From Client Zero to building a thriving practice, Andrew Dolan shares how next-gen advisors can win in a DIY investing culture. Here’s how he's redefining value in financial advice.

Show Notes Info:

If you’re interested in connecting with Andrew, you can visit: https://www.ameripriseadvisors.com/Andrew.Dolan/

Hi, I’m John.

And I’m Julie.

We’re the hosts of the Hartford Fund’s human-centric investing podcast.

Every other week we’re talking with inspiring thought leaders to hear their best ideas for how you can transform your relationships with your clients.

Let’s go!

Andrew, welcome to the Human Centric Investing Podcast. We’re so excited you’ve joined us today.

Thanks, Julie. Thanks, John. Super excited to be here and share a little bit about myself and some thoughts in the industry. But thanks again for having me on today.

Sure. Well, Andrew, I’m really excited about our podcast today because, you know, I know you’re a certified financial professional. I’ve got a few years on you, I think. I earned my CFP back in 91. But I’m telling you, since I got into this business, all I’ve heard about was the difficulty in recruiting next generation advisors, finding young people that were interested in the field. And how to attract them to practices, so on and so forth. And I know that’s what you’re going to talk with us about. Some of the challenges and opportunities that you’ve experienced in your own career. So let’s start with some of the challenge because many of our listeners, I’m sure we have experienced advisors, but we probably have quite a few who are fairly new to the financial services business. So if you could share with us a little bit about uh, your background and what it was like coming into this industry as a younger advisor and what were some of the major challenges that you would say you faced?

Definitely. Yeah. So, I understand that is a common theme, right? Not a lot of people are getting into this business. The business is also getting older. But I came from wholesaling. I started with Lincoln Financial, had a passion with working with the individual client, thought that’s what I wanted to do for the rest of my career. Dove right in from client zero and build a practice for myself here at Ameriprise. Some of the challenges that I’ve faced and what I think is going on in the business is traditionally when older advisors got into the business, started with dialing the phones, right? It was maybe a list of contacts and you’re dialing and you dialing and you setting appointments and then some of those appointments would then turn into clients. What was different for me was, and what I think is going on in the industry is you have to start with trusted contacts, trusted people in your network to then Build off of that, right? That’s your current clients. That’s people in the COIs that you’ve built relationships with, those have to be your feeder systems to building a practice. The problem is that takes more time. And I think that’s, with the other opportunities to get hybrid roles, work from home opportunities in different industries, I think that’s kind of steered a lot of people away from this business. But again, I found that it’s been extremely rewarding and I’ve enjoyed every single moment of building a practice from Client Zero. But some of the challenges would just be it’s not as quick, it’s a little bit slower and it’s little bit of a different way to get clients to work with you than in the past.

Those are great points, Andrew. I’m curious, how have you dealt with the fact that clients are so connected, right? Everybody seems to have some sort of device at their fingertips, if not multiple, and we’re all about the instant gratification and we can access so much information. How have you found that to be a challenge in engaging with clients or building your practice?

Well, it’s the do it yourself platforms, right? Like clients can get information faster than ever before, right. You know, the, the entering AI into the picture here where clients can pretty much design a financial plan by asking it a few questions for them, uh, is pretty amazing to see and to be able to download an app and upload some money and buy some, um, you know, index funds or, or ETFs or. Different stocks, that never used to be able to be a thing before, right? But then the challenge is where does the advisor add the value, right. So knowing that the clients can get information at the, you know, in their palms of their hands super quickly is I think great, and it’s an opportunity for advisors to even continue to grow with the clients and use that to our Right use the technology to then create sound financial plans, but the problem is... The accountability, right? AI cannot provide the accountability that advisors can bring and grow with clients year after year, managing the savings plans, being there through the tough and challenging times, the unexpected curve balls that life throws in the way. And that’s where the advisor can come in to really make sure the clients are on track to meet their goals and really sift through all the information that the clients can get. With a few clicks of the button

So, Andrew, you mentioned about relationship building, and I think you’re right on target there. As I say to people when I got in the business in the early 90s, we were the keepers of the keys, right? We had all the information. If clients wanted to know how things were performing, let alone buy things, they had to come see you, the advisor, you had all of the info on how to do all that. Now, through technology, information is everywhere and accessibility has increased. But my question for you, as a young person getting into financial advice business with clients, you know, obviously you don’t have a book of clients you rely on for referrals and relationships. How did you go about building that network of relationships.

Oh, great question. The answer to that is networking, constantly networking. I always think of how I did in my week is how many people did I have a meaningful conversation with? And I track that. That’s new people that I’ve met at different networking events. That’s people that already know that I’m trying to reinforce that relationship, improve that relationship. How many people do I tell? To talk to and explain what I do and the value that I bring to clients and the work that I do. So it’s never-ending. It is just constantly networking, tapping into different markets, different COIs. People need to know who you are, what you do, and they certainly need to like and trust you in order for them to want to work with you or refer one of their closest friends or colleagues to you as well.

I’m curious, Andrew, how do you break into some of the long standing trusted relationships that are out there? I mean, as we know, many clients have worked with their financial professional for decades. And obviously, you’re having the conversation I would imagine with many of them as you’re out there networking and going through all of these activities. How do you differentiate yourself and sort of talk about that relationship versus what that you can bring to the table.

Yeah, so I mean, competing against many other advisors, I think it’s a saturated market. But one way you said I’ve differentiated myself is focusing on the wealth accumulators. Maybe the people that never had an advisor work with them month after month and making sure that they’re saving where their cash flow really needs to go. Helping them afford the house that they’re trying to save for. You know, staying in that space where maybe people have never had the help before is something that is a little bit different than going up against somebody who already has an advisor or maybe it’s their parent’s advisor or grandparent’s advisor. Because the clients who are in ages, let’s call it 25 to 45, require a tremendous amount of attention and work and detail as they’re saving and accumulating their wealth. I don’t know if somebody in the end of their career is going to really want to spend that time with those clients, even though they deserve the time. And I think there’s a tremendous opportunity in that space for me to work with and gain new clients and gain knew trusted contacts in that place. So that’s kind of how I’ve navigated it. I don’t necessarily think my competition is other advisors. I actually think it’s the do-it-yourself platforms. And people that don’t think they need an advisor to accumulate the wealth and get, you know, accomplish the goals that they want to accomplish.

So Drew, I have a question about mentoring and maybe the resources that you found from within the industry that helped you get started. So maybe other advisors at your firm or relationships that you had as a wholesaler. Did you find that people were willing to help you as you started to build your practice and how selective did you have to be or did you really have to scrap for that kind of advice in terms of getting your practice off the ground?

Yeah, definitely. I mean, to get a practice off the ground, it’s going to be pretty hard to do it all by yourself. I’ve had several trusted mentors that have coached me and guided me and still support me as I’ve launched my practice several years ago. But I always think you need to be a constant learner. You need to learning from other trusted wholesalers in the industry, other trusted advisors, even if They’re from different firm. I’ve had coffee with different advisors several times just to learn about how they grew or the challenges and opportunities that they face. I find that every time I talk to another advisor, I find and take away something valuable that I can bring to my practice and ultimately to my clients as well. So it’s a never ending process of continuing to learn and adapt and evolve. You can do that by leaning on some of the trusted partners in the industry, whether that’s advisors, resources at my firm or other firms to continue to learn and move the practice forward.

Great, thank you.

Andrew, a few minutes ago, you mentioned the word opportunity when we were talking about, you know, being able to connect with those clients that maybe haven’t had financial advice for many decades. What are other opportunities that you see? I know we talked about challenges and we spent some time on that, but as a glass half full kind of a gal, I would love to maybe hear your perspective on where you see the greatest opportunities for yourself as a next gen advisor.

Of course, so I think the biggest opportunity is the great wealth transfer that’s going to happen in this country pretty soon, right? There’s about, you know, in the ballpark of $100 trillion tied up in the boomer generation. And as that money changes hands to Millennials and Gen Z, with less and less advisors getting into the business, you know, kind of in that in that age group, it’s going to leave a in my opinion, a tremendous shortage in financial advice for those folks out there. So if you’re working in that space and you’re already having and building relationships with Gen Z, with the millennials, helping them save for their children’s college, helping them plan and save for retirement and invest for the future, and as that money comes down, that’s a huge, huge opportunity to help those people. And if you are in that place and you are, known as the expert that can handle that, I think that is just one of the biggest opportunities out there.

Andrew, do you think that the value proposition of advisors has shifted from, as I described, that era where we were the keepers of information, everybody looked at the advisor as the investment guru? Are there now additional expectations that clients have of advisors? And as a younger advisor, do think you’re, maybe you have more of a clean slate to begin to develop your practice in that way. So I guess my question is, Has the value proposition changed, and do you think you’re well positioned if it has to take advantage of that?

You’re definitely right, John. I think, you know, people don’t have to go to an advisor to buy an investment, a stock, an ETF, a mutual fund. Uh, there’s other platforms out there that people can do that with. So I think the, the value proposition that, you know, I bring to the table and other advisors can bring to the table is through the comprehensive planning process and the accountability, right, to help them. See where they currently are, the clients, and identify strategies to help them meet their goals is one thing, but the other thing is being there with them throughout the calendar year and years to come to make sure that they stay on track to meet those goals, right? It becomes less, in my opinion, about the individual investment selection and buying different investments, and more so, hey, what is most important to the clients? And how can I help them and maintain that plan that we’ve set out for you. That becomes more of the value proposition in my opinion.

That makes so much sense. I’m curious because John and I speak with advisors every day who are the leader of the team and maybe a bit more seasoned. And they’re looking for an advisor such as yourself, that next generation team member to come in and really maybe build out their succession plan or deliver more wealth management solutions. And a lot of times they have trouble finding that person. Will you talk to us a little bit about, from your perspective, why you think that is? Maybe the industry has had some challenges attracting that next generation advisor.

Definitely, I think that’s you know, one of the bigger risks to other advisors who are working on a succession plan or maybe don’t have a clear succession plan to their business. And I don’t know the exact numbers, but I do I do know that when you know you don’t have a relationship with the beneficiaries of accounts, the odds of them becoming clients, if something were to happen to the to the owners of the accounts is not great. Right. So you want to I would encourage other advisors to have somebody working with the beneficiaries who can spend time with them planning and accumulating wealth over the next 20 years so that, one, those clients are getting the attention they deserve and the planning that is needed in the marketplace, but, two, you have a clear line item and succession plan in from for many years to going forward and you can you know Encourage your clients that that is going to take place. I think the challenge of getting people into this business, right is The do-it-yourself platforms have become bigger The the business has become less Transactional more fee base advice base over time, which is I think a good thing, but it becomes slower It’s a slower process in my opinion So I think a combination of those two would probably be the reason why it’s not as an attractive space for younger people, although I think it should be, personally.

So, Andrew, a question for you. When you decided to go the route of personal financial advice, you obviously had to weigh the paths of sole practitioner versus becoming an advisor as part of a team. Why is it that you opted to go the sole practitioner route, especially as a younger advisor versus the path of joining a team somewhere? Was it just independence to create your own practice or were there other factors? How would you? As you look back, what do you think the major decision points were?

Yeah, I think the business has become more and more team-based too, but I wanted to go the entrepreneur route, right? I wanted it to educate myself and get the certified financial planner designation so that I could share what I’ve learned and the skill sets that I’ve developed with individual clients that I would bring on myself. And I think that’s the beauty of this business, is that. You can be a sole practitioner and have a very successful career, impact a lot of people’s lives through great financial planning. And I thought that was the more attractive piece of the business for me personally. But I think there’s tremendous value in the team model as well. It’s just kind of what I wanted to do with my practice. I think the greatest part about this business is you can grow it and have 100 person team if you want. You can focus on a niche group of clients, and that’s it, you can run your own show as well. So I think that’s the model I was attracted to, but who knows where my journey will take me in the next 20 years.

Exactly, you just never know. I’m curious, thank you for all of sharing the challenges and the opportunities, most importantly. As we wrap up this segment, I’m curious what advice would you give to that next gen advisor that is solo like you? What is the most important thing from your perspective? And then separately and distinct, if you were speaking with a seasoned advisor that’s looking for that next generation. Advisor to bring onto their team, what would you tell them that they should be thinking about or doing in order to attract the right person to fit their practice?

Yeah, I mean, the person who is going in as a sole practitioner, I would say, stay true to your business model and what you believe in because, you know, times building any business, you’ll run into challenging times, but staying true to the business plan and the map that you’ve created is what’s going to get you through the slow times or the times where you haven’t brought on a client in the little bit. So that’s what I would encourage that person to do. From a team perspective, you’re really going to want a good fit for value. You want to make sure that the business plan that you’ve created, if you’re an older advisor, is in line with the business planning and the model that maybe the younger advisor has for himself because there’s many different ways and many different roads you can take to get clients to the same place. And as long as you’re thinking and... Planning process and how you believe your business should run is somewhat in line with each other, I think that would be a great fit, right? If I was looking for somebody to bring on, I would want somebody who is like-minded in the way that I think planning should be done and how the practice should be modeled.

Well, Andrew, thanks for all the insights today. But before we let you go, we’d like to ask your permission to participate in something we do at just, I think every guest that we’ve ever had on the Human Centric Investing podcast, at least in recent years, it’s to participate in what we call the lightning round of questions. It’s where if you’re game, Julie and I will fire some questions at you. This has nothing to do with the topic we just discussed. But it has everything to do with Andrew Dolan, so that our audience can get to know you a little bit better. Really, it’s called the Human-Centric Podcast for a reason, so maybe we can connect more on a human level. Again, these aren’t going to be mental level IQ questions, but if you’re game, we’ll give it a shot. Ready to go. Julie, why don’t you start.

Okay, perfect. On a scale of one to 10, how good of a driver are you?

There you go. Always leave that little room for improvement. Andrew, what’s your favorite holiday?

I like Memorial Day weekend, I think that would be my favorite holiday, one to remember those that have fallen for us and two, it’s a nice way to kick off summer.

Totally agree. What’s the best age?

I would say the age you’re in right now, I think it’s easy to look backwards, but I’m a forward thinker and I like where I am now and hopefully where I can go.

What’s your ideal outdoor temperature?

Um, I think 70 degrees on a crisp fall day.

I like that. Are you a fan of a paper to-do list or a digital one?

Paper still. I still like writing down my to-do lists.

And then crossing it off, right? That’s the best part.

Yes.

Well, Andrew, we can’t thank you enough for joining us today on the Human Centric Investing podcast and sharing your perspective on the Next Generation Advisor and specifically the challenges, but most importantly, the opportunities. And for our listeners, if you’re interested in learning more about Andrew, you can visit his website at www.ameripriseadvisors.com forward slash andrew.dolan. Thank you again for all of your insights today, Andrew.

Thanks for having me, it was a blast.

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The views and opinions expressed herein are those of the guest who is not affiliated with Hartford funds.