This month marks my 25th anniversary in the wealth management industry. I started down this career path with Merrill Lynch in July of 1997 as a Wire Operator (you’ll have to look that job up – it no longer exists!). In 2008, I helped launch Luminous Capital, and when Luminous was sold to First Republic in early 2013, I joined Focus Financial Partners. Then, in 2015, I started PFI Advisors with my wife and business partner, Reese Sonnen.
Although I have every intention of sticking around for another 25 years in this amazing industry, I thought now would be a good time to take stock and list some of the lessons I’ve learned during this wild ride. As such, I present to you 25 lessons learned from 25 years in wealth management, in no particular order:
- When someone declares, ‘It’ll be different this time!’ they are almost always naïve and usually very wrong
- ‘We do what they do, only better’ is an awful marketing strategy
- ‘Integratable’ does not mean ‘Integrated’
- Fears over Y2K in 1999 were dramatically overhyped; fears over the mortgage crisis in 2007 were dramatically ignored
- The ‘Move to Independence’ is very real. However, far fewer advisors are looking to start their own RIAs than the press would have you believe
- Firms that prioritize their employees over their clients tend to be more successful than firms that prioritize clients over employees
- There is, in fact, a market for a nerdy operations podcast (and a lot of people willing to be guests with great advice/insight)
- A bank that says, ‘We’re an RIA’ is still a bank at heart
- If the training tools you are looking for don’t exist, build them yourself
- RIA owners are often fantastic financial advisors, but they often struggle with the nuances of being business owners
- New York City is the greatest city in the world…unless you have two children under two years old
- Firms who have a documented ideal client persona grow faster than firms who do not
- There’s no such thing as ‘Free Custody’ (you want your custodian to make money!)
- Breakaway advisors are skeptical because they have been lied to their entire careers
- Mark Tibergien is the greatest thing to happen to the RIA industry (followed closely by Michael Kitces)
- Having someone trust you with the stewardship of their wealth is not a responsibility to be taken lightly
- There is nothing wrong with intrapreneurship, but it’s very different than entrepreneurship. Don’t let someone tell you, ‘Joining our firm is the same as owning your own business’
- The Big Short and When Genius Failed are two of the best books written in the past quarter century
- When someone declares, ‘We’re the Uber/Airbnb of _______’ you should run the other way
- Content marketing does lead to clients, but it takes years of consistent effort before you see the fruits of your labor
- Vendors and consultants can’t do the push-ups for you
- Our industry must do better at creating career paths for non-advisors
- Organic growth is always more valuable than inorganic growth
- Entrepreneurship is just like parenthood: The days are long, but the years are short
- Don’t let anyone tell you, ‘You aren’t responsible for business development, therefore you aren’t as vital to our firm’s success’
Bonus lesson: The human race isn’t ready for Calendly