Ready For Retirement Podcast: "Root Financial's Backstory: How and Why the Company Was Founded"

Host: James Conole, CFP®
Guest: Ari Taubleb
Release Date: December 5, 2024

1. Introduction

In this special episode of the Ready For Retirement podcast, host James Conole engages in an in-depth conversation with Ari Taubleb to unravel the origins, growth, and foundational philosophy of Root Financial. This episode, aptly titled "Root Financial's Backstory: How and Why the Company Was Founded," provides listeners with a comprehensive understanding of Root Financial's journey from its inception to becoming a prominent player in the financial services industry.

2. Founding Story

James Conole opens the dialogue by reflecting on the initial skepticism surrounding the ambitious goals set for Root Financial. He shares:

"If you had told me seven years ago that we'd be working with a few hundred clients across the country, that we'd have 30 different team members helping to support those clients, that we would have about a billion dollars in assets that clients had entrusted to us to help them manage, I would have said beyond a shadow of a doubt that you are out of your mind." ([00:00])

James recounts his comfortable position at his previous firm, never envisioning a departure. However, an unexpected request to resign acted as a catalyst for profound introspection. This pivotal moment led him to question his true motivations in the financial industry:

"Why am I actually doing this? Why am I actually in this industry?" ([03:30])

This deep reflection culminated in the birth of Root Financial three months after his departure. James emphasizes that Root was not just a business venture but a mission to redefine financial advisory services by integrating purpose and meaningful impact into financial planning.

3. How James and Ari Met

Ari Taubleb shares the serendipitous encounter that brought him into the Root Financial family. Meeting James at a Starbucks in Santa Monica, a chance conversation led Ari to reach out, intrigued by James's reputation:

"This is the best email I've ever sent because it's led me to where I am right now." ([05:56])

Despite having no prior connection, Ari's genuine interest and alignment with Root Financial's vision solidified their professional relationship, laying the groundwork for collaborative growth.

4. Growth of Root Financial

From its modest beginnings, Root Financial has experienced exponential growth. James elaborates on the challenges and triumphs in scaling the company:

• Team Expansion: From operating out of a small co-working space, Root Financial now boasts 30 dedicated team members.

• Client Base: Serving hundreds of clients nationwide, Root Financial has entrusted a collective asset base nearing a billion dollars.

• Media Outreach: The evolution of the Ready For Retirement podcast into the Root YouTube channel exemplifies their commitment to educating and engaging a broader audience.

Ari reflects on the early days:

"The first podcast I started was just talking about common questions we get from clients. It evolved into the Ready For Retirement podcast, which has evolved into the YouTube channel." ([14:04])

This strategic diversification into multimedia platforms has been instrumental in Root Financial's outreach and client engagement strategies.

5. Philosophy and Differentiators

At the heart of Root Financial lies a distinct philosophy that sets it apart from traditional financial advisory firms:

• Money as a Tool: James articulates a holistic approach where money serves as a means to live a purposeful and meaningful life, rather than an end in itself.

  "Money cannot be separated from anything in our life. It's fully integrated into our overall wellness." ([07:47])

• Beyond Transactional Relationships: Root Financial eschews the conventional model of product selling, focusing instead on transformative financial planning that aligns with clients' life goals.

  "How can we transform the financial success that you've had and turn that into life success?" ([19:20])

• Purpose-Driven Advisory: The firm prioritizes understanding clients' personal aspirations, ensuring that financial strategies are tailored to support those objectives.

James emphasizes the importance of this integrative approach:

"We want someone to help them prioritize and focus on the things that can't be quantified on a balance sheet." ([19:20])

6. Challenges and Solutions in Building the Business

Building Root Financial was not without its hurdles. James and Ari delve into the challenges faced during the early stages and the strategies employed to overcome them:

• Financial Constraints: In the initial phases, Root Financial operated with limited resources, necessitating prudent financial management and strategic planning.

• Hiring the Right Talent: James highlights the significance of assembling a team of self-starters who share Root Financial's vision and passion.

  "I don't feel like I manage anybody. I feel like I get to work with 30 of the most brilliant people I know." ([23:35])

• Maintaining Vision Amid Growth: As the company expanded, ensuring that the core mission remained intact was paramount. This was achieved through fostering a collaborative culture and maintaining clear communication channels.

Ari shares his commitment to Root Financial's mission:

"I was looking up to someone who recently left a job... I do constantly in my videos, I'll say, look, I didn't have a Roth IRA working at a financial company because I felt..." ([22:04])

7. Leadership and Management Style

James outlines his unique leadership approach, which diverges from traditional management models:

• Empowerment Over Oversight: Instead of micromanaging, James empowers team members to take initiative, fostering an environment of trust and autonomy.

  "How do we create the best possible place for the smartest, most caring, most compassionate people in the world to come and say, this is where I want to spend my career." ([25:38])

• Focus on Team Impact: By prioritizing the well-being and professional growth of his team, James ensures that the collective expertise translates into superior client service.

• Building a Self-Sustaining Culture: Root Financial's internal systems are designed to guide and direct energy and efforts, minimizing the need for traditional managerial oversight.

8. Current Operations and Future Plans

Looking ahead, Root Financial is poised for further expansion and innovation:

• Enhanced Media Presence: The introduction of Root-specific YouTube channels aims to provide deeper insights into the company culture and client success stories.

• Social Media Engagement: Reinvigorating platforms like Instagram and LinkedIn will facilitate broader connectivity and brand visibility.

• Team Development: Continuous recruitment of passionate and aligned professionals will support Root Financial's mission to maximize client impact.

Ari concludes with an invitation to connect:

"You can find me on Instagram and LinkedIn... Follow us there. Thank you for supporting everyone." ([27:55])

9. Conclusion and Final Thoughts

James and Ari wrap up the episode by reaffirming their commitment to Root Financial's foundational principles. They emphasize that Root Financial is not just a business but a community dedicated to empowering individuals to achieve financial peace and live fulfilling lives. Listeners are encouraged to engage with Root Financial through various channels, including their website, YouTube, and social media platforms, to stay informed and inspired on their retirement planning journey.

Notable Quotes:

• James Conole ([00:00]):
  "If you had told me seven years ago that we'd be working with a few hundred clients across the country, that we'd have 30 different team members helping to support those clients, that we would have about a billion dollars in assets that clients had entrusted to us to help them manage, I would have said beyond a shadow of a doubt that you are out of your mind."

• Ari Taubleb ([07:47]):
  "Money is one of those things that, you know, like air, you know, you don't know how much you appreciate it until you don't have it."

• James Conole ([19:20]):
  "How can we transform the financial success that you've had and turn that into life success?"

• James Conole ([23:35]):
  "I feel like I get to work with 30 of the most brilliant people I know, all uniquely qualified in very different ways to say, wow, we can take all these talents and skill sets and harness them to create something that's really special."

Connect with Root Financial:

• Website: www.rootfinancialpartners.com
• James Canal on Instagram: @jamesconole
• Ari Taubleb on Instagram: @ariat

Disclaimer:
The information presented in this summary is for educational purposes only and is not intended as an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Past performance does not guarantee future results. Viewers are encouraged to seek advice from qualified tax, legal, or investment professionals to determine suitability for their specific situations.