Steven L. Meyer, PhD, author of Personalized Philanthropy: Crash the Fundraising Matrix, recently sat down with Chartered Advisor in Philanthropy® (CAP®) Program Director and Assistant Professor of Philanthropy Jennifer Lehman PhD, JD, CFP®, CAP® to discuss his thoughts on charitable giving and how advisors can deviate from standard ways of thinking to achieve better outcomes.

Escaping the Matrix

Lehman begins her conversation with Meyers by asking him about his inspiration for writing Personalized Philanthropy: Crash the Fundraising Matrix. Meyers responds by saying, “I wanted to share these incredible stories that I had picked up…and the experiences, and along the way I felt that I had kind of redefined the way that I was thinking about philanthropy and fundraising.”

Meyers then goes on to explain his process for writing the book, stating that one of his first challenges was what he would name it. Meyers cites inspiration from the movie The Matrix, stating, “The book and the movie are both about this process…of waking up and…gaining your superpowers as you find your voice, and you find these strategies that will work for you and allow you to thrive in an environment where a lot of people have very difficult times.”

Killer Apps

As their conversation continues, Lehman asks Meyers about his “killer apps.” These personalized plans, according to Meyers, empower all donors to qualify as “major donors,” with far greater impact than they may initially envision.

In reference to the “killer apps,” Meyers states, “Instead of…viewing donors as having just a transactional capacity, you think about them in terms of their total lifetime value.”

Meyers offers his idea of the “philanthropic mortgage” as the best means of visualizing this concept. As he explains, “When you buy a house, you don't have to wait till it's completely fully paid for. You start living there and enjoying the benefit of your house right away. So why can't we think about a gift in that same way, or an endowment in particular?”

When discussing step-up gifts, another of Meyers’ “killer apps,” Lehman points out this option may be favorable to younger donors, stating, “That could work really well for a young professional: somebody early in their career, and it gets that philanthropic mindset going where they are giving a little each year – and then, whether it's every year or every few years, they step it up a little bit.”

Meyers supports this point, sharing a personal anecdote of a young donor being able to see the fruits of his gift realized by giving through a step-up gift plan. Meyers touts this as one of the top benefits of step-up gifts.

Thinking Creatively

After discussing several of these unconventional ideas with Meyers, Lehman points out the importance of thinking creatively in philanthropic giving. She asserts that by approaching donors and expecting them to have cash assets at the point in time the gift is planned, many potential donors can be eliminated from the pool as compared to the amount of donors that may be able to provide gifts through alternative methods, such as virtual endowments and non-cash assets.

Lehman goes on to discuss more creative methods of planning charitable gifts and the concepts behind them. To learn more about these methods of planned giving, the full discussion can be viewed in Knowledge Hub.

More From The College

• Gain philanthropic and legacy planning knowledge with our CAP® Program
• Learn about the American College Center for Philanthropy and Social Impact
   

In this episode of our Shares podcast, Lindsey Lewis, MBA, CFP®, ChFC® speaks with Padric H.B. Scott, AEP®, CFP®, ChFC®, CLU®, WMCP®, CCFC, CAP®, MSFP, founder and CEO of Crossroads Capital Partners and a member of The College’s FinServe Network and NextGen Advisory Task Force, about his philosophy of coordinated planning. They discuss Scott’s background in the NFL and transition to financial services, as well how he has adapted the strategies of a winning football team to a new approach toward managing client relationships.

Padric H.B. Scott, AEP®, CFP®, ChFC®, CLU®, WMCP®, CCFC, CAP®, MSFP is the president and CEO of Crossroad Capital Partners, where he oversees a team of 10 lady boss associates in the firm and has five advisors in his brokerage unit. In seven years of private wealth practice, he has been named to prestigious lists such as Advisor Today’s Top 4 Under 40 Nationally 2024, The American College of Financial Services’ NextGen Financial Services Professional Award recipient 2023, NAIFA Florida Top 4 Under 40 2023, Northwestern Mutual's Forum, and Forbes Best-In-State Financial Security Professional. He graduated from The College with his Master of Science in Financial Planning (MSFP) degree in December 2023, receiving along the way the CFP® certification as well as the Accredited Estate Planner® (AEP®), and Chartered Advisor in Philanthropy® (CAP®) designations among other planning designation specialties. As a result, he is listed as an estate and business planning specialist in the Northwestern Mutual framework of wealth advisors. He loves his God, family, church, and believes strongly in the motto "Achievement in Every Field of Human Endeavor!"
 

Any views or opinions expressed in this podcast are the hosts’ and guests' own and do not necessarily represent those of The American College of Financial Services.

More From The College

• Learn About Our CFP® Certification Education Program
• Learn About Our Chartered Advisor in Philanthropy® (CAP®) Program
• Learn About the Accredited Estate Planner® (AEP®) Program
• Learn About Our Master of Science in Financial Planning (MSFP) Degree Program

This Financial Planning article highlights Filabi’s presentation on the ethical concerns of AI in financial services. The concerns include transparency, data privacy, racial bias, and over-reliance on AI-driven tools. Filabi emphasized the importance of human oversight, long-term thinking, and the need for regulatory accountability in AI use. She also discussed how historical biases in data, such as big data used as inputs into AI-enabled underwriting, can lead to unfair discrimination, an issue already being addressed by some state regulators and the NAIC through testing and risk management frameworks.  

More from The College

Read on to discover additional insights on Filabi’s presentation!

To learn more about AI in financial services, you can explore further with research from the Center for Ethics in Financial Services.
 

This panel discussion, led by Kevin Crawford of Northwestern Mutual, highlighted AI’s current impact, its future potential, and the ethical implications tied to its adoption.

Filabi emphasized the importance of managing AI systems ethically and transparently. Drawing from her policy background, she raised concerns about the potential for AI to reinforce faulty data or human biases, warning without proper oversight, AI could lead to significant harm. Filabi illustrated this by questioning the fairness of using AI for underwriting that relies on private data from individuals without their consent, stressing the misuse of AI in such ways could have severe consequences. While recognizing AI’s potential to improve fairness and efficiency, she noted these benefits can only be realized through ethical management.

Ethical Concerns Surrounding AI

Filabi also discussed the potential of generative AI to enhance financial education, particularly for underserved populations, by increasing access to critical knowledge and fostering trust in the financial industry. However, she warned this opportunity comes with ethical responsibilities, as AI systems must be competent and transparent, and misinformation or misuse of personal data could erode trust. Bennetts responded there’s a challenge to maintaining privacy in an era where AI systems often access personal data without user awareness. He expressed concern people have become complacent with these invasions of privacy, accepting them as part of daily life. Bennetts also noted while AI has the potential to serve as an equalizer, it may also deepen inequality if access to technology remains uneven, particularly for those without the resources to understand or use AI effectively.

The Path Forward: Ethical Management of AI

Ludwig echoed these concerns, emphasizing the need for AI literacy. He highlighted professionals and consumers alike must understand how AI operates and where their data is being used. Ludwig pointed out AI's growing complexity could create a divide between those who master the technology and those left behind, reinforcing the need for clear, accessible education on AI systems.

Filabi turned the conversation to regulatory developments, noting states like Colorado have taken first steps with comprehensive AI laws aimed at protecting consumers and ensuring fairness in AI-driven decisions. She stressed the importance of setting clear standards on data quality and transparency to help regulate AI’s impact on financial services.

In her final remarks, Filabi emphasized professionals must remain accountable for their use of AI, even in the absence of robust regulation. While AI holds great promise for advancing fairness and efficiency, its success depends on responsible, transparent management. The panel concluded with the consensus that AI, while a powerful tool, must be approached thoughtfully to ensure that its implementation in financial services serves the greater good and enhances trust in the industry.

More from The College

• To learn more about AI in financial services, you can explore further with research from the Center for Ethics in Financial Services.
• Learn More About Our Center for Military and Veterans Affairs
• Read Our 2024 Military Summit Recap

The 2024 FinServe Summit opened with a presentation from Jared Trexler, chief marketing and strategy officer, to the 13 ambassadors present – including several new members. Trexler covered the latest developments and initiatives from The College, from upcoming events like the Horizons 2025 conference to new programming like the Tax Planning Certified Professional™ (TPCP™) Program, and more.

Following Trexler’s presentation, Senior Vice President of Advancement and Alumni Relations Carol Parlin Prushan discussed philanthropic giving and some of the advancement and alumni relations team’s ongoing work to engage The College’s students and alumni.

“We’re like the filter for our clients,” said Ande Frazier, CFP®, CLU®, ChFC®, RICP®, BFA™, ChSNC®, CDFA®, CEPA, CExP, one of 2024’s new recruits to the FinServe Network. “We need to get them information that is true, real, and important to them – and which reflects their values.”

Ambassadors present at the 2024 Summit came from across the country, including such locations as Alaska and Puerto Rico.

Practice Management and Personal Growth

The first day of the Summit ended with special guest Marc Butler, an author, entrepreneur, and financial advisor, speaking to the ambassadors about how to organically grow an advisory practice, as well as the obstacles independent wealth management firms face in technology, talent acquisition, business development, leadership, and operations.

“Many businesses and professionals have ideas, but many don’t have a strategic plan,” Butler said. “Having that plan is critical because that’s what really brings a team together.”

“Many businesses and professionals have ideas, but many don’t have a strategic plan. Having that plan is critical because that’s what really brings a team together.”

—Marc Butler

Butler also discussed potential uses of artificial intelligence (AI) systems to reduce demands on advisors’ time, as well as the importance of a practice’s vision, mission, and core values as a value proposition to clients – especially in the critical focus area of retirement planning.

Strengthening the Foundations of Financial Services

In keeping with tradition, the second day of the FinServe Summit began with an early morning conversation over coffee and breakfast with George Nichols III, CAP®, College president and CEO.

In his talk with the ambassadors, Nichols highlighted the differences between the financial services “industry” and “profession,” including the duty of financial professionals to benefit society as well as influence the direction of the industry for the better. He especially called attention to the subject of recruitment and retention in the field, saying The College is dedicated to addressing both areas, but that in some cases, retention has become the more pressing concern.

“The fact is 72% of people who start in this business leave after only a few years,” Nichols said, citing research from Cerulli. “A lot of the time we focus on the diversity of the industry and bringing more people of color, women, and others on board – but if we don’t fix this retention problem, we’re still failing them, and we’re failing white men, too.”

After the conversation with The College president, members of The College’s marketing and communications team led a workshop on social media usage and content creation for the ambassadors. They were welcomed into brainstorming sessions for future College content and various video clips and segments to use in their own personal branding and for The College’s marketing efforts.

“72% of people who start in this business leave after only a few years…if we don’t fix this retention problem, we’re still failing [diverse professionals], and we’re failing white men, too.”

—George Nichols III, CAP®

Further activities included individual interviews with new ambassadors, as well as group panel discussions on some of The College’s most important areas of focus: financial products and planning strategies for retirement; philanthropy and donor-advised funds (DAFs) for giving; tax and small business planning; and the future of specialized knowledge in the financial services industry. Associate Professor of Business Planning Sophia Duffy, JD, CPA, AEP® and ThinkAdvisor senior reporter John Manganaro joined President Nichols in hosting those panel discussions.

After the individual and group sessions were concluded, Trexler reconvened the ambassadors for a final thank-you and farewell.

“We’re incredibly lucky to have you all on our team,” he said. “You are the people who will help carry our mission forward.”

More From The College

• Learn more about the FinServe Network
• Meet the New FinServe Network Ambassadors
   

In their recent paper, “Assessing Retirement Income Literacy of Consumers and Financial Advisors: What Is the Value of Financial Professional Designations?,” Eric Ludwig, PhD, Certified Financial Planner® (CFP®) and Chet Bennetts CFP, Chartered Financial Consultant® (ChFC®), Chartered Life Underwriter® (CLU®), Retirement Income Certified Professional® (RICP®), analyze the results of The College’s recent Retirement Income Literacy Study (RILS) and the impact professional designations have on financial advisors’ retirement income literacy.

Why Does Retirement Income Literacy Matter?

Ludwig and Bennetts begin their argument by explaining the need for retirement income literacy, both among Americans in general and specifically among financial advisors. They point to a shift in responsibilities, as individuals are shouldering a greater burden for planning their retirement than they have in past generations. This trend suggests that individuals who wish to retire comfortably and attain all their financial goals will need either some level of retirement income literacy themselves or advice from someone else with significant retirement income literacy.

As for financial advisors, their field covers a variety of topics. According to Ludwig and Bennetts, “Each of these areas requires specialized knowledge, similar to other professions where expertise is essential to effective practice. However, unlike fields such as medicine or law, where specific credentials are mandatory, the financial planning industry allows for more variability in professional qualifications. This situation raises important questions about the role of voluntary credentials in signaling expertise and their relationship to actual competence in critical areas such as retirement income planning.”

"...unlike fields such as medicine or law, where specific credentials are mandatory, the financial planning industry allows for more variability in professional qualifications. This situation raises important questions about the role of voluntary credentials in signaling expertise and their relationship to actual competence in critical areas such as retirement income planning.”

Ludwig and Bennetts draw upon two theoretical perspectives to formulate a hypothesis regarding the importance of designations among financial advisors. The first is Signaling Theory, which, in the context of financial planning, suggests that advisors can set themselves apart from competitors through professional designations. Ludwig and Bennets state, “designations serve as signals of an advisor's competence and commitment to their field.”

The other theory the duo draws upon is known as the Human Capital Theory. This theory contends, “that individuals can increase their productivity and earnings through investments in education, training, and other forms of knowledge acquisition.” By pairing these two theories together, Ludwig and Bennetts propose that designations not only signal a higher level of competency, they “correlate with actual increases in relevant knowledge and competence.”

Analyzing Trends

To support this assertion, Ludwig and Bennetts turn to the RILS for more information. “[The Retirement Income Literacy Scale] used in this survey consists of 38 questions covering 11 domains of retirement income planning. These domains include life expectancy, Social Security, life insurance, annuities, taxes, inflation, housing, Medicare, long-term care, investments, and retirement plans.”

In analyzing these results, several trends emerge. Consistently, Americans have answered correctly on 31% of responses. However, several demographics tend to affect these scores:

• Men tend to score higher than women
• Individuals with higher net worth tend to score higher than individuals with a lower net worth
• Individuals who work with a financial advisor tend to score higher than those who do not

As Ludwig and Bennetts suggest, “both individual characteristics and professional financial guidance may play a role in retirement income literacy.”

Financial professionals who participated in the study were found to score well. As Ludwig and Bennetts analyze the data, they also point out that, “Those with professional designations scored notably higher (87%) compared to those without designations (78%).” This marked difference between advisors with professional designations and advisors without professional designations indicates a statistically significant positive impact of professional designations, even among individuals who score several times better than the average American.
As they continue their analysis of the findings, Ludwig and Bennetts review the impact of multiple designations on a financial professional’s retirement income literacy. According to their findings, multiple designations do correlate to increased retirement income literacy, dropping off in statistical significance at the fourth designation.

As for specific designations, four emerged as significant predictors of increased RILS scores, including the CFP®, RICP®, ChFC®, and CLU®.

Based on these findings, Ludwig and Bennetts assert that, “Financial advisors with designations … demonstrated substantially higher retirement income literacy compared to those without designations.”

Impact

For financial advisors, these results point towards the importance of pursuing professional designations. These designations not only suggest increased competency to potential clients, they act as real indicators of increased competency.

Advisory firms may also consider taking action on these findings. Without a consistent standard for additional education in the industry, firms that want to establish themselves as credible sources of retirement planning advice could consider supporting advisors in their pursuit of the four designations studied:

• CFP®  Certification Education
• Chartered Financial Consultant® (ChFC®)
• Chartered Life Underwriter® (CLU®)
• Retirement Income Certified Professional® (RICP®)

As for clients, Ludwig and Bennetts state, “these findings emphasize the importance of working with designated financial professionals, particularly when seeking retirement planning advice. The higher RILS scores among designated professionals suggest that these advisors are better equipped to navigate the complexities of retirement income planning, potentially leading to more effective strategies and better retirement outcomes for clients.”

Overall, the findings as presented by Ludwig and Bennetts point to the importance of designations for clients, advisors, and firms. They close by stating that, “By investing in relevant designations and continually enhancing their knowledge, financial advisors can better serve their clients and contribute to improved retirement outcomes in an increasingly complex financial landscape.” Ultimately, all parties involved benefit from specialized financial knowledge. 
 

More From The College:

• Learn about the American College Center for Retirement Income.
• Learn about the retirement planning conference, Horizons.