or misleading information or divulging sensitive client data, making it essential to review all AI-generated communications and avoid having the AI provide actual advice
Although some expected that the rise of AI would lead to flashy tools generating new investment insights, the reality has been that AI has done far more to streamline advisory firms' back-office operations

We wrap up with three final articles, all about money, class, and psychology:

While large families in TV and movies were traditionally often depicted as middle- or upper-middle class, large families today as shown on reality TV and in social media influencer posts are often surrounded by signs of wealth and luxury, reflecting how the cost of raising children has itself become something of a luxury good over the years
How the booming wealth of the wealthiest 10% of households in the U.S. has meant that the traditional markers of millionaire privilege are no longer as exclusive as they once were
How the early-2010s fad of "extreme couponing" faded as stores got less generous with their coupon policies – and how its spirit lives on today with points enthusiasts who get a similar thrill out of finding a good deal

Enjoy the 'light' reading!

Major Compliance Risks When Using AI Tools (And Best Practices To Mitigate Them)

July 30, 2025 07:03 am 0 Comments CATEGORY: Regulation & Compliance, Technology & Advisor FinTech

AI tools like ChatGPT and automated meeting notetakers offer meaningful time savings and productivity gains that can be a game-changer for supporting RIA marketing, client service, and investment research efforts. But the same capabilities that make AI so useful – namely, its ability to analyze and generate human-like content at scale – also introduce complex compliance and regulatory risks. In the absence of clear regulatory requirements for how to use these tools, RIAs have been largely left on their own to figure out how to address challenges associated with protecting client privacy, screening out inaccurate or biased data, and maintaining necessary books and records. However, this doesn't mean that AI tools must be avoided altogether. With appropriate due diligence and training, firms can benefit from the time-savings potential of AI while also managing associated compliance and security risks.

In this guest post, Rich Chen, founder of Brightstar Law Group, explores the key steps advisors can take to use AI productively and in alignment with regulatory requirements.

Mitigating risks starts with understanding how AI tools process, store, and secure user data. Tools that do not retain or train on user data are generally preferable, and firms can prioritize enterprise-grade solutions that offer configurable access controls and auditing features. Internal policies can further reduce risk by requiring pre-approval for AI tool use, training employees to avoid submitting sensitive client information, and using redaction tools to strip Nonpublic Personal Information (NPI) from prompts before submission.

Beyond these safeguards, firms can train employees on prompt engineering techniques to improve the relevance and accuracy of AI outputs. Formal review processes can also help catch hallucinations and factual errors – especially when AI-generated output is used in marketing content, investment research, or planning advice. Additionally, it's crucial to learn how to recognize and monitor for signs of bias in AI's output that may unintentionally influence advice or skew the tone of client-facing content. Because AI tools are trained on large and often uncurated datasets, their output can reflect common industry norms or marketing-driven assumptions. Ongoing audits and compliance reviews – especially for investment recommendations or public-facing content – can help firms detect and address biased or misleading information before it is proliferated.

Recordkeeping is another key compliance obligation. Under the SEC's Books and Records Retention Rule, RIAs must preserve documentation that supports client advice and decision-making, including AI-generated meeting notes, marketing content, and investment analyses. To stay compliant, firms should retain both the prompts and outputs from any material AI interactions, store meeting transcripts alongside summaries, and ensure archiving systems are structured in a way that allows for SEC retrieval. Some AI tools now support integrated archiving, making this process more scalable over time.

Ultimately, while AI tools offer transformative opportunities for increasing efficiency and scale, they also require a thoughtful approach to ensuring compliance with an RIA's fiduciary and other regulatory obligations. RIAs that invest in due diligence, training, and oversight can confidently harness the power of AI to enhance client service while maintaining the high standards of trust, care, and diligence that their clients and regulators expect.

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

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

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

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

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

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

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

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

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

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Adding $80M To Your Practice In 7 Years By Providing Financial Education Through Local Seminars: #FASuccess Ep 450 With Ryan Morrissey

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

Weekend Reading For Financial Planners (August 9–10)

Helping Clients Navigate AI Career Challenges By Building Financial Planning Resiliency: Kitces & Carl Ep 170

Want CE Credit for reading articles like this?

Creating An Alternative Custody Fee Model To Offer Advisors Better Fiduciary Alignment

Growing To $2B AUM Organically By Setting High Client Service Standards (And Really Sticking To Them!): #FASuccess Ep 449 With Michelle Perry Higgins

Nitrogen Launches Its Own AI Notetaker (And More Of The Latest In Financial #AdvisorTech – August 2025)

Weekend Reading For Financial Planners (August 2–3)

Want CE Credit for reading articles like this?

Major Compliance Risks When Using AI Tools (And Best Practices To Mitigate Them)

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

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