The Confident Advisor Practice Podcast

This episode comes from a recent Horizon Advisor Network coaching call with Pete Bush, who explains how and why to charge consulting fees to take your business to the next level. You'll learn why you should charge this way to position yourself as a problem solver with a business that will be ready for big changes in the financial planning industry.

Show Notes:

• 2:07--- What is fee for service or fee for advice?
• 4:09--- What is a financial planning consulting agreement?
• 5:25--- What is the ERISA participant advice program agreement?
• 6:05— What is the plan advice and consulting program?
• 6:50--- Why should you charge this way?
• 6:54--- Position yourself as a problem solver.
• 9:43--- Separate planning and advice from the implementation of advice.
• 11:58--- This industry is evolving and will continue to evolve.
• 12:48--- How do you go from product-based compensation or an asset management program to fee for service or fee for advice?
• 14:10--- Develop specialized knowledge that sets you apart.
• 15:11--- Develop a narrative around leading with planning.
• 18:48--- How do you have a planning discussion?
• 21:54--- How do we present the actual amount we charge?
• 23:43--- How do we collect the fee?
• 27:48--- How does this take your business to the next level?

3 Key Points:

1. When you begin charging a fee for service or a fee for advice you're charging clients for your wisdom, your experience, and your unique problem-solving capabilities.
2. When you charge this way, you are actively preparing for the future of this business.
3. When you lead with planning services, you will take your business to the next level.

Tweetable Quotes:

- "When you have the ability to charge this way, it definitely separates planning and advice from implementing advice." – Pete Bush

- "You have to have a scope of knowledge and ability to help people beyond picking investments." – Pete Bush

- "You ask open-ended questions so that they get really clear on their answers." – Pete Bush

Resources Mentioned:

• Think and Grow Rich (book)
• The Confident Wealth Experience
• Connect National Investment and Finance Conference
• Decipher
• Advice Pay
• Rachel Stewart
• Horizon Advisor Network

• Contact Information:
  • [email protected]

This episode comes from a recent Horizon Advisor Network coaching call with Pete Bush, who addresses the difference in whether your practice is a stock or a bond? Learn the characteristics of stocks and bonds as they apply to a business, how the estimated value of your business effects you whether you are buying selling, or in a holding pattern, and how you should be balancing your total revenue between labor and expenses.

Show Notes:

• 0:43--- Whether your practice is a stock or bond effects your strategy
• 0:56--- Think of your business as a long-term investment
• 2:17--- Like any investment, your business should have a capital value
• 3:58— What are some of the characteristics of a bond
• 5:56--- What is the credit quality of the business's clients that are producing the income
• 7:44--- What are the characteristics of a stock
• 8:23--- Quality stocks mature companies that create earning pay dividends

9:45--- How do stocks and bonds differ

• 10:28--- How much should your total revenue go to labor and expenses
• 11:36--- Stocks should have a greater multiple of its liquidation value than bonds
• 13:50--- Wealth accumulation comes from owning not lending
• 15:28--- How can you get an initial value estimated for your practice
• 17:19--- Should you take clients based on your overall average client revenue
• 19:28--- How do evaluations metrics matter if you are in the holding pattern
• 20:45--- What should you do if your business is a bond and you want it to be a stock
• 22:34--- Where would you go to find good information on the Truelytics software

3 Key Points:

1. Are you building your business, liquidating your business, or looking to buy and absorb other companies?
2. Bonds typically mature at a fixed known rate, pay yields, and normally are less volatile than stocks.
3. Stocks are often valued as a multiple of their earnings.

Tweetable Quotes:

- We started off as actually thinking about our business in terms of an investment, versus a job or a career." – Pete Bush

- "We certainly expect stocks to grow over time. We expect them to grow above and beyond any income they might produce." – Pete Bush

- "Your compensation for labor, that's your compensation as an advisor, should be about 40% of your total revenue."

Resources Mentioned:

• The Confident Advisor Practice-- Discover more about the Podcast
• Horizon Advisor Network

• Contact Information:
  • [email protected]

This episode captures Pete Bush's recent quarterly coaching call for Horizon Network, and he talks about buying and selling practices and what you can do to position yourself well.

Show Notes:

• 1:00 - How to make your practice the most attractive buyer or seller in the market
• 4:00 - A buyer preparation service can make you the ideal buyer
• 5:00 - Why do we want to be an attractive buyer or seller?
  • We want to have the best fit for our clients
• 6:53 - Succession is a long thought out process to plan
• 7:20 - You want to choose a successor that you can work closely with
• 8:00 - How to successfully execute continuity
• 9:31 - As a buyer, having everything put together makes you a company of confidence for a selling company to turnover their clients to
• 11:14 - Know your numbers cold - Revenue, Expenses, and other KPIs
• 13:00 - Always be prepared and know what the process is
• 14:15 - Take a different approach to marketing your practice than you do to marketing to clients
• 15:20 - Know your documents and paperwork
• 19:47 - You save thousands of dollars by working with Horizon and Cetera

3 Key Points:

1. We want to be an attractive buyer or seller because we want to attract our ideal clients.
2. Selling is relatively immediate whereas succession planning takes time and compatibility.
3. Know your numbers and documents. If you know your revenue and key KPIs, you know your ideal client, buyer, or seller.

Tweetable Quotes:

- "Take a different approach to marketing your practice than you do to marketing to clients."–Pete.

- "If you put off retirement planning one day, no harm, no foul, but there becomes a moment when it is too late." – Pete.

- "It doesn't matter what the solution is it just matters that we all have one." –Pete.

Resources Mentioned:

Discover more about the Podcast at The Confident Advisor Practice

Horizon Advisor Network

During this installment of The Confident Advisor Practice from the Horizon Advisor Network, hosts Pete Bush and Bill Bush, CEO and Advisors at the Horizon Financial Group, sit with Brett Harrison, CEO of Cetera Advisors. They discuss managing your financial advising business through the future and industry shifts.

Show Notes:

• 00:47---Introduction of guest Brett Harrison, CEO of Cetera.
• 1:52--- Advisors don´t run on natural performance anymore they run off of emotional and logical desires of clients.
• 2:18--- Financial planning can be more emotional.
• 3:14--- Cetera has developed a tool to successfully do financial planning. Advisors need this tool too.
• 4:00--- Connecting on a human level is necessary in financial planning today.
• 5:40--- To help the next gen investor, financial advisors need to upgrade the technology of the practice.
• 7:00--- We need an online platform that clients can reference when they are up at night.
• 8:00--- The next generation of professionals need to know how to run businesses and pay their own taxes.
• 8:20--- Focusing on female advisors. There is a huge gender gap in the advising industry.
• 10:00--- There is a disconnect between the old and the young.
• 13:30--- Partnership between Cetera and Genstar
• 14:06--- Exposure to executive management and board is a critical dynamic for change in the industry.
• 14:33--- Breaking into growth strategies within the financial advising industry.
• 16:30--- The new industry shifting question: who can you choose to partner and align with in the industry?

3 Key Points:

1. The financial advising industry cannot rely solely on natural movement of markets. As it depends on client's emotions, the present day advisor must connect on a human level. It can't be all about data.
2. The incoming flow of Next Gen investors are pushing the industry to update their technologies. This will be a different age of clients where they aren't interested in managing a life outside of the office--ie paying their own taxes, working abroad. Financial advisors need to factor these life changes into their advising.
3. There is an ever present age and gender gap between advisors and clients. Advisors need to stay up to date with trends and connect them to their clients.

Tweetable Quotes:

- "It is about connecting with the person. It is not all about the spreadsheets" –Pete.

- "The financial well-being of a household is second ot health." – Brett.

- "Health and wealth are connected." –Bill.

- "To help with the Next Gen investor, we need to upgrade ourselves in regards to our interaction with technology." –Brett.

Resources Mentioned:

• The Confident Advisor Practice-- Discover more about the Podcast
• Horizon Advisor Network
• Contact Information:
  • Brett Harrison

During this installment of The Confident Advisor Practice from the Horizon Advisor Network, host Pete Bush, Advisor at the Horizon Financial Group, discusses the concept of having five dials for your business. The five dial approach gives business owners five key metrics to ¨fly¨ their business.

Show Notes:

• 1:00---Introduction of the five dials that will help you manage your business
• 3:17---If five dials are working, you can be sure your business is running well.
• 4:27---The five dials are different depending on the plane you are flying
• 5:00--- Discussion about the Five dials:
  • 90 Day Accounts Receivable
  • Number of engaged opportunities in the pipeline (Keep 20 opportunities)
  • Current cash on-hand
  • The amount of new recurring revenue added
  • Profit and loss statement budget vs actual
• 19:00---The five dials become the language of business
• 20:00---Your overhead should be about 30-40%
• 22:00---Five dials are important metrics to focus on within a business.

3 Key Points:

1. Flying a plane can be very complex much like running a business. Though there is a sprawling dashboard to fly a plane, only five dials truly matter. Running a business can be approached the same way.
2. Pete Bush shares the five dials (key metrics) he uses to run his business.
3. The five dials are 90 day accounts receivable, Number of engaged opportunities in the pipeline, current cash on-hand, amount of recurring revenue, and profit and loss statement.

Tweetable Quotes:

- "The five dials become the language of business." –Pete

- "At the end of the day when you wake up and know these five things, you are going to feel pretty good." –Pete.

- "This is about maintaining proper financial dynamics so you have something on the pulse." –Pete.

Resources Mentioned:

• The Confident Advisor Practice-- Discover more about the Podcast
• Horizon Advisor Network

During this installment of The Confident Advisor Practice from the Horizon Advisor Network, hosts Bill Bush and Pete Bush, Advisors at the Horizon Financial Group, discuss how to manage your business smartly with Jeff Litteken and Geoff Lamoine from Remotelink Solutions. Remotelink Solutions offers a versatile service to help supplement and complement your business. They take the administrative tasks off your plate so that you can focus on what matters: your clients. A Cetera-certified company, Remotelink is the perfect solution to augment your business and do what you love again.

Show Notes:

• 00:47---Introduction of the Jeff Litteken and Geoff Lemoine from RemoteLink Solutions.
• 00:52---RemoteLink Solutions is a key operation solution for solo advisors who need some leverage.
• 1:00--- RemoteLink Solutions provide support to companies in a variety of tasks.
• 1:40---Employees are the most important asset of a company.
• 2:00---We look at taking the less important activities off of the advisors plate so the advisor can get in front of the client--the most important part.
• 2:30--- RemoteLink solutions can take care of investing, compliance, administrative functions, meeting preparations, money movement, and finance.
• 3:22---RemoteLink gets into the details and ¨weeds¨ so that the advisor can provide support to clients.
• 6:00---Streamlining operations and allowing advisors to manage the details not only allows them to do the work that matters but also engage their clients fully.
• 7:40---The service helps both established and growing practices
• 8:00---RemoteLink Solutions can come into your business and fill in the gaps.
• 9:20---Optimizing businesses through unique ability teamwork such as remote solutions
• 11:20---There is opportunity lost by training new employees
• 12:30---RemoteLink Solution takes care of the training costs and time for you.
• 13:31---The Cetera connection and advisor advantage allows Remotelink solutions to be audited just as your business is. Their systems are encrypted and their solutions meet industry standards.
• 17:00---The RemoteLink Model ensures the business succeeds with their services and doesn't lose growth.
• 18:00--Time is invaluable. Any service that can give people time back is valuable.
• 19:20---You can start small and as you build confidence with the solution, you can grow from there.
• 19:40---We want to manage the business and not have the business manage us.
• 21:30---The RemoteLink team allows the business to be more proactive than reactive.

3 Key Points:

1. Leverage your business and revert to focusing on the things that matter by using Remotelink Solutions.
2. Being a financial advisor is a small part of the job. There are many other administrative, compliance, and financial tasks to complete. Remotelink Solutions supplements and complements growing as well as established businesses.
3. Get the help you need for the time you need by contacting Remotelink Solutions .

Tweetable Quotes:

- "We can help you with three things: Anything you don't want to do, anything you don't know how to do, and anything you don't get paid to do ." –Geoff Lemoine.

- "Our offering is attractive to any practice out there." –Jeff Littekin.

- "If you are able to put together in the right combination, the right skills and capabilities then magic starts to happen." –Pete Bush.

Resources Mentioned:

• The Confident Advisor Practice-- Discover more about the Podcast
• Horizon Advisor Network
• Contact Information:
  • Jeff Litteken
    • 619-795-7403
    • [email protected]
  • Geoff Lemoine
    • (619)-795-7405
    • [email protected]

During this installment of The Confident Advisor Practice from the Horizon Advisor Network, host Pete Bush, CEO of the Horizon Financial Group, discusses the importance of having a Pipeline Management System. Pete leaves us with the necessary tips and tricks to develop a client acquisition process that works for our own businesses. He imparts the information in an easily digestible bite that allows us to walk away with in-depth knowledge about pipelines, client acquisition, and segmenting.

Show Notes:

• 1:00---Introduction of today´s topic--Pipeline Management Systems
• 3:40--- Companies with Pipeline Management are able to shorten the process from finding an opportunity to generating revenue.
• 5:35---The first step to having a pipeline management system is having a defined acquisition process.
• 5:53---A defined acquisition process is having a defined way that clients will get into the pipeline--Acquisition can include going to certain events and sharing what you do. This is the step where you generate contact information.
• 6:15---A defined acquisition process is casting a net to gather people and prospecting is turning those people into actionable meetings where you can share your story.
• 7:54---People can be classified as a prospect once you can classify them as someone who could be interested in your services.
• 8:36---Find a way to keep prospective clients organized after generating leads.
• 12:53---Having a lot of names in a database without classifying them isn't an efficient way to segment your prospective clients. Segment your prospects when you meet them. This segmenting will allow for meaningful follow-up communication.
• 14:20---Pipeline management is moving people through this process-- acquiring (generating leads), prospecting, proposing, actuating (in-process), and finally, becoming a client.
• 15:30---Make sure to follow-up with your prospective clients to keep them moving forward through the pipeline process. Segmenting makes this easier.
• 16:20---Disqualify and eliminate clients who should no longer be in your prospecting database.
• 17:30---Throughout the pipeline process, simplify your efforts to multiply your results.
• 18:16---To have a pipeline management process you need to have the following: A process, segments of the process (assigning different client stages to the pipeline), an accountability partner (to contribute and keep the process moving), and action (moving your client through the different pipeline stages).
• 19:50--- A powerful way to turn leads into clients.
• 20:45--- Following-up with prospects is an important step.
• 24:50---A 90-day rule helps keep us on schedule and take action on steps that are important now.

3 Key Points:

1. Having a Pipeline Management system is important in developing a clientele base.
2. The first step to developing a pipeline is to understand where, how, and what you are doing to acquire new clients. This information lays the foundation for your pipeline.
3. Continuous segmenting is important to be able to follow-up with specific prospective clients in an appropriate manner. Segmenting is key to chasing leads and adding value for clients.

Tweetable Quotes:

- "Don´t think ¨how do I do this?¨ Think who." – Pete.

- "Simplify efforts to multiply results." – Pete.

- "Companies with Pipeline Management shorten the lifetime of going from opportunity to revenue ." – Pete.

Resources Mentioned:

• The Confident Advisor Practice-- Discover more about the Podcast
• Horizon Advisor Network
• Learn more about Pete Bush

During this installment of The Confident Advisor Practice from the Horizon Advisor Network, hosts Bill Bush and Pete Bush interview Dan Mayes, SVP Succession Planning and Business Acquisition at Cetera Financial Group. They define and discuss continuity and succession planning. They also define 4 common challenges that advisors face with succession planning as well as a process for creating a plan. The episode concludes with an overview of Cetera's new "Legacy Builder Program".

Time Stamped Show Notes:

• 00:54 – Defining what "continuity" is: how your business continues in the event of an unplanned circumstance such as disability or death.
• 01:07 – Defining what "succession" is: how your business continues in the event of planned circumstances.
• 01:25 – Introducing guest Dan Mayes from Cetera Financial Group.
• 02:19 – Dan Mayes introduces himself and talks about his current career role and background.
  • 03:03 – Dan has been involved in over 300 transactions of practices changing hands.
  • 03:49 – Since 2015, this type of transaction exceeds $43 million in GDC/Gross Revenue.
• 04:24 – Pete points out how valuable this podcast discussion is for practice owners.
• 05:45 – Dan talks about the state of the industry relating to continuity and succession.
  • 05:47 – Continuity planning relates to an unplanned exit (death or disability).
  • 05:56 – Succession planning relates to a planned exit (typically retirement).
  • 06:10 – Dan introduces "business acquisition" as the buy-side of these transactions.
  • 06:15 – Continuity, succession and business acquisition are related, but need to be looked at separately.
  • 06:45 – At Cetera, 30% of advisors report having a written continuity plan in place.
• 07:48 – Pete points out that many people might think that having their children in the business or having had conversations will constitute a continuity plan.
• 08:20 – Dan explains that verbal agreements are unenforceable. Written documents are crucial
• 08:54 – Discussing the "graying" of this industry
  • 09:00 – The average advisor at Cetera is just under 60 years old and industry average is in the mid 50s. This means that the need for continuity planning will increase over the next 5-10 years.
  • 11:01 – Dan references the challenge of creating a career path and profession for the next generation.
• 11:17 – Defining and discussing the challenges that advisors talk about in assembling a continuity plan.
  • 11:30 – Financial Planning Association Article – 4 challenges to succession planning.
    • 11:48 – Strategic: who is the right successor?
    • 11:59 – Personal: what am (the advisor) going to be doing in retirement?
    • 12:09 – Structural: how to optimize your business for succession?
    • 12: 21 – Mechanical: paperwork, agreements and formalities.
  • 13:19 – Solving the "strategic" challenge is typically the most common challenge.
• 14:28 – Discussing advisors evolving into an emeritus role as part of a succession plan.
• 15:52 – What are the other 70% doing about succession? They're actively thinking about it and are often too busy to address succession planning.
  • 16:42 – Creating "mental images" of what retirement goals would be (starting a charity, 2nd career, etc.)?
  • 16:59 – Defining a timeline to give us time to effectively transition.
• 17:40 – A reasonable timeline for succession planning is 3-7 years.
• 18:28 – What are some of the potential issues/problems to be aware of?
  • 19:28 – Regulatory: are both buyers and sellers appropriately licensed?
  • 19:58 – Price: Deal structures and tax implications are often unique. Seeking support from tax and legal advisors.
  • 22:12 – Discussion maintaining consistent culture from seller to buyer (from client standpoint).
• 23:03 – Introducing and understanding process for developing a plan:
  • 23:26 – Defining goals (as buyers and sellers).
  • 23:57 – Analyze financial resources for the seller's new lifestyle in retirement.
  • 24:23 – Design a plan based on resources and filling gaps by planning
  • 25:05 – Implementing over time – more time equals more control
  • 25:15 – Tweaking and adjusting plan over time
• 26:23 – Discussing Cetera's "Legacy Builder Program"
  • 27:16 – Cetera assurance for continuity, but still encouraging proper succession planning.
• 28:28 – Concluding Dan's interview with a clearer understanding of how Cetera's services benefit advisors who need succession and continuity planning.

3 Key Points:

1. Continuity planning relates to unplanned "exit" (death or disability) while succession planning relates to planned "exit" (typically retirement).
2. 30% of advisors have documented continuity/succession plans. It is advisable to establish your plan 3-7 years in advance.
3. Cetera is launching a new "Legacy Builder Program" which will promise to buy advisor businesses in the event of an unplanned death or disability. However, this program ALSO allows advisor businesses to develop succession plans for planned sale or transition.

Tweetable Quotes:

• "Dan Mayes from Cetera Financial Group is the go-to-guy in helping advisors think through continuity and succession." – Pete Bush
• "While I should celebrate that 30% [of advisors] have a plan, I'm also worried that only 30% have a plan." – Dan Mayes
• "You're going to be exiting this industry at some point in the future. The question is are you going to control that process?" – Dan Mayes
• "If we don't know our destination, how can we design a path to get there?" – Dan Mayes

Resources Mentioned:

• Horizon Financial Group – website for Horizon Financial Group
• Confident Advisor Practice – podcast for Confident Advisor Practice
• Financial Planning Association – website for Financial Planning Association
• Dan Mayes Contact Info:
  • 619-702-9604
  • [email protected]
  • LinkedIn

During this installment of The Confident Advisor Practice from the Horizon Advisor Network, hosts Bill Bush and Chris Sullivan interview Jesse Hurst, President of Impel Wealth Management. They discuss his history in financial management, and how Impel has grown and collaborates with partners like Horizon Financial Group.

Time Stamped Show Notes:

• 01:40 – Jesse started in this business in 1987.
• 02:25 – Has been hired before by Ohio Edison to teach retirement planning workshops for 55 and over for executives.

• 03:10 – Formed Millennial Group with partners back in 1997 which led to Impel Wealth Management.

• 06:21 – Jesse oversaw things like training and service, coordinating marketing and PR, writing content, and investment committee fund.

• 09:10 – Impel works with six investment strategists and research groups.
• 12:14 – They are managing four different risk profiles.
• 16:33 – If you bring money management in house, you can answer questions about what you did for clients.

• 19:41 – Jesse's wife has a HR consulting and recruiting company and does all of his outsources HR, payroll and book-keeping.

3 Key Points:

1. Impel Wealth Management manages between 160-170 client families and about $200 million in assets.

1. Most Impel Management Clients are between 55-85 years old.
2. Impel works with six investment strategists and research groups that they collaborate with.

Tweetable Quotes:

- "We're (Impel Wealth Management) somewhere between 160-170 key client families that we work with." – Jesse Hurst.

- "We have about six different investment strategists and research groups that we work with, and they have been specifically chosen for content and kind of worldview outlook." – Jesse Hurst.

- "If you were a solo adviser and you didn't have the access to resources of the group that we have here within Impel with our collaboration with Horizon, I'm not sure it would be the highest and best use of your time." – Jesse Hurst.

Resources Mentioned:

• Horizon Financial Group – website for Horizon Financial Group
• Confident Advisor Practice – podcast for Confident Advisor Practice
• Jesse Hurst – LinkedIn for Jesse Hurst
• Impel Wealth Management-website

Summary:

During this installment of The Confident Advisor Practice from the Horizon Advisor Network, hosts Bill Bush and Chris Sullivan interview guest Richard Whitworth, the Managing Director – Business Consulting at Cetera Financial Group. The talk moves around various topics and concerns related to the changes that artificial intelligence are creating in the financial advisement and investment community.

Time Stamped Show Notes:

• 01:32 – How advisors look at their exit strategies, ever-increasing regulations, and how to stay relevant are all general concerns financial advisors have about A.I..

• 02:59 – The average age in the industry for the independent channel is about 56 years old.

• 05:10 – At a client's moment of need is when human financial planners outshines artificial intelligence.

• 07:00 – If advisors really know their clients, and accept that big data is going to be omnipresent, is going to lead to a solid firm.

• 09:11 – Horizon Financial Group is divided into three companies: Horizon Wealth Management, retirement plans, and the Horizon Advisor Networks.

• 14:28 – Advisors have access to a vast supply of inputs and information to understand how big data can assist them.

• 17:15 – Horizon has the opportunity to share real world examples with advisors.
• 19:34 – Being rooted in quantitative stats helps you drive better performance for your firm.

• 21:25 – Do you have the right configuration of people?
• 21:55 – Being able to look at data and what your work flows look like, and then being able to build checklists or roadmaps for those workflows drives process efficiency.

3 Key Points:

1. General concerns financial advisors have about A.I.. include: how advisors look at their exit strategies, ever-increasing regulations, and how to stay relevant.

1. Baby boomers are high adopters of new technologies.
2. What is the division of your clients?

Tweetable Quotes:

- "The average age in the industry for the independent channel is about 56 years of age." – Richard Whitworth.

- "There is a high percentage of advisors that have an indication that they are going to exit in the next five to ten years." – Richard Whitworth.

- "At its core and definition, the investment management, wealth management, and advice business is a high-touch client relationship-driven business." – Richard Whitworth.

Resources Mentioned:

• Horizon Financial Group – website for Horizon Financial Group
• Confident Advisor Practice – podcast for Confident Advisor Practice
• Richard Whitworth – LinkedIn for Richard Whitworth

● [email protected] – Richard Whitworth's email address