PLANADVISER - March/April 2020 - 26

practice management // second in a series
When he got married, Taylor says, he and his wife had
money to invest, and he remembered the connection he
had made with the Prudential adviser. Taylor eventually
joined him, in 1999.
Taylor says he quickly realized how difficult the adviser
role was. He began by selling annuities and life insurance. In
that job, " you start with people you know, " he explains. " The
African American community doesn't have a lot of access
to investable assets. I was the only African American on
that team, and, overall, I've typically been the only African
American at the firms where I've worked. "
Taylor has found that, in the retirement plan space,
minority business owners often have been inadequately
educated when their plans were set up. When he comes in
to review plan documents and investment lineups, he does
a cost comparison and then runs a hypothetical illustration
diverse mix of employees? Targeting niche markets should
not be a primary reason for a diverse staff. But the potential
is certainly a plus. "
If plan sponsors lack a diverse committee, could that
impede minority advisers from being hired? Should it be
a best practice for sponsor committees to include various
minorities?
" Yes! " says Zemaitis. " Diverse committees, diverse slates,
etcetera, widen the net for more opportunities. Representation
is key to moving the needle to a more inclusive work
environment. Having a diverse set of voices in a room helps
to mitigate unconscious bias and brings diversity of thought
into decisionmaking for more holistic business outcomes. "
James Brewer, founder of Envision Wealth Planning in
" To have more qualified, diverse
job candidates, diversity initiatives
must begin at the educational
level, even before the college
and university level. "
based on accurate information provided by the U.S Census.
" What I often uncover is that these plan sponsors don't know
what a safe harbor plan is or even have a good understanding
of deferral amounts. " He educates these business-owner plan
sponsors about how a retirement plan can work harder for
their business and its employees.
What Taylor has encountered points to the value of
minority advisers. While minority business-owners can
get help from any adviser, one from the same racial or
ethnic group may be better able to understand them and
build their trust.
Asked whether people of color or from minority ethic
groups-either plan sponsors or participants-would like
to see plan advisers who look like them, Zemaitis says,
" Advisers need to understand participants' experience, their
backgrounds, their cultural nuances, to be able to give them
the best financial plan they can. We need to change the face
of our industry to reflect those communities because each
one-and each investor group within it-has different needs. "
" A diverse staff can attract a more diverse group of
clients, " notes Sheryl Rowling, head of rebalancing solutions
at Morningstar, as well as a principal at Rowling & Associates
in San Diego. " If most firms are trying primarily to
attract white male clients, there are many opportunities for
going after minority populations. Of course, Hispanic clients
don't require Hispanic advisers, nor do women necessarily
need to work solely with women. Yet, won't minority prospects
be inclined to check out a firm that includes a more
Chicago, advocates for racial diversity in the financial planning
profession. A black man, he helped plan the inaugural
Vision Conference of the Association of African
American Financial Advisors (AAAA, aka QuadA),
in
2015. Last year's conference sponsors
included TD Ameritrade, T. Rowe Price, and
Flexshares. Quad-A was created to address the
needs and concerns of African American financial
advisers and affiliated professionals.
Taylor sits on the Quad-A board as membership
director and is also on the board of the
Financial Planning Association (FPA) of New
Jersey as director of diversity and inclusion. His
idea to recruit minorities into the adviser business
is " to hit the ground running with high
school students and college students. "
" Quad-A is having conversations with students at some
of the historically black colleges and universities [HBCUs]
such as Delaware State and Clark Atlanta University, " he
says. " Our mentorship programs let students know what's
available once they graduate. " He says he is also considering
setting up student program content and internships.
Rowling concurs as to the value of providing instruction.
" To have more qualified, diverse job candidates, diversity
initiatives must begin at the educational level, even
before the college and university level. After all, if there's
not much in the tunnel, there won't be much to choose
from, " she says.
RIAs can help influence and encourage minority students
to pursue education and a career in finance, Rowling notes
and suggests multiple ways to do this: Present at schools-
middle schools, high schools, community colleges and
universities; write articles in publications targeting varied
young audiences; donate to targeted causes; sponsor a scholarship
for minority students; and offer internships at the
high school or college level.
When hiring, she says, " Advertise in a variety of paper or
online publications and resources. Be sure to note that your
firm welcomes diversity. When interviewing, consider how a
candidate's unique perspective can add value to the team.
If you have two equally qualified candidates and one is a
minority, I say hire the minority person. Or, if you have the
flexibility, hire both! " -Judy Faust Hartnett
26 | planadviser.com March-April 2020
Art by Lars Leetaru
http://www.planadviser.com
PLANADVISER - March/April 2020

Table of Contents for the Digital Edition of PLANADVISER - March/April 2020
