Active investment management’s weekly magazine for fee-based advisors

Lem Kornegay, AAMS, RFC • Glendale, CO
Paladin Financial Services Inc. • Money Concepts Capital Corporation

Signs of new construction, residential and commercial, are everywhere here in Denver, Colorado. Cranes dot the skyline, while scaffolding and orange barrels are seemingly around every corner. These signs remind me that before any of this tangible work could start, plans were made—a developer had an idea, raised capital, and obtained the necessary permits. Then an architect drafted the building plans and blueprints that told the designated contractor what to build.

We have the same opportunity as financial advisors to build our practices from the ground up. We are developers when we decide what type of practice we will have, architects when we decide what services we will offer and how we will deliver them, and contractors when we build our practice to meet these specifications.

I made the decision to open an independent advisory practice because I grew tired of someone else defining “success” for me: who to work with, what to sell, and when to sell it. I believe that since I’m defining success on my own terms, that definition should be clear and focused.

My design is centered on creating and maintaining as much of a “stress-free” practice as possible. Since I decide who I work with, it makes sense to try to identify clients whose personality type and goals match mine.

Characteristics of successful client relationships

There are characteristics I look for in potential clients. Do they see the value in long-term relationships? Do they want to make a difference in their family and community? Are they highly optimistic? Do they see themselves as having something of value to share? Are they interested in getting to the “bottom line” sooner rather than later? Will they be confident decision-makers after going through a comprehensive financial-planning process?

When I see these characteristics, I am confident that we can work well together. Their needs and expectations will match well with what I can offer and deliver.

Being selective in this manner offers several advantages for my firm and for me on a personal level:

  • I do what I love and I look forward to every day because I get to help great people.
  • I avoid toxicity in relationships, personal and business. I never want to look at my caller ID and think, “I don’t want to answer that call.” Likewise, I never want a client to think the same thing.
  • I can declutter my mind and my working day. Working with clients who share my values gives me the freedom to grow doing what I like and am good at. We are all on the same long-term course.
  • I can just say “no.” My focus lets me work on the priorities of clients by doing what I do best. I know who I work well with, and I don’t try to be all things to all people.
  • Financial advisors can define “success” for their practice on their own terms.
  • Determine how to best serve clients consistent with your personal values.
  • Identify prospective clients whose personality and financial priorities are a good fit.

Disclosure: All securities through Money Concepts Capital Corp., member FINRA/SIPC. Registered investment adviser with the SEC. Lemuel Kornegay III is an independent contractor of Money Concepts. Paladin Financial Services is not affiliated with Money Concepts Capital Corp.

Photography by Paul Wedlake
Recent Posts:

Helping clients create a lasting legacy

Trevor Cochrane, CRPC • Fort Worth, TXReverb Financial • Securities America Inc.Read full biography belowProactive Advisor Magazine: Trevor, talk about how you see your firm’s mission.The naming of our firm, Reverb Financial, was very intentional. “Reverb” is a term...

Trend-following strategies: Dealing with ‘whipsaws’

Followers of a rules-based, trend-following investment approach know that whipsaws can be the “cost of doing business”—especially if you want to avoid the devastation that can come during severe bear markets. [dropcap style="font-size: 60px; color:...

Market headwinds overshadow positive Q1 earnings

nflation, the Ukraine conflict, weakening consumer sentiment, the Fed’s anticipated rate-tightening cycle, faltering U.S. growth expectations, and the market’s continued poor performance have overshadowed...

The dollar’s 8-year cycle

he U.S. Dollar Index is climbing up to its highest level since 2002, which is getting a lot of currency traders excited. U.S. manufacturers are a lot less excited. A more valuable dollar makes it harder to...