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5 Questions You Should Include On Your RTQ (But Aren’t)

Here are five questions to add to your financial advisor risk tolerance questoinnaire.

Let’s be real…the risk tolerance questionnaire as we know it doesn’t get the job done. That’s why I’ve got John Morgan of Connected Consultants on the show this episode to discuss the five questions you should (but probably aren’t) asking on your RTQ.

Enjoy!

Sara

About John Morgan

John Morgan is the Founder & Managing Member of Connected Consultants, LLC in Boca Raton, FL. His company helps solve many of the “Pain Points” felt by both Advisors and Firms. In this capacity, he assists Advisors with affiliation questions and choices, getting in front of more qualified prospects, engaging prospects & clients on their terms using validated behavioral insights, protecting your practice and firm from unnecessary litigation and the reputation loss which comes along with each infraction and more. In a nutshell, Connecting great people with incredible firms and Fintech innovations around the world!

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Hail, Mighty Amazon!

Is Amazon the next big player in financial services? Listen to hear Ric Edelman's take as well as his advice for what it means to be competitive in the digital age of financial advice.

To quote the great Ric Edelman, who I was honored to have as my guest on this episode of my show,

“Either run your practice the right way using technology correctly or join another practice where they’re doing it on your behalf…We need to recognize that the way you’ve been building your practice for the past 20 years is not the way you’re going to be able to continue operating your practice for the next 20 years.”

The options are: join the movement, or join the movement.

And so here we are in the age of Amazon where the customer experience is king. Will the tech giants be the next big players? Or does brick and mortar still have an appeal?

Listen to hear more about what being competitive means in the digital age of financial advice. You’ll also hear all about Ric Edelman’s fantastic sock collection as  shown below:

Ric Edelman has quite an interesting sock collection, as evidenced below.

 

Resources mentioned in this show

How Amazon Will Dominate Wealth Management

 

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Financial Advisor Who Gets Leads from YouTube

Here is a story of a financial advisor who gets leads from YouTube.

This podcast episode is about to knock your socks off.

Meet my buddy Josh Scandlen of Heritage Wealth Planning. In the one year since Josh went independent as a financial advisor, his YouTube channel has furnished him with enough leads to where (in only one year of being in business) he has stopped taking new clients.

Listen to this story of a financial advisor who gets leads from YouTube. We’ll talk about how and why he did it and what advice he has for advisors who want to stop fighting Google and build their businesses through social media.

Enjoy! And if you don’t mind, please subscribe, rate, and review this podcast.

Resources mentioned in this show

Miles Beckler YouTube channel

https://www.youtube.com/channel/UC7RZRFCrN4XKoMsy5MgJKrg

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Ways to Get Rich People to Go To Your Website

In this interview with Kirk Deis of Treehouse51 financial advisors will learn the ways to get rich people to go to your website.

One of the biggest frustrations that financial advisors have is that their websites don’t attract high net worth clients. Much of this has to do with the way that the website is designed. Do you know what Google is looking for?

We’ve got Kirk Deis of Treehouse51 here with us to talk about what web developers don’t tell you regarding the ways that financial advisors can get rich people to go to their websites.

  • Difference between custom and template websites in terms of what it offers you in terms of getting rich people to go to your website
  • Advantage and disadvantages of using a template website – how it impacts your ability to get rich people to go to your website
  • How much you will spend on each type of website and what you get for the price
  • Things a low cost web developer may do that would not be in your favor as a financial advisor
  • What a custom website can typically cost (initially) and how to negotiate with a developer for the best price
  • The costs you need to think about if you have a custom website on an ongoing basis
  • What you should do first if you are thinking about using paid advertising to attract high net worth investors to your website
  • What you’re missing if you’re not using the data that Google gives you and how can kill your marketing ROI
  • How you can target high net worth investors using Google because Google knows everything about us
  • The exciting things you can do with YouTube that nobody is really doing in the financial advisor space
  • The shortcut to getting in front of a high net worth audience that your competitor or an influencer has already done the hard work to gather
  • How ranking well in YouTube can be better than blogs in terms of getting found on Google
  • What it can potentially cost to do paid advertising – what you should budget
  • Some tips for your Google Adwords campaign

Please subscribe, rate, and review this podcast!

 

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Talking about Risk does not have to be a Molotov Cocktail

There are a variety of reasons that advisors feel like clients just don’t “get it” when it comes to risk. I’m going to name a few.

Do any of these sound familiar to you?

  • They want low risk but high returns
  • They don’t grasp the idea of uncertainty or loss until they feel it
  • They don’t understand long term investing
  • They have recency bias
  • They don’t get it that long term growth comes with short term volatility
  • They view short term volatility as a risk
  • Clients answer the exact same risk tolerance questionnaire differently each time they complete it
  • They don’t fully grasp the concept of risk when talk about interest rate risk and purchasing power risk
  • They think they can tolerate more risk than they really can (usually revealed when markets drop)

Ridiculous. And, explosively dangerous.

Why is this so hard? Does client risk tolerance have to be as incendiary as as Molotov cocktail?

We can’t change our clients’ behavioral tendencies. But what is well within our control is our ability to understand and respond to their attitudes towards risk, no matter what they may be. This is the only solution. Blaming or arguing with the client is a pointless conversation.

I’m so excited to have Hugh Massie, founder of DNA Behavior, on the show to discuss exactly that!

You will hear about:

  • What does risk mean? The difference between risk need, risk capacity, and a client’s natural level of risk.
  • That the words matter. Example: “risk tolerance” vs “loss aversion”
  • How advisors themselves may have a different risk profile than the client, and how this skews things
  • Behavioral biases and cognitive biases that people have
  • One of the most neglected topics- people’s spending patterns and the impact of that on risk
  • Why the risk tolerance questionnaire is situationally-biased and should not be relied upon on its own as a measurement of risk
  • How to adapt your communication style to serve the client on their terms– people hear risk differently depending upon their personality
  • Why you should consider using a team approach to make sure there is proper client-advisor match
  • Methods for integrating a behavioral assessment into your practice
  • What to do if two partners have a completely different risk measurement

Thanks for listening and please subscribe, rate, and review my podcast!

 

Disclaimer

Grillo Investment Management, LLC does not guarantee any specific level of performance, the success of any strategy that Grillo Investment Management, LLC may use, or the success of any program.

Grillo Investment Management, LLC will strive to maintain current information however it may become out of date. Grillo Investment Management, LLC is under no obligation to advise users of subsequent changes to statements or information contained herein. This information is general in nature; for specific advice applicable to your current situation please contact a consultant or advisor.

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The Formula for a Burning Hot First Date

Here are some tips for financial advisors who want to assess a prospect's financial personality before the first meeting.

I’m locked down with kids now, but how fondly do I remember the dating game of my twenties.

I’d meet a dude at a bar or something, he thought I was fly and I thought he was fly. Probably we’d both been drinking a little bit. We’d agree to go out on a date and I’d get all dolled up. Then the next weekend I found myself sitting there across from the guy saying to myself, “Holy smokie bookie. Get me outta here.”

Not a match!

I wasted a decade going on first dates that I thought were going to be hot. Just like you financial advisors can waste a lifetime meeting with prospects who (by traditional measures) seem to be very qualified for your services but just do not fit in terms of personality. You will waste even more time and money if the wrong prospect then decides to become your client.

It’s called chemistry and when it’s wrong you’re not getting anywhere. Period.

Financial advisors do the same thing with new client relationships. I know, because I talk to advisors all the time who tell me they have done this. And I did the same thing myself, going out on a first date and marrying the wrong client. You’ll never get anything from these people other than frustrating non responses, disputes, and terminated relationships.

That’s why I am welcoming Akshay Singh of Advisory Match who in this episode is going to tell financial advisors how you can find out if a client is going to really be a personality match or not before you go on the first date.

Enjoy!

Please subscribe, rate, and review my podcast!

Grillo Investment Management, LLC will strive to maintain current information however it may become out of date. Grillo Investment Management, LLC is under no obligation to advise users of subsequent changes to statements or information contained herein. This information is general in nature; for specific advice applicable to your current situation please contact a consultant or advisor.

We make no guarantee that the information on the Site is accurate and non-misleading. Grillo Investment Management, LLC, will not be liable to you in relation to the content contained herein, use of, or any connection with the Site. Grillo Investment Management, LLC, will not be liable to you for any business losses or loss of revenue, profits, or data that may occur in connection with the Site.

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Running Around With Your Hair on Fire Is Not Attractive in a Financial Planner

Running like your hair is on fire is not an attractive trait in a financial planner. Learn how to scale your business and improve margins.

It’s clear that with roboadvisors and automation, people expect more if they are paying you more. With investment management fees going to zero faster than the speed of light, financial planning is where it’s at.

But how do you deliver this without running yourself into the ground?

  • I’ve seen advisors running around like their hair is on fire.
  • I’ve heard of advisors shoveling snow, going to the DMV with clients, driving four hours to go to a family event for a client.
  • I’ve seen planners take it to the extent that they are no longer being compensated for their time.
  • I’ve had financial advisors haggle with me over the $35 a month cost of my membership service. No offense, but are you serious? And you’re serving affluent people? What would your clients think if they saw that?

Do you really think that clients don’t notice the stress it causes you when you’re running a business that doesn’t pay you what it should? And how do you think it makes them feel about what you do?

This improves credibility?

I’m all for the human touch and going above the call. The personal attention is, to be honest, why most advisors have a business. However, here’s what can happen if you don’t pay attention to yourself first and what all of the time is costing your business.

You can get trapped.

The experienced financial advisor makes around $90k a year according to some measures. Many make more, some make less. Nothing wrong with $90k a year at face value, but at that level of pay you are vulnerable given this is a serious kind of business. Lose a client who trashes you to the country club, security breach, new technology emerges. Now all of a sudden you could actually be out of business.

Or worse.

Let’s be real: the margins matter.

If you are not running a business the scales well enough so that you can grow faster than your costs are, then you are in trouble. And with the technologies available to you, there’s no reason why you can’t. This episode we have Matt Regan, President of Wealthcare Capital Management, who has some of the answers to questions about how to do this. Join us to hear about:

  • What is considered light planning vs. heavy planning?
  • What is goals-based vs. cash flow planning?
  • Charging for planning on a stand alone basis vs. bundling it
  • Hourly fees, asset based fees, retainer fees
  • Where advisors get into profitability problems with financial planning, and how to avoid it
  • The three things advisors can do to improve the efficiency of their financial planning

Please subscribe, rate, and review this podcast!

 

Resource mentioned in this show:

Kitces, Michael. (2017, October 16th). 2017 Financial Advisor Compensation Trends And The Emerging Shortage Of Financial Planning Talent. Retrieved from https://www.kitces.com/blog/how-much-financial-advisors-make-salary-bonus-compensation-latest-industry-benchmarking-data/

 

Disclosures

Grillo Investment Management, LLC will strive to maintain current information however it may become out of date. Grillo Investment Management, LLC is under no obligation to advise users of subsequent changes to statements or information contained herein. This information is general in nature; for specific advice applicable to your current situation please contact a consultant or advisor.

We make no guarantee that the information on the Site is accurate and non-misleading. Grillo Investment Management, LLC, will not be liable to you in relation to the content contained herein, use of, or any connection with the Site. Grillo Investment Management, LLC, will not be liable to you for any business losses or loss of revenue, profits, or data that may occur in connection with the Site.

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Choosing a Web Platform that Rocks your Financial Advisor Firm

If you are a financial advisor firm here is how to pick a website platform that rocks.

So you’ve decided it’s about time to give your website an overhaul. Or maybe you broke off and went independent, and now you need to set up a site for your new firm. Do you use a template? Do you get a developer and custom design your own site?

Let’s face it: Picking the right web platform for your financial advisor firm is overwhelming.

That’s why I was so glad to have Ryan Russell of Twenty over Ten with me on the show to shed some light on the options you may have.

You’ll learn:

  • The major things to consider when you are trying to figure out which web platform works for your financial advisor firm.
  • Guidelines to help you make sure your website’s security is up to par with standards
  • Why it matters if you own the content or not
  • Cost considerations for the initial site and on an ongoing basis

Thanks for listening, and please subscribe, rate, and review this podcast!

Resources mentioned in the show

Twenty Over Ten

Samantha Russell’s LinkedIn videos – see here LinkedIn feed here

 

Disclosures

Grillo Investment Management, LLC does not guarantee any specific level of performance, the success of any strategy that Grillo Investment Management, LLC may use, or the success of any program.

Grillo Investment Management, LLC will strive to maintain current information however it may become out of date. Grillo Investment Management, LLC is under no obligation to advise users of subsequent changes to statements or information contained herein. This information is general in nature; for specific advice applicable to your current situation please contact a consultant or advisor.

We make no guarantee that the information on the Site is accurate and non-misleading. Grillo Investment Management, LLC, will not be liable to you in relation to the content contained herein, use of, or any connection with the Site. Grillo Investment Management, LLC, will not be liable to you for any business losses or loss of revenue, profits, or data that may occur in connection with the Site.

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Technology Singularity and the Client Experience – with Ron Carson

Technology Singularity with Ron Carson

If you look at the difference between success and failure, many times it has to do with what we choose to spend our time on. It is that simple.

So I’m excited to have a very special guest on the show to discuss my favorite topic: avoiding distraction.

The reality is that it is no longer acceptable for clients to experience complex or confusing technology.  In our discussion, Ron Carson, founder and CEO of Carson Group, will share how advisors can (and why they must) embrace the client demand for an immersive experience.

According to Ron, “There’s no question about the consolidation that has to happen in financial services. Most advisors have been lucky, they’ve been spared this accelerated change because of regulation. But guess what – that isn’t going to last forever.  And we’re already starting to see the changes.”

In this episode you’ll hear about:

  • The invisible influences shaping the profession of financial advising today
  • Why the real competition isn’t other advisors anymore – it’s Amazon
  • What an immersive technology experience really is and why consumers prefer it
  • What will happen to advisors who lag behind in terms of technology
  • What Singularity is and how it applies to the financial advising profession
  • The 3 choices that advisors who are lagging behind in terms of technology should consider

Thanks for listening. Please subscribe, rate, and review this podcast!

Resources mentioned in this show:

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Swag like Swedroe: Communication Tips from an Investment Thought Leader

Communication tips from Larry Swedroe

What can I say, he’s got swag. And here’s what you can learn from him if you are an investment professional looking to stop being part of the noise that gets ignored.

I was honored to have one of the “greats” in the investment world on my show this episode. Today we welcome Larry Swedroe, a widely recognize investment thought leader and the director of research for The BAM Alliance, a community of more than 140 independent registered investment advisors throughout the country.

As brilliant as Larry is as an investor, he’s made his mark on the world in an important way: earning a position as a thought leader by adeptly communicating with investors, financial advisors, and the investment community at large.

And this skill is becoming more valuable by the minute.

In a world of fee compression, smart beta, low cost TAMPs, and next to zero management fee ETFs, it’s clear that anyone charging a fee for investment advice is going to have to fight for it. The human touch that a credible investment manager brings is irreplaceable.

Larry is going to share with us some ways to improve your ability to reach clients, and it is advice that anyone in the investment industry should consider.

Hear Larry’s thoughts on the following:

  • You’ve made quite a name for yourself as an investment expert. Why do you think people like listening to you talk about investments, a subject that is typically dry and unappealing?
  • You recently described a technique used when a client asks a question – you write about it in a blog. I do this also. Tell me more about what you’ve seen as the results of this communication.
  • You write for AP and also etf.com. What have you seen as the most effective writing techniques that have gotten people engaged? Does this drive leads for you?
  • In your current role, you’re a mentor of sorts for the advisors at BAM. Tell us some of the wisdom you’ve imparted to them that has made a difference about how to run their practices from an investment perspective.

Please subscribe, rate, and review this podcast!