Ready For Retirement Podcast Summary
Episode: Root Talks: What's the Difference Between Root Financial and Other Advisory Firms?
Host: James Conole, CFP®
Release Date: January 16, 2025

Introduction

In this enlightening episode of the Ready For Retirement podcast, host James Conole, CFP®, engages in an in-depth conversation with Ari Taublieb to explore what sets Root Financial apart from other advisory firms. Departing from the usual retirement planning topics such as Roth conversion strategies and investment withdrawals, this episode offers a behind-the-scenes look at Root Financial’s unique approach to client relationships and financial advising.

Root Financial as a "Protector"

Defining Root Financial:

At the heart of Root Financial’s philosophy is the concept of being a "Protector." When asked to describe Root in one word, James Conole confidently states:

“I would say a word that's probably not what most people think. I would say protector.”
— James Conole [01:35]

Differentiating Advisory Roles:

James elaborates on the distinctions between different types of financial advisors:

1. Pickers: Focus solely on selecting stocks, mutual funds, or ETFs. In today’s digital age, where such tasks can be performed online for little to no cost, this role offers limited value.
2. Planners: Move beyond investment selection to include financial planning, utilizing tools like Monte Carlo analyses to assess retirement probability.
3. Protectors: The next evolution in advisory services, Protectors at Root Financial aim to deeply understand their clients, safeguarding their most cherished dreams and life visions. This involves not just financial planning but fostering a personal connection and commitment to clients’ broader life goals.

Embracing the "Protector" Role:

“Beyond just picking good investments, beyond just running some financial planning software, gets you and says, I want to protect this vision that you have for your future and your family's future, and I'm going to use all that I have in my skill set to accomplish that for you.”
— James Conole [03:35]

James emphasizes that being a Protector involves advancing clients toward their life goals while protecting them from obstacles such as inertia, lack of resources, or unclear aspirations.

Holistic Financial Planning at Root

Integrating Comprehensive Services:

A significant focus of the conversation is Root Financial’s commitment to holistic financial planning. Ari shares a relatable client story highlighting the limitations of traditional CPAs:

“I had someone reach out a few weeks ago who said, I've got about $6 million. I don't want to talk any of that life stuff, but it looks like you guys are pretty smart kids, so when should we start? And I said, I don't think we're a good fit.”
— Ari Taublieb [16:58]

This anecdote underscores Root’s dedication to understanding clients’ life goals alongside their financial status, ensuring comprehensive and personalized advice.

Tax Planning vs. Tax Preparation:

James passionately discusses the necessity of integrating tax planning into retirement strategies:

“You can't do good retirement planning without bringing in major tax decisions of where do we withdraw from, when do we collect Social Security, how do we invest in different accounts, what about legacy considerations? All those things have a tax component.”
— James Conole [09:52]

Ari further clarifies the distinction between tax planning and tax preparation, highlighting Root’s focus on forward-looking tax strategies rather than just preparing past tax returns.

“We do a lot of the tax planning piece. What we don't actually do is the formal tax advised tax preparation.”
— Ari Taublieb [13:05]

Root's Growth Philosophy

Balancing Growth with Quality:

As Root Financial scales, maintaining excellent service and client satisfaction remains paramount. James outlines Root’s growth philosophy, emphasizing reinvestment in services, technologies, and team development.

“Our growth philosophy is there are so many benefits to growth for clients. It means we can reinvest, we can double down on services, on service offerings, on technologies, on tools...”
— James Conole [18:48]

Ensuring Client Satisfaction:

Root employs the Net Promoter Score (NPS) to gauge client satisfaction, boasting an impressive score of 91.

“We were at 91 in our fall NPS survey, which is awesome.”
— James Conole [18:48]

This metric helps Root ensure that despite expanding, each client feels personally attended to, akin to being one of a select few clients rather than part of a large roster.

Standardizing Processes with Root University:

To maintain consistency across all client interactions, Root has developed Root University—a comprehensive training and development program for its advisors. James compares Root’s standardized approach to the uniform experience one receives at a Starbucks, ensuring that every client receives the same high-quality service regardless of which advisor they interact with.

“It's like saying, hey, we're going to be. You can't do good advising without talking about how you're invested. You can't do good advising without talking about taxes.”
— James Conole [09:52]

Additional Insights and Future Plans

Expanding Service Offerings:

Looking ahead, Root Financial aims to incorporate additional services such as tax preparation, estate planning, and insurance specialties. James acknowledges the challenges in scaling these services while maintaining personalized attention but remains optimistic about future developments.

“We do a lot of the tax planning piece. What we don't actually do is the formal tax advised tax preparation... That's something that we Want to do time frame, we don't know.”
— James Conole [13:05]

Fostering a Thriving Team Environment:

Root prioritizes creating a meaningful and enjoyable work environment for its team members, ensuring that advisors are motivated and passionate about their roles. This commitment to internal culture directly benefits clients through consistent and dedicated service.

“The second is we want team members to wake up on the balls of their feet essentially saying we want them to come to work saying this is such meaningful, fun work that we get to do with awesome team members and awesome clients.”
— James Conole [18:48]

Conclusion

This episode of Ready For Retirement offers valuable insights into Root Financial’s distinctive approach to financial advising. By positioning themselves as Protectors, Root Financial emphasizes a holistic, client-centered methodology that goes beyond traditional planning to encompass comprehensive life goals and tax strategies. Their commitment to growth, quality service, and team development ensures that clients receive personalized, high-caliber advice tailored to their unique aspirations.

Notable Quotes:

• James Conole on Being a Protector:
  “Protector is kind of the next step to that. What I mean by that is like someone who gets you and knows you and loves you at your core of who you are...”
  — James Conole [01:35]

• Ari Taublieb on Client Fit:
  “I've got a $6 million... I don't want to talk any of that life stuff... I don't think we're a good fit.”
  — Ari Taublieb [16:58]

• James Conole on Tax Planning:
  “You can't do good retirement planning without bringing in major tax decisions...”
  — James Conole [09:52]

For those interested in learning more about Root Financial and how they can assist in achieving your retirement goals, visit rootfinancialpartners.com and click "Start Here" to schedule a consultation with one of their experienced advisors.