Weekend Content for New Planners

Weekend Content for New Financial Planners (December 11-12, 2021)

“Weekend Content for New Financial Planners” is a collection of articles, podcasts, videos, etc. that I’ve been consuming regarding breaking into financial planning, industry trends, career development, and more.

Bob Veres summarizes the recently-authored book A Matter Of Time on a dynamic, hourly revenue model. The book dispels many objections and myths and Veres suggests the model as a path to developing financial planning into a profession [Article]:

“The next set of objections that the book characterizes as myths are at the core of why most advisors gravitated to AUM rather than an hourly model in the first place. The first (I’m paraphrasing here) is that with hourly, the professional is being paid based on time, rather than on value. In other words, it is possible to give a quick answer to a question based on 20 years of experience, and the value of that quick answer might be in the tens of thousands of dollars. Shouldn’t a professional charge based on value, rather than time?

The close cousin to this objection is that there’s no leverage in hourly planning. The AUM revenue model lets a firm scale up compensation dramatically as clients get wealthier. The hourly firm charges an hourly fee, period.

The book presents a simple answer for these objections: Some of the most profitable organizations on the planet (legal and accounting firms, primarily) bill their clients hourly. The AUM model has stunted the profession’s ability to learn what those professions learned long ago about the most straightforward way to acquire leverage: As your advice becomes more valuable, you charge more per hour for it – and that not only becomes your leverage, but also how you account for the value you’re providing.”

Don’t Fear The Meter: The Inescapable Future For The Hourly Revenue Model [Bob Veres, Advisor Perspectives]

Managing Editor of WealthManagement.com Diana Britton shares the stories and impetus behind her podcast “Transparency With Diana B” covering advisors’ personal wellbeing and career challenges [Podcast]:

“It’s a stressful job, you’re managing millions of dollars. I didn’t see any journalists focused on that aspect of the job.

A lot of people talk about the same things that everyone else talks about in terms of getting work-life balance. [For] a lot of folks, diet and exercise helps bring that balance. Leaning on friends and family for support. Therapy is frequently cited by the folks I talked to. It’s something advisors and professionals turn to for healing and wellness. I think there used to be a stigma when it comes to receiving therapy, but I think that’s changed a lot in the last couple of years and folks are embracing it more.”

Prioritizing Your Health, Mindset, And Life To Grow Professionally [Alex Cavalieri, The Advisor Lab]

Stephanie Bogan encourages advisors who are reflecting on the past year to look at missteps as “lessons learned” rather than areas of “lack” and provides three questions to kickstart planning a more enjoyable 2022 [Article]:

“While this can be the time of year we celebrate all our achievements and awesomeness as we set goals that stretch us in positive ways, if we’re honest, it tends to be the time of year when we hold ourselves accountable in the worst of ways. 

As we reflect on the year, we tend to judge ourselves harshly, focus what we could and should have done differently, compare ourselves to others, feel the need to compete, win and prove in the year ahead, and generate a laundry list of tasks to make sure we account for all that lack. 

I’ve learned that business plans aren’t won or lost in the planning, but with us as people. Whether our plans fail or succeed is decided in the battlefield of our minds. We can write down new goals, but when we doubt our value and worth, discount our fees, take clients that don’t meet our profile, do work for free, don’t charge enough, don’t hire the right staff and don’t build efficient systems along the way, those goals are much harder to achieve.”

A Better Way To Start Your Business Planning [Stephanie Bogan, InvestmentNews]

Seven Group co-founder Alex Cavalieri shares marketing trends heading into 2022:

Whether you are studying for the CFP® exam or learning new skills for work, Ultralearning author Scott Young breaks down what he’s learned about “learning by doing” [Article]:

“How much do we learn simply by doing the things we’re trying to get good at? This question is at the heart of a personal research project I’ve been working on for several months.

My original intuition was that we get good at what we practice, and skills are often quite specific. This suggests doing the real thing—focusing precisely on what we want to get good at—is underrated.

I still think this view holds. But this simple statement belies a lot of complexity. There’s a lot of fascinating research showing which conditions lead us to get better through direct practice.”

Learning By Doing: When Does It Work? When Does It Fail? [Scott Young, ScottHYoung.com]

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