Younger Advisors Want to Hire Their Own Advisor and Here's Why
DEAR ADVISORS,
Financial planning is slowly developing from an industry into a “real” profession. This is exciting because it benefits us and our clients! One of the defining characteristics of a profession is when professionals see the need and value of seeking the services of their own peers. We see this with attorneys, physicians, and therapists, and it’s starting to become more common among financial planners. This is a healthy sign of the growth of our profession!
For most older or traditional advisors, the thought of hiring your own financial planner might trigger some negative emotions, like fear, shame, or defensiveness. You may have seen this in your clients’ relationships with money as well. A lot of the younger advisors joining the profession don’t share these emotions! Instead, working with their own financial planner makes them feel empowered, in-control, and confident about the future they’re building. Here’s what advisors under 40 are saying when they talk about hiring their own advisor:
Personal Benefits
We all fail to see our own blind spots. Sometimes I don’t always have a healthy relationship with money. Getting a second opinion will help me avoid mistakes and go after new opportunities to live my best life.
I want to improve my relationship with my significant other by including them in my life plan, financial plan, and even business plan to a certain degree. It’s easier to talk about money our advisor is there to help counsel us.
My family needs a trusted financial advisor when I’m no longer the right person to do the work. As my firm becomes more successful, my family is likely to inherit assets but has little or no financial or business acumen since they’ve always looked to me for guidance.
Financial Benefits
I need to step out of my business to get clarity around my business and career goals. Meeting with my advisor makes me set aside time for this. I’m better about writing down growth projections to work towards over the coming years and balancing life and work instead of letting my business take over.
The goals we focus on are the ones we achieve. Advisors can help other advisors achieve my goals in life AND in my advisory firm by creating a plan and tracking results. Now I know I can retire on my own terms to a life I will enjoy!
I want to get the most value out of the business I built. Advisors who work with business owners are equipped to help increase the value of the business, give insight on the right exit strategy, and be aware of tax implications. If I want to buy another advisory firm, they help me with the due diligence and analyze if it’s going to help achieve my goals.
Business Benefits
Working with my own financial planner makes me a better advisor, just like being in a study group or working with a mentor. Spending time and energy on my own plan is a distraction when I could be helping others.
Experiencing the financial planning process as a client gives me insight into improving my own processes and the experience for my clients. I love coming up with ideas to make my practice better!
It gives me customized, personal content. Working with my own advisor gives me unique, personal stories I can share with clients about how financial planning has changed my life. Surprisingly enough, I actually look forward to meeting with our advisor, because I’m not the one doing all the work!
For more information on this topic, access the Financial Planning Journal article published in November of 2008, titled Becoming Consumers of the Profession We Practice, by Richard S. Kahler. Instead of a link, we included this in today’s email so you can download it from there. The article delves into all the objections advisors have about hiring their own financial planner, but our conversations with clients look different. I believe that’s because the industry has changed for the better in the years since that article was written!
My husband and I know about this first-hand because we are getting ready to meet with our own advisor again this fall! As my business and my family grow and change, we know we’re on the right track to achieving our goals without having to stress about it. It’s well worth the fees we pay! That’s part of the reason we started Ellevate Advisors - to provide financial planning to financial advisors exclusively.
Choosing our own advisor was a tough decision for us, but we feel that we made the right choice in who to work with. With that in mind, I know I may not be the right advisor for you. Selecting your advisor should involve more than choosing a colleague or someone you respect. It’s important to interview several planners to find someone you AND your significant other trust, communicate openly with, and whose values align with your own. This is the first step to securing the future of your family and financial advisory firm!
Warm regards,
Brooklyn
P.S.
At Ellevate Advisors, we believe that advisors deserve to retire too. What does that look like for you, your family, and your business? Let’s figure it out together! Click here to schedule an initial phone call with our team today or get to know me on my bio here!