How the Best Wealth Managers Really Increase Returns For Clients and Themselves

I've found that the best way to really increase returns for investors all starts in a completely different place than investment savvy skills.  It starts with a philosophy of time. There are so many different tasks competing for your attention, but the most important thing is to look at your time from a standpoint of return on investment—not only for yourself but for your clients. When you match the return on your investment with the return for your clients, you achieve massive leverage, increasing your happiness, and your results.

It All Boils Down to Three Tasks

When I think about the largest blocks of time you need to manage, three categories come to mind. First is marketing, second is servicing existing clients, and third is compliance and administrative tasks. There are many activities you can pursue in each category, but no matter how you divide your efforts, one of the best pieces of advice I’ve received came from Dan Sullivan of Strategic Coach. He teaches the concept of viewing your business in terms of “front stage” and “backstage.”

Front Stage Versus Backstage

The front stage involves all the activities that generate revenue and require your personal involvement. These are the tasks that only you can do, such as talking to your top 20 largest accounts, meeting new investors who are considering working with you, prospecting, or delegating to team members who help drive top-line growth. The backstage, on the other hand, includes all the preparation required to excel on the front stage.

Breakthroughs Come from Doing Something New and Doing it Well

I’ll give you an analogy from my personal life. I’ve been playing electric guitar since I was 10 years old, and one of the most valuable lessons I’ve learned is that practice is the key to a great performance. Your rehearsal determines how well you perform on stage. Recently, I played at a wedding in Saint Louis. Because of my busy schedule, I didn’t have as much time to rehearse as I would have liked. There was one intricate song that required extra attention, so I prioritized learning it at the expense of others. While I managed to rehearse some songs last minute, I still made mistakes during the performance. This experience reinforced the importance of preparation—without it, you’re unlikely to create your best results.

The Cost of Being Spread Thin - Do Less Better!

Another example relates to my children, who are seniors in high school and heavily involved in extracurricular activities like DECA, a program that prepares kids for careers in business. The night before a big presentation and test, I could tell they weren’t fully prepared. Their schedules were packed with other commitments, which left little time to focus on DECA. This lack of focus is a common problem. When you spread yourself too thin, the quality of your work suffers.

Focus Drives Better Results

My son, for instance, is also a musician. He plays multiple saxophones—baritone, alto, and tenor—as well as drums and a brass instrument. While he’s talented, his strongest performances come from focusing on snare drum and saxophone. I’ve advised him that concentrating on one or two instruments would yield better results than trying to excel at everything. While being a Renaissance man has its advantages, sometimes excelling requires narrowing your focus. This principle of focus applies directly to wealth management.

In the backstage of wealth management, your goal is to do everything necessary to prepare for success on the front stage. For instance, preparation could mean improving your investment models, refining your marketing strategy, or streamlining your operational processes. The mindset of dividing your time into front stage and backstage work is incredibly helpful for wealth managers.

Block Your Days, Not Your Time

Part of the "front stage / backstage" concept is blocking your days into focus days, buffer days, and free days. Focus days are reserved for revenue generating activities that only you can do, because your unique strengths.  This might be meeting with clients.   Buffer days are all about doing things the prepare you to go onstage.  Finally, free days are for rest and rejuvenation—where at least 80% of the day involves no work-related activities. These free days are crucial, especially for wealth managers. Taking one to two weeks off every quarter has made me more productive than when I used to avoid taking any time off.

Why Time Segmentation Matters

Why is this approach so important?  I found that great wealth managers don't just think purely about investment strategies.  Instead they understand that your mindset determines your time management and directly affects your ability to gather new assets, deliver better returns, help clients save on taxes, and create an exceptional client experience. Your philosophy and time management practices determine your effectiveness as a wealth manager.

Refine Your Approach to Win

In conclusion, think about your time in terms of front stage and backstage work. Incorporate focus days, buffer days, and free days into your schedule. Make sure to take time off to recharge. Delegate tasks outside your core competencies and stick to what you do best. Whether you specialize in asset management or financial planning, these principles will help you be a more effective wealth manager. I hope you found this helpful and that it gives you ideas to refine your approach and improve your practice.