What Exactly Is Sustainable Investing? And Why Are Today's Clients Demanding It?

In this episode of the Modern Financial Advisor podcast, Mike Langford interviews Pete Krull, CEO of Earth Equity Advisors, about sustainable investing. They discuss the importance of sustainable investing for financial advisors and their clients, debunk common myths about sustainable investing, and explore the growth opportunities in the field.

Pete and Mike also touch on the role of ESG metrics, the future of the insurance industry in the face of climate change, and the increasing demand for sustainable investing among different generations.

If you would like to follow up with Reese Harper, shoot him an email.

Key Takeaways From This Episode:

  • Sustainable investing is an important aspect of a financial advisor's role in helping clients have a vibrant and sustainable future.

  • ESG metrics are a set of metrics that assess risks on companies related to environmental, social, and governance factors.

  • Sustainable investing is not just about avoiding certain sectors, but also about investing in solutions for a cleaner, more equitable future.

  • The insurance industry plays a crucial role in pricing climate risk and is an important sector to consider in sustainable investing.

  • There is a growing demand for sustainable investing among different generations, with millennials and Gen X showing high interest.

  • Traditional advisors can explore opportunities in sustainable investing and engage with clients and prospects on this topic. Financial advisors need to understand the values and preferences of their clients, particularly the younger generations who are interested in sustainable investing.

  • The next generation of investors will have a significant amount of wealth to invest, and advisors need to be prepared to meet their needs.

  • Electric vehicles are becoming increasingly popular, and the availability of charging infrastructure is an important factor to consider.

  • Real estate can play a role in sustainable investing, as energy-efficient and environmentally-friendly buildings can attract higher rents.

  • When planning for retirement, it is important to consider climate readiness and resilience of the location.

  • Financial advisors can benefit from connecting with influencers in the sustainable investing space to expand their network and reach a wider audience.

Resources Mentioned In This Episode:

Chapters

00:00 The Role of Sustainable Investing for Financial Advisors

03:47 Debunking Myths About Sustainable Investing

12:23 The Future of the Insurance Industry in the Face of Climate Change

25:01 The Increasing Demand for Sustainable Investing Among Different Generations

29:16 Engaging with Clients and Prospects on Sustainable Investing

30:10 Meeting the Needs of Next Gen Investors

32:07 The Growth of Electric Vehicles and Charging Infrastructure

35:19 The Role of Real Estate in Sustainable Investing

43:30 Considering Climate Readiness in Retirement Planning

51:18 Connecting with Influencers in Sustainable Investing

Why Financial Advisors Should Provide Simple Financial Health Metrics To Their Clients

Reese Harper, CEO of Elements, joins Mike Langford to discuss how financial advisors can use vital signs to improve client conversations and increase their comfort level around financial advice.

Reese explains that vital signs are objective scores that measure various aspects of a client's financial health, such as liquidity, debt-to-income ratio, and savings rate. By using vital signs, advisors can provide personalized advice and help clients make informed decisions about their finances.

Reese also emphasizes the importance of specializing in a niche market and using vital signs to demonstrate value to prospective clients. Lastly, Reese shares how Elements can be used to accelerate the closing process for new clients.

If you would like to follow up with Reese Harper, shoot him an email.

Key Takeaways From This Episode:

  • Vital signs are objective scores that measure various aspects of a client's financial health, such as liquidity, debt-to-income ratio, and savings rate.

  • By using vital signs, financial advisors can provide personalized advice and help clients make informed decisions about their finances.

  • Specializing in a niche market and using vital signs can help advisors demonstrate value to prospective clients.

  • Elements, a financial vitals software, helps advisors streamline their processes and provide meaningful financial care.

Resources Mentioned In This Episode:

Chapters

00:00 Introduction and Overview

02:56 The Concept of Vital Signs

10:05 Improving Financial Behaviors with Vital Signs

28:31 Using Vital Signs in a Niche Market

35:23 The Birth of Elements and the Importance of Vital Signs

41:06 Accelerating Client Onboarding with Elements

How Advisors Can Tap the Hidden Growth Potential in Their Clients’ Communities

What if you could expand your client roster by 300% without having to spend a fortune on marketing? This week's guest Beatriz Acevedo and her team at SUMA Wealth discovered a hidden growth gem by serving the Latinx community.

It turns out, people in the community tend to bring other clients with them. And as you'll hear Beatriz discuss with Mike Langford, this growth concept is present in many communities.

If you would like to follow up with Beatriz Acevedo, shoot her an email.

Key Takeaways From This Episode:

  • Serving specific communities requires a community-first approach that understands their unique needs and priorities.

  • Using culture to explain financial concepts can help build trust and emotional connection with customers.

  • Understanding the needs and priorities of younger generations, such as Gen Z, is crucial for financial advisors and for developing effective financial products and services.

  • Adapting strategies and learning from mistakes is essential in connecting with younger generations and embracing change. Pay attention to the younger generation and their financial needs.

  • Transitioning to a new career requires taking a leap of faith and learning new skills.

  • A community-first approach is crucial in the FinTech industry.

  • Life experience plays a significant role in making smart decisions.

  • Younger generations often manage family finances and can be a valuable target audience for financial advisors.

  • Using culture can make finance more accessible and engaging.

  • Expanding the SUMA Wealth app and focusing on enterprise sales are key goals for the future.

Resources Mentioned In This Episode:

  • How I Built This - Beatriz was a guest on HIBT Lab! with Guy Raz in which she shared more about her journey that led her to starting SUMA Wealth.

  • Is Your Credit Guacaready? - This is a great example of the culturally relevant marketing that the SUMA Wealth team is using to build a community of over a million people.

Chapters

00:00 Introduction and Background

03:23 Summa Wealth's Community-First Approach

06:09 The Aha Moment for Summa Wealth

10:18 Understanding the Target Audience

13:40 Learning from Mistakes and Adjusting

22:01 Adapting to Changing Consumer Behavior

25:22 Learning from Younger Generations

26:10 The Value of Different Perspectives

27:06 The Importance of Embracing Change and Learning from Younger Generations

29:03 Transition from TV Producer to FinTech Founder

31:16 Recognizing the Lack of Financial Education in Latino Communities

33:01 The Role of Culture and Community in Fintech

36:00 The Power of Life Experience in Decision-Making

37:26 The Opportunity of Connecting with Younger Generations

43:25 Attracting Non-Latinx Users to Summa Wealth

48:39 Future Plans for Summa Wealth

Cracking The Code On Organic Growth For Financial Advisors

The lack of robust organic growth for financial advisors' businesses has been a key concern for industry leaders for years.

On this episode of the podcast Tom Rieman, CEO and Founding Partner of PracticeI ntel shares what he believes is the key to cracking the code on organic growth for financial advisors.

If you would like to follow up with Tom Rieman, shoot him an email.

Resources Mentioned In This Episode:

Appreciating How Modern The Profession Of Financial Advisor Actually Is

There are financial advisors working today who are members of the first generation of people to ever call themselves financial advisors. Think about that!

On this episode of the show, Matt Reiner returns to nerd out with Mike Langford about some of the exciting innovations that are creating new opportunities for modern financial advisors.

If you would like to follow up with Matt Reiner, shoot him an email.

Resources Mentioned In This Episode:

  • The Circle - Matt and his team have created a vibrant community to share actionable strategies, weekly, to enhance your life, elevate your business and enrich your client experience.

  • "Your Future Self" by Hal Hershfield - Matt recommended this book in the context of understanding our decision making process.

  • Harry Markowitz - The father of modern portfolio theory passed away in 2023. The guy who created the foundation for the models that financial advisors use for managing their clients' assets only recently passed away!

  • When Ideas Have Sex - A TED Talk by Matt Ridley that inspired a fun conversation in this episode.

Protecting Your Clients And Your Firm From Financial Fraud

Andrew Crowell, Vice Chairman of Wealth Management at D.A. Davidson returns to the show to share some eye popping facts about the prevalence of financial fraud. Andrew and Mike Langford also explore what financial advisors can do to protect their clients for becoming victims of fraud and how to help clients recover if they are victimized.

Toward the end of the episode Andrew and Mike dive into the mechanisms financial advisors can use to protect their firm from fraudsters. Because like the famous bank robber Willie Sutton said when asked why he robs banks, financial advisors are "where the money is."

If you would like to follow up with Andrew Crowell, shoot him an emaill.

Resources Mentioned In This Episode:

How Financial Advisors Can Boost Business Development

Dr. Jean Oursler "The Results Queen" explains how our caveman brains often get in the way of our ability to develop our businesses to the fullest. However, simple changes to a financial advisor's approach to his or her business development process can lead to dramatic improvements in a short time.

Dr. Jean also shares some personal stories about her journey. She credits investing in herself early, even before her business was achieving real traction, as key lever for her success.

If you would like to follow up with Dr. Jean Oursler, shoot here an email.

Resources Mentioned In This Episode:

Why Every Financial Advisor Needs An Executive Assistant

It may sound hyperbolic but the reality is the advisor who tries to do everything his or herself... is bound to let some important things fall off the table. And as Gina Cotner, CEO of Athena Executive Services explains... it's not just simple "To Do" list items that an advisor might miss.

It could be important client updates or opportunities that lead to business growth.

If you would like to follow up with Gina Cotner, shoot here an email.

How Financial Advisors Can Help Clients Manage The Gap Between What They Think Is Happening And What Is Actually Happening

James Beam, President of TD Private Client Wealth breaks down a common challenge that clients of today's financial advisors face... information overload that often results in clients having a distorted picture of what is actually happening in the world.

Jim and Mike also explore the potential impact of artificial intelligence (AI) on the modern financial advisor's business and how the use of a goals based advice approach can serve as a foundation for advisors regardless of what future technologies may come their way.

Resources Mentioned In This Episode:

Mike referenced the concepts championed and powered by Vise in this episode. The startup has since pivoted a bit but the core of their AI powered solution is the same. Below are links to a few podcast episode Mike recorded with the founders of Vise, Runik Mehrotra and Samir Vasavada.

Want To Offer Better Financial Advice To Your Clients? Start With Checklists And Flowcharts

Michael Lecours, CFP® says that the origin story of fpPathfinder, a company he co-founded with Michael Kitces, is a bit humbling. He found that he was routinely forgetting to ask the right questions or giving slightly incorrect answers or missing timely opportunities for recommendations when meeting with his clients.

It wasn't that Michael was incompetent or lacking in financial planning skills... he is a Certified Financial Planner with over a decade of experience. It's just that there is so many things that a client might need to know about or do or not do at any given time. And the landscape is constantly changing.

So, Michael came up with a simple idea. He made a series of checklists and flowcharts that he would use during client meeting to ensure he "checked all the boxes" and kept things on track. Suddenly, he felt like he was delivering higher quality advice to his clients and he realized he was onto something that other advisors could use with their clients.

Resources Mentioned In This Episode:

If you would like to follow up with Michael Lecours, shoot him an email.

Why Writing A Short Book Can Help Financial Advisors Win New Clients

Paul McManus, creator of The Short Book Formula and CEO of More Clients More Fun shares how he helps financial advisors write short books to attract their ideal clients.

The concept is simple, write a short book that articulates the solution to a specific problem your ideal client is likely to have. Send the book to prospects. Ask them to read it prior to meeting with you. Then, have a productive initial meeting that is likely to result in closing a new client.

Feel free to reach out to Paul via email to learn how you can publish your own short book to use as a tool for attracting new clients.