RIAs face their greatest challenge: The transfer of wealth

One of the things Colin Day is proud about related to Correct Capital Wealth Management, where he began working in 2020, is the firm’s focus on 401(k) planning.

“The thing that I think differentiates us among many wealth advisors is that we work with business owners on their workplace retirement plans,” said Day, who’s a financial advisor at the St. Louis, Missouri-based RIA.

“While many advisors might have a handful of plans, because a doctor’s office needed one, or their fraternity buddy had a business and got a 401(k) set up years ago, we handle over 30 different retirement plans across the United States,” Day added. “We are not just focused on individuals and their needs; we also focus on the larger group of individuals that we can impact through financial education and 401(k) plans.”

You might recognize Day on platforms like LinkedIn or Instagram, where he’s regularly active, creating content marketing for Correct Capital. He also acts as the firm’s financial educator for 401(k) plans, creating podcasts, videos and webinars for their clients.

“We really try to engage those folks to make sure that they’re making the best educated decisions going forward, not just trusting that putting money in the 401(k) plan is the cure of all evil and that’s going to be the way to define success to retirement, but rather, providing holistic advice to those people on a one-on-one basis,” he says.

The clients he’s referring to are those who reside in the Missouri area, typically couples who are 55 and older, and rapidly approaching retirement, soon to become empty nesters who’ve reached the pinnacles of their career.

“They might also be starting to question whether or not they have all their ducks in a row,” Day added.

Like every coin, when it comes to the services provided by Correct Capital, Day noted the firm has two sides: offering holistic financial planning, “with fiduciary financial advisors,” and of course, 401(k) and retirement planning.

Day’s journey as a financial advisor started all the way back in middle school when he was asked to fill out a career survey. One of the suggestions he got after taking the survey was that he had the potential to be an anthropologist.

“At first, I’m like, well, I hate bugs, I don’t want to study bugs,” he admits. “Until later, I figured out what an actual anthropologist does. It’s studying people, study of cultures, how people interact with one another, and that’s exactly what advising really is.”

Day ended up pursuing an international studies major with a focus on security and intelligence. His first stint in the wealth management space was working in a 401(k) call center, where he first got licensed. It was at a work meeting in Iowa where he began second-guessing his decision to get an MBA.

“While it provides you with a wonderful network, growth experience and a challenge, having an MBA isn’t as important as maybe doing some higher-level education within the financial planning space, which is why I eventually went with the CFP,” he said.

Despite signing on at Correct Capital in the middle of the pandemic, Day says the decision was because they were “an independent organization and we could do a lot of interesting things here. We could help make a meaningful impact on many people.”

He said most RIAs now are consistently pursuing clients who might be outside of their traditional client base. After all, most of the wealth that has been accumulated in the United States is with baby boomers, he says, and soon enough, Gen X will be the next generation to dominate the wealth.

“Suddenly, the people that were not pursued by financial advisors, because they didn’t have the assets, are the targets. So, finding different ways to interact with folks that could anticipate receiving funds is constantly on the minds of financial advisors,” he says.

Accordingly, RIAs like Correct Capital are trying to find ways to work with their baby boomer clients before “the event” that would result in their assets being transferred to their heirs.

Because the risk of losing large parts of an advisor’s book of business to the inevitability of clients passing away is incredibly great, Day noted, “if there’s a way that they can at least facilitate the relationship ahead of that event, that’s really important for advisors.”

Even though he didn’t become an anthropologist, Day insists that it’s still the same energy that he lives and breathes as a financial advisor.

“That’s where I get my energy from. It’s by having great, impactful conversations with folks so that they feel empowered to do whatever that is that’s on their goal sheet,” Day says. “Not telling people per se, what they need to do to have that success, but providing them with the fodder and the information that they need to make the most educated decision for them and their family.”

Name: Colin Day
Position: Financial advisor
Company: Correct Capital Wealth Management
Founded: 2018
AUM: Approximately $900 million

Related Topics: baby boomers, RIAs, wealth transfer