The Advanced Financial Planner - Season 1 | Episode 1: David Miller interviews Russell Todd

On today’s episode, we will be interviewing Russell Todd, on his history as a financial planner in Canada, and what advanced financial planning means to him.

In the interview Russell Todd noted a book that he recommends; more information can be found  by clicking on this link: https://www.amazon.com/Blunder-Wonder-Thunder-Powering-Practice/dp/0981374409

Transcript

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David Miller   

All right, we are here with the Russell Todd, the financial mentor, retired financial planner with the Institute of Advanced Financial Planners. He has joined me today to discuss a little bit about himself and his history. How are you doing Russell? 

Russel Todd

Not too bad. Another good day,

David Miller    

Another day. We're both here in Calgary. And obviously, we're going to be sending this out to the nation, the nation of financial planners, and I figured there is no better inaugural person to talk to then you. Because as your title suggests, as the financial mentor, you also helped me get into the business and join the IAFP. Again, thank you very much for joining.

Russel Todd

Not a problem. 

David Miller   

So maybe you just start off by telling me a little bit about your history. How and why did you become a financial planner in the first place?

Russell Todd  

Well, really, more luck than good planning, really, because it's the evolution of how the process worked. I originally graduated with an economics degree from back in the early late sir, in the 70s. And from there, I, I started off as a CA articling. And I rapidly moved on from that to work in the trust industry for 14 years. And I think that's where I gained the basis for understanding the world of finance. Because my first job there, which was seven years of it, was settling estates, and I saw how people's financials were all over the board, and how the survivors never knew what the deceased had done with his money. And sometimes they're quite angry to discover that the guy was sitting on money, and telling them they never had any. And then they discovered they did have money. So yeah, that was an eye-opener right off the bat. So doing that for seven years, I can't add natural kind of an affinity toward people figuring out their financing, which I really thought was a lot of fun. And then, after a while at all my widows began to look the same. I moved on to pension trust, which was a five years dent where you're working up the life chain one more step when you're managing the pension assets for for employees. And I learned from that side where I was very lucky, again, to learn about how the estate and the investment side work, because in that process, while I was managing pension assets with sponsors, I was working directly with investment people on how those pension funds got invested. So I learned about DB and DC and pension payment systems, it was always very interesting to learn that process. And so that gave me the basis for it. It was during that late years that I met a guy named Len Rabee. Now, most of you won't know him, but he was an old original. Back when the IAFP was in its founding stage. He was one of the guys who helped put it all together and him and a few other guys. So I got involved, he said you need to go down this road, you need to become a financial planner. So I never forgot that. And in the early days, I even helped teach some courses with some other guys on how to write financial plans. It was kind of a key part of those days, it was tough, and it still is tough. You had to take a day-long testing process, and then you had to write a comprehensive financial plan. And to this day, most of our current associates learning and wanting to become R.F.P.s, their single biggest struggle is writing a comprehensive financial plan.

David Miller   

Yeah, absolutely. 

Russell Todd  

So that's where I kind of got into it. Because after I left Royal Trust in the mid 80s. 

David Miller   

Yeah. Why did you leave the Royal Trust? 

Russell Todd  

Well, the Empire was falling apart, that was the time the trust was going downhill, the Royal Bank had taken over. Xerox people were involved. And it was, it was going downhill. And so it got taken out. It was I thought it was the center of the universe. But when I left it, I discovered that you know what the whole world didn't know about the trust industry. I didn't understand. So I was starting then I started 10 years after the left Royal. I was at an age in my life, I wanted to try some business ventures. So I went off and started a couple of companies. I built some buildings, I ran some companies. But during that time, I also started my first unincorporated financial planning work, because it kind of spun off from there. After I left Royal I was with Buck consultants for a while and their benefits consultants and I got involved with company savings plans and writing texts for those plans for people who were involved in company savings plans, how to save and participate in those plans. And I learned that most people learn differently when you try to teach them about how to invest. So I got a background there, which led into my consulting practice. So when I finally decided I'm going to move on and go full time, I incorporated a company, started my first financial planning firm in the early 90s and proceeded to get my designation. So in 1996, I got my charter Financial Planner process. In 1997 I got my CFP and R.F.P. because I thought those were the two that mattered. 

David Miller   

OK so you got them in succession. 

Russell Todd

Yeah, basically very quickly. It was then that I discovered the real value with the R.F.P. is the comprehensive financial planning 

David Miller

Something the CFP really doesn't push.

Russell Todd

No, in those days, for better for worse, the CFP was kind of a designation associated with guys selling insurance. They weren't they weren't really as much focus as though what the R.F.P. was- the institute was- on comprehensive financial planning. We weren't stressing at that point the need to be a professional, we were saying, No, we're talking about being professional and being objective and things like that. And there was some talk about fiduciary. And to this day, that's not yet been refined. We weren't treated. We weren't designated or understood by these people. The public does not really understand what an R.F.P. is. I don't know the difference that they see an alphabet soup these days, every time someone sets up another new designation. They just confuse the public. 

David Miller

Yeah,

Russell Todd

So we spend the first part of our practice saying, What do we do? And why would you deal with this? So it's an adjunct that education to this day is still needed? Why would you become one? Why would you work with a real planner, amazing enough, when I started advertising, there was less than a third of a page and the yellow pages of financial planners. And I just happened to use the word unbiased in my tagline that got me more inquiries than anything else. Because people said, I just want someone to give me the straight story. And I want everybody who's going to that they thought were planners or product sellers. And so when the use of the word unbiased, got inquiries, and that was the same time in that 10 or 11 years period, that because I knew so much about the, as part of the business, I met up with a guy named Greg and waters down east. And I taught workshops and seminars across Canada, for corporations who needed unbiased instructors who aren't going to push the product side. And from that it got me clients galore, because after the workshops were over, and there were two and three favorite shops, they would call me up and say, Can you help me with my personal financials? And I did a lot of retirement planning was kind of my strong suit. That's why I did most of my work was people in their 40s to 50s, who were approaching retirement. And they would call me up, they always wanted a plan.

David Miller 

And so that was luck that you landed that with Greg, that you knew him in the past.

Russell Todd 

Well, I just happened to read his first book, I, you know, I saw this, he put out a great book.

David Miller 

So you reached out? 

Russell Todd 

Yeah, I looked up his name and said, You know, I like your book, if you need help in Western Canada, he was dying for people to work with. He had nobody to teach across, to do the workshop he was, he was doing them all and killing himself. So there's three or four of us over time that worked with him for... I taught 11 or 12 years of courses from coast to coast, including courses in the Northwest Territories. And in Houston, I went all over teaching those courses. And from that I learned that the subject matter they need for financial education, clients just need to help someone, educate them, as well as help them.

David Miller 

And so you enjoyed the group setting versus the one on one more, or what made you gravitate towards the teaching.

Russell Todd   

I just did both. It was just fine. He needed somebody and I didn't mind doing. I always had no problem doing the stand up process of it. But it was intensive. It was intensive. And it was medically mentally challenging. Because I did a one day course on financial self management skills for people in their 40s. And those in their 50s often took the two day course, the military bases actually took a three day course, which was just too hard on the feet. Toward the end, I just didn't me in but most of the courses we did were two days long. And they were people approaching retirement

David Miller 

Right. 

Russell Todd 

We needed to make decisions on their life and their money and understand it. And you..all you had in those two days was to get them from where they were of a state of fear to a state where they knew what they had to do to transition. And that's why I ended up specializing in retirement planning because I found it was a natural client fit for me. I still love it.

David Miller  

So you convince them through the seminars to do the one on one afterwards.

Russell Todd  

I never I never sought them out- they sought me out. I never never ever approached them. Because that was part of the contract work. We could never offer services or products but they would always always had my card. And they would call me up they would find me on the internet and they would say Could you help me? So I was very careful to do it all that way. And as a result I got many good clients over the years because I understood how pension plans really worked. And these were federal plans. These were plans in Ontario. I did a lot of work in Ontario. At Those times I lived in Ontario for weeks on end, going from department to department on downsizing right sizings and regular courses. When they, when corporations discovered that their employees wanted to take these courses, we had to limit the registration. But when I was keeping records, I taught more than 5000 people well, on just this course, that's 25 people at a time. So guess how many seminars and workshops? 

David Miller

Yeah, yeah incredible 

Russell Todd

In corporations with money got tight, they don't buy a half day special, so you give the quick and dirty or downsizing or right sizes were like when the mergers, wheat companies, grain companies, I would go across the country on pension conversions and downsizing right sizing to get people to buy into whatever the company was trying to do, because they couldn't convince them. Otherwise, my job was to educate them so they can make good decisions. To this day it’s the fun part of my life doing that. And that's why to this day, I'm doing some webinars just because I can do it.

David Miller

Right.

So obviously, there's been a lot of twists and turns in your career from the early days in the pension and trust where you're learning about the industry, just trying to be an entrepreneur. What happened to those companies, by the way, just quickly,

Russell Todd  

Which ones? My companies? How many did I have? I probably had five or six companies.

David Miller  

Some failures in there, which I'd love to dive into a little bit. But what would you say the biggest thing is that helped you along in your career to be successful. I'd say the biggest success for you was the group pension seminars. And that's the thing you enjoyed the most?

Russell Todd  

Uhh helped along my career become successful- I think was most mostly people letting people know that I was unbiased. Most of my clientele I never advertised. Yes. You do yellow back when Yellow Pages for them. And if you still get a paper Yellow Page, you know, there's 10 pages of people claiming to be financial planners, but they're not.

David Miller 

Yeah. 

Russell Todd 

So I found that word of mouth, you did one good job for one client, he told another, and another told another. So all my advertising is very simple. I took a basic business card format and made it into a card that you could drop off at a law office or an accounting office or a legal firm, and they'd hand them out. It was never a problem of getting the success part of the ...become successful was just being unbiased and willingness to help. 

David Miller 

Right

Russell Todd

I found that you help somebody they tell 12 friends.

David Miller 

It's amazing how that works. Right? 

Russell Todd

Isn't that amazing? If you offered to work hard, you get some results, yeah.

David Miller  

Yeah, absolutely. And we touched a little bit on why you join the IAFP- sounds like Len was one of the integral parts to you understanding what the IAFP was, and you obviously joined almost at the same time as doing your CFP. Why are you still active in the IAFP today? And why is it important to you?

Russell Todd  

Well, I think that I chose the IAFP as my primary designation degree, because of their high standards, the advanced financial planning process, the unbiased approach, the being comprehensive planning. To this day, that's important to me, I always say that the RFP means in my words real financial planner. But I get that some of our planners are both compensated for the work they do and some take fee based it's your personal preference. I chose to go down the fee plan. But I think that even though we're a small group, we have a high standard. And we represent what the industry is and should be professional planners. That's why To me it's that's the number one reason why I stay active on them is even though I’m retired as a planner from the full status. That's why I chose to mentor others because there's not enough real financial planners on the street.

David Miller   

Yeah, I met you and you were already retired. Right? You? Yeah you convinced me

Russell Todd

Yeah that was my first retirement. 

David Miller 

Yeah we met in a little coffee shop after Tim Funt who sadly passed away from uh last year I think was. Yeah, we met because of him and you convinced me to join right away and I haven't looked back. So really appreciate that. Maybe take me through a day in the life of a retired financial planner. What are you up to today, other than maybe golfing quite a bit.

Russell Todd  

While I retired several times, I actually retired in 2011 roughly. When I sold my active planning practice. I thought I was going to retire. So I sold at the Dorhety Bryant guys. 

David Miller 

Right

Russell Todd  

And I just said I really didn't want to retire. So I bought another company back off the shelf and I did another five or six years. have wealth management oversight and mentoring clients and people. And that I wound that company up two or three years ago when I wound up another company on the projects I had, what do I do is a retired financial planner. Unfortunately, it's like organized crime, you never quite get out of it and they drag you back in. 

David Miller

Yeah. Well, I'm dragging you back in right here. 

Russell Todd  

People will call me up and say I talked to you 10 years ago, and so and so says you should help me. So what I'm doing now is a subtle difference. I have a great amount of knowledge. And I provide some advice, but my prob.., my primary role now is to take these calls, because I got Tim Font’s website as I helped him as he was passing away. And the website’s still very good. So what do - people will call me up and I'll do a needs analysis on them and say, You know what, you need this kind of help. And then I will introduce them to financial planners, investment counselors, investment managers, estate lawyers, whoever, I think there's the greatest need for. I don't really want to do the work anymore.

David Miller

Right

Russell Todd 

I do want to help people meet the right kind of people. My job is to know what investment counselors do what the investment firms do, where's the economical Advisor Services around? And I just find that fun. 

David Miller

Yeah and you're staying unbiased, right? 

Russell Todd 

Yes. And I that's the whole idea. I take no compensation from the firms I refer and make introductions to. My only fee is still a fee based charge to clients to do the analysis and make the introductions. Because if you make a referral, they don't act on it. You make an introduction, you make sure it's something gets done. And I speak the language of the industry. So I know what words to say, to the firm's what these clients really need. And I make sure that I only introduce them to more, my basic has always been the same, give them at least two choices of firms and let them pick. And that drives some people crazy, because they just want me to tell them what to do. 

David Miller

Right. 

Russell Todd

That's not the way to go.

David Miller

Right.

Russell Todd

So I find that, like, I’ve right now, I've got three or four projects on the go where I'm arranging investment counselor appointments, a guy who's transitioning from a business ownership situation who has to go somewhere. I've got a corporate executor- executive that is going through life change, and just needs to get straightened around and set in the right direction. So yeah set em in motion, have fun.

David Miller   

There are countless people out there that just are looking for help. And they don't know where to turn to. And obviously, you are one of the best resources out there. And that website that Tim's set up, what was is called again...Calgary fund...

Russell Todd   

Calgary financial planner.ca. He had it absolutely right. The perfect words are what most people use when searching for a planner, financial planner, Calgary, and in every city, it's the same way you just watch, you find this URL. It works like a charm. You don't have to make it exotic, self explanatory. He had that he had the essence of the whole thing. And I met him years ago when he left PE and he was working with Doherty and Brian. And I mentored him a bit in the last part of his life and helped his wife, you know, take care of cleaning up some of his  business affairs. And I thought that was something I could do for them.

David Miller  

Yeah. And so that's keeping you busy.

Russell Todd  

Yeah, and I'm trying to wind this down. Now again, because I've realized as good as that is, I think I need to pass that website on to someone else who's more active, because now I'm making more referrals and everybody that I'm making referrals to as a backup on workload. Everybody's in the same boat. But I don't really want to work more than three days a week, and I don't want to work that much. But I do like to continue mentoring. And I do think that the industry is a hoot to be around. Yeah. And it's fun to watch the growth of the professional planning movement.

David Miller  

And that's one of the one of the keys I want to stress on right now. Is you're finding it to be very difficult to refer to unbiased advisors in Calgary because they're too busy.

Russell Todd   

Yeah. I say I tell everybody what, I don't expect that these people are going to address your problem tomorrow. They may be stacked up on three or four projects. And to be fair, you've got to do your part. First, you've got to provide the information they need so they can get on with it. But the onus is on them as well. But the problem didn't come out overnight. And the hard part and planning is to be both a you've got to make advice that's actionable. You've got to know what you initiate. And you got to know that. Sure, you've got to give choices, but no use giving advice that you know that clients are not capable of doing and that's behavioral finance stuff. I gotta say, give them one or two things they can achieve this year, and then be their coach and mentor for the next two viewings, and over time, solve their problems. clients need ongoing relationships. And that's what I think a professional planner can best do. Recognize that you've got Gotta give them actionable work today, starting from your knowledge, they don't want your knowledge, they want your insight, you take that insight, you can turn that insight to an action plan that they can work on. 

David Miller 

This is great advice Russell

Russell Todd  

It no.. one person can only...Your mind can only cope with what three things at once. You don't give them five choices. Give them three, one short term, one midterm, one long term goal, and help them get them done. And you've got a friend for life.

David Miller  

Yeah, so what would you sorry, what would be the best advice for new planners coming up, Who are maybe just entering the industry? I know the the IAFP we do the student competition for example, if you're talking to them, what is your best advice for them to start the entrepreneurial trip? Where would you send them? What would you do?

Russell Todd 

Ah, I think if one’s starting out, they've got to, they've got to think about it before they start. Most of them try to hit the street running because they're emotionally wired. But they have to think about what do they really want to do? And then are they best off being an entrepreneur? Or should they join another firm that's already in play? Should they get their cut their teeth and learn by working with somebody else. And everybody has to make that choice. Not everybody should be an entrepreneur, because it's not for everyone. But there's so many planning firms looking for help. If you can find a firm that's like minded to your goals and objectives, join them, work with them. And you know, you might find out that you're just moving into a firm, that guy wants to retire too. And you'll end up owning that firm without having to build it again, you buy a working model, or do you build? It’s harder to build from scratch, it's easier to work for somebody, but line, know what your niche should know what you want to do, and go work for a form like that. That's the hard part. That's why I say anybody who's getting ready to get in the business, interview as many firms as you can, but interview them with the thought of are they aligned with what I want to do?

David Miller   

Yeah, so as a person who started five different businesses, you're not telling these students coming right out of school to jump into the water. But to actually get with a firm who has the experience to build up your experience? Because obviously you need work experience to even get your CFP, for example? Yes, yes, absolutely. And their knowledge,

Russell Todd   

Some people want to work on their own. And that's the natural bias. But I said, you won't make a ton of money right off the bat. But if you need to make regular cash flow, then you're better off being an employee and learning from somebody who actually knows something. You know, if you want to understand how to build a practice, it's an old book, George Hartman's book that he brought out in the 90s, or whatever called, Blunder Wonder Thunder. That's a basic practice management design. 101, and nobody ever reads it. Right?

David Miller   

Well, we'll sure to be putting a link into the show notes here. But from a planning perspective, maybe one idea that I just thought of is you're really good at referring clients to prospective investment  firms because you know, what these investment firms are like, are you referring planners or paraplanners, to investment firms or retirement planning firms as well?

Russell Todd   

I have been Yes, one of them..of my last mentored students is who I went with a big firm that was desperate to get someone on staff and it worked out very well for that person. And after being, you know, contract consulting contract worker for one of the major banks. Now she has a nice career, where she's drowning in planning work and loves it.

David Miller   

Now you're tired, and you're trying to get out of this. But if somebody wants to reach out to you, and take up your time to try and find a position, as I just alluded to, are you willing to talk to these prospective planners?

Russell Todd   

Absolutely. I had an inquiry just last week from some of the principals behind a big modeling software firm saying, we got some guy in BC who needs help getting started, would you talk to him even though he's not an RFP? And I said, Sure and I did a guy down in eastern Canada two weeks ago, the same way they, they just want to know, what can I shed light on? And that's part of the fun. Being a mentor is I've got 30 years of history and all kinds of industries. 

David Miller  

Yeah

Russell Todd

I may not have all the answers, but at least they can say you should look at this and that. Just give them something to think about.

David Miller   

Absolutely. Great advice there. Russell. Anything else you'd like to bring up?

Russell Todd   

Ah, I think the hard part in our business is we all tend to rush to solutions. I tell people in planning the best way to work is listen, listen to what the client or your prospective client is asking about find out what they're where they're coming from. The more you hear what they're they're looking for, the better you can help them because that helps right up front decide, are they my kind of  client. If you listen, if you say no, they're not my kind of client, but at least you'll win brownie points by saying, you know, I can't help you. But here's someone who can, and send them on their way. And keep working toward working with clients. Because if you're going to do this on your own, or even with the firm, everything in this business to be successful than to make money, you got to charge for the service you provide. That's your value add. So you don't give away the solution until you know what the case is. So build a process to do your practice. So that your practice doesn't become you. You know, that you can have a balance in your own life, you have to learn when to say no - don’t take client calls after seven in the evening. You know, if you act like a professional, like a professional, you'll be treated as professional. And then you can charge professional fees. Too many beginners start out way too low on pricing, right. And they under, underperform on their own practice. And we treat it as a business. You know, it's the old e myth books and all those basics. It's true. Build a process, build a practice, and they will come. It really is true.

David Miller   

I love this advice there. Russell, I want to thank you for your time today. Thank you for your service to the IAFP. Thank you for helping me along my career. You've been wonderful Russell. All the best for you in the future in retirement. This next phase of your life. What's next you see?

Russell Todd   

Well, I got to keep golfing in the summer, skiing in the winter, hanging out with grandkids doing photography, yard work, whatever catches my fancy, I just bounce along. I'd like to ski the rest of my life. I'd like to golf I'm never gonna get any better out of but at least it gets out of the house once in a while. And just realizing that you know, you got to live in the moment because you never know when the game's over. Live as best, be as healthy as you can. The old balanced life is the same as a balance and investments. It does work. That's what I hope for everybody that you know, they they consider mentoring others if you get mentored, mentor someone else, pass it along and build a practice build an industry because we have such a need for good professional planners and support staff. It's a great business for you. 

David Miller

All right. Well, thank you very much, Russell. We're gonna leave it there. 

Russell Todd   

Okay, take care.

David Miller

All right.