Megan Duarte’s passion is helping clients with their financial needs while assisting them with their financial goals. While studying for her MS in Financial Planning, Duarte had the opportunity to work with her father at Ameriprise Financial Services, LLC. She spent time advising clients on reaching their financial goals within their specific time horizons. Her father’s influence and support inspired her to pursue today’s career.  

Financial Planning was introduced to Duarte at a very young age by her father, who was running a successful financial management firm. He would tell her that she was his “retirement plan,” meaning that she would someday take over his business once he retires. Duarte will be a 2nd generation planner who will take over the company and continue the legacy from where her father left off. Duarte mentions that being a 2nd generation planner can bring a sense of “pressure to live up to the 1st generation’s knowledge and experience.” Furthermore, she mentioned that “I would like to implement some ideas once I take over the business. Some of those ideas include focusing more on the multigenerational relationship in addition to my current tasks at hand.” Finally, she differentiates herself in the financial service industry by providing “quick response times, accuracy in information, and consistent contact.”

After interning for her father, she decided to pursue her MS in Financial Planning. Her father influenced her career in becoming a financial planner. She grew up around the financial services industry because she spent time with him and the industry. While studying for her MS in Financial Planning, Duarte shared that the tax planning course was necessary for her career because “I was able to plan for myself and look at my tax return while applying the knowledge to my current situation. Also, use this information for future conversations with clients.” Duarte recommends that students who will be taking the tax planning course now or in the future “understand the concepts and the numbers that change and don’t in each client’s tax returns.” Furthermore, “paying attention in class” is crucial to succeeding in this course because there are many regulations and tax rules that future financial practitioners can educate clients with, potentially minimizing tax liabilities.

While she was deciding which career to pursue, her father would exemplify her career choices and explain the career aspects. Her father was very supportive about which career she wanted to pursue. For example, her father will explain what a day in life would be like as a pediatrician and provide examples of the daily demands in the job. Once she decided that financial planning would be the career of her choice, she began to learn the industry from her father. Since then, her father would bring her to the office to learn and observe her father’s responsibilities. Also, her father would share with her the benefits of being a financial practitioner because “the career is about helping people and making sure that clients trust our advice.” Duarte exemplifies that “people need financial help whether they recognize it or not” because clients who need financial help will achieve financial success. 

As a financial advisor, it can be challenging to assist clients who do not implement the advice you offer to them and guide them in the best way possible. Therefore, finding ways to work with them and change interactions can be positive. Duarte has had several experiences with demanding clients and situations during her client meetings, such as “being overconfident in their knowledge or not understanding ramifications of their decisions. Also, clients that do not want to take your advice and do not act upon the advice can be frustrating.” As a result, clients that do not take your advice seriously can be unmotivating to continue offering advice to these clients. Duarte provides solutions for demanding clients to be likable and answer all clients’ questions before giving financial advice. 

Duarte mentions that her next career steps are obtaining her CFP and strengthening her team to create capacity and market themselves better. The final piece of advice Duarte offers to students is, “To pay attention in class. Patience and work on your communication skills because there are different types of people. Learn how to be likable and deliver financial information to clients that can understand what you are saying and make sure that the deliverables you present do not sound rude.” 

About Megan Duarte: 

Megan Duarte is a financial planning professional working with her father in the financial planning business. Duarte and her father serve and advise clients at Ameriprise Financial Services, LLC. She is currently studying to obtain her MS in Financial Planning from California Lutheran University. 

About the Author: 

Rafael Nieves Rios is a graduate student at California Lutheran University, graduating in 2024. He is studying for an MBA in Financial Planning. 

Peer-influencing has dominated how consumers seek advice. Many financial planning practitioners navigate popular social media platforms with compliance guards.  Ms. Williams will share with us how to best leverage social media platforms with leads in emotional triggers.

• The best social media platform for financial planning practitioners
• What are the do’s and don’ts in social media to be evergreen compliance?
• What are the emotional triggers that could generate leads?
• What are the best practices for marketing in social media?

Register now, and you will receive a confirmation email containing information about joining the meeting. This is a webinar you won’t want to miss!!

Guest:

Sarah E. Williams, VP, Marketing Communications at CreativeOne. With almost 20 years of experience in sales, marketing, advertising, and public relations, Sarah leads the company’s outreach efforts, showing financial advisors and independent insurance agents exactly what they can accomplish through branding, lead generation, and social media. She has helped hundreds of producers expand their businesses, showing them how to grow revenue while positioning them as an industry of thought leaders since joining CreativeOne in 2011.

As CreativeOne’s chief ambassador, Sarah communicates how marketing and practice management can help agents and advisors expand their practices. She leads the education channel, recruiting prospective agents and advisors who want to join CreativeOne. Her knowledge of marketing, combined with her embodiment of CreativeOne’s philosophy, makes her a formidable leader in this ever-changing industry.

Host:

Chia-Li Chien, Ph.D., CFP®, PMP®, CPBC, is an Assistant Professor and Director of the Financial Planning Program of California Lutheran University. Before her academic role, she held several senior management positions in Fortune 500 companies, including Diageo, ABB, CIGNA, and RSA Insurance Group. Dr. Chien is a frequent speaker about succession planning at national conferences and has published three books, including her most recent publication, “Enhancing Retirement Success Rates in the United States.” She publishes research on succession topics in a variety of academic and practitioner research journals. Dr. Chien serves on the boards of various national financial service associations. She holds a doctorate in financial planning and is a Certified Financial Planner (CFP®) as well as Project Management Professional (PMP®). Chia-Li Chien is pronounced Jolly Jan.

Returning to His MBA

Fast forward to the present and Padilla has now had his CFP® for about seven years but he did not finish his MBA. After COVID-19 began, Padilla decided it was time to return to California Lutheran University to finish the program. “I’m so glad I did return. I’ve seen a difference in the program on what I had to learn the hard way with clients and employees. There’s a lot of soft skills, selling skills, and empowering associates and employees skills to help you with what to do. It made me really want to finish my MBA!” he said. 

Padilla’s Key Values of the Program

Working in the financial service industry for over 20 years, he sold his practice and naturally found himself going down the route of entertainment and sport through his young children and their activities. Previously he earned an undergraduate degree in business administration, marketing at California State University, Northridge. “I went back to start my MBA as I only had a few classes left. I see the value in the program. If I was just starting out or starting another financial service practice, I would definitely want to do this program. It provides value and it’s really practical. I highly recommend anyone in the financial services to go through this program,” he said. 

One of the key values that Padilla found in the program was the topic of financial counseling. “As an advisor and business owner, I never thought about financial counseling. I didn’t know you could earn a certification in it,” he said. Padilla also mentioned that he recently started thinking about succession planning due to a class and wished he had known more about it to use in his previous financial services business. 

Padilla also found value in the practical learning and skills that he developed from the program. “Before I was going through the motions to get the piece of paper, but now I’m really finding a use for it and I’m learning from it. I wanted to go back and get my MBA to also show my kids there is value in education,” he said. 

Earning an MBA and CFP ® 

California Lutheran University meets the CFP ® education requirements and students can earn an MBA at the same time. This was the main reason why Padilla chose the program, what’s more, the classes were convenient for his schedule and also local to where he is based. To Padilla, it was important for him to earn the CFP® to help clients and be respected in the financial services industry. 

To the Future

In five to ten years time, Padilla sees his company, MVP Sports & Entertainment Management, as one of the biggest firms that provide a variety of services for athletes and entertainers. “I feel the program is very revolutionary and it provides a lot of value to relay the direction that financial planning services are going. This program gives people the tools to go in the direction of an ensemble practice,” he explained. An ensemble practice is a type of practice where multiple partners come together to provide more values to the clients instead of the traditional idea of just one advisor in a practice acting as a lone ranger. 

Advice to Others

Padilla’s advice to someone who is starting a career in financial planning is to find someone who is successful and to learn about what they do. “Continue to educate yourself, whether that is a program at California Lutheran University, getting coached, going to conventions to learn more and make connections. Model from those who know what they are doing,” he said. He also mentioned the importance of finding mentors that you can model.

Making Time for Sport

In his free time, Padilla enjoys coaching volleyball and being active in his children’s sports. He also enjoys traveling, particularly to cold, snowy places where he can snowboard. 

About Don Padilla: 

Don Padilla is CEO of MVP Sports & Entertainment Management, a Talent Manager, Certified Financial Planner™, public speaker, and published author of “Not Another Broke Athlete.” He was former National Football League Players Association (NFLPA) Registered Player Financial Advisor. Don has taught and lectured retirement and life planning courses at various universities and colleges. He has been in the financial services industry for over 20 years and has managed over a quarter of a billion dollars. He has two children, Naiya (10) and Elijah (8), and enjoys coaching volleyball and snowboarding during his free time. 

About the Author:

Rosie Baker graduated Magna Cum Laude from California Lutheran University in May 2021 with honors and departmental distinction. Her bachelor’s degree is in Communication emphasizing in PR and Advertising, minoring in Creative Writing. In July 2020, she published her first book, Mirrors & Windows: Unlocking a New Framework to Envision Your Success, with New Degree Press.

HYFLEX TEACHING BEST PRACTICE    

The hyflex teaching model allows some to work remotely while others can work face-to-face, explained California Lutheran University professor Dr. Sharla Berry. Dr. Berry is an online learning expert who has been published in multiple top-tier research publications. After a year of online teaching and online meetings, the U.S. is changing its COVID-19 protocols allowing students the option of going to a classroom on campus. Hyflex teaching allows students to be flexible with their learning and decide to learn, whether it is their home or the classroom. 

How Can Faculty Adapt Quickly Into the Hyflex Teaching Model?  

Dr. Berry firstly suggested the use of whiteboards and of course wearing masks to protect others. She also suggested having a set agenda of “what you’re going to do and how you’re going to do it,” she said. Setting goals for the day and having a schedule allows for breaks which the students can step away, refresh, and maintain on track for the rest of class, she said.  Another important application is using the Zoom chat box for students to interact with each other and the professor. Dr. Berry suggested question and answer periods to help minimize distractions and constant scanning of the chatbox for questions. 

Dr. Chien, the host of the webinar, mentioned that she likes to have a team captain monitor the chat and also be the co-host in case she loses her internet. The use of team captain rotation, and regularly stopping for questions to check in with students are valuable tools. Ultimately, if the chatbox becomes too distracting or difficult to maintain there is the option to disable its use.  

Should Cameras Be Off or On?

At the beginning of class, establish wanting to have the students be visible on the camera, said Dr. Berry. When students have the camera turned on they are more likely to be engaged, share a personal appeal, have accountability of focusing, and most importantly, it creates a positive impact on learning. I think many students would agree that they feel more attentive and focused when the camera is on as they can’t easily slip away or play Mario Kart on their phones. 

“The more engagement opportunities the course has, the less opportunity you have for people to turn off their video or be passive,” said Dr. Berry. For example, make use of polls, have random questions that they need to respond to, and use breakout rooms for engagement.  

What is the Best Way to Teach on Zoom? 

For the past year, Dr. Berry has used the pre-COVID flipped classroom method and instead uses Zoom to work with her students rather than lecture the material.  “Flipped classroom is when students do a lot of the direct learning outside of the classroom and they come to the classroom ready for a discussion,” she explained. This method allows students to learn or review the material asynchronously at home and then come to class ready for discussion and work on the subject where they can easily ask questions and develop their understanding more in-depth. Dr. Berry explained that hyflex teaching opens the opportunity for asynchronous teaching and can offer more discussion being more manageable. 

Dr. Chien said it can be hard for students to read ahead for discussion. As an alternative, she likes to have group presentations to highlight the main topics of the chapter of the class or encourage other activities and reading. Other alternatives include annotated readings or online discussion boards to help facilitate early prep of readings, said Dr. Berry.  “Letting people know how you’re going to be using a reading and how we’re going to be accountable for it, I think can go a long way,” she said. 

Another alternative are stations. In the break-out rooms, the instructor has the opportunity to jump into them to meet with the students whereas the in-person students can have a different assignment separately. Zoom allows groups to be more interactive with one another. “Giving yourself a schedule and also giving your students those manageable activities makes it easier so that you don’t have to be in all those places at once,” she said. 

How Can Students Warm Up and Engage More? 

Linda Clayton, a financial planning professor at California Lutheran University, said she likes her students to know that the classroom is a safe place to talk. Since day one of class she sets an example to participate, calling on students to answer if her question is received in silence. She said now they answer by themselves and even alternate who does it.  

Other options to help students warm up to participate more is by using polls either via Zoom or Kahoot and the results can be shared in class allowing for further discussion. Students can also work in pairs where they can answer together on a google document. Alternatively, questions can be shared beforehand, “if you have your agenda, questions, and discussion points listed people who do get lost can easily jump in and people that might be nervous and need more time to think about it, they will have the opportunity,” Dr. Berry said. 

Final Recommendations 

“There’s no reason for your in-person students to not be engaged in the virtual space as well,” Dr. Berry said. In-person students can participate in the chat on Zoom with the other students. Let the students determine what they need through surveys and natural evolving to adapt the classroom and teaching methods. Lastly, Dr. Berry said, “the students always value the opportunity to talk to you and each other about how they’re feeling.” Discussions allow the students to feel stronger about the courses and more connected with each other. 

About Dr. Sharla Berry, Ph.D.:

Dr. Sharla Berry is an Assistant Professor in the Department of Educational Leadership. Her research explores technology in K-12 and higher education. Topics of interest include technology and college access and online learning in postsecondary environments. Dr. Berry teaches a number of research methods classes.

About the Host:

Dr. Chia-Li Chien is a succession program director at Value Growth Institute, a succession consulting practice dedicated to helping business owners increase their firms’ equity value. Before her private consulting practice, she held several senior management positions in Fortune 500 companies. Dr. Chien is a director of the financial planning program at the School of Management at California Lutheran University. Dr. Chien is a frequent speaker about succession and retirement planning at national conferences and has published three award-winning books, including her most recent publication, “Enhancing Retirement Success Rates in the United States.” Dr. Chien serves on the boards of various national financial service associations. She holds a doctorate in financial planning and is a Certified Financial Planner (CFP®) as well as Project Management Professional (PMP®).

About the Writer:

Rosie Baker graduated Magna Cum Laude from California Lutheran University in May 2021 with honors and departmental distinction. Her bachelor’s degree is in Communication emphasizing in PR and Advertising, minoring in Creative Writing. In July 2020, she published her first book, Mirrors & Windows: Unlocking a New Framework to Envision Your Success, with New Degree Press.

How to Attract Women Clients?  

Dr. Shine Lei is one of few individuals to have a CFP ® certification in both the U.S. and China. In the webinar, “How to Attract Women Clients?” Dr. Lei shares her research and insight on working with women clients.   

Her career began as a trained typical corporate finance professional during the financial crisis of 2008. After the crisis, she reconsidered her career path to be a financial planner. In China, the CFP ® Board was recruiting financial planners, interested in the idea, Dr. Lei joined them and had her eyes opened to a different world. “It’s part of the finance world, but from a different angle. It’s working with the individual investors directly rather than the corporates,” she said when reflecting on her time working on the board. She said she worked with many professionals on the board and wanted to know if financial planners can add value to the client’s investor performance. To find her answer, Dr. Lei moved to join the University of Missouri in the U.S. 

Why Are Women Important in Financial Planning?

Based on her research, the increasing wealth of women are making the role of women in financial planning more important and relevant every day. “Women are more and more independent in their investment decision-making, which means they are not relying on their own judgment but also become the dominant role in household financial decisions,” Dr. Lei said. 

What Are Some of the Characteristics of Women Clients?

Her co-authored research found that women more likely to use financial planning services are more likely to share these characteristics: wealthy, well-educated, and financially literate. As progressive society sees more women earning careers, they are also becoming more financially literate. 

Interestingly, Dr. Lei said she didn’t find women have a gender preference with their planners. However, she noted, women planners remain to be underrepresented as they only represent a small fraction of financial planners within the industry and are paid less. 

The host, Dr. Chia-Li Chien noted the majority of her clients are women or the women are the dominant partner in the relationship. She also noticed the general characteristics of a woman being nurturing, sensitive, and detail-orientated are great characteristics to have as a financial planner when working with clients as it is a sensitive topic. 

“Women clients are more likely to go to women planners especially for divorce planning,” said Dr. Lei. “I think it is because women planners can relate more to the clients because of their natural features. I think they are more likely to attract women clients and be successful in the financial planning industry,” she said. 

How Can Financial Planners Market to Women Clients?

Dr. Lei said the following tips are important for marketing for both female and male clients as financial planning professionals.

“It’s a cliche but it’s also important to know your clients,” Dr. Lei said. Firstly, profile the women who are more likely to use the services i.e. wealthy, well-educated, and financially literate. “It’s helpful to target the right group of people to help you grow your business,” she said.

Secondly, use the right method to communicate with the women. “It’s critical to know how to speak to the audience using the right language and words. The goal is to ensure the message correlates with them but being relevant with respect to their values and beliefs,” Dr. Lei explained. 

Lastly, test and learn the techniques of communication. Why are your clients taking action and meeting you? Was it a discount? Recommendation? Likewise, why are your clients not taking action? It’s important to take note of the techniques that work effectively and those that don’t.  

How to Work with Women Clients Efficiently?

Dr. Lei suggested having a better understanding of relevant emotional behavioral factors.  “What emotions and social influences do you notice between the clients and the planners? Notice if you can share with clients your understanding and help them back to the correct financial planning path,” she said. By carefully understanding and placing detail, the client’s journey and the client’s experience of the journey can have adjustments made to improve the experience. 

Profile + Behaviour = Tailoring Business Model 

Placing the client profile with learned behaviors through conversation with them can identify the factors that are dominant and their buyers. E.g. Are they detail-orientated? Or do they prefer not seeing all the details and rather see the bigger picture? 

Advice to Future Planners About Working With Women Clients?

To close the webinar, Dr. Lei’s parting advice to others wanting to work with women clients is to “know your clients and practice your soft skills.” 

About Shine Lei:

Shan (Shine) Lei, Ph.D., CFA, CFP® is an Assistant Professor of Finance at the Perdue School of Business, Salisbury University, and a member of the University System of Maryland. Before that, Shine worked as an Assistant Professor of Finance and Financial Economics at the Paul and Virginia Engler College of Business, and West Texas A&M University under the Texas A&M University System. She served as the Director of International Relations at Financial Planning Standards Board China and had been an adviser at PwC before joining academia.

Whilst at academic institutions, Shine held the responsibility to teach undergraduate and graduate finance and financial planning courses both online and on campus. This instructional responsibility involved designing and developing course content and assessment tasks for students with various academic and work experience backgrounds.

Shine has been an active scholar in conducting research regarding investment decision-making, portfolio allocation, and retirement preparation. She has been published by the International Journal of Bank Marketing, Journal of Women & Aging, Journal of Personal Finance, Journal of Financial Planning, Journal of Financial Planning and Counseling, and Applied Economics Letters. She has presented her research at several national conferences. She is also a peer reviewer for several academic journals. Shine is a member of the CFP Board, CFA Institute, American Council on Consumers Interests, and Financial Planning Standards Board China. Shine holds Charted Financial Analyst and Certified Financial Planner (both in the U.S. and China) qualifications. She holds a Ph.D. in Personal Finance from the University of Missouri-Columbia, a master’s degree in International Economics, and a bachelor’s degree in Finance.

About the Host:

Dr. Chia-Li Chien is a succession program director at Value Growth Institute, a succession consulting practice dedicated to helping business owners increase their firms’ equity value. Before her private consulting practice, she held several senior management positions in Fortune 500 companies. Dr. Chien is a director of the financial planning program at the School of Management at California Lutheran University. Dr. Chien is a frequent speaker about succession and retirement planning at national conferences and has published three award-winning books, including her most recent publication, “Enhancing Retirement Success Rates in the United States.” Dr. Chien serves on the boards of various national financial service associations. She holds a doctorate in financial planning and is a Certified Financial Planner (CFP®) as well as Project Management Professional (PMP®).

About the Author:

Rosie Baker graduated Magna Cum Laude from California Lutheran University in May 2021 with honors and departmental distinction. Her bachelor’s degree is in Communication emphasizing PR and Advertising, minoring in Creative Writing. In July 2020, she published her first book, Mirrors & Windows: Unlocking a New Framework to Envision Your Success, with New Degree Press.

Dr. Chien interviewed Dr. Shine Lei, CFA, CFP®, on “How to Attract Women Clients?” on May 18, 2021, at 1:00 pm PST.

Many financial planning practitioners like to work with women clients. As matter of fact, many planning firms are created by women and service only women. Women clients might be your target market. You might service and plan for women. In this session, we will discuss the following questions:

• Why are women important in financial planning?
• What are some characteristics of women as clients?
• What are some characteristics of women as planners?
• How do we market to women clients?
• How to work with women clients efficiently?

Reference:

Lei, S., & Kordes, M. H. (2020). Women, wealth, and demand for financial planning services. Journal of Financial Planning, 33(8), 48–55.

How Should Advisors Leverage the Continuum of Business Models?  

William C. Van Law III fell into a career of financial planning by tagging along to roommates interview during university and by walking out hired for the job. In his webinar interview, “How Should Advisors Leverage the Continuum of Business Models?”, Van Law explained his father worked in the financial planning industry also. After exploring both technology and the financial planning industry, Van Law decided to pursue a job at Merrill Lynch straight out of university and “never look back.” 

Pathway From Entry to Executive 

Now an executive, Van Law said his pathway to his role was due to “hard work and being open to possibilities.” He advised that others should try to find the best fit for what they’re interested in or for their skill set, “so they go down the path that they feel will be the most rewarding.” He started in the industry as a junior member as a financial planner helping bring new client relationships to the senior advisor. At the age of 25, Van Law flew solo earning his CFP ® designation in 1990, to focus on estate planning and building his business around the subject. 

Van Law later had the opportunity to mentor new advisors and grow the training program, helping him build a career in leadership. Van Law explained that at Merrill Lynch they had a strenuous approach to be hired through a series of interviews, simulation, and role-playing to either be passed, failed, or deferred. “It’s a great lesson in overcoming obstacles,” he said. Van Law then moved to Florida to run his first office. “I thoroughly enjoyed my time as a financial advisor, however, I was just intrigued by the challenge of being able to influence people’s lives from a leadership standpoint and the variety of issues in leadership,” he said. 

Business Models Are Not One Size Fits All 

Van Law explained that there are four types of business models; independent employee business, traditional employee business, business development for independent broker-dealer, and president of RIA custodial business. Regularly, Van Law said he is asked the same question of which model is right? The right answer depends upon circumstances and it’ll change over time, he said. Each model has its pros and cons, so the person must decide what is best for them and their business. 

The Benefits of Mentors and Being a Mentor 

“Mentors can be both opportunistic and something that you actively seek out,” Van Law said. He advised others to be thoughtful with who they build relationships with and to have respect for a mentor’s guidance. Opportunities can appear, but you must be aware of them arising and proactively seeking out relationships, he said.

Technology and Innovation in Financial Planning 

Van Law explained that relationships with clients work the best when you can connect with them in a way that works best for them. Recently, there has been a shift in the impact of business models, especially independent models, said Van Law. “As an independent firm you’re able to pivot more quickly and so some might even argue today that there’s more freedom and flexibility in terms of technology innovation,” he said. FinTech has empowered independent advisors and firms. “Technology really enhances your ability to have an impact on your clients, connect with clients and deliver financial solutions to your clients,” Van Law said. 

Five Most Common Drivers in the Business Model

1. Risk and Responsibility 
2. Freedom and Control
3. Financial Implications
4. Growth Opportunities (through referrals and marketing) 
5. Succession Options 

The Continuum of Business Models?

Van Law explained that each business model progresses differently and the more business, the more risk is taken on. However, a general low to high risk is traditional employee, independent employee, independent contractor, hybrid adviser, and independent RIA.

Freedom and control gradually get greater, said Van Law, “as a business owner you’re taking a business risk but the financial benefit that you gain from greater levels of independence partially is the fact you’re taking on new roles.” You gain greater responsibility for both running and managing the business, but you will get paid for both which is a greater financial benefit.  

However, the biggest benefit according to Van Law is leverage, as the business grows, the expenses don’t grow as rapidly as revenue. “I would encourage any of you that are out there currently in practice and that have grown advisory firms to be thoughtful about the next generation and mentoring the members to have the opportunity,” he said. He believes that it is important to provide mentoring to the next generation of advisors in financial planning and to be aware of the impact. 

How Can Advisors Create Equity Value For Their Practice? 

Van Law has four pieces of advice to create equity value. Firstly, to proactively think about your practice. Secondly, having a key performance initiative and focusing attention on the key important things, “you can’t improve what you don’t measure.” Thirdly, have administrative roles and surround yourself with people who are just as passionate about their roles, “life and business are better for the team.” Lastly, your business will have a higher valuation when it comes to selling if you’re thoughtful about the firm, “create a business that is an awesome business to own.” 

Final Advice

Van Law’s final advice in the webinar was to “be thoughtful so you can come to the right conclusion for you. Recognize it’s the right business model for you.” He also emphasized the importance of relationships and how they create opportunities to have experiences you might not have imagined and continue love and passion for lifelong learning.  

About William C. Van Law III CFP ® :

Bill Van Law is an experienced financial professional with a track record of success. Perhaps most importantly, Bill is known for his commitment and compassion as a leader in business and the community.

A frequent speaker and industry thought leader, Bill has been quoted in numerous publications including, Wealth Management, Think Advisor, Investment News, Research, and On Wall Street. He has spoken and led sessions at many of the top events in the wealth industry including, Barron’s Top Independent Advisors Summits, Tiburon CEO summits, Deals and Deal Makers Summit and Market Counsel. He also leads sessions for Wealth firms of all sizes including strategic planning workshops as well as keynote addresses for corporate events. 

About the Host:

Dr. Chia-Li Chien is a succession program director at Value Growth Institute, a succession consulting practice dedicated to helping business owners increase their firms’ equity value. Before her private consulting practice, she held several senior management positions in Fortune 500 companies. Dr. Chien is a director of the financial planning program at the School of Management at California Lutheran University. Dr. Chien is a frequent speaker about succession and retirement planning at national conferences and has published three award-winning books, including her most recent publication, “Enhancing Retirement Success Rates in the United States.” Dr. Chien serves on the boards of various national financial service associations. She holds a doctorate in financial planning and is a Certified Financial Planner (CFP®) as well as Project Management Professional (PMP®).

About the Author:

Rosie Baker graduated from California Lutheran University with honors and departmental distinction in May 2021. Her Bachelor of Arts degree Communication with an emphasis in PR and Advertising, minor in Creative Writing. In July 2020, she published her first book, Mirrors & Windows: Unlocking a New Framework to Envision Your Success, with New Degree Press.

Dr. Chien interviewed William C. Van Law III, CFP, on “How Should Advisors Leverage the Continuum of Business Models?” on May 04, 2021, at 1:00 pm PST.

Businesses adapt and change over time from the giant Amazon to solo-entrepreneurs around the world. “Change” holds constant in the everyday environment. Why should financial planning practitioners consider changes in their business model? In this session, we will discuss the following questions:

• Why is there no “right” business model for every financial planning practice?
• Why does technology & innovation play a key role in financial planning practice?
• What are the most common five drivers in the business model?
• What is a continuum of business models?
• What should advisors do to create equity value for their practice?

References:

Van Law, B. (2020). A framework for choosing a business model to fit the evolving needs of your business and clients. Journal of Financial Planning, 33(12), 24–26.

CAN ROBO-ADVISORS HELP FINANCIAL PLANNING PROFESSIONALS?  

Since the beginning of the pandemic, technology has progressed rapidly allowing adjustment to living and working at home. Still relatively new to the industry robo-advising is also progressing rapidly. 

In June 2019, Vanguard’s robo-advisor managed a total of $140 billion and over 10 billion U.S. dollars was managed by the sixth-largest robo-advisor (Statista Research Department, 2020).  According to Investopedia, “The industry has experienced explosive growth as a result; client assets managed by robo-advisors hit $987 billion in 2020, with the expectation of reaching $2.9 trillion worldwide by 2025.” 

What are Robo-Advisors? 

In the interview, Dr. Jason McCarley described robo-advising as a form of automation to create statistical decision aid. He described it to be similar to human interaction with technological systems that are already in place and we are familiar with such auto-pilot systems or a Tesla. Robo-advising is related to how humans interact with automated systems. “It’s to help make choices or make judgments under conditions where there’s a lot of uncertainty,” McCarley said. Robo-advisors have the ability to improve the accuracy of predictions and judgments that humans can make.  

To put it into perspective, McCarley gave another example. This type of technology is used in predicting how well students would do in a graduate program. He explained that it is usually a simple equation but it will outperform humans at predicting success. “We find people underperform these kinds of statistical decision aids. The other thing we find is even though they are better than us, we don’t like to use them or tend to ignore or override the advice,” he said. 

McCarley explained that there are many benefits to robo-advising but what is great about robo-advisors is that decisions don’t need to be made because plans can be automatically opted for. This takes away the confusion of what percentage size to contribute to savings for example as well as what investment to be involved with. 

 The Risks of a Completely Automated System

When it comes to technology, many worry about the risks and the unknowns. McCarley explained that three main things should be looked out for. The first is knowing that occasionally it makes a mistake, so human monitoring is needed to keep a check on the system. The second is that situation awareness can be lost when those become disengaged with financial planning. Lastly, people often don’t trust statistical aids but they do trust other people. However, they are more likely to trust the robo-advisor if it is accompanied by a human. 

What Does a Statistical Decision Aid Do?

McCarley gives an analogy to Spell Check as to how a statistical decision aid works. First, it Informs. In Spell Check, this would be the line to let you know something doesn’t look right. Then it Counsels. In Spell Check, it guesses suggestions for you to replace the word or grammar. Then, it Acts, which is fixing it for you. Spell Check doesn’t act until you command it to, unlike a robo-advisor. McCarley said there is a greater chance for a mistake you won’t catch if it acts by itself. “At each level, it’s taking some of the workloads off for you but it’s also taking a little bit out of the process so you have to work a little harder to keep an eye on what’s going on,” McCarley said. 

Mechanical vs Holistic Decisions

A Mechanical decision is calculated, often doing a better job in performance compared to human decisions, whereas holistic decisions are human-made, explained McCarley. “The first thing we have to recognize is that sometimes the algorithm is wrong, that is the nature of problematic decisions is that we can’t always be right. We have to accept that even though the aid is wrong sometimes, it is probably more right than me,” he said. 

Role of Trust 

When using robo-advisors there is a certain element of trust and willingness to rely on it that must be fulfilled. The first part of trust is working out how good and reliable it is. The more mistakes that happen, the less trusting the user will find it. What’s more, occasional errors can also lead to undermining trust. 

The second part is having an understanding of the process and how it works. When users don’t understand how or why the recommendations or predictions are what they are, it can lead to confusion or even frustration. It’s also important to understand why it may go wrong and that it’s impossible to be correct all the time. 

How Much Will It Cost to Get Automatic Versus Human Advice?

The hope with robo-advisors is that people who don’t have much money to spare will find it worthwhile instead of a human advisor. The hope is to make it accessible and reduce the cost of financial advising. However, McCarley said there has been less uptake than hoped for, but the younger generations remain to be interested. “Old investors and wealthier investors are actually more willing to spend money on a human advisor. They like the interaction and they trust the human advisor more,” McCarley said. 

One of the issues mentioned earlier is that users sometimes “set and forget” when using robo-advising. The best way to avoid misuse in the younger generations or those using robo-advisors is to get the user involved in monitoring the process, explained McCarley. Goals need to be changed when the user’s goals change so the predictions can reflect. Getting involved and keeping on top of updates on their progress stops any surprises, he said.  

Advice to Financial Planning Professional About Robo-Advisors 

McCarley’s parting advice to the financial planning professionals was; “having a financial planner as a liaison between the advisor and the investor fights the problems. The investor probably trusts you so they will take your advice more than they might take the advisor from a computer. Having or wanting a financial planner for human interaction, and having that liaison is valuable for the people who can’t or don’t want to have human interaction. Encourage them to take the advice but know what they are doing,” he said. The advantage is financial planners can leverage the tool and have their clients be actively engaged.  

About Jason McCarley:

Jason McCarley is a Professor in the School of Psychological Science at Oregon State University and has previously held faculty positions at the University of Illinois and Flinders University in Adelaide, South Australia. He conducts research in the areas of human factors and applied cognition, with a focus on attention, signal detection, and human-machine collaboration.

About the Host:

Dr. Chia-Li Chien is a succession program director at Value Growth Institute, a succession consulting practice dedicated to helping business owners increase their firms’ equity value. Before her private consulting practice, she held several senior management positions in Fortune 500 companies. Dr. Chien is a director of the financial planning program at the School of Management at California Lutheran University. Dr. Chien is a frequent speaker about succession and retirement planning at national conferences and has published three award-winning books, including her most recent publication, “Enhancing Retirement Success Rates in the United States.” Dr. Chien serves on the boards of various national financial service associations. She holds a doctorate in financial planning and is a Certified Financial Planner (CFP®) as well as Project Management Professional (PMP®).

About the Author:

Rosie Baker is an undergraduate student at California Lutheran University, graduating in May 2021. She is studying Communication with an emphasis in PR and Advertising and has a minor in Creative Writing. In July 2020, she published her first book, Mirrors & Windows: Unlocking a New Framework to Envision Your Success, with New Degree Press. 

References:

Statista Research Department. (May 4, 2020). Value of assets under management of selected robo-advisors worldwide as of March 2020 (in billion U.S. dollars) [Graph]. In Statista. Retrieved May 05, 2021, from https://www-statista-com.ezproxy.callutheran.edu/statistics/573291/aum-of-selected-robo-advisors-globally/

Frankenfield, J. (2021, May 7). What Is a Robo-Advisor? Investopedia. https://www.investopedia.com/terms/r/roboadvisor-roboadviser.asp

Dr. Chien interviewed Professor Jason McCarley, on “Can Robo-Advisors Help Financial Planning Professionals?” on April 20, 2021, at 1:00 pm PST.

The growth of FinTech helps both consumers and financial planning professions in many ways. Financial planning professionals established relationships and trust over time. They guide their clients through their financial journeys. The use of Robo-Advisor is on the rise and is a part of many financial planning professionals’ offerings. In this session, we will discuss the following questions:

• What are some inherent biases that could harm consumers?
• What are the variables that influence automation trust and dependence?
• How to overcome these biases?
• How to prevent these biases?

Reference:

Bartlett, M. L., & McCarley, J. S. (2019). Human interaction with automated aids: implications for robo-advisors. Financial Planning Review, 2(3-4). https://doi.org/10.1002/cfp2.1059

How Can Advisors Improve Tele-Financial Planning?   

Before becoming a financial planner, Derek Sensenig was a military training instructor. Unsure what career to pursue, Sensenig put himself out into the world and rapidly networked with those he met through varying opportunities. It was then he found a job at a bank through a network connection where he worked as a sales manager in Texas. Further, he went on to complete his MBA degree and become a CFP before working in the financial planning industry. “It wasn’t a direct path but it’s a path I wouldn’t change,” Sensenig said. Recently, Sensenig was published in the Journal of Financial Planning with his article from September 2020 about utilizing what we know about tele-mental health in tele-financial planning. 

Why is Tele-Mental Health Comparable to Tele-Financial Planning?

In the summer of 2020, there was great economic impact and change within financial planning as well as the rest of the world. As an industry that works in the traditional sense of being face-to-face to discuss financial planning with clients, however, when the pandemic happened everything went online and business was done virtually. 

“How do financial planners adapt now in the changing environment to still serve our clients and do it even better?” Sensenig asked. His research showed similar parallels to tele-mental and tele-financial planning. He found that the further away the mental health client was from the therapist’s office, the higher level of efficacy they found in those situations. In the experiments, there were still people who didn’t come to meetings and those were similar in comparison to face-to-face tele-mental health situations. Sensenig noted that tele-financial planners also have clients that don’t come to meetings online. 

Are There Virtual Gains Compared to Being In-Person

Sensenig said that there are two gains from being virtual compared to being in-person. The first is geographical distance. When working face-to-face it creates geographical limits of where the clients are from. By removing this restriction, clients are subjected to a wider range of advisors to choose from, therefore they can find a planner that works best for them. The second advantage is efficiency. It is easier for clients to go to appointments that are virtual as they don’t need to leave their personal spaces for the meeting. It also allows spouses to be in different locations yet still meet with their advisors at the same time. 

What Are the Challenges in Licensing?

“Compliance is the biggest piece someone needs to address in this situation,” Sensenig said. Working in a fee-based business has its bonuses when in a virtual environment. Sensenig also noted that being virtual has left clients more satisfied with their experience. “I get incredible feedback about how much they’ve enjoyed it because it makes life so much easier for them,” Sensenig said. Being virtual allows people to cross states or even cross the border yet still be available to meet online. 

The Benefit of “Fit”

“Clients have information overload. There is not a lack of information on the internet. […] They want somebody that explains it to them and puts all the cookies on the shelf where they can reach them. When they meet or interview financial planners they can get the person that they feel is the best fit and make a personal connection,” he said. It is important as an advisor to think about what you can do to make the client comfortable as well as to think about whether you have the right technology to make sure you can communicate efficiently for different learners, Sensenig explained. 

Limitations of a Virtual Environment 

Sensenig explained that the firm and compliance department have to be aligned during this process with the correct systems in place. “If you don’t think the clients will want it, you’re going to be exactly right. With the advent of Facebook and FaceTime and Skype combined with the pandemic, almost as a blanket statement, everybody is comfortable with technology. The target should be to go after those that are comfortable with it and helping them get comfortable,” he said. 

The research found that tele-mental health therapists were providing webcams for their clients when they didn’t have access. Sensenig believes it is worth investing in webcams and cheap pieces of technology like this if your client doesn’t have them and is someone you want to work with. It makes a huge difference to them and is really helpful in allowing them to work virtually with others. 

Another limitation is privacy. Sensenig explained privacy must be addressed and advisors need to be cautious along with forward-thinking about what could happen when working virtually. For example, clients may host a meeting in public when talking about money and personal information. As an advisor, it is important to be ready to have those conversations and set expectations moving forward for future meetings including where to hold meetings. 

Lastly, another limitation is security and recording. When talking online about finances and personal information, it can be worrying for the clients. Therefore, it is important to have a conversation about the changing virtual environment. “It is a constant conversation and you should be proactively looking for potential security issues and making sure you’re addressing them,” Sensenig said. Ideas include having a locked Zoom and using a virtual private network (VPN).   

Best Virtual Practices

“You have to look at the client’s experience from their side,” Sensenig said. Be prepared to talk more to get the conversation flowing and be personal which is relatable and more comfortable. Sensenig likes to have personal items behind him when on camera as it creates a sense of being homely but also acts on what would be his desk with family photos and items. Invest in good lighting, a good camera, good internet, and present yourself with confidence. “The client needs to feel like you’re the expert and that you’re bringing value to them and they understand that value,” Sensenig said. Be confident, Sensenig advises practicing in front of the camera to develop a natural feel when in front of it. 

Another part of the virtual process is adapting your processes to a virtual setting. Sensenig suggests looking for ways to bring additional value such as offering updates, having a whiteboard to write on, and saying happy birthday to the client. Likewise, have a conversation about how you’re meeting virtually. Do the clients need help with the technology? Do they have a laptop or phone? Sensenig explained that it is a continuous learning process and you must apply what you learn to the next client to improve. 

Leveraging Virtual Environment From Prospecting Perspective

LinkedIn is a site more and more people are using to connect with those they don’t and do know. It’s a powerful tool when used correctly that can build relationships and even careers. Sensenig suggests connecting with others who are doing virtual financial planning and learn how they are doing it. “The angle you have to take is, someone is doing it better than me and I need to find out what that better way is,” he said. It’s important to ask for help from others that are more experienced at virtual financial planning to learn how to improve.

Sensenig also stressed the importance of asking yourself what you can bring to the table. He likes to begin with the end mindset. Who do you want to serve and reach? When you have answered this question then you can create valuable content and attract clients to you that are beyond your normal geographical bounds. 

Develop Your Niche

Like in most businesses, people need to find their niche of clients. If you are unsure what yours is, Sensenig suggests asking your current clients why they like to do business with you. Why did they want to work with you? The next step is to then go searching for those types of clients. Interviewer Dr. Chia-Li Chien added that the niche finds you, you don’t need to create it. 

Sensenig noted that sometimes clients have a hesitancy even if they are willing to talk to you virtually. “There’s a natural ebb and flow of being an advisor that you just have to be okay with. Know the ups and downs are just going to happen. Focus on the people that do want to meet with you. You can’t serve everybody,” he said. 

Parting Advice

Lastly, Sensenig’s parting advice for other financial planners was to be always be learning. “Look for a better way to improve and know that a better way is out there and know it’s your job to seek that out. Is there a better system and process you can use for your client?” he said. There is of great importance to learn and adapt to not be left behind and to say you’ve figured it out in a changing environment. I think no matter what your specialization is this advice is useful and should be put into practice, especially during this time when we value and use virtual connection. 

About Derek J Sensenig:

Derek J. Sensenig, MBA, CFP® is an owning partner and Senior Vice President of Financial Planning for Encompass Advisory Services, LLC in Houston, TX. The firm is an independent RIA and also operates as a SmartVestor Pro with Dave Ramsey’s team. At his previous company, he served as a Regional Financial Sales Leader, Supervisory Principal, and Sales Consultant for more than 65 wealth managers. Prior to entering the financial services industry, Derek was a Technical Sergeant in the U.S. Air Force and served as a Military Training Instructor at Joint Base San Antonio (Lackland AFB). He was also stationed in Alaska, Kuwait, and Korea. Derek is currently pursuing his PhD in Personal Financial Planning from Kansas State University. He has been married to his wife, Angela, for 20 years and they have two boys: Jordan (6) and Jaxon (4). In his free time, Derek enjoys playing softball, watching MLB baseball, and hanging out with his sons.

About the Host:

Dr. Chia-Li Chien is a succession program director at Value Growth Institute, a succession consulting practice dedicated to helping business owners increase their firms’ equity value. Before her private consulting practice, she held several senior management positions in Fortune 500 companies. Dr. Chien is a director of the financial planning program at the School of Management at California Lutheran University. Dr. Chien is a frequent speaker about succession and retirement planning at national conferences and has published three award-winning books, including her most recent publication, “Enhancing Retirement Success Rates in the United States.” Dr. Chien serves on the boards of various national financial service associations. She holds a doctorate in financial planning and is a Certified Financial Planner (CFP®) as well as Project Management Professional (PMP®).

About the Author:

Rosie Baker is an undergraduate student at California Lutheran University, graduating in May 2021. She is studying Communication with an emphasis in PR and Advertising and has a minor in Creative Writing. In July 2020, she published her first book, Mirrors & Windows: Unlocking a New Framework to Envision Your Success, with New Degree Press. 

Dr. Chien interviewed Derek J. Sensenig, MBA, CLU®, ChFC®, CFP®, RICP®, on “How Can Advisors improve Tele-Financial Planning?” on April 06, 2021, at 1:00 pm PST.

The tele-financial planning (or virtual financial planning) practices is not new. However, the coronavirus pandemic came with the new normal of tele-financial planning. In this session, we will discuss the following questions:

• Why is tele-mental health comparable to tele-financial planning?
• How will tele-financial planning present a limited value?
• What are some of the best practices in tele-financial planning?
• What are the best ways to prospect new clients in the “new normal” of a virtual world?

Reference:

Sensenig, D. J., Walsh, B., Machiz, I., Stanley, N., Russell, M., & McCoy, M. (2020). Utilizing what we know about tele-mental health in tele- financial planning: a systematic literature review. Journal of Financial Planning, 33(9), 48–58.

March 11, 2021

How Can Interpersonal Neurobiology (IPNB) Be Integrated Into Financial Planning?   

Finances are an essential part of anyone’s life. For Julie Fortin, she fell in love with intimately working with others to help them make decisions about their finances. After earning her master’s degree and working in the institutional side of financial planning as a CFP® she searched for local firms that advise via a fee. From there she shifted to a firm with advisors that were mostly women. “When I was studying for the CFP® exam I had a young child at home and was a little isolated professionally,” she said.  Fortin has found much empowerment and pride in working at a women’s firm that mostly helps other women.  

What is Interpersonal Neurobiology?

Fortin explained that interpersonal neurobiology has been evolving research since the 1990s. It is an interdisciplinary framework that includes research from over a dozen different and unrelated scientific disciplines. These patterns of unrelated scientific disciplines are studied. The neuroscience aspect looks at the way the brain changes and how it is influenced by different relationships. The clinically-based evidence looks at the way the brain grows and it is focused on well-being relevant to industries with relationships, well-being, and leadership/coaching explained Fortin. “It really does a great job of translating neuroscience into approaches and a framework that we can use with clients in financial planning,” she said. 

A Shift In Work 

There are four main concepts of Interpersonal Neurobiology; Integration, Neuroplasticity, Attunement, and Micro Awareness. In recent years, Fortin has observed a shift from financial products and sales into the realm of quality of life. A shift I think a lot of industries are currently experiencing due to the pandemic and many working from home. Fortin described the shift as the technicality and the quality of life merging together. 

To develop a greater quality of life Fortin suggests developing deeper client relationships and connections. This is beneficial for the client as they will have someone they trust in the condition of an uncertain change. “At the end of the day it’s really not about the client having more assets in their account or on paper, it’s about what they feel those assets are going to be able to provide for them or allow them to do,” she said. 

The Importance of Clients Being Financially Integrated

Fortin describes integration as the fundamental process of well-being. In order to achieve a sense of well-being, Fortin said it must be first recognized where clients are not integrated with their financial lives. Having this unique ability and relationship with clients will help them move towards a financially integrated space. Therefore giving the clients the opportunity to think about the future and have those conversations that they might not be having. An important and beneficial part of financial planning is being able to reflect on current practices and have the opportunity to think and discuss them out loud. 

“Without knowing what somebody wants and what their values and goals are the plan can’t be built. If someone is coming into the office and you’re not going deeper on about what they desire they will probably say what they’ve heard about, like retirement,” Fortin said. Therefore it is important to develop a relationship with one another and build trust to then put numbers to paper.  

What is Attunement?

Attunement is the ability of the brain to rewire itself in response to interpersonal and intrapersonal, said Fortin. Therefore it is being able to understand deeply when in a moment to know how we are feeling while being present with another person. 

Interpersonal is the client and yourself. It is hard to detect another’s emotions that aren’t your own. Intrapersonal is about yourself. It is important to reset your frame of mind before meeting a client. Having a clear mind and being centered helps to talk to the client. Like most things, you must be present and use emotional intelligence to detect and understand what is happening in front of you. 

Being Stressed is Unavoidable

Stress is going to be present in a lot of meetings, every day. By staying attuned to the client’s emotions you can acknowledge if something has shifted or what the client may be feeling. When with a client Fortin believes is 75% listening and 25% talking. “Financial planners train to give advice and answers. Sometimes it takes a lot of self-control to not say something when you want to, it’s part of the practice,” she said. 

Her advice is to get comfortable with silence. Pause and wait in case the client wants to say something, ‘The whole point of the process is to get the client clarity for themselves. It will give them calm and control again,” she said. When this happens Fortin suggests reflecting back to them when they talk. She encourages planners and advisors to use open-ended questions using how and what, as well as encouraging the client to self-understand. “I don’t think there’s going to be one size fits all like many things. I think the integration into financial planning will look different depending on the type of firm,” she said. 

Parting Advice to Younger Planners

Fortin’s parting advice was focused on younger planners, “I think it’s such an exciting time in our industry. I’m excited for younger planners that are just coming into the industry. I can’t imagine a better time as there are so many options now,” she said. She further spoke about growth in the presence of women in the industry with new young, female professionals. On the whole, Fortin believes that many women innately have the skills that are required for a non-technical job of being a financial advisor. Lastly, her advice guided towards anyone said, “Focus on what aspects of financial planning really excite you and explore that more.”

About Julie Fortin:

Julie Fortin, CFP®, FBS®, CeFT®, is a Partner and Wealth Manager at Northstar Financial Planning, a women-owned, holistic, financial planning firm dedicated to enriching the lives of women and couples by helping them use their money to achieve their life, family, and legacy goals. Julie holds an MS in Finance degree from Suffolk University and a graduate certificate in Financial Psychology and Behavioral Finance from Creighton University. She is a Certified Financial Planner professional®, a Certified Financial Behavior Specialist®, and a Certified Financial Transitionist®. She has been quoted in publications including the New York Times and Nerdwallet and published in the Journal of Financial Planning. Julie volunteers with the programs Junior Achievement and Invest in Girls. She serves on the board of the Financial Therapy Association.

About the Host:

Dr. Chia-Li Chien is a succession program director at Value Growth Institute, a succession consulting practice dedicated to helping business owners increase their firms’ equity value. Before her private consulting practice, she held several senior management positions in Fortune 500 companies. Dr. Chien is a director of the financial planning program at the School of Management at California Lutheran University. Dr. Chien is a frequent speaker about succession and retirement planning at national conferences and has published three award-winning books, including her most recent publication, “Enhancing Retirement Success Rates in the United States.” Dr. Chien serves on the boards of various national financial service associations. She holds a doctorate in financial planning and is a Certified Financial Planner (CFP®) as well as Project Management Professional (PMP®).

About the Author:

Rosie Baker is an undergraduate student at California Lutheran University, graduating in May 2021. She is studying Communication with an emphasis in PR and Advertising and has a minor in Creative Writing. In July 2020, she published her first book, Mirrors & Windows: Unlocking a New Framework to Envision Your Success, with New Degree Press.

Dr. Chien interviewed Julie Fortin, CFP®, FBS®, CeFT®, on “How Can Interpersonal Neurobiology (IPNB) Be Integrated Into Financial Planning?” on March 11, 2021, at 11 am PST

Financial planning is not just about increasing and safeguarding the client’s wealth but also their overall well-being.  In this session, we will discuss the following questions:

• What is Interpersonal Neurobiology (IPNB)?
• Why can integrating Interpersonal Neurobiology into the financial planning approach improve the client’s overall net worth and quality of life?
• How to integrate IPNB techniques into the financial planning process?
• When planners sense the client’s stress, what are the steps the planner can follow to change the narrative?
• What is attunement: knowing oneself and others?
• How to integrate IPNB into the financial planning business model?

Register now, and you will receive a confirmation email containing information about joining the meeting. This is a webinar you won’t want to miss!

Reference:

Fortin, J., Jansen, M., & Klontz, B. T. (2020). Integrating interpersonal neurobiology into financial planning: practical applications to facilitate well-being. Journal of Financial Planning, 33(5), 46–47. https://callutheran.on.worldcat.org/oclc/8596609674

Student Resources:

https://www.kitces.com/
https://www.letsmakeaplan.org/
https://mindgains.org/
https://www.mindsightinstitute.com/team/
https://drdansiegel.com/

How to Leverage COIs and Referrals to Grow Your Business?    

When Jennifer Bacarella went to college she was ready to become a CPA. She grew up loving money and being good with numbers knowing that was the path she wanted to pursue. But after spending time at an accounting internship during her sophomore year, her mentor realized that she enjoyed and wanted to be involved with the clients more than a usual CPA would be. He advised her to undertake a different job that involved developing relationships with clients and interaction. By the time Bacarella was twenty she had her license and was ready to be a financial planner advisor.  

Bacarella shares a unique story with her soon-to-be ex-husband. They met in high school and worked at the same branch during college. After college, they both got hired at Sigma Financial and for the past 26 years they have helped grow the business into a successful broker-dealer as one of the few original advisors. Now, Bacarella and her husband have decided to be partners in life, rather than spouses. This connects to her passion for relationships with others. Over the years she has learned a lot about relationships on how to grow and expand them. 

What is a Center Of Influence?

A Center Of Influence (COI) is “A relationship that you’ve acquired where you can benefit each other. That person has the ability to be an advocate for you in a lot of different ways,” explained Bacarella. It is a way to connect and build a network with others to help one another. 

Her first COI encounter was when she was 20 years old and first registered with a license. New to the world of finance, Bacarella kept asking herself how she could get her foot in the door of business? How can she become someone that people would want to work with? Her first client was her mother, she helped her work out a retirement plan as a middle school secretary. To do this she sat down with her mother’s superintendent who she knew as she went to school with his daughter. He agreed to a meeting and together she talked to him about the different options available. He was so enthralled by her that she was put into the school system to be one of the approved advisors. Her next move was to reach out to every person that had her as a student. Reflecting upon her decision and work now, Bacarella said, “Now I see them in retirement and I’m so proud to say they were one of my first clients.” 

When relationships with clients have been built, ask yourself, “how can they be an influential relationship?” explained Bacarella.  Clients become a center of influence for Bacarella when they share their experience with her as an advisor with others they know. This instantly helps build connections and referrals of those that she has previously worked with. Bacarella also sits on many boards including charitable boards. She said that these boards are the largest COI and are the most giving and wanting to help. “When you go in with that purity it’s amazing how many people ask what do you do for a living?” she said. 

How to Others Can Help Develop Your COI

When people feel like they’re not being benefited from the situation, you are less likely to get referrals, explained Bacarella. “I think sometimes we rush into relationships and ask for referrals too early,” she said. You want someone that will advocate for you and will refer you to someone they care about. “People are really careful who they talk about, they don’t just throw out names. They [the clients] talk about why they like working with me and what aspect of their life I helped them with. The biggest thing about this career is the therapy component and the active listening being able to hear what they’re saying,” she said. Bacarella explained that her COI feels like they’re helping the person when they share her name with them, not necessarily helping the advisor. 

Bacarella enjoys building personal relationships with her clients. The best way she likes to do this is by going to her clients houses to interact with them instead of them coming to her office. This has many benefits as it allows her to meet with both spouses at the same time and their children. Now, all her clients’ children are her clients. She said she has “Been able to capture that next generation of money.” Watching their parents trust her with their money and by being invited into their homes built personal relationships and allowed the opportunity to show how much she cared about them. “It came naturally to me, and I think it comes pretty naturally to most female advisors. When I encourage them to be in this business, I say that no one else should create your boundaries. Do what makes you feel comfortable,” Bacarella said. Her best advice is, “If you are shining at that moment people are going to see that and they are going to be attracted and drawn to you.”

Being Authentic and Adaptable on Zoom 

During the pandemic Bacarella hasn’t been able to visit her clients in their homes, instead, she uses Zoom to hold her meetings. In-person meetings meant she used to create authenticity across the table to someone rather than video. The pandemic has forced her to adapt and change so clients can still see her authentic self over video. In order to achieve this Bacarella said she took away some of the Zoom protocol and changed her style by using newfound tools via Zoom. She thinks it helps clients feel more engaged and it allows them to have greater access to the conversation. 

Integrating COI’s and Referrals Into Your Business

To achieve a COI it must be integrated into the business and referrals have to come from an existing client. That being said, Bacarella explained that you have the ability to market yourself anywhere. “Marketing yourself comes everywhere and from everything you do. It’s you how handle yourself at a PTA meeting or a girl scouts meeting for your daughter. I was around so many different professions that sooner or later the conversation always turns to what do you do for a living,” she said. 

It’s important to understand that you are always in an environment where you can make an impression on somebody. This is why it is even more important to have a polished elevator speech ready from when someone asks you what you do for a living.  But, you want it to have everyday language to be easy to understand and open it up to develop into a follow-up conversation. Your world is your referral process, explained Bacarella, don’t let it get limited by marketing strategies as anything you do creates an opportunity to talk about how excited you are for your clients. 

One Piece of Advice

You need to be a sponge, said Bacarella, don’t settle on having one mindset. She also advised that mentors are important to listen to and learn what not to do. “By having many mentors, it can give you a 360  view so you have the ability to position yourself in an authentic way on how you want to work with clients.” Learning about different strategies and listening to various ventures allows you to have an open-mind and internalize the information for yourself, she said. 

About Jennifer Bacarella:

Ms. Bacarella has recruited more than 1,000 company representatives, orchestrated two clearing-firm changes, and started a new broker-dealer firm. Ms. Bacarella manages a staff of 115 along with her own three-team department, which includes Licensing, Firm Development, and Relations. She also is head of the Team Building Committee and manages her own book of business. Ms. Bacarella also is a Girl Scouts den mother and a member of Women in Financial Services (WIFS).

About the Host:

Dr. Chia-Li Chien is a succession program director at Value Growth Institute, a succession consulting practice dedicated to helping business owners increase their firms’ equity value. Before her private consulting practice, she held several senior management positions in Fortune 500 companies. Dr. Chien is a director of the financial planning program at the School of Management at California Lutheran University. Dr. Chien is a frequent speaker about succession and retirement planning at national conferences and has published three award-winning books, including her most recent publication, “Enhancing Retirement Success Rates in the United States.” Dr. Chien serves on the boards of various national financial service associations. She holds a doctorate in financial planning and is a Certified Financial Planner (CFP®) as well as Project Management Professional (PMP®).

About the Author:

Rosie Baker is an undergraduate student at California Lutheran University, graduating in May 2021. She is studying Communication with an emphasis in PR and Advertising and has a minor in Creative Writing. In July 2020, she published her first book, Mirrors & Windows: Unlocking a New Framework to Envision Your Success, with New Degree Press. 

Dr. Chien interviewed Jennifer Bacarella, AIF, CWS, on “How to Leverage COIs and Referrals to Grow Your Business?” on February 16, 2021, at 1:00pm PST.

Many matured financial planning or service practices spend a limited amount on their sales and marketing. They leverage the Center of Influences (COIs) and referrals as a way of marketing. In this session, we will discuss the following questions:

• What is the Center of Influences or COIs?
• What are some ways to establish COIs?
• Why use referrals as one way of marketing?
• How should the referral process integrate into a practice?