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[MUSIC] Financial advisers face many challenges. Succession planning, finding the next generation of talent, finding new clients. But one that we don't talk about very much is serving the mass affluent. What are the mass affluent? Well, they're people like you and me. People that don't have millions of dollars but need financial advice. We talked to several financial advisers, who figured out how to serve that market, and they're going to talk about it with you. There's millions of Americans out there with lots of money to invest that would like good quality advice rather than just say an online broker or what not, but it seems that so many advisers are ignoring these people. And I think it's to their mistake. I think that if adviser looks at their practices and say, how can I differentiate my service model? I mean, much like the way a hotel chain would have different service models. They have different service models depending on different price points. There's no reason that financial advisers can't do the same sort of thing. So, for example we do at Hanson McClain, we've got a great wealth management service model that we do for our higher end clients. For let's say, a million dollars plus. But we also have a select division for accounts as low as 50,000. And from those from 50,000 to 250,000, they have a good quality managed portfolio. It's a handsome, acclaimed model portfolio. But the service offering is just a little bit different than in, than we have for the wealth management. And what we've found is these people are very appreciative. That the fact is they'll have a good quality investment advice and they're appreciative that a firm like ours will take them on. Now they're not talking to really well seasoned CFP four times a year, but they are having some their great questions answered and they're having decent quality financial advice. So a client that's under 100,000, the, the needs are, are fairly simple. They need asset allocation. They need trading. They need performance management and then occasionally issues come up. You know they, they get a new 401k plan at work, and they need help sorting through what mix of funds to use. Or, or maybe, you know, their kid is, is going to be going to school and what's the best way to make sure that we get as much financial aid as necessary. So the reality is, is there's not a lot of, of needs. It tends to be investment-centric. But then being on call, you know, to help them figure out how to finance their new car, or whether or not they should pay down their mortgage, or add more money to their 401k. The frequency in which, you know, you need to, interact with that mass affluent client with $100,000 or maybe a little less. You, you can't do your job if you don't do that at least once a year. But in many cases, it's like pulling teeth to even get that once a year meeting. It's typically when there's some transition going on for the client, or some, you know, need that arises. The key's to be on call, and be available to address matters outside of the asset allocation investments. Some people say, with a $50,000 account, how are you able to make money? Well, $50,000, let's say you're charging a percent a year, that's $500 a year, or a percent and a quarter is where we start. Let's see now, 600 and what not, what a year. A lot of businesses make, have a lot less revenue than that and they seem to make money on it. I mean look at the typical C-P-A doing a tax return. Most tax returns are less than six or 700 bucks a year. So, the, the key is how do you figure out a service model, where you can be profitable at those smaller accounts, where that don't necessarily take away from that the main adviser's time as well. And that's what we've been able to create over the last couple of years. We now have about $300 million of assets that are less than $250,000. So there's quite a bit of revenue off that. Maybe it's a little more staff heavy than the other side, but it's a different kind, the staff level is not nearly as expensive, and, quite frankly, it's a great training ground for newer advisers to come on board. Gives them a chance to work with clients. So we found at our firm anyway, it's been a great way to build our business and a great way to serve so many people that are neglected. Right now, we have a crisis in our industry. We have shrinking capacity, because we have less advisers, a lot less advisers than we had ten years ago. We're gonna lose another 30 advisers over the next three years. And, we have skyrocketing demand for true advice. All of a sudden, everybody needs help, including the small investor. By the way, those assets from the high net worth to the middle market are gonna be inherited by this seemingly small investor. So I've done a 180. Literally a goldfish can become a grouper or a whale overnight. [MUSIC]


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