How You Can Add Value Through Holistic Financial Planning:

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1 PROFILES IN EVOLVING BUSINESS MODELS FIDELITY CLEARING & CUSTODY SOLUTIONS How You Can Add Value Through Holistic Financial Planning: First-Hand Takes From the Field In brief: Helping clients achieve their goals can create strong emotional connections. In the long run, the emotional connections you make with clients can help bring them in the door and keep them. A key way to do that is to help clients achieve their life s goals. And that can come from holistic financial planning. Keeping clients engaged involves an ongoing commitment to continuous collaboration. Collaborating with clients in the creation of a holistic financial plan is not a one-time event. To help keep clients loyal to you long term, continuous collaboration in the planning process can be essential. Employing a combination of high-tech and high-touch intelligence can lead to results clients value. From digging deep into client priorities in the discovery process to exploring scenario-planning using the latest technologies, your ability to uncover your client s values and priorities can help you bring their plan to life, which may improve the chances they will follow through on your guidance. What's Inside: Introduction: Client expectations have changed. Have you? Develop a value proposition that creates an emotional connection Create an ideal client profile with behavioral traits Bring the plan to life by defining values and priorities Co-plan for better longterm engagement and results Rethink your CRM to help deliver a consistent, personalized experience

2 Introduction: Client expectations have changed. Have you? In any business, keeping customers satisfied and engaged comes down to a key criterion: meeting or exceeding their expectations. For financial advisors, those client expectations have dramatically changed over the years. Gone are the days when clients relied exclusively on you for updates on their accounts and financial plans, as well as expert information. With the advancement of the Internet, that information is now at their fingertips 24/7. As a result, clients now want something different, something more from you. Amid this shifting dynamic, more and more firms are finding that the greatest value advisors can now provide a value clients are seeking is to partner with them to achieve their financial goals, helping them lead the lives they envision. We are talking about 360-degree holistic planning. Joyn Advisors is one firm that recognized the changes in client expectations and has experienced success by adapting. In the following pages, we ll share stories from four firms who ve embraced holistic financial planning, showing how they ve built strong emotional connections with their clients by changing their value proposition and redefining their firm s story. As you ll see, making the clients goals the key focus of relationship has enabled these firms to enjoy stronger client engagement, including higher levels of loyalty and referrals. Whether you are considering offering holistic financial planning or enhancing an existing planning offering, we hope you find their experiences, approaches, and ideas valuable. FIRMS PROFILED We ve found that the real value an advisor can provide is helping clients get the right information and understand what it means so they can make the best possible decisions for their lives, says Gary Whitehurst, executive vice president and head of revenue at Joyn. Whitehurst s view reflects a shift Fidelity sees occurring in the advice industry as well. Investment management will always be at the foundation of the advisor-investor relationship. However, significant events, like the 2008 financial crisis, have shown the powerful value advisors can provide by managing clients emotions during their Moments of Truth, those significant life events such as marriage, having children, saving for college, divorce, and retirement. This type of financial coaching is one of the key components within holistic financial planning, which clients are now showing a strong appetite for over the long term of the advisor relationship. Barry Investment Advisors Joyn Advisors SunTrust Private Wealth Management Verde Capital Management Headquarters New Bedford, MA Atlanta, GA Atlanta, GA Clarkston, MI 2

3 FINANCIAL IMPLICATIONS OF PLANNING Our research indicates that advisors who provide financial planning services to their clients have higher assets under management (AUM) and higher compensation vs. their peers: their AUM is 40 percent higher ($87 million vs. $62 million) and their compensation is 14 percent higher ($200,000 per year vs. $175,000 per year). Source: Fidelity Investments 2015 Financial Advisor Value Study $62M AUM $87M $175k $200k Compensation WHAT IT MEANS TO EMBRACE HOLISTIC FINANCIAL PLANNING Many advisors may consider themselves planners, but there are a variety of approaches when it comes to financial planning. Holistic planning is an ongoing process that may incorporate five key steps: 1. CONDUCTING ongoing intelligent discovery to be fully aware, at all times, of client needs, concerns, values, and behavioral patterns as life circumstances evolve 2. TRANSLATING this understanding into ongoing advice opportunities 5. COMMUNICATING investment results within the context of progress toward goal achievement HOLISTIC FINANCIAL PLANNING 3. DEVELOPING comprehensive financial plans that are updated regularly, using best-in-class technology 4. DELIVERING an investment strategy that aligns with client goals 3

4 Develop a value proposition that creates an emotional connection We turn thousand-aires into millionaires by teaching them how to be good financial stewards. Carl Szasz, founder and financial advisor, Verde Capital Management In every aspect of your life, you want to feel good about the decisions you make. And oftentimes, the positive feeling that tilts the scales one way or the other transcends the black and white numbers involved. Truth is, emotions play a significant role in decisionmaking. In fact, according to research from ISPO News, marketing messages that evoke a positive emotion are more likely to win new customers.1 But in the world of advisory services, what factors are most likely to generate those positive emotions in prospects and clients? The short answer may be: the ability to achieve financial goals. To help clients do just that, more and more advisors are realizing the importance of adopting a holistic or comprehensive approach to planning one that can not only help clients achieve their most important financial goals, but also help them realize their life s purpose. By helping clients fill these financial and emotional needs, you as an advisor put yourself in position to tell a marketing story about your firm that should emotionally connects prospects and client to your firm for the long term. Tell your story throughout the sales process Carl Szasz, founder of Michigan-based Verde Capital Management, has felt the power of positive story-telling first hand. Verde is not a business set up for the aristocracy, says Szasz. Our goal is to work with individuals with at least $100,000 in investable assets, teaching them how to be good financial stewards of their lives. Ultimately, we hope that their behaviors, combined with our services, result in them becoming millionaires. To attract his ideal client during the sales process, Szasz tells prospects how he can help them become millionaires. That s how he introduces and reinforces the importance of both the advisor and client having a 360-degree view and understanding of the client s financial picture. My approach is to discuss how we ll use the six key areas of financial planning from the CFP curriculum, says Szasz. These include cash flow management, protection planning, investments, taxes, retirement planning, and estate planning. Since each client s situation is unique, Szasz may ultimately place greater emphasis on a few of the particular areas of financial planning that are most relevant to that prospect. For example, younger clients may require more help with cash flow management, building up net worth, and reducing debt, while older clients may need more assistance with estate planning and retirement planning services. In these initial conversations, we establish specific targets for them in each of the six areas, says Szasz. I make it clear that success is predicated on our partnership together. We provide the rate of return, along with the education and coaching for them to achieve the targets. However, they ll need to follow our advice and recommendations for implementing the plan. At the end of day, Szasz says his message that Verde helps clients become good financial stewards resonates well with prospects. Prospects and clients want to change their lives for the better, says Szasz, and they see we can help them in their journey percent of all purchasing decisions are made subconsciously. ISPO News Magazine, January

5 We help you live the life you want. Gary Whitehurst, executive vice president and head of revenue, Joyn Advisors Turn clients into advocates There s a large added bonus to emotionally connecting with existing clients through holistic planning: you help turn them into brand evangelists. Atlanta-based Joyn Advisors, for one, has experienced great success from this domino effect. In developing their distinct approach to financial management, Joyn spent the last 12 years identifying the barriers that keep individual investors from using their wealth to lead better lives. This effort has culminated in the firm creating a category in 2015 that they define as behavioral wealth management. Essentially, we help clients make the best possible decisions for their lives, says Gary Whitehurst, executive vice president and head of revenue for Joyn. We do that by combining elements of behavioral economics and behavioral finance with traditional wealth management. The firm s goal for clients is a lofty one. Our mission is to help clients imagine, create, and live extraordinary lives, says Whitehurst. In our firm s view, the purpose of one s wealth is to use it as a means to live the life that they want. We carefully crafted our value proposition, our supporting firm story, and our client experience to align with that mission. ACTIONS TO CONSIDER Redefine your firm s value proposition and story to connect better emotionally. As you embark on this step, consider testing the effectiveness of any proposed messaging changes with a small group of trusted clients or your client advisory board. While you re at it, be sure to share several messaging options for your audience to weigh in on. Their feedback can help you fine-tune your final, repackaged story. Tell your new story throughout all your communications. Create a unified front that consistently tells your new story right. That means updating all print and online communications including your website, social media, presentations, fact sheets, and brochures so that they reflect your updated value proposition and supporting firm story. Train your team. Training can help ensure consistent delivery of your firm story throughout the sales process, as well as in conversations with centers of influence and existing clients. As part of your training, consider roleplaying exercises to help associates practice the delivery of the new message. Once the firm began to put their mission into practice and experienced some success, an amazing thing happened: their clients began going out and bringing in friends and family. The incredible part is, says Whitehurst, when these clients refer friends and family to us, they don t talk about how we manage their money. Instead, they talk about how we ve helped them live the life that they ve always wanted. In the end, by employing an approach to financial management that creates a strong emotional impact with clients, Joyn s clients are telling an equally emotional story to others, allowing Joyn to continue an upward growth trajectory. 5

6 Create an ideal client profile with behavioral traits When determining if someone will be an ideal client for us, we believe that behavioral traits are just as important as account minimums. Carl Szasz, founder and financial advisor, Verde Capital Management There are many ways to measure success as an advisor, but one measure can stand out if you offer holistic financial planning: Do your clients follow your advice and guidance? After all, a key to creating that emotional connection and client loyalty you seek is the realization of progress towards goals. And that progress only comes from following the advice and guidance you offer during the planning process. While you can t ultimately control who follows your advice, you can control whom you bring on as clients. To help you bring on clients who are more likely to follow your advice and guidance, you may want to: Identify the ideal client: Be sure to include the behavioral traits that result in a high probability of following the plan Update and communicate your ideal client profile Evaluate prospects early: Quickly determine in the sales process if a prospect fits your updated ideal profile Define your ideal So, what makes a good client? For Verde Capital Management, the firm looks for four behavioral traits and one financial attribute in an ideal client. First, they need to meet our investable minimum ($100,000), says Carl Szasz founder of Capital Management. But, it s the behavioral characteristics that really help us determine whether we can turn the thousand-aire prospect into a millionaire client. We are coaches, and we need to understand whether the prospect can be trained. To screen for the right clients, Verde determines whether a prospect possesses the following four behavioral characteristics: Goal-oriented Good saver Open to advice Demonstrates long-term thinking If someone exhibits all four of those behaviors, along with the financial criteria, then Verde is confident that the prospect is going to be an ideal client. If they are missing even one behavioral trait, the firm will tell the prospect that Verde isn t the place for them. Every time we ve violated our standards and taken someone on as a client, says Szasz, they ve eventually left. So, there's just no point in bringing them on as a client in the first place if they do not fully fit our ideal profile. Size up prospects correctly Making a determination whether a prospect has the right traits you re looking for is not always so simple. Verde has found that using the first sales meeting as a time to make its evaluation works best. In that meeting, the firm follows a defined meeting script that includes asking prospects a series of probing questions that include: Defining the prospect s goals Identifying the types of resources they currently have to achieve those goals (e.g., investment accounts, pensions, Social Security) Communicating how they feel about their goals. For example, says Szasz, We ll ask clients to rate themselves on a scale of 1-10 on their investment knowledge and how they believe they re currently doing financially. 6

7 Szasz then relies on active listening to confirm his understanding of what he heard in the initial meeting. We play back to all prospects all of the information we heard to ensure our understanding, says Szasz. Then, we use our conversation to decide whether we move forward to the next phase of the sales process. Similar to Verde Capital, client fit is also critically important for Joyn Advisors, who relies on a behavioral wealth management approach to serve clients. We re simply not for everyone, says Nancy Sagar, director of marketing for Joyn. Because of our distinct brand, we anticipate that 20% of prospects and centers of influence will love us, 20% will hate us, and the other 60% will be indifferent to who we are as a firm. Ultimately, Joyn wants to engage with the 20% that loves the firm. Our goal, says Sagar, is to find that out as quickly as possible if someone s in that love us group so that we can dedicate resources to them and truly help them live the life that they want. One of the first screening tools the firm uses is its website, which lays out in great detail the unique value proposition the firm offers, allowing prospects to do their due diligence on Joyn before they decide to engage, saving both sides valuable time. ACTIONS TO CONSIDER Update your ideal client profile to include behavioral traits. As part of this process, identify the habits, qualities, and values of existing ideal clients that you would like to see in all new clients you bring on. Consider narrowing your list to three of five traits to include in your new ideal client profile. Identify ways to determine fit during the sales process. Consider strategies and tactics to use during the sales process to help you quickly determine if a prospect is potentially a good fit with your practice. One approach to consider: ask a series of open-ended questions to help you see if the prospect possesses the habits and values that you seek. Train your team. Not only do you want to educate your associates on your new ideal client profile, you ll also want to train any salesrelated employees on the strategies and tactics you ll use to assess whether the prospect fits the new profile. On the opening call with a prospect, we specifically ask them to look at the website with us on the call, even if they tell us that they ve already done so, says Gary Whitehurst. We then review the areas that explain how we will engage with them. Their feedback helps us gauge right away if they fit our ideal client profile. 7

8 Bring the plan to life by defining values and priorities I ve found that the only way a client truly understands what a plan means for their life is to show them how it infuses the goals, values, and priorities that we discussed during the discovery process. That s when a plan truly becomes connected to their lives. Joseph Sicchitano, head of wealth planning and advice delivery, SunTrust Private Wealth Management Most clients can easily rattle off their most important goals, with many being fairly common from buying a first home, to funding a child s education, to saving enough for retirement. On the flip side, values and priorities are especially unique to each and every individual and they re not always easy for a client to articulate. Working with clients to help them articulate values and establish priorities is a critical element of the discovery process, ultimately it may allow you to: Develop a plan that aligns with needs of the client Explain the rational behind the plan Help the client understand what the plan truly means for their life a big success factor Helping clients articulate their values and establish priorities not only helps the client, but also provides a way for advisors to demonstrate their value. Defining this key information may mean a longer discovery process than you currently conduct, says Joseph Sicchitano, head of wealth planning and advice delivery, SunTrust Private Wealth Management. But we ve found that spending the extra time yields results that bring out the greatest value in your plan. So, how do you conduct a discovery process that helps clients move beyond identifying goals to clearly articulating their values and establishing priorities? Some advisors are relying on a combination of in-depth conversations, exercises, and tools to get at the heart of what truly matters most for their clients. Dig deep into differences For Sicchitano and SunTrust, this discovery process is both an art and a science. We use account aggregation to help gather and view the client s financial data that s the science, says Sicchitano. The art is gathering the soft data, which is really the information that ultimately drives the plan and decisions around it. In many cases, that means creating a clear understanding why and how the plan connects to each unique client. For example, says Sicchitano, when working with a married couple, it s important to understand the interplay between a husband and wife s perceptions of the goals they are chasing together. Oftentimes, says Sicchitano, perceptions between them can be different. To flesh out those differences, the SunTrust team asks pointed questions during the discovery process to better understand each individual s values and to help them establish priorities. If an advisor doesn t do the extra legwork to promote greater understanding among all parties, says Sicchitano, it becomes difficult to develop and position the financial plan that accounts for all of those differences. What s more, chances become slim that the clients will understand the reasoning behind the recommendations and follow our advice. In the example of the couple above, by spending the extra time and energy in the discovery process, Sicchitano feels his team is able to provide a plan that feel like a vision for the life the couple intends on leading, rather than simply a bunch of data. 8

9 ACTIONS TO CONSIDER Use tools and exercises to uncover priorities The greatest value a planner can provide, according to Gary Whitehurst of Joyn, is to help people get the right information so they can make the best possible decisions for their values, goals, and priorities. To that end, Joyn begins all new client relationships by getting clients focused on what s most important to them. We need context before we can start developing a cash flow projection and financial plan for the client, says Whitehurst. This context is essential in helping them make important decisions about their lives. To do that, Joyn relies on an array of exercises and tools during discovery process to help clients reflect upon and clearly articulate their values, as well as establish priorities. Some of these activities include: Life priority exercises. For example, says Whitehurst, if the client were a business owner, we d use a deck of 52 priority cards to help the client identify his or her top 10. Doing so helps Joyn clarify important issues like the type of life that a business owner would want if the business were sold. This knowledge helps the client then evaluate all of the decisions relating to the sale of the business through the most important life lens, rather than simply the dollar amount from the sale. Mind Map. This private-label software program helps clients define the important aspects of the left and right sides of the brain in a visual map. While the left side contains all the client s financial inputs (the numbers they need to make a good financial decisions), the right side of the map contains a variety of human inputs, such as the top 10 life priorities, talents, motivating factors, and experiences that engage clients. By collecting right-side inputs, says Whitehurst, we re better equipped to conduct conversations that help clients make important decisions, all by bringing clarity to how they want to live their lives. Expand your discovery process to discuss client values and priorities in depth. Whether you decide to rely upon open-ended questions, tools, or a combination of both, you may want to consider testing any new techniques before piloting with clients. You may want to conduct several dry run discovery meetings be it with family, friends, client advisory board members, or associates within your firm to determine your approach and ways to refine it. Train your team. Roll out the expanded discovery process to your entire team, educating them on how your practice will deliver its value proposition and help build deeper relationships with clients. For those involved in the discovery process, consider role-playing exercises to help associates practice these personal discussions with clients. 9

10 Co-plan for better long-term engagement and results We find that clients who actually take the steps necessary to achieve their goals are the ones who understand how the plan was built. So, actively involving them in the financial planning process by co-planning is essential. Joseph Sicchitano, head of wealth planning and advice delivery, SunTrust Private Wealth Management In today s world, information on markets and accounts is updated and available 24/7, changing how clients expect to interact with their financial advisors. Clients don t need us for updates any more they have all their data at their fingertips, says Joseph Sicchitano, head of wealth planning and advice delivery, SunTrust Private Wealth Management. As a result, they expect more from us now. They want to use the knowledge they have to actively participate in the creation of the plan. That means co-planning. Co-planning involves working hand in hand with your client (as co-pilot) to develop the financial plan. This level of client engagement promotes a deep understanding of what the plan truly means for the client and a stronger client commitment to following it. To effectively co-plan, advisors need to consider offering a client experience that is equal parts high tech and high touch. Strike a high-tech and high-touch balance SunTrust Private Wealth Management has specialized in blending technological advances with personalized relationship building to great success with clients. From a high-tech perspective, the firm relies upon aggregation tools, financial planning software, and a client portal available through SunTrusts s proprietary platform. In a typical situation, the advisor will sit with the client to build their aggregated account view and then create their financial plan together using screen-sharing capabilities. The big planning decisions, says Sicchitano, are ultimately driven by deep discussions about the client s feelings about potential tradeoffs related to their goals, values, and priorities. To help visualize these tradeoffs, the advisor and client typically conduct online scenario planning sessions, allowing clients to see the tangible implications of various tradeoffs, such as saving less for goals right now or retiring early. At the end of the day, co-planning promotes transparency, making it easier for our advisors to be directive in the advice they deliver, says Sicchitano. If we are successful in helping the client understand the plan, then chances are the client will follow our initial and ongoing financial planning recommendations. Technology helps provides the real-time data and scenario modeling possibilities In-depth conversations with clients help them truly understand the implications of the plan (what the data means for their lives) 10

11 Co-plan throughout the relationship Co-planning does not begin and end with the initial creation of a plan. To keep clients engaged throughout the life of the relationship, collaboration is an important part of the client experience to continue to nurture. In the end, this collaboration can help you justify your value on an ongoing basis. Sicchitano has identified some smart ways for advisors to take cues from their clients. When a client calls in with a concern on the investment performance of their account, says Sicchitano, what they really are wondering is, How does this affect what I want to achieve in life? More importantly, they are implying, Do I need to do something about it right now? These types of client questions provide an opportunity for advisors to continue the co-planning process. Reviewing financial plans together and seeing how investment results affect progress toward goals are important ways to maintain that emotional connection you seek with your clients. In doing so, you ll not only foster longterm client engagement, you ll help minimize the client s focus on the daily ups and downs of their investment accounts. HOW ADVISORS CAN LEVERAGE FINANCIAL SOFTWARE FOR CO-PLANNING From initial plan development to ongoing updates and reviews with clients, firms we interview all rely upon financial planning software. A commonly used applications is emoney2. Here s what some said about their favorite features of the tool: Account aggregation One of our goals with new clients is to build a complete financial picture to view together very early on. The account aggregation tool in emoney provides the most efficient way to do that, keeping the account data updated automatically every night. Patrick Barry, Barry Investment Advisors Scenario planning We find that relying on Decision Center in emoney to conduct scenario planning with clients is incredibly helpful. We model and evaluate changes in real time, helping us engage clients in the conversation, getting immediate feedback. - Gary Whitehurst, Joyn Advisors Client vault We ask our clients to gather as many as documents to support the financial discovery process. With emoney, they have the ability to deliver that information in one spot, making the process much easier by eliminating the need to make copies and mail a big package. Patrick Barry, Barry Investment Advisors Client portal Our clients rely on the emoney client portal for a number of things. For one, we ask them to pay attention to net worth because we think that this provides an all-encompassing view of their financial health. Then, to help our clients become good financial stewards, we spend a lot of time working with them on budgeting. The emoney budgeting tool, available through the client portal, is quite robust. Carl Szasz, Verde Capital Management 2. emoney is an independent company and is affiliated with Fidelity Investments. 11

12 ACTIONS TO CONSIDER Adopt the right technology. If you don t already use planning financial planning software, now may be the time to consider adopting software that offers the types of tools you find helpful in engaging clients and deepening relationships. Define and test the co-planning experience. Before co-planning with clients, define your objectives for your intended experience and document the steps you plan to offer. Consider conducting one-on-one testing with associates in your practice or members of your client advisory board before launching the co-planning experience with new clients. Once you launch the new experience, ask for feedback from clients with whom you ve conducted co-planning. Their insights can help you further refine the experience. Train your team. When it comes to co-planning, consider two-part training for the planners in your practice: 1) How to be an expert in using all of the technological tools and 2) How to deliver the co-planning experience. Vendors providing the tools for your planning experience may offer training and tutorials. To educate planners on your practice s adoption of a new co-planning experience, you may want to consider a combination of methods: offering an online tutorial, requiring they conduct mock co-planning sessions with other associates in your practice, and conducting regularly scheduled group debriefs to share experiences and best practices. Rethink your CRM to help deliver a consistent, personalized experience CRMs are not just for data collection. We ve discovered that our CRM system can play a powerful role in building our relationships by capturing the critical connective tissue we need for client development. Patrick Barry, managing director, Barry Investment Advisors Technology offers a powerful opportunity to help increase productivity and deepen relationships. From best-in-class planning software to day-today tools that can simplify the client experience, making the most of technological advances can make a big difference in your business. Of these tools, your customer relationship management (CRM) system can play a powerful role in delivering a consistent, yet personalized experience. As you look to enhance how you offer holistic financial planning, consider expanding your usage of CRM to: Document business and operational processes you want all associates to follow when delivering the planning experience Track where clients stand in regard to the processes you defined; and Deliver a personalized guidance and segmented planning-related communications 12

13 Systemize the planning process to help ensure consistency A consistent standard of excellence is a priority for Patrick Barry, managing director of New Bedford-based Barry Investment Advisors. Leading a team of 13 professionals, which includes four planners, Barry is relentlessly focused on the client experience, always looking for ways to improve it over time.3 I want all of our clients to enjoy a consistent, topshelf planning experience that my entire firm is proud of, says Barry. To help achieve his goal, Barry and his planning team includes the six different planning topics from the CFP curriculum in all client plans. To help ensure consistent application throughout the firm, Barry Investment applies a set of standards defined internally, all housed and tracked in the firm s CRM system. We established a flag process red, yellow, green that we rely upon to indicate where we stand with client across each of the six areas, says Barry. A red flag indicates that we haven't discussed those areas with the client, yellow means we asked the client to do something and they haven't done it. We issue a green flag if we believe the client is where they need to be. SIX KEY AREAS OF FINANCIAL PLANNING Cash flow management Risk management Investment planning Tax planning strategies Retirement planning Estate planning Source: Certified Financial Planner Board of Standards, Inc. By institutionalizing and tracking these standards, Barry Investments has been able to systematically enhance the client experience it delivers. 3. As of June 30,

14 Capture key data to help keep the experience personalized Setting high standards for delivering planning, as well as ensuring consistent delivery of those standards, is just one half of the equation for Barry Investment Advisors. Planning is personal and emotional for many clients, says Patrick Barry. For us, that meant we needed to create and follow an institutionalized process that helped everyone at the firm personalize their client relationships. To do so, all advisors at Barry Investment make sure their findings about clients goals, values, and priorities (along with hobbies, interests, passions and general concerns) are well documented in the CRM system. That way, we can more easily keep the clients top concerns and goals at the top of our minds at all times, says Barry. It s simply unrealistic to think that my planners and I can remember everything we jot down ona note pad. By creating good documentation in the CRM, the advisors can now have important reference points on clients at their fingertips when they receive that sudden client call about a recent life event that requires additional planning. Having this data, combined with our flag system helps keep us at the top of our game especially during sensitive times for clients, such a loss of a loved one or a divorce, says Barry. For Barry, client education is another critical component of the ongoing planning experience. However, there s no one-size-fits-all when it comes to educating clients. We use our CRM system to target specific types of education based on client life stage and other data, says Barry. Essentially, we are building a series of client personas with data from the CRM as well as the plans we build in emoney. ACTIONS TO CONSIDER Update your CRM system to create robust client profiles and keep them updated. Develop a list of quantitative and qualitative client data you want collect and include in the system, beginning the process of creating more robust client profiles that you ll update in your CRM. Define your desired planning experience and incorporate it into your CRM system. Before relying on your CRM system to institutionalize your planning experience, assess your existing planning experience to identify any gaps or any best practices you want to ensure your team addresses. Then, you can begin the process of formalizing it in your CRM system. Train your team. Consider a multi-fold training program. Start by educating your team on the types of data to gather from clients, why the information is important, and ways to keep the CRM system current with this information. Then, consider educating your team on the planning experience you would like all associates to follow and how they can rely on the CRM system to help them deliver the experience with both new and existing clients. Deliver segmented communications and education. As you make progress toward building robust client profiles and delivering a consistent client experience, consider leveraging your CRM to deliver segmented communications and education on planning related topics to help foster deeper client relationships. Using the client personas it builds, the firm then works with a third-party vendor to launch targeted educational campaigns to individuals that fit the bill. Our goal is to deliver segmented communications that, to our clients, feel personalized, says Barry. At the end of the day, we believe this fosters a richer planning experience and deeper client relationship. 14

15 Strive to align your prices with your value Holistic planning can provide a great way for advisors to demonstrate their value to clients. What s more, the increased value you deliver can help preserve and even potentially boost your relationship. In the case of Verde Capital Management, the firm believes it has been able to justify above-average pricing as a result of the above-average experience it has delivered for years. We had an evaluation done two years ago by an outside consultant who told us we were bucking the trend when it came to pricing, charging more than most firms, says Carl Szasz of Verde Capital. We took the feedback seriously, but ultimately realized our clients were fine paying premium prices for a premium product. They d rather have a dedicated, engaged relationship with us than doing it themselves or having an automated service. For Joyn, charging the right price for the value it delivers from holistic planning has recently become a top priority, becoming a key agenda item during the firm s strategic planning process. We re really started to look closely under the hood of our pricing model, says Gary Whitehurst of Joyn. Traditionally, Joyn s pricing was entirely tied to asset management, even though the firm s value proposition was based on its behavioral wealth management approach. That s not necessarily a bad thing, says Whitehurst, but we are reconsidering whether our fees properly reflect the value we are delivering. That s an issue we plan to continue reviewing as we strategically plan for the future. Conclusion We hope the stories and ideas in this brief inspire you as you consider offering and enhancing holistic planning services. As you embark on your path forward, you may want to consider the following Fidelity resources. Additional resources Holistic Financial Planning: Help redefine your value and pave the way for growth The Truth About Talent: Delivering holistic planning may hinge on whom you hire Creating Advisor Advocates to Help Boost Referrals: The 2016 Fidelity Millionaire Outlook Study uncovers strategies to help enrich the client experience and turn high-net-worth clients into promoters Charge Up Collaboration with Clients and Prospects: How technology can help you break new ground As you move forward with plans to offer or enhance your holistic planning services, we encourage you to consider how you translate your increased value into the cost of your services. Understanding what competitors in your local market charge, as well as reviewing industry benchmarks, can be a good place for you to start. 15

16 FIDELITY CLEARING & CUSTODY SOLUTIONS 200 Seaport Boulevard, Boston, MA For additional information, please contact your Fidelity representative. For investment professional use only. Not authorized for distribution to the public as sales material in any form. The content provided herein is general in nature and is for informational purposes only. This information is not individualized and is not intended to serve as the primary or sole basis for your decisions as there may be other factors you should consider. Fidelity Clearing & Custody Solutions does not provide financial or investment advice. You should conduct your own due diligence and analysis based on your specific needs. Unless otherwise disclosed to you, in providing this information, Fidelity is not undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with any investment or transaction described herein. Fiduciaries are solely responsible for exercising independent judgment in evaluating any transaction(s) and are assumed to be capable of evaluating investment risks independently, both in general and with regard to particular transactions and investment strategies. Fidelity has a financial interest in any transaction(s) that fiduciaries, and if applicable, their clients, may enter into involving Fidelity's products or services. Third party marks are the property of their respective owners; all other marks are the property of FMR LLC. The third parties referenced herein are independent companies and are not affiliated with Fidelity Investments. Listing them does not suggest a recommendation or endorsement by Fidelity Investments. Fidelity Investments 2015 Advisor Value Study was an online, blind survey (Fidelity not identified) conducted during the period of November 3 through November 16, Participants were recruited by Bellomy Research, a third-party research firm not affiliated with Fidelity, and included 27 advisors who manage client assets either individually or as a team, and work primarily with individual investors. These advisors are from a mix of banks, independent broker-dealers, insurance companies, regional broker-dealers, RIAs, and wirehouses, with findings weighted to reflect industry composition. Fidelity Clearing & Custody SolutionsSM provides clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC. 200 Seaport Boulevard, Boston, MA FMR LLC. All rights reserved