Road to Independence

Well, everything should be in place to manage client assets very soon. I’ve chosen the RIA custodian, provided them with all of the necessary paperwork, and now I am waiting on them to overnight a package to get me started. Of course, I will need to be trained on their systems, paperwork, and such, but I can now see the light at the end of the tunnel. More on this later.

Up to this point, I have been collecting fees for financial planning engagements. Moving forward, I expect to retain these clients by providing ongoing advice, under an annual agreement with a retainer type fee structure. The challenge here is that the planning process can be very labor intensive.

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This was an important week, both in a long-term strategic sense and from a current perspective. On the strategic front, I spoke at an annual conference in Denver. The talk went extremely well and I expect to realize some very tangible benefits as a result (more on this later). There were about 200 attendees from 14 different countries, including some of the most brilliant people I’ve ever met. There were PhDs, MBAs, university math professors, CFOs of some very large organizations, just to name a few.

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This past week I presented my first financial plan as an independent. I analyzed several scenarios to determine the proper course of action for the client. This couple seemed to follow it well, and was appreciative of my effort. The truth is we all like to feel appreciated. After all, isn’t helping clients realize their dreams the reason we became planners? To be viewed as a trusted ally is one of the highest compliments we can receive. I am also working on two other financial plans for clients who have engaged me. Creating financial plans is a very time consuming process. Because of this, I plan to take on no more than two to three new planning engagements per month. I’ll keep you posted.

Now let’s discuss marketing. I am in the process of creating an introductory packet to give to prospective clients. It will also help me to codify, in my own mind, my value proposition and will contain several tabs, or sections.
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The term one armed paper hanger has taken on a new meaning this week. I gained another comprehensive financial planning client, which makes three total. Working on three plans at once, with the level of detail I engage in, is a bit challenging, to say the least. The specific nuances of each require a fairly high degree of customization. Plus, I am very passionate about providing clients with clear, concise analyses of their current situations and appropriate recommendations.

I’ve spent a lot of time deciding on software, marketing materials, getting better acquainted with the Investment Advisers Act of 1940 (try reading this at bedtime), and other things. At some point soon, I hope to have more free time to get back to staying abreast of advanced planning strategies. First things first, I suppose.

I am currently waiting for the green light of approval from my RIA custodian, which brings me to another subject, that of investing.

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In my last blog I wrote about my decision to choose the RIA route. This week I’d like to provide a brief summary of my progress so far and ask for your input on a few key issues. I have purchased most everything I need to do business. I have the necessary furniture, office space has been acquired, I should have an RIA relationship established very soon to custody client assets, and I have a pretty good idea who I will run my insurance business through. I also have my proprietary financial planning software and now that my thorny encounter with Windows Vista is behind me and I have gone back to XP, everything’s working great on the technology front. I have three new clients which will keep me busy for a while and a few more on the way. So far, so good. I do have a request for any of you that have experience with the following key planning tools:
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