Adviser draws on creativity to illustrate financial concepts

It isn't easy for advisers to illustrate financial concepts for clients, but Carl Richards does just that
NOV 16, 2011
It isn't easy for advisers to illustrate financial concepts for clients, but Carl Richards does just that. Mr. Richards, who runs Prasada Capital Management in Park City, Utah, a fee-only practice with about $30 million in assets under management, draws simple pictures that deftly explain difficult investment concepts. He also blogs about personal finance for The New York Times and will publish a book based on the blog early next year. In addition, Mr. Richards gives talks about personal finance and investing. But financial advisers increasingly know of him because of the drawings, which he makes freely available on his website. Over the years, a growing number of advisers have downloaded the illustrations to put up in their offices or give to clients. “I had one adviser tell me he had a prospective client in for a meeting, and my fear-and-greed sketch was out on his conference room table,” Mr. Richards said. “The client looked at it and said, "This has been my story, and you need to figure out how to help me stop doing that.'”

CONSUMER FRIENDLY

Mr. Richards said that people like his drawings and his finance blog because he has a knack for taking left-brain subjects such as money and investing, and translating them into consumer-friendly messages that recognize the feelings involved. “We have emotional and behavioral issues around money that involve the right side of the brain,” he said. People can connect with those behavioral issues when they understand how it all fits together, Mr. Richards said. For instance, one adviser told him that a client looked at one of his drawings and blurted out, “I get it now!” Mr. Richards gets it, too. “I think of my drawings as tools for advisers to have better conversations with their clients about issues that matter,” he said. One fan is adviser Greg Phelps, president and wealth manager at Redrock Wealth Management LLC in Las Vegas. “People are very visual, and it opens up conversations,” he said.  Mr. Phelps has three of the prints framed on his office wall, and clients frequently notice them on their way into or out of the office. “They will stop and ponder them, and you can see the wheels turning in their heads as they process it,” he said. One client gazed at the fear-and-greed drawing for a few moments, then turned to Mr. Phelps with an anxious look on his face. “"That's not what we're doing, right?'” Mr. Phelps said the client asked him. A moment later, the client slapped himself on the forehead as though he were saying, “Duh.” Email Lavonne Kuykendall at [email protected]

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave