Diversity, Equity & Inclusion Insights
Embracing Diversity in Financial Services
![Overhead view of mountains and city streets](/sites/default/files/inline-images/cb15-featurestory3representation.jpg)
Looking across key demographic segments, namely gender and race, financial services as a whole has not been representative of the American population. According to the Census Bureau, as of 2021, 69% of all financial advisors were male, and 80% of all personal financial advisors were white. Ten years ago, these numbers looked very similar, with men making up 68% of all personal financial advisors, and white advisors making up nearly 85% of the field.
In an industry dedicated to client service, these figures not only raise questions about how effectively representatives can reach diverse client bases, but they also show very little movement over the past decade toward becoming more representative of the population. This would seem to indicate that while creating an atmosphere of equality and representation is a noble goal, companies in the financial services industry are still facing challenges in this area.
It is for this reason The College has taken a number of actions in support of representation. Through ambassador programs, such as the FinServe Network, American College Centers of Excellence–including the Center for Economic Empowerment and Equality, the Center for Women in Financial Services, and the Center for Military and Veterans Affairs–and events, such as the Conference for African American Financial Professionals (CAAFP) and the Black Executive Leadership Program (BELP), we are acting on our commitment toward a more representative financial services industry.
One of these initiatives, the FinServe Network, was a new program at The College in 2023. The FinServe Network is a volunteer group of alumni and leaders who share The College’s values and help the institution amplify our benefit to the financial services profession. The ambassadors who comprise the FinServe Network have unique backgrounds and expertise, collectively representing the diverse landscape of the country that we hope to see brought to the profession.
The push for equal representation is not a passing trend at The College and has, in fact, been part of The College’s vision for some time, as demonstrated by one of its longest standing events, the CAAFP. In 2024, The College will host our 18th annual CAAFP as the industry’s premier gathering of Black and African American financial services professionals and DEI-committed professionals. This gathering brings together advisors, agents, educators, and thought leaders to discuss initiatives advancing African Americans in financial services. The CAAFP represents something far greater than a simple conference; it represents an opportunity for African American financial services professionals to come together as a community.
“The CAAFP is just one example, though significant, of how we walk the talk. The conference provides a visual symbol of how The College is working to serve underrepresented groups in our industry. ‘If I can see it, I can be it!’ is our mantra and, as a platform where we convene Black and African American financial advisors and allies at all levels, there’s nothing else like it,” says Deborah Glenn, executive director of the Center for Economic Empowerment and Equality.
Read the full article and learn more about The College’s efforts towards greater representation in the financial services profession in our 2023-2024 President’s Report.
Building Client Connections for Retirement Planning Success
![Illustrated graphic of mechanical gears](/sites/default/files/inline-images/cb15-featurestory2retirement.jpg)
Research including The College’s own 2023 Retirement Income Literacy Study suggests troubling knowledge gaps in the average American’s understanding of retirement planning, with 74% of consumers ages 50 to 75 failing a test of basic retirement knowledge. Another industry survey, the 2023 National Retirement Risk Index, predicts 51% of today’s working-age households will be unable to maintain their pre-retirement lifestyle once they leave the workforce.
To meet this moment, The College has named focusing on retirement as one of our 2024 strategic priorities: ultimately, to become the industry’s leading source of knowledge on retirement planning. There are many opportunities to do so, according to Sandy Herzlich, vice president of retirement strategy – but first, one has to challenge the notion that simply having a large nest egg is the solution.
“There are different levels of satisfaction in retirement, and different goals depending on the person,” he says. “Retiring with a lot of money alone isn’t a recipe for success. Because of this, retirement planning is going to be a much more relationship-driven business moving forward. Advisors need all the expertise, but they also need to couple that with layering in more personal aspects: understanding what their clients’ goals are and what potential roadblocks could stand in their way. They’re not just a financial manager; they’re a true partner.”
That understanding is critical to this time and place, according to Eric Ludwig, PhD, CFP®, our Retirement Income Certified Professional® (RICP®) Program director. He cites the common industry consensus that the Baby Boomer retirement wave is cresting in 2024, with roughly 12,000 Americans turning 65 every day.
“The number of Boomers retiring has been growing every year as that generation ages out of the workforce, but this year, more of them will be entering retirement than ever before or likely ever will again,” Ludwig says. “People are living longer than programs like Social Security were ever intended for, and it’s stretching resources all over the place.”
Because of this, Ludwig agrees that the psychology of retirement planning is a subject of paramount importance, and one he plans to incorporate even more into the RICP® Program curriculum over time.
“As human beings, our minds are not well-adapted to deal with uncertainty, and with all the options available and changes going on today, so much of retirement planning is fundamentally uncertain,” he says. “Advisors may think they can address these concerns with spreadsheets and calculations, but once you get started, you realize it’s more about relationships and trust than anything.”
Ludwig’s and Herzlich’s assertions follow the numbers: in The College’s 2023 Retirement Income Literacy Study, researchers found a clear correlation between lower client anxiety about retirement planning and the presence of a qualified, competent advisor. In all, nearly 11 points could be added to a respondent’s retirement knowledge score if they had working relationship with an advisor – data Ludwig calls evidence of a “significant positive benefit.”
Read the full article and learn more about The College’s impact on the retirement planning field today, as well as new initiatives in the works to address this growing need, in our 2023-2024 President’s Report.
Special Needs Planning Insights
Breaking Barriers: Celebrating Women’s Vital Roles as Disability Advocates
![Female disability advocate helping a patient](/sites/default/files/inline-images/cb15-celebratingwomensvitalrolesasdisabilityadvocates.jpg)
During Women’s History Month, we celebrate the accomplishments of women and take this opportunity to reflect on their contributions to the betterment of society. Included amongst these women working to improve the lives of others are women who advocate and care for others, specifically individuals with special needs. Caring for a family member living with disabilities can lead to several challenges, and one of the key aspects these women caregivers must consider is how to secure benefits that protect the financial future of their adult children with disabilities.
Here are some important points for women to consider when applying for Social Security benefits:
Understanding and Qualifying for the Benefits
Benefits require individuals to meet specific criteria. It’s important for women applying for these benefits to evaluate the criteria and consider whether their adult children with disabilities meet the requirements.
Application Process and Benefits
Understanding who to contact, the necessary documentation, and how to schedule an appointment are key aspects of ensuring adult children with disabilities receive the appropriate benefits.
Kaylee Ranck and Lindsey Lewis Talk Diversity in Financial Services
In their article, Ranck and Lewis discuss the importance of building an inclusive work environment and the benefits a practice can expect to incur once they have accomplished this goal.
Ranck and Lewis list several key action items, including the process of creating a safe space within your working environment, encouraging open dialogue, and recognizing and promoting diversity within the organization.
Ranck and Lewis believe firms adhering to these methods will not only grow their practices, but also find themselves better equipped to meet the needs of modern clients. Read on to hear more about how firms can grow through inclusivity!
Ethics In Financial Services Insights
Insights and Highlights: AI Ethics in Financial Services Summit
![Two programmers utilizing AI](/sites/default/files/inline-images/cb15-unveilinginsightsfromouraiethicsinfinancialservicessummit.jpg)
Held as an immersive and educational meeting of financial experts spanning diverse corporate roles, the panel-led discussions explored the pivotal concept of trust in AI within the financial services industry. Key discussions encompassed:
- The ethical risks of AI in finance: From fairness concerns to biased algorithms, including potential pitfalls and how to mitigate them.
- Restoring trust through responsible AI: Best practices for developing, deploying, and governing AI ethically and transparently.
- The future of AI in insurance underwriting: Insights into the latest regulatory updates and ethical considerations in this critical area.
During our productive roundtable discussion, issues regarding transparency, mitigating bias, and the necessity for standardized practices were highlighted. The dialogue underscored the significance of employing data ethically to cultivate consumer trust. There was consensus on the importance of collaborative efforts to develop trustworthy AI solutions that ensure fair and responsible practices within the insurance industry in particular.
Panel topics included:
- AI Regulation Update
- Jillian Froment, Executive Vice President and General Counsel, American Council of Life Insurers (ACLI)
- Kaitlin Asrow, Executive Deputy Superintendent, Research and Innovation Division, New York Department of Financial Services
- Stephanie Schmelz, Deputy Director, Federal Insurance Office U.S. Department of Treasury
- Self-Regulatory Approaches to AI Governance
- Moderator: Sophia Duffy, JD, CPA, AEP®, Associate Professor of Business Planning, The American College of Financial Services
- Anthony Habayeb, Co-founder & CEO, Monitaur
- Reva Schwartz, Research Scientist, National Institute of Standards and Technology
- Fireside Chat
- Arezu Moghadam, Ph.D., Managing Director and Global Head of Data Science, J.P. Morgan Asset Management
- Marty Edelman, Senior of Counsel, Paul Hastings
- Unpacking “Fairness” in Insurance
- Moderator: Azish Filabi, JD, MA, Associate Professor of Business Ethics, Executive Director, The American College Cary M. Maguire Center for Ethics in Financial Services
- Lisa A. Schilling, FSA, EA, FCA, MAAA Director of Practice Research, Society of Actuaries Research Institute
- Peggy Tsai, Chief Data Officer, BigID
- Case Study - AI Governance in Life Insurance
- Azish Filabi, JD, MA, Associate Professor of Business Ethics, Executive Director, The American College Cary M. Maguire Center for Ethics in Financial Services
- Sophia Duffy, JD, CPA, AEP®, Associate Professor of Business Planning, The American College of Financial Services
The summit provided valuable insights into the evolving landscape of AI regulation and ethics, emphasizing the importance of collaboration, transparency, and responsible AI practices.
Stay tuned for forthcoming insights highlighting specific discussion topics from our esteemed panelists, including regulators, researchers, and industry leaders.
To learn more about AI in financial services, you can explore further with research from the Center for Ethics in Financial Services.
Mark McLennon, Seasoned Tax and Estate Planning Professor, In His Own Words
![Mark McLennon headshot](/sites/default/files/inline-images/cb15-markmclennon.jpg)
In March, McLennon joined The College as a full-time assistant professor in tax and estate planning and also serves as the Clark/Bardes Chair in Retirement Planning and Non-Qualified Deferred Compensation. Students in the CFP® Certification Education and Chartered Financial Consultant® (ChFC®) programs will benefit from his immense knowledge in business planning, estate planning, executive compensation, life insurance planning, retirement planning, and vast experience having served in a variety of positions over a 25-year successful career in financial services.
We posed a few questions to McLennon, and in his own words, you can learn more about his journey back to The College as a full-time faculty member and what he enjoys most about working with students.
1. How has The College impacted your career in financial services?
My experience with The College began as I pursued my CLU® and ChFC® designations over 25 years ago while transitioning from corporate tax into an "Advanced Planning" role at a major financial services firm. Despite taking every trust, estate, and tax class I could at my law school and working as a research assistant for the tax professor, none of that prepared me as much for the practical and real-world client/advisor issues I would face as did The College's curriculum.
The knowledge and credibility that came with achieving those designations and the great people I subsequently met through The College have served me well in the varied corporate and client-facing roles I have taken on. Over the years, as organizer and host of several wealth management and financial planning conferences, I have also had the privilege of working with some of the distinguished faculty of The College. I first began teaching at The College about five years ago and am now very excited to be doing that again as a full-time member of the faculty.
2. What are today's most significant challenges and opportunities for financial professionals?
Advisors need to know or access relevant information from multiple disciplines to provide the type of holistic advice clients expect as the marketplace has responded to such demand over the years. Combine that with the time needed to truly know your clients, much less acquire new relationships, and the significant challenge for financial professionals is how to best utilize those limited working hours.
Of course, no one can be expected to know everything, and bringing in outside expertise is something savvy clients have come to expect. The good news is that opportunities exist to acquire timely, relevant knowledge through programs such as those at The College, where one can also get assistance identifying situations where outside expertise is warranted.
3. How do The College's CFP® Certification Education and ChFC® Programs work together to enhance advisors' skills?
Both the CFP® and the ChFC® programs cover the core knowledge that clients come to expect when financial service professionals hold themselves out as dedicated to providing a higher level of expertise.
The College's requirements are the same across the two programs with one additional specialized course needed for the ChFC®. It is how that knowledge is applied in practice that has somewhat differentiated the two over the years, as each has its own unique background and history.
4. How is The College ensuring that students who enroll in the CFP® Certification Education Program achieve success in the CFP® exam?
There is deep and continuing coordination between the particulars of the programs at The College and the ongoing requirements of achieving the CFP® designation. The College is very much invested in the ongoing success of its students, and maintaining the curriculum to help students succeed with the exam is a priority while still emphasizing the critical importance of the application of that knowledge in practice.
5. What do you enjoy most about working with The College's students and being part of The College's community?
I most enjoy seeing that light bulb go on over students' heads. A few subject matter areas in the financial services world have historically seemed daunting to students, even those who are experienced or "seasoned" financial advisors. I like to relay stories to my classes about how I would initially dread getting calls on certain topics, like ESOPs or generation-skipping taxes for example, as a newer Advanced Planning attorney as I felt out of my comfort zone.
However, I add, I chose instead to step back, take some time, and break down these "daunting" concepts to their core components, thus replacing that dread with the anticipation of helping someone else get past their anxiety over the issue. That is one of the things I enjoy most about working with students at The College: taking what may seem a difficult concept at first, breaking it down to its core components, shedding a little light on what something truly means, and shining a larger light on its application in practice.
Being part of The American College community has been a great experience for me, and I know my colleagues feel the same way about the importance and satisfaction of getting through to students and helping them help their clients.
FinServe Ambassador Highlights the Power of Education
![Photo of Scott Winslow](/sites/default/files/inline-images/cb15-finserve-scottwinslow.jpg)
Winslow is a managing partner at Nabell Winslow Investments & Wealth Management, a boutique wealth management firm affiliated with IBD Cetera Advisors, LLC, and located in the Wilmington, North Carolina area. But he often talks about his humble beginnings; of growing up on a rural farm and spending a lot of time hanging around the local general store, which served as a community gathering place. That, he says, is where he got his first taste of the importance of financial planning.
“One day, when I was 10 years old, I overheard a conversation about a family losing their farm to estate taxes,” he said. “The conversation was somber, and everyone was dismayed. At the same time, the old black and white TV in the corner was showing the current stock market numbers, and there was a lot of negative comments about how capital markets were a scam. Yet I couldn’t help but notice other families seemed to avoid losing much larger farms after a death in the family. It seemed obvious to me, even at that age, that someone was helping them create a better strategy.”
Winslow says when he got in his father’s old truck after that moment in the store, he talked about how he wanted to be someone who could help people with these sorts of matters: to help them understand money, structure their income and wealth, and to have a meaningful impact on their lives.
“My father thought I was crazy and an idealist,” he said. “But I never changed, and now I’ve been an advisor for nearly 30 years.”
From Emergence to Independence
Winslow’s career in financial services began in 1996, when he was recruited directly off his college campus by a financial services firm; from there, after an extensive training program, he moved from company to company, including stints at General Electric and a large regional bank – but he eventually realized this large-firm model wasn’t for him.
“I had a lot of problems where I felt I had managers who weren’t as skilled or well-informed as me making decisions that weren’t in the best interest of me and my family, and a few other people I knew felt the same,” he said. “My now-business partner and I wanted to be independent and client-focused, and it’s been one of the best decisions I’ve ever made.”
Winslow isn’t afraid to share his insights about the challenges of the RIA model, but he’s also quick to point out the benefits of being independent.
“There’s always a lot more risk in going it alone; we’re the people being held accountable, and if we’re not successful, we have no one to blame but ourselves,” he said. “On the other hand, our clients are now our bosses, so we’re able to focus on doing what’s best for them. It’s refreshing, but I know some advisors struggle with that being all on their shoulders.”
“There’s always a lot more risk in going it alone; we’re the people being held accountable, and if we’re not successful, we have no one to blame but ourselves. On the other hand, our clients are now our bosses, so we’re able to focus on doing what’s best for them.”
Because of the small nature of Nabell Winslow – five advisors and professional staff – Winslow says they didn’t even have to close during the COVID-19 pandemic like many other firms. While many of his peers found themselves running dry for business, the firm never once shut down and in fact saw some of the best years of its existence.
Powerful, Applied Knowledge
All that strength, however, is also owed to the fact that the Nabell Winslow team is highly educated – and Winslow says The College’s programs are in large part responsible for their success.
“My original firm was a big supporter of The College, and the people at the top of the production boards were always the ones with multiple designations,” he said. “I knew I wanted to be like them, so I made education my priority. Living in rural North Carolina, how else was I going to get a world-class education in specialized financial planning knowledge without a distance learning partner? The College was always there for me in that way, and with some of the top thought leaders in the world as part of their curriculum.”
“Living in rural North Carolina, how else was I going to get a world-class education in specialized financial planning knowledge without a distance learning partner? The College was always there for me in that way, and with some of the top thought leaders in the world as part of their curriculum.”
Winslow has earned multiple College designations over the years and says he values the knowledge he’s gained from all of them – but perhaps the most powerful and game-changing for his business has been the Retirement Income Certified Professional® (RICP®) Program. In his view, the RICP® is one of the best opportunities advisors in the industry have to serve their clients better.
“A lot of advisors are set on going after the ultra-wealthy or business owners, but when you’re working on retirement planning fundamentals like long-term care, it’s doesn’t matter if someone has a few thousand or a few million to retire on – you’re going to make a difference in their lives,” he said. “The RICP® shows you how to put so many techniques and strategies together and create a process, and with the retirement crisis facing America today, it provides an enormous opportunity.”
“The RICP® shows you how to put so many techniques and strategies together and create a process, and with the retirement crisis facing America today, it provides an enormous opportunity.”
Winslow also says that despite some concern among advisors about the fatigue of “alphabet soup” designations, the education financial professionals receive will help them in one hugely important area: standing out to their clients.
“While some designations may be more recognizable than others, what your clients really want to know is that they’re in good hands and that you’ll be thinking about what’s best for them, their family, and their situation,” he said. “They want to see you’re serious about doing right, having an applied, scientific approach to planning, and maintaining down-to-earth communication. Having designations across multiple areas really rounds you out and makes you more confident so you can provide better outcomes and a better client experience.”
Raising the Bar in Financial Services
As a former president of The College’s alumni council, Winslow remains passionate about the power of The College and its community to transform the industry and society through education. He says much of this is incumbent on individual advisors to seek out greater knowledge and opportunities to contribute to benefitting society.
“We need successful advisors to up their game; we need more mentors, more contributions of time and treasure, and to be constantly building our profession through applied financial science,” he said. “Education improves ethics, and improving ethics improves our standing and perception among consumers. We can build on that trust to increase financial literacy and lift everyone up.”
For these reasons, Winslow says he sees The College as uniquely positioned and prepared to take the lead in accomplishing these goals for the industry. He cites the work of The College’s many thought leaders, its Centers of Excellence, and its academic programs to demonstrate his belief that there is “no ceiling” to what can be achieved. However, he also emphasizes that individual advisors are also responsible for helping to build change.
“The success rates of advisors who join supportive teams and are mentored are much higher than ones who don’t. I went it alone and it was very hard; most people who I started with aren’t in the business anymore,” he said. “We need advisors to take responsibility for what they create – when you start getting up in years, you should take the opportunity to have a succession plan to ensure your business continues, for the sake of your clients and employees.”
Finally, Winslow accented a point that’s at the heart of The College’s mission with the FinServe Network and its NextGen Advisory Task Force: the power of young people.
“Lots of people I know in the industry tell me investing in young people is expensive,” he said. “That may be true, but in my experience the effort is well worth the reward.”
Special Needs Planning Insights
Joellen Meckley on How to Support Women Caregivers
In the article, Meckley, who is the executive director of the American College Center for Special Needs, discusses how advisors can play a pivotal role in helping women overcome the financial challenges they may face when caring for children or adults with disabilities.
Meckley emphasizes the importance of understanding these women’s situations, listing several financial challenges they may face in their daily lives as caregivers. She goes on to enumerate strategies advisors can leverage to provide meaningful assistance to these women and how to tailor advice to their unique circumstances.
Read on to hear what Meckley has to say about this issue and what financial advisors can do to help!
Audrey Snell Analyzes the Market Outlook for 2024
In her article, Snell, an assistant professor of financial planning at The American College of Financial Services, reflects on the performance of the American economy in 2023 and uses this information to predict what’s next for 2024. She also presents two likely outcomes, detailing the bull case for a soft landing in 2024 and the bear case for a potential recession.
Read on to learn more on Snell’s thoughts on the economic outlook for 2024!
Daralee Barbera on Succession Planning for 2024 and Beyond
In her article, Barbera, the program director of The College’s Master of Science in Management (MSM) Program, analyzes what planning for practice succession looks like in 2024, key factors that need to be considered, and how these decisions can affect a practice’s relationship with its clients.
Barbera points out the importance of a strong succession plan, noting that clients will appreciate a firm’s preparedness for the future. She also suggests firms may want to consider female clients and advisors as they plan for their futures, citing the importance of having leadership that understands diverse clients and their future goals.
Read on to learn more about how Barbera believes women can play an instrumental role as many practices pave the way for future success!