Ep 432: Crafting ‘Input Deliverables’ That Show Financial Planning Value To Clients Without Creating Busy-work with Seth Scott
Apr 8, 2025
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Seth Scott, founder of Heartwood Financial Planning, specializes in financial services for pastors. He introduces a unique 'input deliverable' simplifying tax planning, saving time while building client trust. Seth discusses the complexities of clergy housing allowances and offers accessible tools for financial planning, such as Excel and Google Sheets. He shares insights on his transition from real estate to financial planning, emphasizing the importance of niche services for churches and how faith plays a vital role in his professional journey.
Seth Scott's innovative 'input deliverable' tool simplifies tax planning for pastors, showcasing value without extensive advisor workload.
His transition into financial planning highlights the importance of mentorship and leveraging existing client books for business growth.
By focusing on the financial needs of clergy, Seth aims to enhance both financial literacy and trust within the pastor community.
Deep dives
The Concept of Input Deliverables
Seth Scott discusses his innovative approach to delivering value to potential clients through what he calls input deliverables. These tools enable clients, particularly pastors, to calculate their tax-exempt housing allowance based on their unique circumstances without requiring extensive time from the advisor to create customized reports for each. By providing an easy-to-use tool where prospects can input their own financial data, Seth seamlessly demonstrates his expertise while also engaging prospective clients in a meaningful way. This strategy helps him establish relationships by giving away valuable tools that resonate with his intended audience.
The Journey to Financial Planning
Seth transitioned into financial planning as a career changer after feeling unfulfilled in his previous roles in urban planning and real estate. The pivotal moment came when he connected with a family friend, a financial advisor, who mentored him and allowed him to inherit the books of retiring advisors without any upfront capital investment. This unique vesting arrangement not only provided him with existing clients but also offered a temporary financial runway to support his family while he established his practice. Seth's journey illustrates the importance of mentorship and opportunity in carving a niche within the financial advisory landscape.
Understanding the Housing Allowance for Pastors
Seth emphasizes the complexities surrounding the clergy housing allowance, a tax benefit that enables ministers to exclude a portion of their income from taxable earnings. He explains that understanding this unique benefit is crucial for pastors to optimize their financial situations and avoid any violations that could lead to audits. Through his input deliverable, Seth streamlines the process for pastors to determine the appropriate amount of housing allowance they can claim based on fair rental value and actual housing expenses. By demystifying these concepts, he empowers his clients with the knowledge necessary to maximize their tax advantages.
Building Relationships Through Financial Education
Through his targeting of pastors and churches, Seth aims not only to provide financial planning services but also to elevate financial literacy within the clergy community. He recognizes that many pastors, due to their unique financial situations, do not receive adequate support or guidance in managing their finances. By creating tailored resources and educational deliverables, Seth strengthens the communication between pastors and church boards, leading to stronger financial practices within churches. This approach ultimately builds trust and positions him as a go-to expert in a niche market that has significant needs but is often underserved.
Pursuing a Specialized Advisory Practice
Seth envisions transitioning his advisory practice to focus primarily on serving pastors, guided by a strong belief that this is his calling. He plans to establish 403b9 retirement plans for churches while continuing to support pastors with financial planning services that include optimizing their housing allowance. This dual focus allows him to create a sustainable business model that reflects both his industry expertise and personal passion for ministry. Seth's journey underscores the value of aligning one’s professional pursuits with personal values, leading to a fulfilling career dedicated to serving others.
Seth Scott is the founder of Heartwood Financial Planning, an advisory firm in Fresno, California that manages $100 million in assets for 850 client households. What makes Seth’s approach unique is his development of an “input deliverable” that simplifies tax planning for his ideal target client, allowing him to demonstrate value without creating time-intensive, custom reports for each individual. By offering this tool, he not only saves time, but also builds trust with prospective clients who may later seek more comprehensive financial planning services.
In this episode, Seth also discusses his transition into financial planning from previous jobs in urban planning and real estate, how he grew his business by serving retiring advisors’ client books without having to contribute upfront capital, and why he became a Certified Tax Preparer to better serve his niche. Listen in to hear how he makes inroads with his target clients by helping churches set up 403(b)(9) retirement plans and how his faith has guided him through the challenges of business growth and changing careers.
