How to Get Started with Adding PFP Services to Your Practice · holistic pfp practice to work...

© Copyright Fox Financial Planning Network™ 2015 © Copyright Fox Financial Planning Network™ 2015

How to Get Started with Adding

PFP Services to Your Practice

Presented by

Deborah Fox Founder, Fox Financial Planning Network™

www.FoxFinancialPlanningNetwork.com

© Copyright Fox Financial Planning Network™ 2015

American Institute of CPAs

Speaker Biography

Deborah Fox has been a practicing financial planner for

30 years and is founder of Fox Financial Planning

Network™.

Deborah is nationally known for her unique planning

processes and for instructing and consulting tax

professionals and financial advisors on how to set up a

holistic pfp practice to work efficiently and increase

revenues, all while delivering a higher level of client

services.

Deborah resides in San Diego, CA and is regularly

sought out for national media interviews and speaking

engagements.



“Begin With the End in Mind.” The Seven Habits of Highly Effective People

by Steven Covey

How Can You Succeed?

Plan ahead and avoid the

mistakes most advisors make.


American Institute of CPAs © Copyright Fox Financial Planning Network™ 2014


American Institute of CPAs © Copyright Fox Financial Planning Network™ 2014



Creating Your Business Model

Will You Offer

Financial Planning or

Wealth Management Services?



Spending Plan

Insurance

Investments

Readiness to Retire

Retirement

Estate Planning

Charitable Giving

Medicare

Social Security

Business Planning

Potential Areas of Advice




Will you offer advice in-house or will you outsource

by partnering with another advisory firm and share

revenues?

Who in your firm will offer the advice?

If you will personally provide advice in particular

planning areas, which ones?

How will you register? Registered Representative,

RIA or IAR?

Who will handle compliance?




How will you charge for your services?

Who is your ideal client (middle income, affluent,

business owners, executives, personality, specialty

area, etc)?

How many of these client relationships do you

want?

How will you position yourself in the marketplace?

Under what name and business entity will you do

business?




Will you offer advice in-house or will you

outsource by partnering with another

advisory firm and share revenues?

• For in-house, will it be a solo advisor, ensemble firm

operating out of one office, multiple advisors in

multiple offices or a designated team providing

advice (such as a central financial planning

department)?

• For outsourcing, will you partner with another CPA

firm or another type of advisory firm that doesn’t

provide tax advice? (Or do you want to stop

preparing tax returns?)




If you will personally provide advice in

particular planning areas, which ones?

• One or two?

• Most areas?

• Or will you just be the overseer?

• Who will be part of your team of professionals?




How will you register? RIA or IAR?

Registered Representative with a

Broker/Dealer?

• What are your state requirements?

• Registered Investment Advisor (RIA) – Your own

stand alone advisory firm

• Investment Advisor Representative (IAR) – You are

under someone else’s RIA

• You can be an IAR under a Broker/Dealer if you

choose a hybrid compensation model




Who will handle compliance?

• VERY important!

• Relatively easy to handle if you set up proper

compliance procedures initially

• Someone in the firm needs to be the designated

compliance officer (that may be you to start!)

• Establish a relationship with a professional

compliance professional that can help keep you

up-to-date and compliant




How will you charge for your services?

• Commission only or Fee-only

• Combination of commissions & fees

• Hourly

• Project-based

• Asset Under Management (AUM) fees

• Annual retainers




Who is your ideal client (middle income,

affluent, business owners, executives,

personality, particular planning needs, etc)?

• Analyze your existing client base. Who do you enjoy

working with the most? What are their common

characteristics?

• What type of client would benefit most from the

business model you would like to adopt?

• Who would appreciate and be able to afford your

services?




How many of these client relationships do

you want?

• For integrated financial planning or wealth

management services, one full-time advisor can

effectively serve 50 to 100 clients

• This number can increase for hourly or project-based

modular planning services.




How will you position yourself in the

marketplace?

• Holistic planning?

• One-time plan? Ongoing?

• Overseer of all areas of the client’s finances?

• Planning on an “as needed” basis?

• What is your value proposition to your client?




Under what name and business entity will

you do business?

• Keep your tax practice and financial planning practice

separate! (Important for compliance reasons.)

• Sole proprietorship, LLC or S- or C-Corp?

• Will your name be included in the name of the

business? Think about succession plans.



Other Important Considerations

Delegation of Duties

Using technology to build in

efficiencies to your practice

Systematize the delivery of your client

services (with the ability to

personalize)




Delegation of Duties

• Get buy-in from all who will be involved

• Sell the dream (happier clients, higher

revenues for the firm, systematized process,

work satisfaction, etc.)

• Determine “who does what”

• Consider each individual’s strengths and what

type of tasks he/she likes to do




Using technology to build in

efficiencies

• Use “The Cloud”

• Client Relationship Manager (CRM)

• Robust back-up system

• Financial planning software

• Document management system




Technology continued…

• Portfolio management system

• Web-based application for collaboration (for

joint case work, document storage,

accessible 24/7)

• Forefield Advisor

(Free to PFP Section members! $469 value!)

• Bob Veres’ Inside Information

(Free to PFP Section members! $349 value!)



Create Your Own

“Starbucks Experience”




Systematize your planning services

• Hugely important!

• You will have a train wreck if you do not

create clear planning and service pathways

that are not organized and standardized

• Create a Workflow System – comprised of

workflows, corresponding procedures,

supporting checklists, templates and visual

aids







Insurance & Spending Planning Workflow

1. (Assistant) – Check Client Documents – Check to make sure the clients have provided all insurance and spending documents necessary for Planner and Paraplanner to prepare for the meeting.

2. (Paraplanner) – Prepare Insurance Summary Spreadsheet – Download all client insurance policies and build the insurance summary spreadsheet. Make sure to include any important notes about specific policies and any other information the planner should know when completing the review.

3. (Planner) – Prepare Insurance Analysis – Use the insurance summary spreadsheet, specific insurance policies and the insurance analysis template to prepare the clients’ insurance analysis.

4. (Planner) – Discuss Insurance Analysis – The Planner should establish a time with the Paraplanner to discuss and review the clients’ insurance needs. This ensures that both individuals are in agreement and understand what needs to be prepared for the client report.



Insurance & Spending Planning Workflow

5. (Paraplanner) – Prepare Client Report – Prepare an Insurance Needs Analysis in planning software using the company template. Choose the appropriate pages and diagrams to include based on the clients’ coverage needs and what the Planner would like to demonstrate. Insert the Planner’s recommendations from the Insurance Analysis Report.

6. (Planner) – Review Insurance Report – Review the completed Insurance Report to make sure all information is correct and has been included.

7. (Planner) – Analyze Clients’ Current Debt – Complete a review of all debt the client owes. Decide if it would be appropriate to restructure, refinance, or pay off any particular debt while taking cash flow into consideration. Prepare any specific debt recommendations for the meeting.

8. (Assistant) – Print Meeting Materials and Update Planner – Print out all materials necessary for the meeting. This includes but is not limited to client exercises, visual aids, insurance & spending plan presentation materials and client agreements & disclosures. Update the Planner if there are any outstanding items or information the client needs to bring to the meeting.



(Planner) Procedure for Preparing for the Meeting

1. Download the PDF of the client’s insurance policies and accompanying documents from client’s folder in CRM.

2. Prepare a summary of insurance policies using the Insurance Summary Template.

3. Perform an Insurance Analysis for the client (either in-office or outsource). See the Insurance Analysis Checklist, Explanation of Insurance Policy Language and Outsourcing Insurance Review Procedure for how to complete the analysis.

4. Prepare Insurance Recommendations for the clients. See Insurance Policy Analysis Template for how to prepare this information. See Sample Insurance Analysis Report for an example of what is presented to clients.

5. Analyze clients’ debt – mortgage, auto, student loans, any other installment debt, credit cards. Determine if it would be appropriate to restructure, refinance or pay down any particular debt. Interest rates, terms and cash flow should be taken into consideration.

6. Prepare specific debt recommendations for meeting.



PFP Section has a shortcut for you to

get systematized

• Pre-written workflows and procedures!

• You won’t have to start from scratch

• Fully customize to how you want to do things

Talk to us at the end of the day or at

our booth at the PFP Conference



Attracting Clients

Put your business plan in writing

First tap your existing client base

Create a script

• Elevator speech (one or two sentences)

• Initial conversation with a prospective client

• Meeting to describe your services



Attracting Clients

Create a Schedule of Meetings

Create descriptions of the financial

planning issues you will address

Create Engagement Standards

• Manage client expectations on the front end!

• Clarify what you expect from your client and

what they should expect from you



Three Tasks To Get You Started

First create your practice in your mind

and then on paper (incorporating all who

would be involved)

Put the infrastructure in place (people,

compliance, technology, systems)

Begin with a few existing clients you

know well and with whom you have a

good relationship



Coming Attraction Tomorrow

How to approach each area of planning

Tips to create a systematized planning

process by topic

A planning methodology that works

and that clients appreciate!

How to become indispensible to your

clients



AICPA PFP Section Member Resources

Estate

Tax

Retirement

Investment Insurance & Risk

Management

Practice

Management

Legislative/ Regulatory

Professional Responsibilities

Consumer Content

PFP Section members, inclusive of CPA/PFS credential holders, have access to resources

on the latest planning strategies and trends in personal financial planning services so that

they can practice competently and profitably. Visit aicpa.org/pfp/resources.

35

http://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Resources/RetirementPlanning/Pages/Retirement.aspx

http://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Resources/InvestmentPlanning/Pages/Investment.aspx

http://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Resources/ProtectionPlanning/Pages/InsuranceRisk.aspx

http://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Resources/ProtectionPlanning/Pages/InsuranceRisk.aspx

http://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Resources/PFPPracticeManagement/Pages/PracticeMgmt.aspx

http://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Resources/PFPPracticeManagement/Pages/PracticeMgmt.aspx

http://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/NewsAndPublications/Pages/LegislativeRegulatoryNews.aspx

http://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Resources/PracticeCenter/ProfessionalResponsibilities/Pages/ProfessionalResponsibilities.aspx

http://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Resources/PracticeCenter/ProfessionalResponsibilities/Pages/ProfessionalResponsibilities.aspx

http://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Resources/ConsumerContent/Pages/ConsumerContent.aspxhttp:/www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Resources/ConsumerContent/Pages/ConsumerContent.aspx

http://www.aicpa.org/pfp/resources



Resources

Find more resources for implementing a PFP

practice at aicpa.org/pfp/implementing.

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Questions

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Date post:	13-Jul-2020
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