15 transformational advisers: Roy Diliberto

Roy Diliberto realized about 15 years into his financial planning career that the clients he knew best and had known the longest were getting an important benefit from his services that his other clients were not.
The founder and namesake of RTD Financial Advisors Inc. was helping these clients uncover what was truly important in their lives, and in many cases, had helped them realize why they made certain decisions that were destructive to their financial well-being.
“I had no real system for uncovering this, but I craved one,” said Mr. Diliberto. “I wanted a way to get to understand them much faster so I could help them earlier on.”
With help from some other advisers seeking to achieve more than investment results for clients, Mr. Diliberto, 73, developed a system and process for formal financial life planning that he began using with clients in 2000. That same year, he served as the Financial Planning Association’s first president and he soon became a frequent speaker and pioneer of behavioral finance for advisers.
His process, practiced today by the five planning teams at his firm, invests hours during the first two client meetings discussing client histories, values and goals — he doesn’t just ask clients what they are looking for from their portfolios.
“We get into depth of what’s important to them,” Mr. Diliberto said.

PHOTO GALLERY 15 transformational advisers

For example, one client in his 60s was very conscious of not overspending or losing his money, and he stood stubbornly behind his portfolio of bonds when he came to see Mr. Diliberto. The adviser soon realized the client was on a course that guaranteed he would run out of money, unless he died at a young age.
Through the life planning process, Mr. Diliberto led the client to recall getting in trouble with his mother at age 9 for spending too much at a carnival. His mother had taught him not to waste money, and 55 years later that was translating into an avoidance of stocks, which he feared could fall out of favor and waste his funds. After the discovery, the client had a better mindset and context for hearing Mr. Diliberto’s contention that he would run out of funds if he didn’t invest some assets in stocks.
Mr. Diliberto outlined his methods in “Financial Planning: The Next Step: A Practical Approach to Merging Your Clients’ Money with their Lives” (FPA Press, 2006) and speaks about the importance of life planning around the country, and sometimes internationally.
He has influenced many advisers who seek their own client-centric approach to financial planning.
“Roy has been a leader and provocative thinker for our profession for many years, and garners the respect of all who are fortunate enough to know him,” said current FPA president Michael Branham, an adviser with Cornerstone Wealth Advisors Inc.
STARTED IN INSURANCE
Mr. Diliberto, a Temple University graduate, began his career in the insurance business, working in Cherry Hill, N.J., for John Hancock He started RTD Financial in Philadelphia in 1983 and today has branched out from its headquarters to include offices in West Chester, Pa., Mount Laurel, N.J., Atlanta, and Bonita Springs, Fla.
Mr. Diliberto, who lives eight months of the year in Florida and four months in Philadelphia, said he expects more advisers will practice life planning and the industry will continue to evolve during the next decade or two.
“Financial planning is beginning to emerge as a profession,” he said. “In 15 years, it really will be a profession and it won’t be all about buying the right mutual funds.”