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What challenges does OWLFI see for the financial industry?
May 9, 2022 at 5:00 AM

Trying to build a company within the financial industry presents many challenges. Many of these pertain to all businesses, while some pertain to the financial sector.

My personal belief is this:

If the financial industry doesn’t fix these issues ourselves, then people in the government will try to fix them for us.

An Example

Sixty-four percent of the people entering retirement have $400,000 or less in retirement assets.

Now think of the most often heard advice from the financial industry:

"Do you have half a million or more of investable assets?"

That single question eliminates the bulk of people entering retirement and, sadly, the people who genuinely need the most help from the financial industry.

Why is that half-million the “standard retirement benchmark?”

There are many reasons most financial firms use that half a million minimum, and the most significant factor is the economy of scale associated with these advisors.

Note: Think of “economies of scale” as the cost advantage reaped by a company when their products or services become efficient.

In other words, advisors who charge a certain percentage will want to work with clients who have a minimum portfolio of assets so the advisor is guaranteed a certain average of profit each year.

How we do things differently at OWLFI.

Doing our job well requires us to spend a considerable amount of time with people. Because we are trying to create a different kind of culture at OWLFI, we approached that problem differently.

A relatively easy solution presented itself while we were trying to figure out how we would navigate this problem.

People always ask us if we have a minimum investment requirement, and the answer is no.

What we focus on at OWLFI.

We focus on two things and believe these are the only two things that matter.

1. Do we enjoy talking to you, and do we connect and understand you?

2. Can we help you?

If we feel like we enjoy talking to you and can help you, we will take you on as a client. Period.

So how can we take on any client with any amount of investable assets?

The simple fact is that we limit our advisors to no more than 100 clients each. But every advisor has clients with millions and millions of dollars, and the value of the work we provide to them makes us significant amounts of revenue.

This puts us in the beautiful position of not having to constantly chase more clients. One hundred is enough.

So often we see the scenario where you give a regular financial advisor your money and you never hear from them again. They’re too busy trying to find their next clients.

Our diversification is our biggest asset.

At OWLFI we have attorneys, CPAs, financial advisors, and insurance agents who all work together on behalf of the client. And they do so with a “one team” mentality.

This one team mentality tends to attract clients with significant net worth. Since our advisors only have the goal of attracting 100 clients, then they can take on anybody.

Leveraging this business model allows many, many people, of different backgrounds, to receive the highest level of financial advice and grow their bottom lines.