Ep 348: Building Your Own Planning Spreadsheets To Show Clients What They Need To See With Jeff Jones
Aug 29, 2023
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Jeff Jones, owner and founder of Cypress Financial Planning, talks about creating custom financial planning spreadsheets in Excel, the decision not to partner with a FinTech company, valuing his firm with help from FP Transitions, and his aspirations for pro bono financial planning.
Jeff Jones used his engineering background to create custom financial planning spreadsheets in Excel that integrate into PowerPoint presentations, enhancing client engagement and transparency.
By building his own spreadsheets, Jeff gained a comprehensive understanding of the tools and assumptions used, enabling him to confidently answer client questions and deliver tailored planning experiences.
Jeff considered long-term succession planning by sharing equity with his advisors and working with FP Transitions to create equity agreements that incentivize partners to stay and facilitate firm growth.
Jeff's commitment to mentorship and his aspiration to contribute to pro bono financial planning demonstrate his dedication to learning from others and giving back to the profession.
Deep dives
Building Customizable Financial Planning Spreadsheets
Jeff Jones, the owner and founder of Sypress Financial Planning, created his own financial planning spreadsheets in Excel. He utilized his engineering background and coding skills to develop macros and visual basic code for a more customizable and in-depth financial planning experience. By building his own spreadsheets, he gained a deeper understanding of the underlying assumptions and details, enabling him to confidently answer client questions. Jeff iterated on the spreadsheets to allow his team to easily add data and obtain the necessary information. Eventually, the software evolved into a standalone piece that they now sell to other planning firms.
Leveraging Engineering Background for Financial Planning
Jeff's early engineering career and technical skills played a crucial role in his approach to financial planning. His strong math expertise and proficiency with Excel enabled him to build complex planning tools that encompassed various topic areas such as estate planning, tax minimization, and retirement forecasting. By creating his own software, Jeff gained control over the process and had a comprehensive understanding of the tools and assumptions used. This gave him the confidence to deliver more tailored and engaging presentations to clients, allowing for a deeper and more meaningful planning experience.
Developing an Equity Sharing Model
While building his advisory firm, Jeff also considered long-term succession planning. At a young age of 39, he began sharing equity with his advisors, with the intention of potentially transitioning to other endeavors in the next decade or so. Jeff worked with FP Transitions to value his firm and create equity agreements that allowed partners to buy in with a modest down payment and pay back a seller finance note that accumulated equity over time. This model incentivized partners to stay and provided opportunities for their success and firm growth.
Finding Mentorship and Giving Back
During his career journey, Jeff actively sought mentorship to learn about the industry and establish relationships. He reached out to advisors, offering his time to help and learn from them. Networking and connecting with a supportive mentor like Don Webb played a significant role in his growth and development. As Jeff plans for the future, he aims to contribute to the pro bono financial planning space to make his passion for accessible financial planning a reality. This commitment to giving back and creating a positive impact showcases his dedication to the profession.
The Power of Referrals and Authenticity
One of the main surprises in building the advisory business was the role of referrals. Rather than relying solely on friends and family for clients, the biggest source of referrals came from clients with a connector mentality who genuinely wanted to help others. Building relationships with these clients proved crucial in gaining traction and growing the business.
The Challenges of the First Year
The first year in the business was challenging, filled with imposter syndrome, loneliness, and the need to prospect and network extensively. Overcoming these obstacles required resilience and a willingness to put oneself out there in order to attract clients.
Lessons Learned: Be Authentic and Find Your Niche
The key piece of advice for new advisors is to be authentic and find a niche that allows them to incorporate personal interests into their practice. By carving out a unique space in the industry, advisors can differentiate themselves and enjoy their work more.
Defining Success: Making a Meaningful Impact
Success is defined as making a meaningful impact on clients' lives. For the advisor, success is about being there for clients during life's challenges and providing ongoing support and guidance, even beyond their own lifespan.
Jeff Jones is the owner and founder of Cypress Financial Planning, an independent RIA based out of New Jersey that oversees $275 million in assets under management for 380 client households. Jeff stands out for creating custom financial planning spreadsheets in Excel that seamlessly integrate into PowerPoint presentations, an approach that not only crafts a compelling financial story for clients, but also ensures transparency in every projection.
Listen in as Jeff shares how he leveraged his engineering background at Lockheed Martin to craft unique Excel spreadsheets, which later inspired a FinTech company now catering to other financial planning firms. You'll learn why he decided not to partner with the FinTech venture (opting instead for specific equity agreements to motivate partners and plan for his exit strategy), as well as how the invaluable guidance from FP Transitions helped in valuing his firm. Jeff also opens up about his early mentorship experiences and his aspirations to contribute through pro bono financial planning.
