If you were to survey 100 financial advisory firms, the vast majority would tell you they tailor their services to individual client needs. But it’s rare to find a firm that takes it as far as Schaefer Financial Management. In fact, if you ask Schaefer about big picture items, like fee structure, asset minimums, or their typical clients, you get almost as many exceptions as you do rules.
We wanted to know how it’s possible to keep up that kind of individualism at scale, so we asked Schaefer’s most tenured financial planner (aside from founder Jeff Schaefer), Becky Aardal, CFP®, how it works.
Building a unique client experience
We started off by asking Aardal about the firm’s typical clients and whether they have an asset minimum: “Probably $1 million is a good minimum, but obviously, if we have referrals, that’s different.” Often, clients start with $2-5 million in investable assets, not $1 million. Some referrals, though, might be clients’ children or relatives with far less than $1 million. The firm often takes those clients on, too, if they’re a good fit beyond investible assets.
When it comes to fees, the firm charges a tiered percentage of assets under management, but often starts clients off with a retirement plan, for which they charge a flat planning fee. (The plan and fee take the clients through implementation.)
The firm has even customized its billing method. Schaefer generates reports and calculates clients’ bills using Advyzon, but many of their clients prefer to receive paper invoices in the mail. “We have a lot of clients still who like invoices and write us checks on a quarterly basis,” Aardal says. So, after using Advyzon to generate the amount of a client’s quarterly bill, they export the numbers into Microsoft Excel and create a customized invoice for the client.
At this point, it won’t come as a surprise to learn the firm’s portfolios are customized, as well. Schaefer’s planners don’t use model portfolios when it comes to asset allocation and investment selection. “Before we make changes to anyone’s portfolio, we talk to the client about proposed changes and get their approval,” Aardal says.
That’s partly because the firm is nondiscretionary, but it’s also part of the individual attention that makes Schaefer Financial Management unique. “Everyone has their own asset model, everyone has their own way of looking at things, so we’re not that cookie cutter. It’s pretty individualized.”
Individual service at scale
As you get a feel for the level of customization the firm offers, you may be wondering how they maintain that level of high-touch service, particularly during volatile markets. The answer is as simple as “keep answering the phones,” says Aardal.
While that’s simple in theory, it can take a lot of manpower in practice. And that manpower needs to be backed by technology to maintain client satisfaction.
For instance, the Schaefer team is diligent about using the Advyzon notes feature, to-do lists and workflows. That means anyone who answers a client’s call can answer questions and offer assistance; it doesn’t have to be the client’s primary advisor.
(In fact, the convenience of having a CRM on the same platform as their portfolio management software is one of the reasons Schaefer decided to work with Advyzon. To learn more about Schaefer Financial Management’s relationship with Advyzon, read their testimonial.)
Recently, the firm began sending a client newsletter during market volatility to get ahead of calls asking about investments. Schaefer Financial Management also uses the Advyzon client portal, so clients can log in and feel more engaged with their finances.
Finally, the firm staggers its billing cycle. While clients are billed quarterly, not every client receives an invoice at the beginning of the quarter. A third of clients are billed at the start of the quarter, a third are billed one month in, and the final third are billed in the last month. This rhythm allows the staff time to generate a client’s report using the personalized method discussed earlier.
Finally, Schaefer uses customized reporting templates (which Advyzon helped them build), in addition to standard reports, to support how they talk to clients about potential changes to their investments. For example, the reports help explain any proposed changes to asset allocation and overall portfolio. This allows the advisor to go over those changes with the client and get their sign off.
Some consistency is good
While the approach to each client is hyper-individualized, there are some things that Schaefer Financial Management has standardized. And it all comes down to process.
“We set up workflows, whether it’s for setting up an account with Schwab or for report running. That’s how we keep everything straight,” Aardal explains.
To make sure they don’t miss anything in setting up a custodial account, for instance, their workflow includes:
- Application received.
- Account established.
- Check deposited.
- Do we need to make recommendations?
Or with running reports and getting investment changes approved, it might be:
- Run reports.
- Did we make recommendations?
- Are recommendations approved?
- Did we generate the invoice?
- Did we mail everything out?
Having established processes in place allows for more flexibility in the steps themselves. It can help make sure things don’t fall through the cracks while the team focuses on conversations and a high-touch client experience with a growing client base.
Most advisors want to be high-touch and highly individual. But when everything is unique, it makes the kind of replication involved in scaling the experience difficult. Schaefer Financial Management exemplifies how to make that dichotomy work: While the overall experience is unique, the various processes that the firm uses behind the scenes are the same.
Read more about how Advyzon supports Schaefer Financial management here.
