Growing Your Financial Advisory Practice | Insights for Financial Advisors, Planners and Investment Managers

When it comes to building a successful wealth advisory business, most advisors have the planning and one-on-one relationship side down pat. But what they’re often missing is the business know-how and the ability to systematically build a great client experience. Today’s guest has not only done this as a successful advisor himself; he’s also dedicated his career to helping other advisors build better businesses.

Chris Reynolds is the Co-Founder, President, and CEO of Investment Planning Counsel. With over 25 years of experience in the business, he uses his knowledge and skills to work one-on-one time with advisors, helping them improve their businesses. Under his leadership, IPC has become one of the fastest-growing wealth management companies in Canada.

Listen to today’s episode to learn from Chris about what advisors can learn from Disney, simple steps that can make a big difference in your business growth, and new opportunities in the sudden money segment.

What You’ll Learn in This Episode:

Links and Resources:

Chris Reynolds

Investment Planning Counsel

Quotes by Chris:

“Well, my personal view is wealth management and financial planning is one of the most critical services that can be provided to consumers.”

“What makes a business great is the experience a client has with that business.”

“You’re supposed to give great advice to clients, but if you can combine that great advice with a great experience, that’s what puts you ahead of everyone else.”

Chris has spent a lot of time figuring out how Canada’s best financial advisors ‒ and indeed, the world’s top companies ‒ set themselves apart. At IPC, he has developed systematized processes to help advisors grow their business by creating an unbeatable client experience.

Below, we’re sharing three key ideas from the show:

For the rest of the episode, find the podcast on iTunes or Stitcher, or hit the link above.

It can be hard to decide where to put your focus to grow your business, but there are always a few key moves you can make that will create the biggest impact. Chris has four easy tips you can implement to create a great client experience right from the beginning of the relationship.

It’s common sense that consumers will have some questions for you before trusting you with their money ‒ things like your qualifications, how you get paid, and how your team works.

One of the best ways you can differentiate yourself is by addressing their questions and concerns before they even have to ask. Transparency and openness are key to forming a trusting relationship.

Hint: Check out this episode with John Page to learn more about maximizing conversions during your first meeting with a client.

Advisors can spend too much time talking and giving advice ‒ and not enough time listening. An in-depth questionnaire can help you avoid this pitfall by really getting the client talking.

A great questionnaire goes beyond just a prospect’s risk tolerance and net worth ‒ it gets at what Chris calls “return on life” ‒ the hopes they have for their children, where they want to retire, and what they admire (or want to avoid) in the lives of retired folks they know.

To show you were paying attention and really demonstrate your value to a client, Chris suggests sending them a discovery letter. Here you can articulate back to them what they said their needs are and show them how you can help address them.

Before you get in too deep with a client, make sure that your wealth management philosophy aligns with theirs. If you believe in long-term asset allocation but your client is more interested in trying to beat the market, the relationship won’t be a good fit no matter how hard you work.

To ensure your philosophies are aligned though, you need to be very clear and specific (both for yourself and to your client) on what your philosophy is.

One of IPC’s most successful advisors had fairly static growth for a period of time; then, seemingly out of nowhere, his business growth was in the double digits ‒ and stayed that way over a period of five years.

When Chris asked him what he was doing differently, he said, “I’m actually talking to my clients.”

Every week, he randomly calls four clients just to see how they’re doing and if there’s anything they need help with. The call is unscheduled and with no agenda other than to check in.

The first year he started doing this, business went up by 33%, showing that personal contact really trumps everything else.

He’s even gamified the process for himself: if he gets all four calls in by Thursday, he gets to take Friday off.

Hint: You might think a lot about motivating your clients to manage their cash flow and to be patient with their investments, but how can you motivate yourself to grow your business? For some ideas of concrete goals to drive your business, listen to our episode about the major drivers of advisors’ business growth with Chris Paterson.

If he were starting his financial advising business today, Chris knows exactly which segment he would go after: the sudden money crowd.

In Canada alone, $1.4 trillion of wealth is predicted to move from one generation to another in the next 15 years. That’s a lot of money changing hands.

But it’s not just inheritances ‒ people who spend their lives building a company and then liquidate or sell it often have a windfall they didn’t expect (farms are a great example).

Individuals in both of these groups often have no idea how to allocate that money to meet their needs going forward. They need comprehensive advice and guidance, as well as a methodology to maintain communication and progress on a regular basis. No matter the advances in fintech, these things can’t be replicated by a robot ‒ and the client base in this segment is rapidly growing.

For more advice from Chris, don’t miss the full episode where he talks about how IPC is helping their advisors create a better digital experience for their clients, why you should avoid making your value proposition about the best returns or the lowest fees, and more.

Listen to the show right here on this page or subscribe on iTunes or Stitcher ‒ and don’t forget to sign up for our mailing list below to get a message every time a new episode goes live.

An effective financial advisor does more than help their clients prepare for their own futures: they also help them allocate their assets in accordance with their values. Today’s guest is here to share how he helps his clients live by their values, from setting their goals to planning their estates.

Sterling Rempel has more than 30 years of experience in the financial services industry. Twenty years ago, he founded his own independent financial planning firm, Future Values Estate & Financial Planning, where he serves as the principal advisor.

Sterling is a Certified Financial Planner, holds the distinction “Fellow of FPSC” and is a two-time finalist in the PlanPlus Canada Financial Planning Awards. Listen to the episode to hear what he has to say about estate planning practices, the importance of education for bringing in new clients, and more.

What You’ll Learn in This Episode:

Links and Resources:

Sterling Rempel

Future Values

Quotes by Sterling:

“Estate planning is more than the tax and the charitable giving; it is how to transition that wealth to the next generation most effectively.”

“I find that clients aren’t as hung up on the nature of the compensation, more so they just want to understand it.”

“We as an industry have to do a better job of identifying that financial planning is a valid exercise no matter what a person’s financial net worth statement says.”

Celebrating 20 years as an independent financial advisor this year, Sterling Rempel jokes that he thinks he “might survive in this industry at this point.” Far more than surviving, he’s built a successful business doing what he loves and helping people feel confident in their financial future and the legacy they’ll leave behind.

Below, we’re sharing three key ideas from Sterling:

For the rest of the episode, find the podcast on iTunes or Stitcher, or click the link above.

Sterling has always been a believer in the importance of values ‒ the name of his company is a nod not only to the financial concept of future values, but also to the critical role a person’s values play in financial planning.

So when he’s working with a client, that’s where he begins. He leads them through a values exercise from Think2Perform, which gets them to narrow a list of about 50 values down to 5. This (often challenging) exercise gives him insight into who they are and what drives them.

Next, he learns about his clients' goals ‒ and, often, helps them uncover goals they didn’t realize they had. He uses a goals-based exercise where he has his clients fit different activities into one of four quadrants: things they want to do now, things they want to do later, things they feel they have to do now, and things they feel they have to do later.

These activities help crystalize ‒ both for Sterling and for the clients themselves ‒ what motivates them and what they’re working toward.

Hint: For more on helping clients manage their finances in alignment with their values, listen to our episode with David O’Leary.

When thinking about their financial future, there are three questions people tend to ask:

But they can’t get to the second and third question until they’ve confidently answered the first ‒ so you need to determine their core capital needs and whether they’re meeting them. Then they can look at being generous with their family and friends.

One easy way to start the process is by looking at the client’s past tax returns ‒ what kinds of charitable donations have they made already? That gives a start for identifying what causes are important to them. Beyond that, it’s critical to probe the client to help them decide where they want their money to go when they’re gone.

Identifying how one wants to give back is just as personal as the values and goals exercises discussed above. “That charitable giving conversation arises out of the most important part of people’s hearts,” Sterling says. “What is it that they care about? What is it that they love?”

Giving responsibly

Once a client has identified who or what they want to leave their money to, your job is to help them do it in a way that makes sense.

One key aspect of this, of course, is identifying tax liability and addressing strategies to mitigate it. But it goes beyond that, too. “Estate planning is more than the tax and the charitable giving; it is how to transition that wealth to the next generation most effectively,” Sterling explains.

For instance, in Sterling’s experience, leaving a 16-year-old a large sum of money can actually do more harm than good because someone that young just isn’t ready to manage a lot of wealth ‒ looking into a trusteeship or annuity opportunities is usually a good idea in these cases.

Sterling’s decision to transition from the MFDA platform to the IIROC individual securities platform is a bit of an unusual one. However, he felt it made sense for his business for the following three reasons:

The move, though, wasn’t as smooth as he’d hoped. For one thing, he was dealing with a health crisis through the summer, and that made things a lot more difficult.

But for another, he had underestimated how much time the transition would take him ‒ the onboarding and paperwork ended up being full-time work for him and his three staff. As a result, he had a lot less time to attend to his insurance clients.

He says he wishes he had known the extent of the impact in terms of time and income in advance ‒ but all that said, he’s glad he made the transition.

To hear more from Sterling, including more of his thoughts on estate planning, the importance of your business name for succession planning, and his “fee-agnostic” approach to pricing, catch the full episode here on this page. You can also subscribe to the show on iTunes or Stitcher and sign up for our mailing list below to ensure you never miss an episode.

Growing your advisory practice is certainly challenging, but there are some clear differences that separate out the most successful advisors from everyone else. Today’s guest is an expert in how advisors  rise to the top, as he spends his time developing tools, resources, and training for advisors, focusing on client relationships.

Chris Paterson is the National Director of Sales Development for Ivari. He’s worked in the industry since 1995 and has many years of experience working in advisor support roles. He worked with one of North America’s largest financial services organizations where he led a multi-channel national wholesaling team of 30 specialists that doubled the number of advisors selling living benefits insurance from 7,000 to 14,000 over two years.

He’s also been an advisor, consulted in the private wealth management industry, and has been an advanced case consultant for high-end financial professionals. Listen to the episode to hear Chris’ thoughts about what separates the most successful advisors from the rest, whether you should implement financial planning into your service offerings, and how to best market yourself online.

What You’ll Learn in This Episode:

Links and Resources:

Chris Paterson

Ivari

Quotes by Chris:

“It seems all too often that many advisors, when you ask them what their business plan is… they say ‘I want to grow by 10%.’ And that’s barely a goal, and it certainly isn’t a plan.”

“People can’t expect that there’s a magical potion called the internet that then people are going to come on and ask to buy product from... It’s just a destination ‒ they have to help people get there and then interact with them.”

“What is your changing lives forever number? What is the impact you have for your clients in your community?”

With a proven track record of helping advisors grow their businesses, Chris Paterson can help you grow your practice with simple, actionable advice. Today, he’s sharing the importance of a solid business plan, how you can leverage technology to grow your business, and more.

Below, we’re sharing three key ideas from the show:

For the rest of the episode, find the podcast on iTunes or Stitcher, or hit the link above.

Many business owners in Canada don’t even have a business plan. In fact, Chris was surprised to find that advisors who are really good at helping their clients plan are often not great at doing it for themselves. But without a specific goal and a plan to go with it, it’s hard to sustainably and successfully grow a business.

“It seems all too often that many advisors, when you ask them what their business plan is or what their goal is... they say ‘I want to grow by 10%,’” Chris says. “And that’s barely a goal, and it certainly isn’t a plan.”

Top advisors aren’t satisfied with 10% growth; inflation, rising rates, and the occasional referral will get you to about 10% growth without any unique ideas or additional effort.

Instead, the best advisors have goals like aiming to double their business within a couple of years. They ask themselves, “How do I change what I’m doing and focus more on what my unique abilities are to get in front of more of the people that I naturally connect with best?”

Hint: A mere dollar figure may not keep you motivated for long, so consider translating it into something real. For example, maybe that extra revenue that you’re aiming for will allow you to hire an assistant so you can get in front of more clients or spend more time with family. Maybe it means a down payment on a new property. Either way, try to visualize what achieving that goal will bring you.

Next, you need to have an actual plan for achieving your goal. This usually means breaking those big dreams down into action items and targets ‒ what do you actually need to do every month, every week, and every day to get in front of more potential clients?

Finally, you need to actually follow through and complete the goal you’ve set out for yourself. You might think about working with a business coach, a mentor, or an accountability group of other advisors. The key is to maintain good habits and hit your short-term targets so you can stay on track with your goal.

In our digital world, Chris believes there are three tech table stakes for any advisor. If you’re missing any one of these, you might have some work ahead of you to catch up:

The first thing people do when they hear about you is search your name on Google, and you want to make sure they can find relevant information about who you are and how you can help them. At a minimum, this means having a website or webpage, as well as a social media presence on whatever platform your target market uses (more on that in a minute).

A CRM or something similar isn’t just a nice-to-have anymore. It’s in CCIR and CLHIA guidelines, and many dealers mandate it, too.

We could talk all day about how electronic transactions are more efficient, save money, and reduce error rates. But the bottom line is that’s what consumers expect from any service. People want customized solutions in real time ‒ and they’re getting them in just about every industry, so make sure you’re meeting their expectations.

Hint: To hear more about great tools that you can use to grow your practice and learn a simple process for deciding what’s worth bringing in, check out our show with Jason Pereira.

When it comes to marketing yourself online, it’s easy to waste a lot of money if you don’t know what you’re doing and don’t plan in advance. Fortunately, Chris has 6 simple ground rules to help you make the most of your efforts online:

Your online presence has to align with your goals. Think about who you’re trying to reach, how much time you can put into it, and how much money you’re willing to spend. Maybe hiring a social media manager is your best bet; maybe you prefer to use an app to schedule your posts in advance yourself.

There’s no point being on a social media site unless your target market is active on it, too. Find out which platforms your ideal clients use, and make sure you post content there regularly.

There are nearly 2 billion websites out there, and the chances of someone just stumbling across yours is slim. As Chris puts it, “it’s just a destination ‒ [you] have to help people get there.” Share your website on your social media profiles and let your clients know about it so people actually use it.

Just as you would follow up with prospective clients who leave you a voicemail, you have to interact with and reach out to people who show interest in you online ‒ otherwise, you’re missing a valuable opportunity to connect. If someone is commenting on or sharing your content, respond to them and follow up, maybe inviting them to jump on a call with you.

You don’t want to spend all your time on Facebook or LinkedIn, but ensure you block off a bit of time and commit to your plan. This might mean just 10 minutes a day spent posting or scheduling interesting content and interacting with whoever engaged with your previous posts.

Chris bluntly chalks this down to the “unspoken don’t-be-an-idiot-and-put-something-stupid-rule.” Luckily, most companies have compliant material that you can share on your profiles.

For more helpful advice from Chris, make sure you catch the full episode where he talks about deciding whether financial planning is for you, why over-focusing on tax savings is a mistake, and three big opportunities in the rapidly-changing industry. You can find the show right here on this page or subscribe on iTunes or Stitcher so you don’t miss any episodes.

And to get new episodes directly to your inbox, sign up for our mailing list below so you never miss an episode.

Building and managing a successful financial investment firm is easier said than done, but today’s guest has the experience and actionable tips to help you do it. Tom Bradley, president and co-founder of Steadyhand Investment Funds, joins the podcast today to tell us how his firm differentiates itself among other investment management firms by committing to radical transparency and always working in the best interest of the client.

In addition to being President and Co-founder, Tom is a director and shareholder of the firm. He holds a Bachelor of Commerce degree from the University of Manitoba and an MBA from the Richard Ivey School of Business. Prior to founding Steadyhand, Tom worked first as an equity analyst at Richardson Greenshields, then at Phillips, Hager & North as a research analyst and institutional portfolio manager. While at Phillips, Hager & North, Tom eventually became the COO and later president and CEO before resigning in 2005. All told, he has more than 30 years of experience in the investment industry. Listen to today’s episode to hear why Steadyhand’s long-term clients see their fees decrease over the years, why Steadyhand is so transparent about co-investing, and how his firm helps clients who need financial planning.

What You’ll Learn in This Episode:

Links and Resources:

Steadyhand

10 Years Wiser

Quotes by Tom:

“I really do believe that behavior – investor behavior – is the most important variable in returns.”

“As much as I was well-known in the institutional world ‒ I had more of a brand there ‒ I just felt that there was such an opportunity to make a difference.”

“I’m sure many of your listeners think it’s heresy, but the reality is, a client that’s been with us five years does not cost us as much to service, and we tell them that up front.”

An experienced, successful and well-respected voice in the financial services industry, Tom Bradley has important and unexpected tips for running your business. Today, he’s sharing his thoughts on partnering with financial planners, managing investor behaviour, and more.

Below, we’ll take you through three key ideas from the show:

For the rest of the episode, find the podcast on iTunes or Stitcher, or hit the link above.

Tom describes his firm as “obscenely transparent” ‒ and he couldn’t be prouder.

One example of this is that every year, Steadyhand publishes the rate of co-investment at their firm ‒ the average percentage of their teams’ financial assets that are invested in Steadyhand funds. As of June 2018, that number was at an astounding 88% ‒ over $30 million invested in Steadyhand portfolios by employees and their families.

Understandably, clients love knowing that their fund managers have their own money invested in the same funds as them. They know that the Steadyhand team is gaining ‒ and losing ‒ money right alongside them, which makes them confident to put their money in those funds, too.

Hint: For more on walking your talk and how that builds trust with your clients, listen to Episode 22 of our podcast where we chat with Diane Dekanic about practicing what you preach as a financial planner.

In general, Steadyhand’s pricing is fairly standard and based on a management expense ratio.

The MER is based on three things:

That last one is where it gets unconventional. Rather than offering bonuses, reduced rates, or iPads to new customers, any client who has been with Steadyhand for five years or more has their rate reduced by 7%. After 10 years, they enjoy a 14% reduction.

Why?

For one thing, Tom wants to reward loyalty. To explain the importance of this, Tom shares a story of his wife renewing his Sports Illustrated subscription ‒ he’d been a subscriber for 40 years ‒ and pointing out that she could go online and get him a lower rate as a ‘new’ subscriber.

You can imagine how surprised and unhappy he was to learn that as a longtime loyal reader, the company valued him less than brand new subscribers. He knew he never wanted his clients to feel the way he did then.

Another reason is that clients who have been with Steadyhand longer are actually easier and less expensive to serve than new clients ‒ and he’s not afraid of being honest about that. Once they know the client well, there’s the occasional life event that might warrant a portfolio restructuring, but otherwise, a lot of the hard work was already done at the outset.

If there’s one thing that Steadyhand excels at ‒ other than exceptional investor service ‒ it’s knowing their limits.

This definitely comes to bear when they decide how much advice they should give their clients. For the majority, investment advice alone is enough.

But for the rest of their clients, those who are looking for a bit more guidance with their finances, they’ve developed a Canada-wide knowledge base of fee-for-service planners that they can recommend when needed.

They like working with planners who have experience and asset sizes between $250,000 and $2 million. Their ideal partnerships are with planners who have some knowledge of investing but who want to refer their clients out for specific investment advice and management.

Steadyhand also has a CFP on staff who vets the plans of the professionals they work with to ensure they’re sound ‒ he doesn’t need to agree with the whole plan, but it has to make sense and be of good quality.

Are you a planner looking for an investment manager to collaborate with and refer clients to? Tom has a framework you can use to evaluate and choose the best firm to work with ‒ it’s the same strategy he uses to hire managers and the way he suggests consumers pick their own investment managers, too.

He calls his framework the 7 Ps. They stand for people, parent, philosophy, process, price, performance, and passion. To learn more about each principle, you can read his excellent explanations here.

Hint: If you’re looking for more tips for successfully collaborating with other professionals, go back to our episode with Julia Chung and Sandi Martin of Spring Financial Planning.

We bet you don’t want to miss anything Tom has to share, so make sure you catch the full episode right here on this page or on iTunes or Stitcher ‒ he also shares why he left a great position at a successful firm to start his own business, his “undexing” investment philosophy, and the ins and outs of what his collaborations with financial planners look like.

If you want to be notified every time a new episode goes live, sign up for our mailing list below so you never miss an episode.

More education can give you more prestige as a financial advisor, but even more importantly, it gives you the knowledge and skills to better meet your clients’ needs. But what’s the best way to gain these skills? When is the right time to pursue additional designations? And how will the recently announced changes to designations affect your education opportunities?

Today’s guest can help you answer all of these questions. Jason Watt is the CEO and a full-time instructor at Business Career College, delivering web-based training to students across Canada who are in pursuit of their certifications. Jason has been at Business Career College since 2006 after 14 years serving in the Canadian Armed Forces. He also spends time providing pro bono financial planning services to disadvantaged populations. In today’s episode, you’ll hear what Jason has to say about the cost and time investments you’ll need to make to earn a CFP designation, how you can get more from your continuing education, and how to pick the best business model for your practice.

What You’ll Learn in This Episode:

Links and Resources:

Jason Watt

Business Career College

CE Drive With Jason Watt

Business Career College YouTube Channel

Quotes by Jason:

“Even if you’re in a fee-based or fee-only model, I think this is largely true: your first responsibility has to be to build a business.”

“If you feel like you’ve learned everything, that there’s nothing more for you to accomplish, then you’re going to be frustrated in class.”

“I would really love to see people plan out their education the same way that they help their clients to plan for retirement.”

Jason Watt has worked with many financial planners and advisors over the years as an instructor, and today he’s sharing why you should plan for your education just as you encourage your clients to plan their finances. Below, we’ll take you through three key points from the show:

For the rest of the episode, find the podcast on iTunes or Stitcher, or hit the link above.

Why it’s important to plan out your education

In Jason’s experience, many planners and advisors don’t fully consider how their education affects their career. Often, people jump into new opportunities because of circumstance ‒ a flash sale on a course, a client or friend making a recommendation, or even a boring day at work. They’re not making intentional decisions based on their long-term goals.

Jason recommends identifying your business goals and figuring how education can help you achieve them. Just as you would tell your clients to plan out their own goals and finances, you want to think through some big questions, like:

This way, you ‒ and by extension, your clients ‒ will get the most out of your learning.

Furthermore, by taking the time to consider your options, you might find that you can achieve your goals with unconventional learning methods that you might not have considered.

For example, rather than seeking out traditional insurance continuing education to brush up on family law, you might benefit from training offered by a law firm or your province’s legal education society. Perhaps a financial planning conference in the US might have opportunities you’re looking for. By figuring out what gaps you’re trying to fill, you can be more intentional with your research and ultimately give yourself more options.

The best time to start pursuing designations

While everyone is different, and some individuals pursue a designation either as part of their post-secondary training or, on the other end of the spectrum, many years into their careers, Jason thinks the ideal time to pursue a designation is two to five years into your financial services career.

Spending a few years in the field gives you the time to figure out your business model, sit down with a variety of clients, and yes, make some mistakes. You’ll have an idea of your strengths, but you’ll also see what you have yet to learn.

Waiting until you’re a couple years into the business also gives you time to become profitable, which means you’ll have the funds to invest in courses and reduce your work a bit to manage your course load.

Hint: According to Jason, a CFP typically costs about $7,000 and takes 5-10 hours a week over a period of 18-24 months, so be sure you’re ready for the hit to your finances and time.

On the other hand, once people have spent longer than five years in their career, it can be easy to get stuck in a certain way of doing things and harder to accept new lessons and change. Additionally ‒ and this is a piece many people don’t realize ‒ once you have a set way of running your practice over a number of years, it can be difficult to rearrange things and fit such a big commitment into your life.

Of course, this is a big generalization, and Jason has seen planners and advisors at different points in their careers be very successful in their courses ‒ but overall, 2 to 5 years in seems to be the perfect window.

Two things the most successful students have in common

Regardless of when you decide to pursue a designation, Jason has identified three key traits that most of his successful students possess. They are:

To hear more about Jason’s thoughts about designation envy, why teaching to the exam isn’t always a bad thing, and how his new podcast can earn you CFP Continuing Education credits, listen to the full episode here on this page or find the show on iTunes or Stitcher. And if you haven’t already, join our mailing list to get new episode notifications delivered right to your inbox.