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Map to the Next Generation of Financial Planners

Financial planning is a desirable career. But the next generation might not know it yet.

“It’s a desirable position for people coming out of college because it commands a high wage,” said Kyle Kensing, online content editor at the jobs site CareerCast.com in a CNBC article.

In the May 2019 Financial Planning article, “Daunting but Doable: How to Get Students to Consider a Planning Career,” Bob Veres offered planners and educators ideas for how to let the next generation of planners in on the secret.

Connect with local high school guidance counselors. Guidance counselors are oftentimes where students get ideas as to what they want to do with the rest of their lives. “They wield lots of influence over graduating seniors’ area of study selection, and right now, most of them are not clear on what financial planning is,” Caleb Brown, CFP®, told Veres and Financial Planning.

Perhaps your local FPA chapter can connect with guidance counselors and make them aware of the profession, point them to schools with CFP Board registered programs, and then identify the benefits of a career in financial planning.

Connect with alumni associations. Offer to speak to business students at your alma mater about financial planning. With your alumni association, you can also work toward helping to establish a financial planning program, Veres reported.

Offer scholarships or internships. It’s a tough world out there for recruiting talented individuals. Many professions are competing for the same brilliant minds, but you can be first on their list of where to work by offering students scholarships to take the CFP® examination or to pay for books.

Also, post internships and have students work in your firm for a summer. Multiple publications and financial planning podcasts note the importance of mentoring to retain next-generation and diverse talent in the profession.

Which leads us to the last tip:

Mentor new planners or seek a mentor if you are the new planner. It’s difficult to find time in your busy schedules, but helping the next generation navigate the profession could help retain talent coming in.

And if you are the new talent, finding a mentor is key. But do your research. When you reach out to somebody to pick their brain or ask them to meet to discuss something, do your homework: listen to podcasts they’ve been interviewed on or read articles they’ve written or been quoted in, said Rianka Dorsainvil, CFP®, in a recent episode of the 2050 TrailBlazers podcast.

Also, respect their time. If you schedule a meeting with them and need to cancel, give them at least a day’s notice. If you have been a product of an influential mentorship, pay it forward. Mentor other people coming up in the same way you were mentored.

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Ana Trujillo Limón is senior editor of the Journal of Financial Planning and the FPA Next Generation Planner. She also edits the FPA Practice Management Blog. Email her at alimon@onefpa.org, or connect with her on LinkedIn


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Taking Action is THE Key Ingredient: 3 Steps to Start Now

Taking action is the single most important ingredient in obtaining your goals. Without sustainable and consistent action, goals are merely a wish list. One of the core elements is in understanding the value you place on the steps you need to take. If you perceive an action to be pleasurable, you will most certainly begin right away; however if you perceive an action to be painful, you most certainly will procrastinate.

Andrew Carnegie said it best, “There are two types of people who never achieve very much in their lifetimes. One is the person who won’t do what he or she is told to do, and the other is the person who does no more than he or she is told to do.”

To manage your level of activity, assign a “carrot,” or reward, for fulfilling action items and a “stick,” or punishment, for when you don’t. This process will inevitably change your value system and help you in remaining motivated.

Read on for a more detailed stepwise approach for how you can eliminate inaction and procrastination as it pertains to your business.

Step No. 1: Define the Value of the Task

Most advisers have a multitude of tasks that “should” get done every day. As previously stated, pleasurable tasks get done and typically are accomplished first while painful tasks either don’t get checked off or are delayed in getting accomplished. Unfortunately, this process neglects the fact that sometimes short-term pleasure can create long-term pain.

Ken is a 10-year veteran financial adviser who felt overwhelmed and exhausted most days. After a decade of prospecting, he found himself spending most of his time servicing clients when they called him. He did receive pleasure out of making his clients happy, which is why this had been a priority. As a result, the more arduous task of prospecting was neglected most days and his business growth had grown stagnant.

After a number of queries, Ken admitted that he hated getting rejected but realized the long-term result of not prospecting meant the pain of never becoming a top producer. So, we discussed the client servicing activities that he could delegate to his licensed assistant who was qualified to handle those activities. This resulted in freeing up time for him to prep and tackle prospecting.

Step No. 2: Schedule an Action Date

Typically, goals are much more likely to get accomplished when the tasks associated with them are assigned a time horizon, an action time and date. So, we mapped out Ken’s day to prospect first thing in the morning for 45 minutes. All client service activities that didn’t directly involve discussing investments with clients were to be delegated to his assistant while everything that was investment related but not time sensitive was to be done after his time blocked to prospect.

Step No. 3: Create Leverage

The easy part is in creating the process, but the harder part is sticking to it. In order to ensure that you continue to take action on a consistent basis you need to create leverage by assigning a reward system for accomplishing the activity or a punishment system for not doing the more difficult activity.

Ken was a coffee lover and to him the morning didn’t start until he had finished his first cup of coffee. After he told me this, I knew exactly what type of leverage he needed. He was to use coffee as his reward system, if he started prospecting, he could pour himself a cup of coffee, if not, he couldn’t. At the end of the day, he would send me an “accountability email” to share the day’s results. It took a few weeks of consistently prospecting and delegating to get into a groove but it did become easier and easier.

After a month or so of daily “accountability emails,” Ken’s prospecting paid off and his business started to grow again. In addition, he was feeling far less overwhelmed and excited about his outcomes.

Why Having a System for Scheduling Action Items Works

The reason why having a system for scheduling action items works is because it generates an awareness of what is important about the task, it sets aside dedicated time line for accomplishing it and then promotes keeping you accountable for the results. Oftentimes the simplest of solutions pays off in spades.

If you would like a complimentary coaching session with me, please email Melissa Denham, director of client servicing.

Dan Finley

Daniel C. Finley is the president and co-founder of Advisor Solutions, a business consulting and coaching service dedicated to helping advisers build a better business.


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Giant Cakes and Good Vibes: Takeaways from FPA Annual Conference 2019

FPAselects-253.jpgIt isn’t often that you attend a conference where there’s a giant cake, a great party and fantastic giveaways.

Keith Beverly, CFA, CFP,®, said the one negative thing about FPA Annual Conference was that he didn’t attend years ago.

“Free massages should be mandatory at all conferences,” Beverly said.

But giant cakes and free massages aside, FPA Annual Conference was packed with information that is relevant to your practices. Here is what I found most interesting from the sessions I attended.

Is Artificial Intelligence a Threat?

The New Yorker journalist Sheelah Kolhatkar noted, in a particularly sobering general session, that the rise of artificial intelligence across sectors has generally led to a decline in jobs for humans. While economists have predicted that the elimination of certain jobs due to AI will lead to creation of different jobs, it hasn’t always lived up to that promise. She noted two types of artificial intelligence: replacing and helping. Replacing AI replaces human labor, while helping AI helps humans be more efficient at their jobs.

While AI can likely memorize more things than you, and can make a financial plan, it doesn’t yet have the same emotional intelligence quotient as you do. Though some news reports indicate that is only a few decades off. Kolhatkar talked about Amelia, a robot being tested specifically to replace human workers in white collar jobs. Amelia speaks 20 languages and can handle multiple issues at once.

Let’s hope Amelia doesn’t get her CFP® certification.

The Competition is Stiff for New Talent, But There’s Good News on the Horizon

Kate Healy, managing director of generation next at TD Ameritrade Institutional, notes that there are approximately 100,000 advisers who are expected to retire within the next decade. We have 40 percent fewer advisers today than we had in 2008, and only 25 percent of the American population is getting financial planning, she said.

“There is a really large untapped market that we need to serve,” Healy told FPA Annual Conference attendees. Healy noted we’re only graduating around 200 students a year in CFP Board Registered programs. Clearly, the pipeline of future planners isn’t enough to fill the impending gap in the number of planners.

Maybe we need Amelia to get her CFP® certification after all.

But there is good news, Healy said. For the first time the average age of advisers has dropped below 50—it’s now 49, and more women and black and Latino professionals are entering the profession.

“We’re seeing progress,” Healy said. “We’ve been doing this for a decade and we’re finally starting to get it.”

72350361_169761577543545_4690210948449828864_n.jpgThis year saw the first-ever diversity and inclusion reception, where people came together the night before the conference kicked off to get to know each other. It was also here that FPA Diversity Committee chair Charles Adi, CFP® (pictured right with Catalina Franco-Cicero, CFP®), announced the launch of the newest Knowledge Circle—the African American Knowledge Circle. This group joins the ranks of the PridePlanners and FPA Latino Knowledge Circles.

This reception was a favorite of attendee Dejah Gay, CFP®.

“I was thoroughly impressed with the FPA’s commitment to creating an inclusive environment and appreciative of the opportunity to have open dialogue about the topic with industry peers,” Gay said. “Also, being able to meet and exchange experiences and ideas with so many other attendees the first day really gave me a sense of community throughout the remainder of the conference.”

Beverly said in talking to students, he found there is still an opportunity to expand recruitment efforts.

“We need to attract more students of color to financial planning programs,” Beverly said. “The three [students] I met were from schools where the students of color represented less than 2 percent of students in the program.  We need to start earlier with our recruitment efforts.”

Your Clients Are Super Stressed Out, and It Could Lead to Bigger Problems

They are stressed out and their stress levels might raise their risk of heart attack because when we’re stressed, we do things like excessively drink and overeat. A session by the American Heart Association noted that 70 percent of Americans say their finances are the No. 1 cause of stress.

But it turns out, if your clients are charitable, they actually have lower blood pressure, increased self-esteem, less depression and lower stress levels. Maybe you should encourage your clients to better manage their stress and donate more to charities.

But many things cause clients stress—not just money. And these challenges require more training on the art of financial planning. The many sessions that tackled this were most helpful for Kamila McDonnough, CFP®.

“I was excited to see how many of the sessions focus on the soft skills of planning. I enjoyed the sessions on working with clients that enable, married couples and [couples with] low AUM,” McDonnough said. “It reinforces, for advisers and others, that financial planning is much more than the asset allocation and how the FPA provides tools to assists advisers in these areas.”

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Be Grateful, Learn to Love the Learning Process, and Be Prepared

Justice Alan Page, former Minnesota Viking and Pro Football Hall of Famer, was always quick in school and got things relatively easy. So he kind of coasted through, getting good grades but not really enjoying learning.

It wasn’t until his second go at law school (he dropped out the first time) that he began to fully love the learning process.

Instead of seeing your CE requirements as something to check off a to-do list, learn to really absorb the things you’re reading about and being quizzed on. Also, Justice Page said, do what you do as well as you possibly can and prepare well.

“Preparation is how we get things done,” Page said. “Being as prepared as you can will give you the greatest opportunity to achieve the particular goal that you’re working on.”

Beverly said he enjoyed the general session with Page the most.

“He’s a brilliant man with a lifelong commitment to social justice and racial equity,” Beverly said. “It was motivating to hear how he began shaping his legacy at an early age and has been steadfast over many decades. He also has a great sense of humor and offered some memorable quotes.”

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Embrace Challenges

The Dawn Wall in Yosemite National Park is 3,000 feet of straight up granite. It has 32 different pitches. It took seven years for Kevin Jorgeson to conquer.

Jorgeson’s story is one of reinvention. The former competitor in bouldering had never done big wall climbing before.

I know—a former boulderer conquering that feat is impressive, but can we just take a moment to recognize that his climbing partner, Tommy Caldwell, still does these big wall climbs after cutting off his finger?! Talk about embracing challenges.

While you can’t ease your client’s stress by telling them to embrace challenges and be grateful you can try to ease your own stress by reframing challenges to be something that you look forward to and remember fondly when they’re over.

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It’s the Year of Generation Next

Something was different about this year’s FPA Annual Conference. The students have always been there, but this year, they were not just about the student-only events. Students were mingling and learning at sessions, sitting down and networking with future employers and FPA staff, and representing their schools well. Not that they hadn’t done that in previous years, but this year, students seemed particularly impressive.

FPA NexGen events were packed with students and NexGen leaders who have an infectious passion for the financial planning profession, sharing tips and knowledge and welcoming new planners and future planners into the fold.

NexGen veteran and 2019 FPA president-elect Martin Seay, Ph.D., CFP®, noted that there are currently more CFP® professionals older than 70 than under 30.

“That means there are a lot of folks that worked really hard to build this profession that will retire at some point,” he said at the FPA NexGen Town Hall. “We need more of you and there are opportunities.”

But learning and being successful isn’t about reinventing the wheel, he noted, rather, “it’s about learning from the folks who came before you.”

And 2019 FPA NexGen president-elect Alexandria Davis announced the fun news that NexGen Gathering will be held in June 2020 in Las Vegas, dates to be determined. She also encouraged students and new planners to get involved in their local chapter and take advantage of their FPA membership, noting that NexGen membership is part of that, not a separate membership.

Franco-Cicero said her top takeaway from conference was, “The importance of passing the torch from the current generation of planners to the new one entering the field. I felt that this year’s conference created a space that allowed for professional friendships to develop and others to continue to be nourished.”

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Ana Trujillo Limón is senior editor of the Journal of Financial Planning and the FPA Next Generation Planner. She also edits the FPA Practice Management Blog. Email her at alimon@onefpa.org, or connect with her on LinkedIn