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5 Things about Creating Equitable Hiring Practices in Your Financial Planning Firm

Cait Howerton, AFC®, is relatively new to the financial planning profession—but she’s already making waves. Howerton is an advocate for inclusion and equity in the financial planning profession. She’s an LGBTQ-plus and student loan money specialist. 

Howerton is passionate about helping other people find purpose and meaning in their finances and wants to help the financial planning profession grow to start connecting with people from all backgrounds and sexual orientations. In a recent episode of my podcast, Howerton shared her story about how she interviewed at a larger firm and immediately connected with the interviewers. However, upon meeting her in person, she was told she wouldn’t resonate well with their clients, and they thanked her for her time.

Discriminatory hiring is still happening in the financial planning profession (and beyond). Unfortunately, many firm owners aren’t sure how to align their hiring process with their diversity goals. Howerton recently gave us actionable tips to implement better hiring practices and other ways financial planning firms can start to pursue inclusivity.

1.) You almost left the planning profession. What made you stay? 

I almost deuced out of the financial planning profession because of that experience. It had already been challenging for me as I grew up in Arkansas a member of the LGBTQ-plus community—which isn’t really readily accepted still, even in 2019—so seeing myself in the profession and having visibility was something that I didn’t have at that time.

I think my own passion for what we do [made me stay]. I didn’t want someone else to be the end of my story. That wasn’t a period, it was a semicolon, like Project Semicolon, just keep going. It gets better. For me that was the point that I was like, I have to keep going because there are people out there who need help with their finances and they need help with their money scripts and they need to be able to see people like us in this profession so that they know that they are not alone.

2.) You’ve interviewed at different firms and have some knowledge around hiring practices. What are some of the best practices that you can share from the firm you’re with now?

First start with yourself. Go take an intrinsic bias test. Harvard offers a good one. We all carry biases within us that were ingrained since we were kids. It’s very hard to break those things, but we can at least start with being aware of them, addressing them, seeing how those subliminal things pop up within us to see how we would see someone else and then how we present ourselves.

From there, the next place would be your job posting. Check out the language you’re using when you’re running your job posting. Is it heavily feminine? Is it heavily masculine? There are feminine words, which are lighter, and there are masculine alert words, which hit harder. When you put a lot of words like dominate, aggressive, things like that, it starts to lead the job posting in a more masculine direction. You can throw those through an online screener—there are several available.

Studies have shown that by using fewer masculine words, you attract more women and other minority group members, but it doesn’t have a negative impact on men.

If you’re focused on gender equity, which you should be, that’s where you want to start. The next thing is your posting location. More men are hired based on word of mouth. They use their network, versus more women and minorities who more use third-party listing sites. So, make sure you have an online presence.

3.) Most jobs are found via word-of-mouth in your community—so if your community is homogeneous and everyone looks and thinks just like you, then you’re going to just hire more people just like you. What are some of the other things that these firm owners or people who are in the hiring space can do now? They’ve posted the job, they’ve made sure they posted it at various locations. What’s next?

The next thing is your screening and interview process. Are you doing an open resume or a closed resume? What [a closed resume] means is when you get resumes or applications coming through, and they are passed off to an assistant or someone who’s not involved with the hiring process—or even if it’s you—print them off and go through every single paper copy, then have them cut [or you cut] out the name. If you’re going through resumes in a digital form, which is a little more difficult, have someone else screen those resumes or even print them off. Take the name off of resumes because a female or someone who has a black or brown name, there [might be] that intrinsic bias that’s going to pop up again and they have less of a chance to get hired just because of their name.

4.) You’ve gone through the recruiting process, you’ve posted the description, they’ve gone through the interview process and now the person is hired. What type of benefits should firms be looking at to include the planners we want to bring into our profession?

The first thing that comes to mind is parental leave. I say parental, you’ll notice, I didn’t say maternity or paternity leave because it’s parents and we have a bunch of diverse family types. This isn’t just about LGBTQ family types—you’ve got a single mom, you potentially have a mom and aunt, you have a nuclear family, you have an extended family. So that is something that’s very important when you’re considering drafting out your policy.

If your parental leave policy is that if a woman carries a child and she gets 12 weeks, does their partner also get 12 weeks? Do they get to be home when that baby is brought into the world? And what about adoption? That can be for female individuals, for male individuals. Do you offer the same benefits to people who are adopting and even if it’s not 12 weeks, is it four weeks, six weeks? I’ve seen things like primary caregiver and secondary caregiver. What does that mean? Because I know for sure that both people or all three people are caregiving in that house.

I think it’s really important to visit that because what you’re doing there is making sure that it’s a level playing field. Everyone’s receiving the same financial benefits from your company, but you’re also making sure that their family unit is tended to so that when they come back to work, you know that they’re good.

5.) What about the client side? What should we be thinking about when we’re thinking about our website and wanting to be planners to all types of clients?

You have to understand what your website is for. Your website is your front door to your business. In this day in age, we have a presence that is larger than just the town or city that you’re currently in. So you’re able to generate clients and show who you are online in a way that we never have been able to before. The thing to start with is who and what are on your website? Go look at that copy and go look at those photos on your website. You want to see that you have representation of white, black, brown, Asian, Middle Eastern, everybody, if you want to show that you are willing to work with any person, and not just someone who looks like you.

That leads to other things also, such as do you have any LGBTQ individuals on your website? Do you have any people with disabilities on your website? Seeing yourself within a page and within a space creates an initial safety in your [potential clients’] subconscious. Same thing with your copy. If you focus on working with women, you’re probably going to say something about it. But if you also want to let people know, hey, if you’re LGBTQ, you’re absolutely welcome here. Throw that up within a diversity statement and potentially even create a landing page. Talk, write some articles, write blog posts, show that you understand the issues that that particular community faces.

Rianka Dorsainvil

Rianka R. Dorsainvil, CFP® professional, is the founder and president of Your Greatest Contribution (YGC), a virtual, fee-only comprehensive financial planning firm dedicated to serving entrepreneurs, first-generation wealth builders and thriving professionals in their late 20s, 30s and 40s. She also hosts 2050 TrailBlazers, a podcast aimed to address the lack of diversity in the financial planning profession by engaging industry experts and leaders in conversation.

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5 Things about Family Dynamics and Money in the African American Community with Lazetta Rainey Braxton

Lazetta Rainey Braxton.jpgLazetta Rainey Braxton, CFP® professional, knows that, many times, sitting down with a financial adviser might be the first time a couple has had a conversation about money. In the African American community, money conversations don’t often happen organically. Money might be viewed as a stressor, and talking about money might be seen as rude or uncomfortable. 

I recently sat down with Braxton for a 2050 TrailBlazers podcast episode to explore family dynamics and money, what guilt African American professionals may carry with them if they feel they’ve “made it” while their community still has financial need and how the importance of serving your clients best interests. 

There are people who feel a sense of fear to talk about money. Where does this come from and how does it impact the African American community? 

Regardless of race, there is lack of money talk in various families. What we should anchor this in is the statistics that really highlight the racial wealth gap that try to figure out how to navigate the disparities. There’s a New York Times article that says for every $100 in white family wealth, black families just hold $5 and 4 cents. So yes, as African Americans, as blacks, we say money talk is even more important because we have to try to make up for lost time. Also, each generation is trying to figure out how to navigate what they’ve inherited or not inherited in terms of the wealth transfer.

African Americans who I like to call first-generation wealth builders might feel an obligation to help everybody else in their family. Tell me more about how we can help clients put on their own financial oxygen mask first before helping others.

There is this obligation that you feel to give back and lift others up. When I work with clients, I ask them, “Do you have people who will be financially dependent on you?” And oftentimes I hear parents or aunts and uncles helping a niece or nephew get through school or they’re also dealing with their own children as well, but the extended family is typically on the payroll—or are a line item for that budget.

When family members ask clients for money, use the line item as a reference saying, “You know, my family fund is depleted.” I go a step further if you’ve learned how to put your mask on first—it’s your responsibility as you’re giving to help others put their mask on. Ask some questions. Why do you need the money? What went wrong? How can we not let this happen again? Because if we don’t try to educate and elevate, then the wealth gap within our own family will continue to persist.

Educate and elevate—what does that look like?

I start first by helping them name the family members who may be draining their finances. I  couple that with asking, “What are you proud of that you’ve done well with their finances, and where do you need to improve upon so that we can get everything out on the table?” We can eliminate what I call that money fog—fear, obligation and guilt. Having the conversation lifts the fog so you can be clear about who’s responsible for what. 

When you start liberating people to take the deeper dive and own how they want to live, it gets contagious. Then when people are asking them for money, they can say, “Well, hey, I improved my situation, you can too.” 

Historically the African American community has navigated toward annuities and whole life insurance as a way to invest versus the stock market. Also, they tend to want to own rental property. Shed some light on that for us.

In terms of exposure as African Americans historically, we like things that we can see and feel and know that there is a contract. That goes in line with what we’ve experienced within this country of having property taken from us. So if we know we own it—with the deed and with the contract and paying the premiums—there’s a feeling of having guaranteed income, even if there are other opportunities to grow that income. African Americans historically have anchored their wealth in real estate. They are also very comfortable with insurance because insurance has been around for a long period of time. Also annuities have a component of insurance tied to them as well. 

Now I’m not disparaging any of those asset classes—they are important. What I’m also saying is, I see wealth transfer among the white populations—which have significantly more wealth—is happening through the stock market. There is the ability to grow your wealth exponentially with this concept called compounded growth, while your money is constantly working for you. There are also tax considerations that make stock ownership or exposure to the market more attractive as well. African Americans have to be more comfortable with the stock market because a lot of their assets are in retirement plans. And there has to be that basic understanding and comfort level with knowing that there is potential for growth, noting that  markets do go up and down. We’re not saying that there’s not that volatility, but over long periods of time it has worked out well for other populations.

[Wanting to own rental property] is still an extension of what you know—if you own a home, you know what you need to maintain it. How we in our community fall short is that we don’t have the capital. You need a capital fund for home ownership. That capital fund is going to cover you when your renters tear up your home. When you have to fix stuff, right? When you’ve got to keep landscaping or if you can’t rent it for four months and you’ve got to still cover the mortgage on it. 

I’m sure there are some [readers] saying this happens with my clients and they’re not people of color. What I want to emphasize over and over again is that the wealth gap and the economic conditions compounds these issues within our community.

Something that is important in both of our lives and especially in the African American community is our religious beliefs. Tell us how that plays into money. 

So what institution historically has the most longevity in terms of organizational strength? The black church. Now we’re looking at several generations later where there is still some strong residual commitment to supporting the church. So the black church has been kind of the center of economic distribution—good or bad. It has supported people when society couldn’t really be there for them—whether it was helping them with rent, making sure they were fed, proving a place of refuge when the world was still saying you’re not welcomed here. So as a part of the biblical understanding of stewardship, I grew up with this understanding of you give to God first of your fruits and that really equated to 10 percent. So if you’re giving to God first and then yourself, you have to help people understand how to live off the remaining 90 percent when that 90 percent reflects a terrible income gap and a wage gap as well. So that cultural understanding of giving to the family and also giving to the church is a sensitivity that advisers have to be aware of when serving black clients.

This is where the f word comes into play: fiduciary. That means keeping your client’s best interests first. Our clients are telling us what their interests and what their goals are, and if you don’t have the cultural competency to understand that and take the deeper dive, then you’re not being that fiduciary that they need and deserve.

Rianka Dorsainvil

Rianka R. Dorsainvil, CFP® professional, is the founder and president of Your Greatest Contribution (YGC), a virtual, fee-only comprehensive financial planning firm dedicated to serving entrepreneurs, first-generation wealth builders and thriving professionals in their late 20s, 30s and 40s. She also hosts 2050 TrailBlazers, a podcast aimed to address the lack of diversity in the financial planning profession by engaging industry experts and leaders in conversation.

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5 Things to Know About Cultural Competence and Your Practice with Saundra Davis

Saundra DavisWe have officially kicked off season three of 2050 TrailBlazers with the theme money and culture. One taboo that transcends many cultures is talking about money. I recently sat down with Saundra Davis, MSFP, APFC®, FBS®, a world-traveled distinguished adjunct professor and financial coach with decades of experience, to have a deep discussion about various cultures and their lenses of money.

In our interview, Davis covered how to ask questions as financial planners or money coaches when working with a diverse client base. She also discussed different money values, and how planners and money coaches can stay in the mindset of curiosity to help our clients build their best financial lives.

What is your advice to the financial planners who want to work with a more diverse set of clients, but don’t know how?

Davis: This is why [financial] coaching is so crucial. Because as a coach, it doesn’t matter who I’m sitting next to because my first question—once we’re ready to look at their goal—is what do I need to know about this? What do I need to know about you? What do I need to know about what matters most to you? Once I lay that foundation, they don’t have to rattle off all their cultural stuff to me, it is going to come out.

And if I’m staying in the beginner’s mind and I’m staying with curiosity, if someone says, “Well, you know, I got to make sure that I cover my parents.” I would say, “OK, so tell me a little bit about that. What does taking care of your parents mean to you? What things are you willing to adjust to make sure that you do that?”

A comprehensive planner still has to look at that Monte Carlo [simulation], right? I don’t have that barrier, so I get to stay in that coaching seat. Whereas for you all, you have to balance those two things.

I would invite people to really make sure you truly make space in the beginning for people to say the things that are really important to them.

In other words, set very clear expectations up front with clients and hold them accountable to the promises they made to themselves. Is this accurate?

Davis: Absolutely. I often call it holding up the mirror. I’ll tell them, “Is what you’re doing getting you what you want, and is it congruent with what you say you want the desired outcome to be? Terrific. Keep doing that. If what you’re doing is not getting you what you want, what do you want to do differently and then how do I support you in figuring that out and then staying on task.”

You said that the client you’re sitting beside, and their culture, will determine how you approach various conversations. Tell us a little more about that.

Davis: The first thing is that I don’t make any assumptions and I don’t try to behave as though I understand what their experience is. I can empathize, but my experience is not the same.

I am a Black woman, born and raised in Northern California, and I have a very specific lens. If I’m dealing with a man from the South, I have to let him and his perspectives and his experience guide me in how I support him. I have to be able to hear what he has to say and listen for what’s important and then reflect back what I think I hear. That’s the most important thing—say, “So what I’m hearing is this. What did I miss?” Something that gives people permission to say, “You missed it completely,” or “You nailed it.”

Ask, “What are your top five values?” When we’re talking to people about their financial lives, there is nothing that doesn’t touch money, nothing. So how does money live in our lives? How do we live with it in our lives? If we’re pushing what we think is financial health … we have to do that in the context of what matters most to them.

Let’s talk about the difference between discovery of understanding and discovery of data, because those are two different meetings.

Davis: They are different, different things. And I would suggest not putting them together. The first discovery meeting is: Who are you? What do you want your life to look like? What are the things that influenced that? Describe the vision that you want to come out of this. How will you know we’ve got it? What is the best way for you and I to work together? What happens when you get stalled on the implementation of the plan? Who are the people we need to be thinking about in this mix? When you’re successful, what does it look like when you’re struggling? How will I know? What should I do when you’re struggling? The discovery is who we are together.

Then, once you’ve got that number one, the client now knows this isn’t just about my money. You’ve already sent a signal. Then you can say, all right, one of the things that’s important for you to know about my work as a planner is that there are some assumptions that I will have to make to make a good plan for you. And these are those assumptions. What do you think about this? Where am I wrong? Give yourself room to be wrong. Get them to correct you because what you’re getting out of that is their ownership.

As you mentioned, America is a beautiful melting pot—a mosaic. We’re going to be working with clients from different cultures. What are the top three major differences we should look out for?

Davis: I have had to learn—in traveling in and outside of this country—to not assume that my perceptions and my fears and my concerns about money are shared by other people. What I value or what I think is struggle isn’t necessarily struggle. What I think is a poor use of financial resources may not be a poor use of financial resources.

The idea that we have here in this country now about the side hustle makes me absolutely insane. The idea that people should be working all the time and always trying to make a dollar. I don’t think we’re thinking about what are we giving up—who’s raising our children, who is checking on our elders? Are we sitting out in the sun? We have to remember that our way isn’t always the best way and it certainly isn’t the only way. I would like to leave you with this: when we’re thinking about culture—whether it’s European culture, Latin American culture, South American, Africans on the continent, the different countries—let’s not predispose ourselves to a specific viewpoint that may or may not be accurate.

The more open that we can stay, the more free people will be to say, “Yeah, that’s not how I interpret it. That’s not going to get me the plan that I need. And I’m surely not going to execute it because it’s not my reality.” As professionals, if we can leave that space for people’s individual needs—whether it’s based on culture, whether it’s based on fear, money scripts, hopes, dreams, desires—they have the room to come through.

Editor’s note: This is an excerpt from Saundra Davis’ interview on the 2050 TrailBlazers podcast. Listen to the full episode.

Rianka Dorsainvil

Rianka R. Dorsainvil, CFP® professional is the founder and president of Your Greatest Contribution (YGC), a virtual, fee-only comprehensive financial planning firm dedicated to serving entrepreneurs, first-generation wealth builders and thriving professionals in their late 20s, 30s and 40s. She also hosts 2050 TrailBlazers, a podcast aimed to address the lack of diversity in the financial planning profession by engaging industry experts and leaders in conversation.