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Written by: Deshawn Peterson
This was my first time traveling to Kansas City. I had no major expectations and wanted to take the experience in stride. I just wanted to be present. My only perception was that it would be flat and the BBQ was out of control. The BBQ was out of control. I had Jack Stakes BBQ and it put me in a coma just with the appetizers. I also learned the difference between the Kansas and Missouri side, which is a completely different topic outside of wealth management. But back to the topic at hand.
Here's what I learned from financial advisors in KC?
#1 – Financial advisors are tight and a close-knit community.
Being in Kansas City, it was obvious that most advisors knew each other closely, went to similar universities, and knew the history of local firms intimately. This was a common theme in all the rooms where I had some discussions. The behemoths including Creative Planning, Prime Capital Investment Advisors, and Mariner Wealth Management are pillars in the area but their lineage was felt throughout the area.
#2 – Growth at all costs just wasn’t on anyone white board this year.
With Kansas City being home to some of the largest RIAs in the nation, I was surprised that those models weren’t the consensus of the majority. This isn’t a good or bad thing, but I was surprised to hear that priorities included:
- Growing wallet share on the current client base by building a more MFO-centric model. How to stop referring dollars out the door and be a one-stop shop for clients and families.
- Making sure clients have a shared value set that aligns with the advisory firm. The items that money can’t buy such as faith, integrity, and community involvement are mentioned as it's a two-way street in onboarding but also accepting clients.
- Alternatives were a point of interest, but the greater question was how implementing a sophisticated private markets program affects practice management. Questions that came up were," How much more work with this take away from client-facing experiences? Do we hire more staff or find partnerships that add value instead of another layer of fees?
#3 Financial Advisors are entrepreneurial in general but that doesn't mean they all want to be entrepreneurs.
I spoke and met with quite a few advisors. They all shared a similar interest in creating, finding better ways to meet and serve clients, and a longer list of things to do. But one item that came up was an awareness of their entrepreneurial spirit and knowing that starting your firm wasn't the peak.
Some took it upon themselves to start projects that complimented their role via content and philanthropy. Others did go the small business route and are filing for their RIAs.
There was a lot of gray area in between. It was a common discussion amongst advisors about the workload of going independent versus plugging into an established firm or roll-up. Some valued their time to get clients how they saw fit and others wanted to build a name of their own as a part of their legacy and mission. It was an interesting conversation to witness and hear that there isn't a right or wrong answer.
Every time I meet advisors across the nation I learn so much and realize how much I don't know. It's exciting, to say the least.
Related: Redefining Success: The NexGen Advisor as a Relationship Manager