Reversion To The Mean Podcast

Talkin’ Shop: Billy Cardwell, CFP® And No Minimums

My friend Billy Cardwell, CFP®, founder of Aurora Financial Strategies, and I had no idea what our topic for this episode for Talkin’ Shop was going to be prior to getting together to compare notes on what we’re doing in our businesses and with our clients. While we were talking, the subject of not having a minimum asset level came up, and I immediately decided that would be the topic for this episode.

Many financial advisors have minimums for new clients–those minimums can be all over the place. $1 million in investable assets is often a common minimum, but I’ve seen minimums as low as $250,000. Nonetheless, Billy and I have a similar characteristic for our firms–we don’t have a minimum asset level for new clients. We each have different business models, but we have structured our firms to allow us the flexibility to take on a client that may not have a large portfolio–yet. As I mention in the conversation, I utilize hourly planning (when necessary), a subscription relationship, and the traditional AUM relationship. Each relationship providing different levels of service allowing me to help more people depending on their needs and financial situation.

After posting the conversation to Twitter, Billy and I had a great exchange with some other advisors, whom I consider friends, about why they have minimums and it really boils down to smaller firms not having unlimited capacity and wanting to make sure service does not suffer to their clients. This is a valid point, and who knows, my stance on no minimums may change as RLS Wealth Management grows if I can’t scale to allow for the current relationships to continue. But, for now, I love that I don’t have to turn away someone I’d like to work with because they don’t have “enough” investable assets. And I know Billy feels the same.

The intent of this video was not to position Billy and me as “holier than thou” advisors but to discuss a common characteristic of our firms that is not common across the industry.

If you’re an advisor and will be passing through the Indianapolis area, hit me up on Twitter and I’d love to have you swing by for another episode of Talkin’ Shop!

Twitter: @BillyCFP

Aurora Financial Strategies

Disclaimer: Nothing on this blog should be considered advice, or recommendations. If you have questions pertaining to your individual situation you should consult your financial advisor. For all of the disclaimers, please see my disclaimers page.