FinTech

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 Pete Krull, 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

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.