I met with a good friend and learned quite a bit!

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By David P. Schaeffer

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I have always been a fan of less regulation and more innovation. That may have been a slogan we all may have heard in an election campaign or two.

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To the point, my friend is one of the top estate planners in the United States. Most CPAs, estate planning attorneys, and certainly most financial advisors, cannot measure up to his ability to see challenges and propose solutions before trouble ensues. He can see through most rhetoric and conversation and get to the root of a challenge instantly and accurately.
The challenge for me is when a talented advisor is faced with few prospects to serve; a “scarcity” mentality takes over. For the advisor this would mean that their decisions seem to favor an attitude of “better make the most I can” from this client while they are in a buying mood. This is contrary to the way we run our practice at American Retirement Advisors. I was shocked to realize so many financial professionals manage their practices in this manner.

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Our firm’s mantra has always been ‘do what’s right for the client’ even if we are not compensated for our efforts. Most folks in business and especially in the financial services industry, to this day, look at me like I’m crazy. Even my best friend in the business.

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Then it hit me. We take a completely different approach to our practice. We operate with an “abundance” mentality. We give most of what we earn back to our clients. Not in cash, but in personal service. We have three client service professionals per advisor. The industry suggests ½ service person per advisor. We see on average 6-11 clients per day per advisor. Most How are professional, full-time advisors, supposed to get good at what they do if they don’t have any prospects or clients work with? They answer is, most will fail and leave the business in three years or less. Which feeds the “get what you can while you can” behavior.

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Here’s the bottom line… the fiduciary rule, which is scheduled to go into effect in June, is supposed to regulate the financial advisors’ recommendations to just what was in the best interest of their clients. Unfortunately, the challenge remains, they need to feed their families. The cost of the new regulations will be paid in lower returns or service levels for clients, or out of the advisor’s pocket.

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Our firm is thriving!We see continued growth in all areas of our practice; Medicare planning, long-term care planning, legacy and estate planning, and in retirement income planning. We really didn’t have to do much to prepare for the new fiduciary rule, because we have always provided more care and consideration for our clients’ needs than any previous, current, or future regulation mandates.

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Guess what… my buddy, after spending a week in the Scottsdale office and observing our practice, sees our business in a different light. Abundance allows an advisor the freedom to plan without concern for compensation because we make a little from each client and give back!