Welcome everyone! Welcome to the 492nd episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Mary Chapman. Mary is the chief operating officer of Cummings Wealth Management Group, a hybrid advisory firm based in Charleston, South Carolina, that oversees $500 million in assets under management for 260 client households.

What's unique about Mary, though, is how she has applied lessons from her research into “steward leadership” to build communications mechanisms, processes, and expectations to help her firm continue to thrive as it transitioned into a hybrid work environment.

In this episode, we talk in-depth about how Mary leverages the steward leadership approach to set high and specific recommendations for team members (for example, picking up the phone after the second ring so they can see who is calling on caller ID), how Mary finds that “clarity is kindness” when it comes to communicating these expectations (both up front when interviewing new employees and during regular evaluations after they join the firm), and how Mary created processes and workflows in her firm’s CRM that create accountability for employees while allowing for the flexibility benefits remote work can offer (without her having to micromanage them).

We also talk about how Mary’s firm operates a time- and location-hybrid model that has client-facing team members spend more time in the office while allowing the firm to tap into talent nationwide for back-office employees, how Mary’s firm concentrates in-person client meetings into two months during the year (allowing for greater location flexibility for virtual meetings during the rest of the year), and how Mary’s firm encourages employees to completely check out from work when on PTO (both to allow them to relax and recharge as well as to ensure that clients feel like they’re getting the firm’s full attention when they reach out).

And be certain to listen to the end, where Mary shares the importance of knowledge-sharing in a hybrid or virtual work environment (which highlights the value of accurate record-keeping in the firm’s CRM system), why Mary and her firm seek “work-life integration” rather than “work-life balance” (emphasizing the importance of being 100% focused on the task at hand, whether it’s work or time with family), and how Mary has ultimately found success by leaning into her unique strengths and applying them in roles throughout her firm.

So, whether you’re interested in learning about leadership best practices for hybrid and virtual teams, why “clarity is kindness” when it comes to communicating expectations, or fostering an environment of “work-life integration”, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Mary Chapman.

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Welcome to the June 2026 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 Altruist is planning to launch a corporate RIA for advisors who want some level of compliance and technology support while remaining functionally independent – which is a first for a major RIA custodian that isn't in the business of actually being an RIA, but may make sense given that the economics of RIA custody are so favorable compared to technology and services that the corporate RIA doesn't actually have to be that profitable as long as it can draw a significant amount of advisors (and their client assets) onto Altruist's custody platform?

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

• Flourish has debuted a platform where advisory clients can compare and obtain mortgages – and by eliminating some layers of costs, is actually able to offer better interest rates than can normally be found on the retail market, creating an opportunity for advisors to add tangible value for clients in a planning area they don't often focus on
• TaxStatus has announced a new embedded tax planning function, powered Advice.ai, which generates planning recommendations based on the client's tax data piped directly from the IRS – marking one of TaxStatus's first ventures into forward-looking planning (ironically at the same time as many similar features are rising up to compete with the longtime market leader Holistiplan)
• RISR, which makes software for advisors who work with business owner clients to help them grow and protect the value of their business, has released a new AI document analysis tool to expedite review of business tax forms and buy-sell agreements – showing how the use cases for AI document analysis are starting to trickle down from broad-based applications like review of personal tax returns and investment statements into more niche client types

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

• A new survey of high-net-worth investors suggests that although clients feel neutral to positive about whether or not their advisors use AI in general, they are more wary about specific use cases that get in the way of the client-advisor relationship (such as AI-generated recommendations and client communication), and strongly disapprove of advisors not disclosing their use of AI
• Despite many claims that expanded access to inexpensive 'vibe coding' tools will collapse the AdvisorTech landscape as advisors drop their software subscriptions in favor of custom homemade solutions, the reality is that the number of technology options is increasing even faster than before – because in reality, advisors don't want to build their own software, but the lower bar to building and developing technology means that a greater number of narrower-purpose point solutions are starting to emerge, solving problems for advisors that previously didn't have a large enough market to support a dedicated tech solution

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.

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Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that amidst reports that Charles Schwab is moving to boost its provision of advisory services to wealthier clients (potentially putting them in competition with RIAs that seek similar clients and use Schwab as their custodian and as a referral source), the firm indicated it doesn't anticipate coming into direct competition with the RIAs it serves often. That assurance might be cold comfort, though, to RIAs who might see Schwab's push as heightening the competitive landscape, perhaps leading some to look for a new custodian that doesn't have its own wealth management division and/or seeking to further differentiate themselves in the eyes of their ideal target clients.

Also in industry news this week:

• A survey identifies several factors driving differences in RIA employee compensation (and how much each contributes), including geographic region, years of experience, and business development responsibilities
• Data from Fidelity showed a 41% increase in the number of Roth conversions being made by investors on its platform during the first quarter (perhaps spurred on by the market decline that occurred in March)

From there, we have several articles on tax planning:

• How advisors can work with clients to assess the role of private company equity in their compensation package and proactively make decisions on how to handle it (which could ultimately result in significant tax savings)
• Key planning moves for when a client experiences a liquidity event, from allocating newly freed-up cash to planning for a potentially larger tax bill
• While putting early-stage growth company stock in a Roth IRA might seem like an attractive option, advisors can play a valuable role in ensuring clients don't run afoul of "Prohibited Transaction" rules

We also have a number of articles on cash flow planning:

• Different ways parents can support their children facing increasing housing costs, from contributing a down payment 'match' to making an intra-family loan
• Why the decisions of whether and how to support adult child's housing costs goes beyond financial considerations to include family dynamics and the child's sense of independence
• Five tax-friendly strategies parents could consider when helping a child buy a home

We wrap up with three final articles, all about writing:

• What one author learned from writing 500 blog posts, with the importance of consistency topping the list
• Six tips for becoming a better writer, including the benefits of reading extensively and the importance of clarity
• How financial advisors can leverage their day-to-day experiences (and the common questions clients ask) to produce valuable written content

Enjoy the 'light' reading!

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In modern financial planning, there is an increased emphasis on engaging both partners in a client couple; reasons for this range from better understanding the household’s goals, ensuring everyone is heard equitably, and retaining one partner in the event of a disaster. Yet the reality for many couples is that financial decision-making, like many aspects of household management, naturally evolves into a division of labor based on interest, temperament, and strengths. And in some cases, forcing equal participation may actually create unnecessary friction rather than deeper engagement!

In this 191st episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss how to engage both partners of the relationship – and if it is necessary at all on a regular basis. As a starting point, the term "disengaged spouse" itself carries an implicit judgment – suggesting that one partner’s lack of enthusiasm for financial planning is a problem to be solved rather than a preference to be respected. In practice, many so-called disengaged spouses are not irresponsible or uninformed; they are simply disinterested in the mechanics of financial planning and comfortable delegating that responsibility to their partner and planner. Just as couples commonly divide responsibilities around parenting, home maintenance, or career management, financial oversight may simply be another area where one partner takes the lead. And while advisors often interpret limited meeting participation as a risk factor, some clients may feel relieved when they are not pressured to attend recurring planning meetings that they find tedious, stressful, or inconsistent with how they naturally process information.

At the same time, recognizing a spouse’s disinterest does not eliminate the need for inclusion altogether. Effective planning still requires understanding both partners’ values, priorities, fears, and goals – especially during the initial planning process when foundational decisions are being made. The distinction is that involvement does not necessarily require identical participation styles. Rather than insisting every spouse attend every review meeting, advisors may instead look for more flexible and personalized ways to help each person feel heard and understood. For some clients, this may involve periodic vision-oriented conversations rather than technical review meetings. For others, it may mean informal check-in calls, written reflections, or even voice memos shared before a meeting. The goal is not mandatory attendance, but meaningful input.

Two conditions become especially important when one partner intentionally delegates financial responsibilities to the other. First, the disinterested spouse must genuinely feel heard and understood. Advisors and the more financially engaged partner need to actively create space for that person to express concerns, priorities, and preferences in whatever format is most comfortable. Even if they are not participating in every meeting, they still need confidence that their perspective is represented in the planning process. Second, the disinterested spouse must also accept responsibility for the delegation itself. If they choose not to participate deeply in ongoing decisions, they must still support the outcomes collectively rather than distancing themselves from decisions after the fact. Delegation can work effectively, but only when paired with trust, communication, and shared ownership of the results.

Ultimately, the most effective planning relationships may come not from forcing identical engagement, but from recognizing the diverse ways couples collaborate, communicate, and delegate — and adapting the planning process to support clients where they are most comfortable and best able to thrive.

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The typical estate planning process entails inviting clients to decide what will happen to their wealth when they are no longer alive (i.e., "who inherits what"), and the selection of individuals who can make financial and health care decisions on their behalf in the event they are incapacitated (whether due to accident or disability or dementia in their elder years). For most clients, these decisions are relatively straightforward: their primary heirs are their children and grandchildren, who can also step in as their medical and financial attorneys-in-fact in the event of incapacitation and serve as executors and trustees after the client passes away. Yet the reality is that nearly 25% of the adult population is "Childfree" – whether by choice or by circumstance – and for those clients, the traditional estate planning process breaks down the moment they realize that there are no children (or other immediate family members) to be named as executor, attorney-in-fact, or trustee.

In this guest post, Dr. Jay Zigmont, founder of Childfree Wealth and Childfree Trust, explores how the unique circumstances of Childfree clients turn traditional estate (and long-term care) planning upside down, to the point that relying on traditional estate documents and their standard provisions can actually cause outright harm to the Childfree client's planning goals.

The starting point is to recognize that for Childfree clients who don't have children, 'just' coming up with someone to serve as attorney-in-fact, executor, and/or trustee, can be a remarkably difficult decision. In the event of having no "obvious" choices in their immediate family, many will defer planning altogether, resulting in a stalled estate plan. In other cases, they may choose a more distant relative, not recognizing the problematic conflicts of interest that arise when their financial and medical decision-maker is also the one who will inherit all the dollars not used (and therefore have a direct incentive to minimize how much of the individual's own money is spent on their care, increasing the risk of elder financial abuse).

In addition, because the focus of estate planning for Childfree clients is disproportionately focused on enjoying and utilizing their money while they are still alive (as there are no children to prioritize for an inheritance), traditional estate planning clauses like limiting distributions for HEMS (Health, Education, Maintenance, and Support) are unnecessarily limiting to trustees of Childfree clients' trusts. Instead, "Exhaustion for Care" provisions (that explicitly grant permission to the trustee to use most or all of the trust funds for the grantor's care while still alive) become crucial to ensure trustees really can  safely use the Childfree clients' funds for their needs. And long-term care insurance also becomes a more integral part of the plan, when there are no children (or often any other immediate family members) to provide care.

Fortunately, though, there are a growing range of options for Childfree clients to find proxies who can serve to fulfill their key roles (without putting advisors themselves into the awkward position of serving as trustee and making end-of-life decisions about their own clients). Some states like California and Arizona have state-licensed fiduciaries. Many advisors have local bank and trust companies that are willing to serve (albeit not always for the unique pet, exhaustion-for-care, and other circumstances of Childfree clients). And Zigmont himself created a service called "Childfree Trust" to help solve for the gap for Childfree clients in states that don't have effective local solutions.

Ultimately, the key point is to recognize that the traditional estate planning approach just doesn't work for Childfree clients. Not simply because they don't necessarily have children as immediate heirs that they wish to preserve for and pass on assets to, but because the lack of children often means a lack of caretakers (in the event of long-term care needs), and potentially paralyzing uncertainty about who to name into key attorney-in-fact, executor, and trustee roles, while traditional estate planning documents include terms that can outright limit trustees from fully utilizing a Childfree client's assets for their actual care. As a result, planning for Childfree clients requires a more tailored approach to the unique challenges and goals when serving such clientele.

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Welcome everyone! Welcome to the 491st episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Patrick Lonergan. Patrick is the founder of Vital Wealth, an RIA based in Clinton, Iowa, that generates $2.5 million in annual advisory fee revenue for approximately 100 client households.

What's unique about Patrick, though, is how his firm is able to charge its business-owner clients annual consulting fees north of $70,000 by offering tax planning strategies that frequently save them hundreds of thousands of dollars.

In this episode, we talk in-depth about how Patrick is able to offer his clients significant hard-dollar tax savings by first taking advantage of what he calls "level one" administrative and bookkeeping opportunities (such as maximizing the QBI deduction or choosing an optimal business structure), how Patrick then moves on to "level two" opportunities where some investment is required on the part of the client (for example, creating and contributing to defined-contribution and defined-benefit retirement savings plans), and how Patrick also considers "level three" strategies that combine sections of the tax code to create tax efficiencies (for instance, by compliantly setting up a micro-captive insurance company).

We also talk about how the tax savings strategies Patrick puts to use are particularly valuable for entrepreneurs who can reinvest in their business (potentially generating profits that exceed any deferred tax burden), how Patrick assesses tax planning opportunities with an eye towards cash flow management for his clients to ensure both their personal and business spending needs are still being met, and how Patrick’s clients have become prolific sources of referrals given their ability to easily explain the hard-dollar value his firm offers to fellow entrepreneurs.

And be certain to listen to the end, where Patrick shares how he transitioned from being an entrepreneur himself in the real estate business to entering the financial advice industry in the insurance channel to eventually going independent and starting his own RIA, how Patrick has handled transitioning legacy clients who live in his small town but who aren’t good fits for his current service offering, and how Patrick has found that persistence and "showing up" every day, even during tough times, has contributed to his success as a business owner.

So, whether you’re interested in learning about a tax-savings framework for entrepreneur clients, charging a premium fee in return for offering significant hard-dollar tax savings opportunities, or the value of cash flow management for entrepreneur clients, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Patrick Lonergan.

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For many advisory firm owners, deciding how much time to take away from work is largely a personal choice shaped by client needs, business demands, and personal priorities. But once a firm hires employees with their own need to step away from time to time, Paid Time Off (PTO) becomes much more than an individual preference: it evolves into a key part of firm culture, team wellbeing, operational resilience, and talent retention. As our own Kitces Research on Advisory Wellbeing consistently shows, autonomy over time and work-life balance are among the strongest drivers of professional satisfaction, even for highly compensated advisors. Because while compensation matters, there is a point where additional income delivers diminishing returns relative to the ability to enjoy more flexibility and personal time. On the other hand, firms that fail to create sustainable workloads and meaningful opportunities for rest may ultimately face lower morale, reduced productivity, and higher turnover costs than firms that proactively support employee time away from work. And so a well-designed PTO policy is ultimately an investment in employee wellbeing, productivity, and long-term sustainability.

The starting point of an effective PTO policy is a consistent structure. Advisory firms generally structure PTO using one of three approaches: separate leave, single-bank, or unlimited PTO. Traditional separate leave systems divide vacation and sick days into distinct categories (e.g., 15 vacation days and 5 sick days). Single-bank PTO combines all paid leave into one flexible bucket, allowing employees to allocate time according to their own needs. By contrast, unlimited PTO policies put no putative restrictions on the amount of time off available for any purpose – which while theoretically offering maximum flexibility for employees and reducing the administrative burden of tracking PTO accrual, often ends up resulting in employees taking less time off than under traditional plans due to the social stigma of taking the 'most' time off. To that end, although every system has its administrative benefits and burdens, the success of a firm's PTO policy depends less on the number of nominal days off it offers and more on whether employees can realistically use them without damaging their own career growth or creating more operational strain for themselves or their teammates.

Small advisory firms often struggle most with this challenge because employees typically wear multiple hats, and there may be little redundancy across roles. Research shows that advisors in very small teams frequently report greater difficulty taking time off than solo advisors or members of larger firms because there are too few people available to provide meaningful coverage. Which suggests that effectively implementing a PTO policy requires firms to build operational redundancy through cross-training, clear documentation of responsibilities, and managing each team member's workload to accommodate for the possibility of backing up other employees' work. Teams may also need to clarify which operational tasks must continue during absences (e.g., trading and rebalancing and handling client questions and requests) and ensure that more than one person understands each essential workflow to ensure that the firm can stay running smoothly during any team member's time off. All of which can help make sure that employees feel comfortable using the PTO they have available (and actually being fully 'off' from work while on PTO) without worrying about falling behind or burdening coworkers with extra work.

To enact this in real time, firms may choose to put together a piecemeal cross-training plan, training employees on different processes on a weekly or monthly cadence to ensure everyone remains up-to-date on the work they might be expected to cover. From there, every period of PTO becomes an opportunity to ensure that everyone fully understands each other's work – and as the team iterates and builds confidence in covering each others' roles, taking time off can become easier and easier over time. And for certain tasks requiring more specialization, advisory firms may also consider bringing in fractional help to ensure they can genuinely disconnect.

Ultimately, firms that encourage employees to take meaningful breaks, establish realistic workload expectations, and invest in cross-training and redundancy are better positioned to maintain both employee wellbeing and a consistent quality of client service. And importantly, firm owners must model these behaviors themselves. Advisors who encourage employees to take time off while never disconnecting themselves may unintentionally signal that true rest is incompatible with professional success. But when advisory firms thoughtfully design PTO systems that balance flexibility, accountability, and operational resilience – for both leaders and employees – they create healthier teams, stronger firm cultures, and ultimately more sustainable businesses that better serve both employees and clients alike!

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Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that a recent survey finds that while investors are largely accepting of financial advisors' use of Artificial Intelligence (AI) technology in their practices, they want to know how their advisor is using it, as their comfort varies significantly based on how it's used (with clients being significantly more accepting of their advisor using AI for administrative tasks or educational content but much less so for investment recommendations or automated responses to texts or emails). Which suggests that advisors can build trust with their clients (a factor which the survey suggests human advisors appear to maintain an advantage over AI advice tools) by being open with prospects and clients not just concerning whether they're incorporating AI tools into their practices, but also the specific functions they're used for (and how client data might be impacted).

Also in industry news this week:

• Single Americans are largely financially confident, according to a recent survey, but appear to have planning gaps when it comes to insurance coverages and estate planning documents that are particularly important for unmarried individuals
• Donors appear to have primarily altruistic motivations for their giving and want to get into the details of how their gifts are being used, according to a recent survey, suggesting that advisors could provide a deeper level of support for charitably minded clients by going beyond the tax implications of different giving methods and helping clients maximize the impact of the gifts they make

From there, we have several articles on retirement planning:

• How knowing whether a client worries more about outliving their assets or about underspending in retirement can help advisors match them with an appropriate income generation strategy
• How uncovering values and goals can encourage hesitant retired clients who can afford to spend more on what's most important to them
• Why uncertain "healthspans" mean that some clients might treat retirement more as a sprint rather than as a marathon (and prefer to front-load their spending)

We also have a number of articles on practice management:

• How financial advisory firms can create cash compensation structures that scale as the firm grows
• Why incentive compensation structures sometimes come with unintended consequences that could reduce trust between a firm and its employees
• Four features that make up successful advisory firm compensation plans, from creating opportunities for advancement to offering benefits that match employees' needs

We wrap up with three final articles, all about AI and the future of work:

• How advisors can respond effectively when a client consults an AI chatbot with financial planning questions (and brings the output to their next meeting)
• Why AI might not lead to a job 'apocalypse', and how those working in human-centric fields could thrive into the future
• While AI tools have made it easier than ever to discover information, the reduced friction involved in learning and training could ultimately prove detrimental to individuals' expertise (and job security) as well as organizations' institutional knowledge

Enjoy the 'light' reading!

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An important (albeit time-consuming) part of running an RIA is fulfilling the compliance obligations required by the firm's regulator(s). Currently, firms with at least $100M of regulatory Assets Under Management (AUM) or that would be required to register with at least 15 states typically must register with and be overseen by the Securities and Exchange Commission (SEC), while other (smaller) firms are regulated by their home state, plus in most cases any additional state(s) in which they have at least 5 clients. However, the proportion of RIAs meeting the threshold for SEC registration has steadily increased over the years, owing to both the overall growth of the RIA model, and the development of technology allowing RIAs to scale up faster (even as they remain relatively "small" businesses, with even most SEC-registered RIAs employing only a handful of team members and managing 'just' a few hundred million in assets, both of which pale in comparison to the small number of mega-RIAs and asset managers that dominate most of the industry's AUM).

Amid this backdrop, the SEC is considering a pair of changes that would change the regulatory landscape for many RIAs.

First, the SEC has issued a proposed amendment that would change the definition of a "small entity" RIA for purposes of the Regulatory Flexibility Act of 1980 (which is designed to prevent rules and regulations from creating an undue regulatory burden on small businesses) from $25M of AUM to $1B of AUM (while also considering using a revenue- or employee headcount-based threshold in lieu of an AUM-based threshold). A new threshold of $1B of AUM would increase the number of SEC-registered RIAs that qualify as "small entities" from just 3% today up to 75% (though those 75% would still only account for 3% of all RIA-managed assets given the concentration of assets in a few mega-firms!). And so if the proposed amendment is adopted (as appears likely, given fairly broad support expressed during the proposal's comment period), the pace of SEC rulemaking would likely slow down as it would have to more carefully consider and weigh the potential impact of proposed new rules on a drastically increased number of "small entities" it oversees – likely providing a level of future regulatory relief for relatively smaller RIAs who don't have the revenue to support hiring dedicated compliance staff to handle increased regulatory obligations.

A separate (and not yet officially proposed) change that was nevertheless hinted at by Acting SEC Commissioner Mark Uyeda in public comments last year would also increase the regulatory AUM threshold for firms to register with the SEC from the current $100M to perhaps $1B, which would have the result of shifting thousands of currently SEC-registered firms (back) to state registration (likely with many firms needing to register in multiple states given the broader geographic distribution of clients for most firms, especially in the post-COVID virtual-meeting era). While such a change would reduce the number of RIAs under SEC oversight (potentially allowing it to focus on the largest RIAs representing the greatest systemic risk for consumers, and better aligning the number of firms the SEC must oversee with its Congressionally-limited budget), it could also significantly increase the compliance burden on many RIAs that would be forced to grapple with the complexity of multi-state registration, particularly when those states' laws and regulations don't fully line up with each other. Which could cause larger state-registered firms to flock to affiliate with SEC-registered corporate RIA platforms that could take certain compliance obligations off of their plates (or simply render them eligible for Federal rather than state registration), opting to sacrifice some of their independence to remain SEC-registered rather than struggle with increased compliance burdens under state registration.

Ultimately, the key point is that in the 15+ years since the SEC last updated its registration threshold (and nearly 30 years since the "small entity" threshold's last update), there have been enough changes in the RIA landscape – both in terms of average firm size and the number of states in which firms do business in the virtual meeting and niche client marketing era – that it makes sense to rethink how to divide between state and SEC registration. Because ironically, while most RIAs truly are "small" businesses that in aggregate comprise only a small fraction of industry AUM, it's perhaps those firms (with less capacity for handling compliance burdens) that would benefit most from following a single uniform SEC standard rather than a maze of often-conflicting state-level regulations, as well as from slower pace of rulemaking that would likely result from the proposed higher "small entity" AUM threshold. So if the SEC does eventually end up raising its registration threshold, we may expect to see a bigger push for states to further standardize their securities regulations to reduce the compliance burden on state-registered firms – or else see a flood of small- and mid-sized advisory firms affiliate with corporate RIAs to avoid state-level regulation altogether!

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Welcome everyone! Welcome to the 490th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Liz Miller. Liz is the founder of Summit Place Financial Advisors, an RIA based in Summit, New Jersey, that oversees approximately $300 million in assets under management for 37 client families.

What's unique about Liz, though, is how she has grown her firm in part by both offering a high-touch service model for her high-net-worth clients and by serving their children and grandchildren, creating continuity for the firm as family wealth passes between generations.

In this episode, we talk in-depth about how Liz attracts her high-net-worth clients not necessarily through traditional financial planning analyses (as most of them run little risk of running out of money) but rather by ensuring that no key planning issues fall through the cracks (saving the clients time and anxiety in the process), how Liz uses checklists to show clients that her firm is on top of key planning issues and to highlight topics that have been successfully completed, and why Liz starts her discovery meetings by allowing prospects to lay out any financial concerns that are on their mind (as they might not be able to focus as well on other topics if particular pain points are bothering them).

We also talk about how Liz brings up multigenerational planning conversations starting in the prospect phase (allowing clients to decide whether they want to bring their children into the fold or have her firm reach out), how Liz balances the benefits of intra-family communication about financial issues with the privacy obligations her firm has regarding each generation’s financial situations, and how Liz cultivates relationships with the next generation at different ages (for instance, helping individuals in their 20s get off on the right foot with saving and workplace benefits or supporting those in their 30s managing financial issues related to their children), building client relationships that typically persist after they eventually inherit their parents’ wealth.

And be certain to listen to the end, where Liz shares how investing her high-net-worth clients’ assets in individual securities allows her to offer tax and expense savings compared to a fund-based approach, why Liz expects clients to continue to seek out human advisors in a world of growing AI capabilities given human advisors’ ability to physically ‘be there’ for clients facing complex planning issues that require communication with multiple professionals, and how Liz has found significant benefits from participating in professional organizations (including serving as chair of CFP Board), both in terms of building a strong professional network and to help advance the financial planning industry as a whole.

So, whether you’re interested in learning about providing more effective multigenerational services, building the trust of high-net-worth prospects and clients by not letting tasks slip through the cracks, or the benefits of participating in financial planning organizations, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Liz Miller.

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When a financial advisory client makes a referral to their advisor, all parties can benefit: the referrer is able to connect a friend or family member with a high-quality financial advisor, the referred individual receives a valuable personal recommendation to a professional who could have a major impact on their life, and the advisor receives an introduction to an individual who could become a long-time client (and refer others as well!). However, some advisors are hesitant to actively solicit client referrals for fear of potential awkwardness or even hurting a relationship with a client.

In this guest post, relationship marketing expert Bill Cates discusses how financial advisors can get more 'unsolicited' referrals from clients (though this process is by no means 'passive') and increase the chances that those who are referred would make good-fit clients.

To start, clients tend to make more referrals when they feel strongly about the value they're receiving from their advisors. Notably, there are opportunities to learn from both prospects and clients about what part of the advisor's value proposition sticks out to them. For instance, an advisor might ask a new client what 'tipped the scales' in their decision to move forward or ask an existing client during a review meeting what they like about their working relationship with the advisor.

In addition, clients are more likely to become advocates for their advisors when they experience a transformation as a result of financial planning. For instance, through cash flow management, an advisor might be able to show their client that they can do and have things they previously thought weren't possible.

Further, advisors can be proactive in educating clients to increase the chances of receiving good-fit referrals. For instance, letting clients know who the advisor serves best or for whom the advisor's processes are best suited can lead to better-fit matches (also, having a client niche and/or ideal client persona can make it even clearer to clients who the advisor serves best).

While an advisor might be hesitant to directly ask for a referral they can still plant referral 'seeds' in a less direct manner. For example, they might encourage clients to "share the experience" or (particularly if the advisor has a sense of humor) tell a client "don't keep me a secret". Also, to relieve potential concerns clients might have about making a referral, the advisor could assure clients that they will handle their (and the referred individual's) information confidentially and that referrals work best with a warm introduction (e.g., an email "handshake" from the client connecting the referred individual with the advisor and letting each party know a little more about the other).

Ultimately, the key point is that because client referrals can be a powerful source of organic growth for advisory firms, taking the time to discuss the value clients are receiving, finding opportunities for client 'transformations', and educating current clients on the types of individuals the advisor serves best can be worthwhile investments that result in more high-quality introductions (while reducing potential awkwardness in the process!).

65 percent of high-net-worth clients prefer to meet their advisor via referral. Without a reliable process to generate those referrals that turn into connections, advisors could be missing out on qualified prospects. However, many advisors are hesitant to ask for referrals, instead hoping current clients refer their connections unsolicited. The question becomes, how can advisors increase the chances of receiving unsolicited referrals?

Unsolicited referrals happen because an advisor has become super referable. The client experience and the client-advisor relationship has to become remarkable, i.e., worthy of remark.

Unsolicited referrals that turn into introductions and connections happen because of the advisor : how they intentionally build advocacy based on the principle of borrowed trust. (You borrow the trust in one relationship long enough to earn your own. You ' repay ' that borrowed trust by taking great care of your new relationship.)

Some advisors have intentional processes that lead to referrals without asking. Too many advisors wing it when it comes to referrals. I'm here to tell you that wishing and hoping is not a plan.

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