[01:00:02] Carl Richards: Yeah. And the answer without actually, with one exception, who I’d never fly with. Yeah. [03:46] Why it’s so important to face your fears and do the work you need to do to make the world a better place, no matter how scary it is. Coming from you, a guy that’s been in this industry and then a thought leader in the space for a long time, I appreciate that. We went and meet with an estate attorney who was a friend, well, at least before this meeting was a friend of ours and my wife and I were sitting there and he has to spell out the questionnaire in the lobby like many advisors still do. We’re just enjoying ourselves. Episode 1: Carl Richards 06.14.19 | 0 Launch Scale Transform My guest today is Carl Richards.He is a Certified Financial Planner TM, the creator of The Behavior Gap, and has been the Sketch Guy columnist for the New York Times since 2010. So, the difference isn’t that the fear goes away. I was reading Sinek’s where I’m like, “Wow. You got to show up with little vulnerability yourself. And so, if we understand that the only thing we know for sure about the plan, the financial plan, this document that we call – the only thing we know for sure is that it’s wrong. Not too shabby for a guy without a plan. Both the work that you do but more importantly, frankly, than the work you and I do, the work that you’re doing in a certain listener, watcher, viewer, I guess. I live in the South Island of New Zealand in a small town. And Julie says looks a little like they come into the big brokerage firm with the bull as a symbol and they were like, “What do you got for me, kid? And thanks so much for listening and hopefully this episode with Carl Richards really helped you out even more on that front as we obviously did a deep dive there as well. So, if we can start like 30,000-foot view for these advisors that I mean they like to get down into the weeds, a lot of them. I’d love to continue the conversation out there. So, if you’re interested in this stuff, that’s where I would go. It’s like, “Ah, Julie, you want to have a flexibility kind of freedom when you tap out. Her husband Steve is there. And so, an easy way to do this where we say, “Look, we’re going to have a meeting once a week,” and let’s say there’s no advisors in your office and you go, “Fine,” like three or four other advisors outside of your office like colleagues, whatever. We haven’t built a full plan yet for you because you have asked us to.”. He’s like, “Hey, hey,” like option 2.5 she’s like, “Whoa, we didn’t come here for you to give us options that we’re unqualified to decide between. So, none of this, “Hey, Brad, what do your kids do? Would you do them for us?” And I knew enough at that point in my life to say yes and figure things out later. Good. Unless you live someplace where the laws are different than me, they did that of their own free will. Carl Richards Founder, Presada Capital Management Salt Lake City and Las Vegas. If you’re a therapist, are you going to sit there and talk to one spouse the whole time? In this case, Steve was the nondominant spouse. [00:03:00] Brad Johnson: Welcome to this episode of the Elite Advisor Blueprint. “I diverged from the generic ‘dialing for dollars’ path to advancement and set out to learn from entrepreneurs and leaders from books,” writes advisor Chip Munn. Don’t use those words in front of a client but they didn’t know so you just clarified something that they didn’t even really know. Instagram, Twitter, Facebook, Images, Youtube and more on IDCrawl - the leading free people search engine. They’re not going to tell you that and even whatever high-powered bro that thinks he’s so cool, he’s scared to death. He shares his thoughts through the Bucks Blog at the New York Times, on his website (Behaviorgap.com) and on Twitter (@behaviorgap). What’s that worth? He’s like, “Hey, hey,” like option 2.5 she’s like, “Whoa, we didn’t come here for you to give us options that we’re unqualified to decide between. I think that’s the beginning like the other stuff like how do you draw? So, go check it out. So, the fact that I was getting blank stares from them was not their problem. Treat this person like my mom like, whatever, it’s some meaningful things to you. I realize that’s direct and I’m just asking you to sort of play with it a bit like if somebody walks into your office for a first meeting, they’re a prospective client, they come to your office for a first meeting. They care about their problems. But what you see, you see that happen in financial services all the time where the guy talks to the guy and I think that’s one of the key elements female advisors when you look at when I started out, it was like one out of 100 maybe was a female advisor. [00:22:50] Carl Richards: And so, all I’m saying is instead of trying to appear smart, spend all that time and energy training, practice listening, asking good questions and listening. You have to be engaged in this process. As a former financial planner, Carl found tons of inspiration for his Sketch Guy column, which has been appearing weekly in The New York Times since 2010. [01:01:35] Carl Richards: It’s been amazing. Here’s the annuities for the income,” and that just completely derails everything because back to the average person, this is like anxiety to them, they are now trying to make decision points on like seven different things that they don’t even understand at the core level. I’m just plugging him at the beginning of this conversation. [00:12:58] Brad Johnson: I was downloading Napster songs that took about 25 minutes at the time. As always, all the additional show notes, books mentioned, people discussed as well as a full transcript of the entire show can be found at BradleyJohnson.com/61 as well. Not only do we read every single comment, but this will help the show rank and get discovered by new listeners. I think the reason that’s so hard for so many of us is we’re scared. And I just mean you part of that chemistry that they’ve read about. [00:58:30] Carl Richards: Yeah. Coming from you, a guy that’s been in this industry and then a thought leader in the space for a long time, I appreciate that. Courtney was working with somebody. For those in the financial planning space, Carl Richards needs no introduction. It is so simple but yet so true. How do you zoom out and to go back simplify the complex if you don’t have the artistic skills that you do as an advisor? I that first meeting you practiced and you get training like I would record these with permission. I don’t want this to be like where we’re beating up financial advisors because we work with incredible people that really do care, but it goes back to your statement that I wrote down right here. We want them to be confused by the grace that they walked into a place and for the first time in their lives, I actually most of them is because I’ve been through this with so many people, they never had a safe place to just be asking questions about money. I think the mindset is the most important part. So, if you like to apply to see if it makes sense for us to have a one-on-one conversation on how to overcome what may be getting in your way, you can do that at. I love reading each and every one and it helps make the show better know how I can better resonate with my listeners out there. That’s why I think we do that, and it’s totally misinformed. So, the only way to solve for a complex adaptive system is to take the next step and then reset. That’s not always the breadwinner, by the way. No one’s going to die. It was just a really interesting exploration of a woman who bought a ranch that she couldn’t afford in Creed, Colorado and the hardship of something you care deeply about in the world so that was an amazing book. Okay. I change people’s names to try and protect them. [00:00:26] Brad Johnson: Welcome to the Elite Advisor Blueprint, the podcast for world-class financial advisors. It takes about five minutes to fill up the application so we can understand what your business looks like, what challenges you may be facing, and how myself and my team may be able to help. That depends a good deal on where you want to get to. Please keep being this is important. Actually, we were just talking here before we went live. Five stars. I guarantee the writing you’re doing today compared to the writing you’re doing 10, 15, 20 years ago, dramatically different and improved based on just getting out there and iterating and practice. All that I ask is that you leave an honest review out on iTunes for our show. Her actual name is Julie. So, I’ve been coaching advisors, independent advisors for 12 years, going on 13 now, and one of the hardest things to get them to do, which I know this will be ultra-surprising to you is to simplify the complex. I know my way around estate planning stuff, but I just want to be told what to do at the back, in that book, at the back like that’s even more basic. [01:04:11] Carl Richards: It’s amazing. So, for clients, people want to argue about the solutions, and they missed the fact that we understood the problem in the first place. Okay. And you just say, “Brad, why is money important to you?” Now, you can say to Dan Sullivan, Brad, if we are meeting three years from now, what would have to happen over the next three years for you to feel like this is been a success? Your wish for the year ahead: For the last year, you could go to almost any restaurant and you'd hear normal people talking about how worried they were about money. I think the mindset is the most important part. We go in. [00:44:04] Brad Johnson: Yeah. If you have a sister she’s lying and so as your mom. “Oh my gosh, there’s something wrong. “Advisors are scared that if we make something too simple, people won’t pay for it. We put some framework. All right, Carl. If you don’t like green, I’ve got pink.” So, anyway, enough about that. I got told this by a mentor named Gary. Also, a quick apology to our listeners in Canada, the UK, Australia, all around the world internationally. So, I think the message of that like this is so important like I’m glad we get to start here is like doing public work is scary. So, as you start to go through and I know you unpacked asking the why behind that, let’s keep going down that path and helping the client understand why they need to plan in the first place because I think sometimes clients don’t even understand that when they first walk in. [00:16:48] Brad Johnson: Now, I’ve dealt with it for 12 years. I think we’re a bit calloused because we see the same problems over and over and we create the same solutions over and over where we forget these are human beings walking and sharing their deepest darkest secrets around money that they probably haven’t shared with anyone, including their own kids and we just treat them like, “Fill out this questionnaire,” like very mechanical and your point in the book you mentioned it’s more like a therapy session than it is a session with a financial advisor and I found the very best advisors that’s exactly the way they approach it. Freedom or security normally comes first,” and that in and of itself is a really interesting thing. So, Bill Bachrach teaches a lesson and Bill is still around doing amazing work. Like, forget the rest of the work you’re going to do. So, for clients, people want to argue about the solutions, and they missed the fact that we understood the problem in the first place. So, thanks and when you’re in the states if there’s anywhere close to the Midwest look me up. I registered the Emotional Gap first and then I was like, “Ah, that sounds a little soft. It’s a guess.” What would it have to look like? It’s a well-intentioned belief that like, “Hey, you got to understand and I’m trying to help you with,” but what happens is people want to argue. Love the work that you and Adam are doing out in Ohio. And I’m not a question zealot and Bill rightfully so, teaches a way to do it and he doesn’t deviate from it. [01:05:32] Brad Johnson: Thanks for checking out the latest show. I’m more just like if I were starting my firm again, I would spend the bulk of my time getting really good at that first meeting and I would find questions that work for me. Well, I just want to say thank you. Working with one of the largest if not the largest brokerage firms in the US. So, here’s what I love about your work. [00:03:07] Carl Richards: Brad, thanks for having me. Like what’s your performing whatever?” And next thing they know, she was like, “Ah,” whatever. We then dive into a Discovery session where we ask a lot of questions based on your survey. For access to show notes, transcripts and exclusive content from our show’s guests, visit. We’re going to sell the Hawaii house because when we built the Hawaii, all the kids and I remember is you being angry because when we built that in all the years we’ve been going, you are under so much pressure that we go there because it was like I need to escape, and we get there and all we saw was you impatient and angry. For financial professional use only. 16:15 – 18:45 Carl digs into some of his hopes for what people will get out of The Fellowship, and Jeremy tells us what concrete steps he’ll be taking within his firm, and his life, following his graduation from The Fellowship (starring Declaration 4: We Decide Who to Work With). With 350 firms on its client roster, the acquisition of Flourish gives the insurer a springboard into the independent advisor market. It gives us a tool to engage with reality, but it doesn’t change reality. For those of you financial advisors aspiring to write a book someday, you should go buy a copy of Adam’s book, Off The Record, one of the best financial advisor books I’ve read and great example of how to actually make finance interesting for your clients and prospects. I just hope there’s no revolt like I’m still waiting for like the sheep to knock on the door like, “Hey, man. In fact if you’d like to connect on a more personal level, give me a follow on Twitter, I’m @brad_johnson. I’ve never had to make the clients uncomfortable, but I understand advisors’ fear around that. He do the same things over and over. No one’s going to die. I think you have to remember if people know that you know the problem, if people feel thoroughly diagnosed, they don’t really like I never believed this. But seeing the other side it’s interesting too. Thanks again for joining and be sure to tune in next week for another episode. I’m going to ask you both this question and it’s the only question that you can’t help each other on. We’ve got some amazing people when we’re learning a lot and we’re apparently not done learning from the experience yet. It was mine and I thought I was pretty good at this in terms of making things simple and easy to understand and I was just getting blank stares and out of a certain act of desperation, this is not a blackboard but it was like there was a whiteboard on the wall and I jumped up and said, “No, like this,” just purely out of an act of desperation. Let’s go deeper and deeper and deeper until we get to the end root.”. Tell me a little bit more, Julie, about freedom.” And my goal in these first meetings was someone was going to cry, and it wasn’t going to be me. I’ve seen the New York Times column. Are there tools, Carl, like I just go back to that emergency room doctor. They’re going to ask me why utility bills are 17.5 a year but so we just say we’re going to use this word called goal, relax, and this is exactly what I say, “Relax. They’ve got a million bucks. Not only do we read every single comment, but this will help the show rank and get discovered by new listeners. It’s shifting away from the product to the relationship. Just think about this is like your golf swing and then bring that to meeting and sort of post-op meeting where you sit down and get a little feedback. On to this week’s featured reviews. I was not prepared. I was fortunate at the time. I said, “Okay. The first thing you need to understand is why like the tactical stuff it should be obvious like I had no art skills. All right. And we like to joke we’re three years into the one-year trip. Let me just say one more thing about this. I mean, we were talking about writing which you’ve done a lot of. I’ve got green. Speaking of humbling, so little known fact so this is going to be something new to the blueprint listeners out there. Advisor turned wholesaler. [00:32:28] Carl Richards: I was like, “Okay. There’s a difference between, anyway, super, super good stuff. You have to be engaged in this process. A no-holds barred conversation for Real Financial Advisors with industry nerd Michael Kitces and client communication expert Carl Richards. That’s what all that’s about. And you start with the ones the least verbally dominant. Like its largest rivals, the wirehouse kept grids at par after a tumultuous 2020. It’s the sign that you’ve done something right like when you ask a good question, a good question, by definition, is something somebody hasn’t been asked before. [01:05:25] Brad Johnson: All right. Good. So, let’s go, let’s start with the doing public work. Carl Richards Founder, Presada Capital Management Salt Lake City and Las Vegas. Clients do not care. I think naturally, they want to just dive in like an engineer and start plan with all the different financial tools and explaining those and your book does a great job, The One-Page Financial Plan. I’m sure a lot of your listeners can relate to this, sitting at a desk when I was a financial advisor, a big brokerage firm, it will go unnamed, but has a bull as its symbol and is owned by a bank sitting at a desk trying to explain a relatively complex subject to a client and these were smart like all of our clients, smart, intelligent, successful people. For now though, Richards only expects some SSORFP T-shirts in the future. They’re like, “Hey, help me understand this a bit.” This kills me. And again, I understand where it comes from. So, we’re filling out the questionnaire. [00:07:33] Brad Johnson: So, one of my friends, Michael Hyatt, he basically says, “Fail when no one is watching,” and that’s what you got to do. The answer is always been yes. I think you actually even use this word snapshot in your book, but a lot of times that’s the framing they’ll use in the second visit after the first discovery session and say, “Hey, we’re kind of taking the 30,000-foot view. I know it can be lonely work because a real financial advisor can be lonely because nobody knows what the difference is between the real and a fake one, but please keep doing it because more than ever people are walking around anxious and worried about money and the only place they have to go is you. Mendel Money Management has provided transparent, fee-only wealth management and financial planning services for over 30 years. Carl Richards is a Certified Financial Planner™ and creator of the Sketch Guy column, appearing weekly in The New York Times since 2010. That’s what I do going into this. Oh, that’s awesome,” like none of that. Remember she’s a client. Because I know you’re a creator. This was years ago and we met. I mean not carefully like the better way to say this would be like I’m standing on the shoulder to people who did it long before me. It’s interesting how many times I’ve heard that the training in our industry often tends to miss the mark as often it’s focused on technicalities and details of financial products vs asking the right questions and listening in order to deeply understand your clients issues and concerns when it comes to finance. For those of you unfamiliar with Carl, he is a CFP and creator of the Sketch Guy column, which has appeared weekly in … So, we understand that process of like, okay, we’re still going to build this plan but we’re flexible then when we get phone calls about I got to get out of the market, we have something to go back to, “Hey, remember you told me and that involves time and on track for retirement and are we still on the same page?” “Yeah, we are.” “Okay cool.” Now, we have something to talk about why you want to get on the market. So, let’s get to the show but before we do, one last thing. So, tell me what happened. For more information on the Congress program or to register your attendance, go to: fpacongress.com.au [00:37:02] Carl Richards: I know advisors who will be like, “I won’t meet with you…” Well, actually, most advisors like don’t even think about this, but there are some advisors who thought about and said, “I won’t meet with you unless you’re both there,” and I admire that, and I think that can be a great practice. Yeah. I don’t know very many things that are more human than this unfortunate just the world we live in but this unfortunate relationship we have with money and then I think there’s the post.