"Financial independence is paramount. My mom always says that when a woman is financially independent, she can live life on her terms." — Priyanka Chopra
Being a woman in a male-dominated field, like finance, is a challenge like no other. It requires courage, passion, and mental toughness to overcome stereotypes and challenge the status quo. At some point, you may realize that entrepreneurship provides the best opportunity for true industry transformation. My guest, Kaitlyn Carlson, recognized the inequity of working with over 300 wealth management clients, and none being women or people of color. That realization sparked a mission and identified an opportunity to revolutionize who benefits from financial advisory services.
For many entrepreneurs, true financial independence may seem like a long-term goal, a dream, achieved only in retirement after selling a business. But Kaitlyn believes that with the right mindset, self-awareness, and strategy, you can build the foundations for financial independence as you build your business.
In this episode, Kaitlyn shares her success story from being a private wealth management advisor at a large financial institution to founding Theory Planning Partners. She highlights her experiences as a woman in a male-dominated field, how she spoke up to ensure she and other women were treated fairly and why every entrepreneur needs a financial advisor to help build wealth now.
Thriving Points:
Other resources mentioned:
Get to Know the Guest:
Kaitlyn Carlson is the founder and CEO of Theory Planning Partners. She is a Certified Financial Planner™️ (CFP®), a Certified Exit Planning Advisor™️ (CEPA™️), and an Accredited Wealth Management Advisor (AWMA®). As a female entrepreneur, her objective is to assist other female entrepreneurs in accumulating personal wealth while helping their businesses thrive.
Connect with Kaitlyn:
A Team Dklutr Production
"Financial independence is paramount. My mom always says that when a woman is financially independent, she can live life on her terms." — Priyanka Chopra
Being a woman in a male-dominated field, like finance, is a challenge like no other. It requires courage, passion, and mental toughness to overcome stereotypes and challenge the status quo. At some point, you may realize that entrepreneurship provides the best opportunity for true industry transformation. My guest, Kaitlyn Carlson, recognized the inequity of working with over 300 wealth management clients, and none being women or people of color. That realization sparked a mission and identified an opportunity to revolutionize who benefits from financial advisory services.
For many entrepreneurs, true financial independence may seem like a long-term goal, a dream, achieved only in retirement after selling a business. But Kaitlyn believes that with the right mindset, self-awareness, and strategy, you can build the foundations for financial independence as you build your business.
In this episode, Kaitlyn shares her success story from being a private wealth management advisor at a large financial institution to founding Theory Planning Partners. She highlights her experiences as a woman in a male-dominated field, how she spoke up to ensure she and other women were treated fairly and why every entrepreneur needs a financial advisor to help build wealth now.
Thriving Points:
Other resources mentioned:
Get to Know the Guest:
Kaitlyn Carlson is the founder and CEO of Theory Planning Partners. She is a Certified Financial Planner™️ (CFP®), a Certified Exit Planning Advisor™️ (CEPA™️), and an Accredited Wealth Management Advisor (AWMA®). As a female entrepreneur, her objective is to assist other female entrepreneurs in accumulating personal wealth while helping their businesses thrive.
Connect with Kaitlyn:
A Team Dklutr Production
Nikki Rogers: Your business is an asset that can support a thriving life. I believe this, and I'm committed to making this a reality for every entrepreneur and business owner who listens to this podcast. The Women Thriving in Business Podcast was created with you in mind, whether you were thinking about entrepreneurship or you're a business veteran, this podcast has inspiration, information, and advice you can use to thrive in business.
Women Thriving in Business features candid, unscripted conversations with entrepreneurs, business experts, authors, and academics who will contribute to your business success. I seek out and talk with business leaders who have built, grown, and thrive in business. My name is Nikki Rogers, transformation coach, author, and the host of the Women Thriving in Business Podcast. I work with women entrepreneurs to develop the mindset, strategies, and connections necessary to thrive in business. Join me and your fellow Thrivers each week on this journey of discovery and success.
Welcome Thrivers to this week's episode of Women Thriving in Business Podcast. I'm your host, Nikki Rogers, and my guest today is Kaitlyn Carlson, who is the founder and CEO of Theory Planning Partners, a financial advisory firm designed for seven-figure women entrepreneurs. Now, for many entrepreneurs, financial independence may seem like a long-term goal achieved only in retirement. But as Kaitlyn and I discussed in this episode, building wealth should be a part of your business strategy from the start. As Kaitlyn states, wealth building is a process that cannot be solved by a product.
So here's a bit about Kaitlyn. Before launching Theory Planning Partners, Kaitlyn spent the majority of her career at UBS Financial Services, where she held roles in the South as well in the Northeast. There, she developed more than 300 financial plans for clients with assets ranging from $500,000 to $1 billion. Kaitlyn is a Certified Financial Planner, Certified Exit Planning Advisor, and an Accredited Wealth Management Advisor. Outside of work, she is a spiritual seeker ravenous to understand why we are here and how to make a meaningful life. Kaitlyn lives in Massachusetts with her husband, her son, and her affectionate dog, Baucus. In our free time, she enjoys exercising, reading, traveling, and trying new restaurants around Boston.
Listen in to learn all about the difference between the types of financial professionals that you may want to utilize, why every entrepreneur should have a coach, and how you can get started on your journey to wealth. Let's go.
Welcome Thrivers to this week's episode of Women Thriving in Business. My guest today is Kaitlyn Carlson, who is the founder of Theory Planning Partners. Welcome, Kaitlyn.
Kaitlyn Carlson: Thank you. It's a pleasure to be here, Nikki.
Nikki Rogers: I'm so excited. We are going to talk about one of my favorite things, which is money. So Kaitlyn, tell us about your business and also, what got you started on your entrepreneurial journey?
Kaitlyn Carlson: So I run Theory Planning Partners, which is a concierge financial advisory firm for seven-figure female entrepreneurs. And I got started on my entrepreneurial journey after spending the majority of my twenties in the finance industry, specifically in wealth management. And so for those who aren't familiar, wealth management is helping people essentially navigate the relationship between their goals and the amount of money that they're making, and what it's going to take to help them achieve those financial goals. So I was a Psychology Major in college, and I always was interested in Finance. And so being a financial advisor and in the wealth management space was very intriguing to me as I got to work with families to help them navigate the complex relationship between money and investments, and really help them live a purposeful life.
And when I was in private wealth management, I noticed that it was a predominantly male-dominated field. I was not only working alongside mostly men, but the majority of my clients were men as well. I got all of my credentials throughout my twenties working for a major firm. But I realized that I wanted something bigger and I wanted to make a more meaningful impact so I decided to leave and start Theory Planning Partners to help get wealth into the hands of women because I did not see women represented as clients, and I did not see women represented alongside me. That's my main mission behind Theory is bringing those private wealth management strategies and helping specifically female entrepreneurs learn how to build wealth alongside the growth of their company.
Nikki Rogers: Thank you, Kaitlyn, for sharing what really got you started in creating your own business. As you think about working with entrepreneurs, who are the types of people that should be looking for your services?
Kaitlyn Carlson: That's a great question. And so the interesting thing about being an entrepreneur, in my experience, is that your business becomes like your baby. And so people become almost addicted to reinvesting in their business. What I saw going through the wealth management journey with business owners, and this would typically be at the end of their career, is that they would tend to be very reliant on an exit in order to fund their retirement. And so I felt that if I could go back and help business owners earlier in their career, learn how to build financial independence away from their company, then they wouldn't be so reliant on a sale of their company for their retirement. So all, that is to say, is that people tend to think they have to get to a certain threshold in order to go see someone in wealth management. And traditionally, that's true. So when I was working at the bank, I typically couldn't engage with somebody who had less than $2 million in liquid assets. For a business owner, that's not going to happen very often because business owners are so used to reinvesting in their business that they're typically not taking money and putting it aside.
So wealth management doesn't do a very good job of servicing business owners because they ignore them until they have liquidity and when they typically have liquidity is upon the sale of the business. So the way that I designed theory is I charge a flat fee for my services. And this flat fee allows me to come in and work with them at any stage of their business. Typically, someone who's a good fit for Theory is someone whose business is up and running. So they're not only thriving in terms of revenue, but they're starting to make high six into seven figures themselves. That's when I can come in and teach them how to start taking some of that money that they're earning to start building liquidity on the side and help them focus on the drivers of value within their business. So really, it's taking a holistic approach to a business owner’s balance sheet, because what happens is like you're so stuck in the day-to-day of running your business that you never really take a step back to have that more strategic conversation. So that's what I do. And what makes me different is that I don't require anybody to have anything in liquid assets. And charging that flat fee allows me to work with them, whether they're 30 and they have a thriving business and they have 20 years before retirement, or maybe they're 45 and they have a certain goal but they are a little bit behind on savings. They don't have to meet a certain threshold. I can really come in at any point in time and teach them how to start building personal wealth and personal independence from their company.
Nikki Rogers: For those of us who maybe are just getting started on our wealth-building journey, can you talk to us a bit about what's the difference between wealth management, advisor versus a financial advisor, financial planner? Take us through some of those different terms that we might hear as we're starting to work on building wealth.
Kaitlyn Carlson: Absolutely. So it can be confusing because they all tend to be used interchangeably. But I would say that you would want to start working with a financial planner to help you really sketch out what your path to creating wealth looks like. And then a financial advisor slash wealth manager is someone who tends to help when it comes to managing your investments. So a financial planner can help you in the beginning when it comes to a plan for accumulating those assets and those investments. A financial advisor is someone who helps you invest. And that person should also help you with financial planning as well. It's a little confusing because they all tend to be used interchangeably. But if you were to think about it chronologically, it would be a financial planner and then financial advisor slash wealth manager.
Nikki Rogers: And one more question along those lines is, we often hear about family offices. I think of people who are having nine or ten-figure net worth invested in these family offices. Can you talk a little bit about what a family office is and what it does and how it fits in this continuum of financial support services?
Kaitlyn Carlson: Sure. So if we were to stay with that same pattern, so it would go financial planner then financial advisor slash wealth manager then family office in terms of your wealth accumulation journey. Typically, when you hear the traditional family office that is someone who would have a hundred million dollars or above. So if you were to start to like if you have nothing, then it's good to work with a financial planner to start a journey of figuring out how to build wealth. Then if you get around to half a million dollars to $10 million, then you're working with a financial advisor slash wealth manager. And then when you're at a hundred million dollar mark, then it's worth looking into opening your own family office. So when I worked in wealth management, we had clients that had $200 million, $600 million, so you don't necessarily have to have your own family office. You can go see a wealth manager, and that would be more of a multi-family office structure where you're getting the services and support of a family office, but you're not funding it yourself. You're going to a major bank such as UBS Private Wealth or Merrill Lynch Private Bank. I will say I run Theory very akin to a family office because that was my experience. So for me, I'm bringing the sophistication of private wealth strategies and the intimacy of a family office to someone who doesn't have those assets. So that's very unique in terms of what I'm doing. But hopefully, that answers your question in terms of clarifying the landscape. That could be a little confusing.
Nikki Rogers: Well, thank you, Kaitlyn, for explaining those different terms. I figured while I had an expert here, I would ask about those different professionals that can help you in managing your wealth. So one of the things that you and I talked about previously was what was going on as you made your transition from corporate to starting your own business? And I can imagine for a lot of folks, particularly women, there's usually a catalyst for why they decide to leave their companies. And you shared a couple of very specific experiences that you had. Would you mind sharing those with my listeners and talking a bit about how that really propelled you or motivated you in creating a different type of company with Theory?
Kaitlyn Carlson: Sure. There are really three things that catapulted me into being an entrepreneur. The first one, as I mentioned before, is that I did not find financial services to be a very friendly environment for, particularly young women. I went through a lot of sexual harassment during my time with the wealth management firm that I was at. I had to file six sexual harassment complaints in three years, and that was exhausting. It was like a second job on top of my normal job. And it was a very traumatizing experience as well. I wouldn't consider myself someone who's highly sensitive. I'm very easygoing and easy to joke around with. But the way that I was treated was just unacceptable. And not only filed these complaints for myself, but for other women that were in the office to help protect them. So I've always taken a very empowering and supportive role of other women, but that was just incredibly frustrating to feel like it was still a boy's club in 2017. So that was a major catalyst for me deciding to leave. Another major catalyst was by the time I had come out of my financial planning program, I did 300 financial plans and not one of them was for a self-made woman. And that was incredibly devastating to me because it made me realize that women not only weren't represented alongside me in the office, I was one of the only females in a position where I had upward career projection growth. But none of the clients were women. And I just felt like there's something seriously wrong here where almost every single plan that I did was for a middle-aged white man. And so I didn't want to be part of enabling that, I wanted to change that. And the final thing was in my work with business owners, as I mentioned before, I felt like in traditional wealth management, we were ignoring the business on the business owner's balance sheet. And any business owner knows that their business is their greatest opportunity for wealth creation.
So I wanted the freedom and the ability to be able to speak to that and not just ignore that and only be looking at their personal balance sheet because we were really doing them a disservice by not taking a holistic approach. So the combination of those three things is really what drove me into entrepreneurship and inspired me to create theory differently as an answer to helping business owners, helping women, and helping myself, really. I wanted to be a mother and I wanted to feel comfortable in my own work environment. And so starting my own company was really the best solution for that.
Nikki Rogers: Thank you, Kaitlyn, for sharing some of the tough experiences that you went through that really compelled you to go out on your own. I think your story is one that many women, even if they haven't personally gone through that, they can probably empathize with you because they've seen others have to deal with those situations. I think particularly the fact that you looked up and noticed that you're doing all this work and none of the clients actually looked like you. And so I think it takes great awareness, both self-awareness as well as an understanding of your environment that if you don't make it change, it's not going to change. So kudos for, I say, jumping into the breach, for filling the gap, since you've started your business, what were some of the key challenges that you faced either in getting started or as you've worked on growing the business?
Kaitlyn Carlson: I will say the single biggest ongoing challenge is the mindset and nurturing my mindset because the entrepreneurial journey can be lonely, and it can really hold a mirror up for you in terms of your strengths and weaknesses. I have a friend who says that entrepreneurship is like business development with a paycheck. And it feels that way every day. I think that the highs can be so high and the lows can be so low. And the key is to maintain stability and steadiness and perseverance throughout. But I would say the first year of my business, I was pretty stagnant. I didn't really grow that much at all. And it wasn't until the second year that I realized I wouldn't be able to stand myself if I was in the same position next year that I was this year. And that's when I decided to hire a coach. So hiring a coach has been hugely instrumental for my success because it's forced me to start paying attention to my mindset and nurturing my mindset. And since I've done that, my business has quadrupled. I cannot advocate highly enough for hiring a coach. And I think, I went through my entire life. I was a student-athlete. So I went through my whole life with a coach. And then I ended up in my twenties, and I had a few mentors while I was in wealth management. But going out on my own, I had a year and change of really not having any direction. And that can just be so disconcerting for somebody who's been so goal-oriented their entire lives. I would really say the biggest challenge is the mindset. And for an entrepreneur, I think it's almost 90% of your success. I think 10% comes down to, as I'm sure isn't surprising that I would advocate for financial responsibility and financial discipline. And of course, strategy is very important. But pushing yourself outside your comfort zone, whether it's for business development or delivering a new type of program, all of that stuff takes getting your mind in order and talking yourself up, and pushing yourself outside your comfort zone. So I'd say that's the single biggest thing for me.
Nikki Rogers: I'm glad that you mentioned that part about you being an athlete and always having a coach. I think business owners, entrepreneurs, for some reason, we have this, I'm going to say this hallucination we should be able to just come out here and create a business by ourselves. And I always say, even stars like Serena Williams still have a coach. Michael Jordan had a separate strength coach. If you think about people who are great at what they do, they have coaches. These top elite athletes would not be where they are without their coaches. And yet, we, as entrepreneurs, just think we can come out here and win it. And so, I think initially entrepreneurship is really about managing yourself and managing your time, and that goes back to mindset. But it's like, what do I do? You don't know.
Kaitlyn Carlson: And it's so much less painful if you're willing to invest in getting help. And it's funny, I was watching a show with my son the other day. He's 10 months old. And one of the lines from the little characters was, "It's brave to ask for help." And I was like, oh my gosh, the show was for him but it's really for me. And it's true, it's brave to ask for help. It just made a world of difference for me. I think people that are doing work like amazing work that you're doing in the world, that's what's really having a massive impact. Because if you can help lift other people up, then they, as business owners, are going to have a greater impact. So it's just super important. And like you said, if Michael Jordan has a coach, then you certainly need a coach.
Nikki Rogers: Exactly. I love that phrase, "It's brave to ask for help." That is something we should all remember. It's something we tell our children all the time, but we don't remember it as adults, so I love that. So on the flip side of things, as you think about your time in business, what have been some of the accomplishments that you're most proud of?
Kaitlyn Carlson: So once I got really clear on my vision for Theory, I started doing visualizations. And I like to say, I started having coffee with myself five years from now. I got really clear on who that version of Kaitlyn was. I actually started taking action towards it. And I used to be very paralyzed by perfection. I think that's why I was stagnant with my growth in my first-year business. And I realized that if I wanted to get to that version of Kaitlyn, I was going to have to take risks, and I was going to have to get comfortable being uncomfortable, and I have since started taking steps towards making that vision a reality. The scary part is that it doesn't already exist. Most people in wealth management, have a book of business and yes, they are entrepreneurs. But the frameworks built out for them. For me, I'm building something completely new. Having the courage to take it to market and test it out, I think the version of myself two years ago, I don't know if I would have been ready for that. So I am proud that it's actually coming to fruition and I'm actually helping women. There's one woman who, when she met me, had $500 in an acorn account. And she will be a millionaire by 35 based on the planning and the strategizing that we've been doing together.
And really, what I wanted to do was put her in a position to solely focus on growing her business and surround her with the help and the strategy that it would take for her to become worth seven figures personally. And the fact that that's actually happening and I'm actually seeing that come to fruition in real life is just, there are no words for how rewarding it is to actually build something, think of something, and then now see it impacting others. That is just, there were some tough times that I'm really glad that I've stuck with it because it just fills my heart.
Nikki Rogers: I love it. That's such a great success story. And it's a testament to your skillset, but also going back to that coaching. Because we can go from $500 in a savings account to, oh, I'm going to be a millionaire. Who would have thought that, right?
Kaitlyn Carlson: Right. Yes, it is so cool. The thing that was tough when I was in wealth management I was helping make rich people richer which just was not soul-fulfilling on any level. Helping change someone's life dramatically, that's the stuff that lights me up.
Nikki Rogers: It's not only the individual life but it's also generations. Other family and friends see what's possible, so it definitely has an impact beyond that individual client that you may be working with.
Kaitlyn Carlson: Absolutely.
Nikki Rogers: I love this idea of having coffee with yourself five years from now. And so, as you think about what the Theory Planning Partners is to become, what do you see in your future?
Kaitlyn Carlson: What I really love is deep, meaningful relationships. I see Theory becoming the first family office dedicated to female entrepreneurs. We talked about before all of the strategies, all of the support that's typically reserved for people who have tons of millions of dollars or a hundred million dollars. Bringing that to outstanding female entrepreneurs who are making an impact in the world and providing them with those sophisticated strategies and support, that's my dream. And it's funny because I'm pretty shy on social media. So I like the idea of this referral-based, word of mouth. That's how I see it going. And of course, you build a referral-based business off of exceptional service and great relationships. So it's very important to me that Theory has a high level of integrity and that people come to it because of other people that they trust. I'd love to keep it highly intimate. I think I would cap it at a few dozen women. However, of course, I've had other women say, do you need to spread this knowledge far and wide. So I think if I were to have a second chapter, then it would probably be along the lines of perhaps writing a book or finding a way to make a greater impact. But for five years from now, that's where I see it.
Nikki Rogers: Great. Thank you for sharing that. I think for me, as a black woman, that sometimes these types of resources may seem out of reach or less out of reach but more unwelcoming. During your time in this industry, either you've done personally or what has the industry done, if anything to really make it more inviting for folks who may be unrepresented as clients in these types of spaces, one learn more about the services that are offered as well as taking advantage of the enormous knowledge and insights that can actually help create generational wealth.
Kaitlyn Carlson: Absolutely. So again, going back to the part of the reason why I created Theory. Because I didn't necessarily find it to be a very welcoming environment, not only for women but for people of color as well. As part of those 300 financial plans, again, I really didn't see any people of color represented in that number either which is wrong. I want Theory to be welcoming to women of every race, every color which is why, if you go to my website, I'm very accessible. You can book a call with me because I really want it to be relationship-driven. But my candid thoughts are that I think the industry has a long, long way to go. I think that it's far and few between that you see a successful person of color and that makes people feel comfortable like, oh, okay. There are some people of color that we can point to, therefore it's okay. And truthfully, it's not. There's so much that needs to be done in financial services. And if I have coffee with Kaitlyn five years from now, I want women of color to be highly represented in my practice because I think we all bring such different perspectives and values, and we can have such a greater impact. And if I'm helping put women of color in a personal position of financial empowerment, then they're able to help other women of color or whoever they want to have an impact on. So it's very important to me that Theory does not look like the environment that I left, which was homogenous. And part of me spreading my message through podcasts is sharing the knowledge with whoever wants access to it.
But I certainly make myself available to anyone who's looking for financial advice because that's my mission, is to whether it's me or whether it's somebody else helping them get access to the right financial advice. So I would just say anyone is more than welcome to reach out to me on my website because I grew up in a financially stressed household so it's very important to me that if people are looking to be proactive and change their circumstances that I can aid them in doing that.
Nikki Rogers: And so when you mentioned there are only a few successful people of color. We are talking about, in the financial industry, that you only see a few in the financial industry.
Kaitlyn Carlson: Well, it was both. There were only a few colleagues of mine that were of color. And off the top of my head, I can't remember any clients that I worked with personally that were black, or I can't even think of any Asian clients. And that may have had to do with where I was at the time I was working in the Southeast. But still, it was all white men, and that was bothersome to me as a woman. I can't even imagine for someone of color, what that feels like. Even though as a woman, I was still amongst mostly white people in the office. There were a few black women in the office. One of them is definitely going to be a rising star. But the other black women in the office are mostly in support roles. They weren't in advisor roles. And so it's not enough to say, oh yes, we have representation in the office when all the advisors are white men and support staff is black females. And sometimes, I think banks and major institutions get away with saying, oh, we have diversity equity and inclusion. And really? No.
Nikki Rogers: So just one more question about the industry. What are some of the things that the industry is doing in order to attract more diverse candidates into the advisor ranks?
Kaitlyn Carlson: From what I saw when I left is the woman who was similar to my age. She will become an assistant market head and she will eventually become a market head. She's just an incredible person for the office that I was in specifically. She was spearheading that initiative to make sure. So I think it's largely generational. I think that by the time that my generation is the more seasoned veterans of the office, it's going to look very different than it does for baby boomers or even Gen X. All my contemporaries that were Millennials and Gen Z were far more interested and passionate about diversity across the firm. I will say that to their credit, it's a strong initiative within the company. And I think it's a little naive to think that it's going to change overnight. But there were internal initiatives and there were college fairs paying attention to not just going to the same colleges that they've always gotten to. Make sure that there were paths for people of color to feel, as you said, feel welcome because I think before it was not feeling welcome and feeling excluded if anything. Now, I would say that it's a much more inclusive environment. And for management programs, they're really going out of their way. Again, this is when I left. But they were really going out of their way to make sure that it was not a homogenous group coming through as it had for decades before been.
Nikki Rogers: Great. Thank you for sharing that. As you think about working with men and women on wealth management, what are some of the key differences you see in how women approach development versus men?
Kaitlyn Carlson: This gets a little bit more blown up than it needs to be. I think there really aren't that many differences, especially I find those female entrepreneurs have something in their DNA where they have a high appetite for risk. I will say where I do see differences is that women tend to be much more patient investors, and they tend to take a long-term lens and a long-term approach. Whereas I have seen men get more sucked into the sexiness of a strategy or a product. And typically when that happens, it's usually the tail-wind events such as March 2020 that tend to blow up those strategies. And there's actually data proving that women are better investors because they're just more patient. So when it comes to investments, I would say that women have much more discipline there. But other than that, there really aren't that many differences. I would say, on the whole, people really want the same things. They want to live a comfortable lifestyle. They want to have a funded retirement. They want to send their kids to college. Most people have fairly similar values. And I would say, it almost got a little frustrating and infantilizing how much the industry tried to play to women and well. And they might have had good intentions, but it's not like women are kindergarteners and men are college graduates. It's like, we're all adults here. And I will say the one thing is the sad reality is that women are still getting significantly underpaid compared to men. So that does change the planning dynamics. If you're not getting paid as much as your contemporary, then there's more saving and more financial planning that has to go into securing your retirement. And that's just not fair, frankly. And then the pink tax, there are just costs that come with being a woman that men don't have to worry about. So those are all things that come with being a woman sadly right now. But again, my hope with Theory is that we're changing that, and particularly for the big money like when we're talking about tens of millions of dollars. There are no women represented there, and those are the movers and shakers of the world. That's really where we need gender parity, racial parity, more than anywhere else.
Nikki Rogers: So it sounds like there's less a difference in approach, but more of a difference in circumstances due to things like the pay gap, the wealth gap, and other circumstances or other societal factors. And so all things being equal, women and men are both great investors, is what I'm hearing you say?
Kaitlyn Carlson: Yes, I'm going to take that and rephrase it, and use that going forward. That was beautifully put.
Nikki Rogers: I think the circumstances and some of the things that you mentioned are real, and those are things that women have to overcome. I think it's important then to have advisors who can help them navigate those circumstances. As folks think about how to select an advisor, what are some of the things that people should be looking out for, both of the things that they want and then advisor as well as some of the things to avoid?
Kaitlyn Carlson: So I would say that the timeless know, like and trust factors are super important. It's a long-term relationship. You want it to be with somebody that you trust and someone that you like and that you feel you can ask any question to without feeling like it's dumb, or it should be very comfortable. They should feel like an extension of your family. Another thing that's important is making sure that they have the right credentials. Anyone that you're working with these days should have their Certified Financial Planning designation. It's pretty much a must at this point. Fortunately, the industry has shifted from the Wolf of Wall Street, just selling anything, don't really care to what's called a fiduciary role. And so as a fiduciary, I'm a fiduciary for my clients. So it's my job to put their interests ahead of my own. So making sure that your advisor is a fiduciary, another thing is checking their, record.
So when you begin a relationship with them, they will send you their ADV part 2B, and that will disclose if they've had any type of infractions or penalties against them. I would be wary of people that do, it's important to have somebody that is reputable and has integrity. And on that form, it will disclose if they've had any type of negative interactions with previous clients. So CFP checking their ADV part 2B and, again, making sure that it's comfortable. And investments are only a part of it. They should have planning at the center of what they do. And that's regardless. That's whether you're working with a financial planner, a financial advisor slash wealth manager, or a family office. It should always be planning-centric. And to that point, they should never be selling you a product as a one-fit solution. Building wealth is about the process. It's not going to be solved in a product.
Nikki Rogers: I love that. Building wealth is a process.
Kaitlyn Carlson: And it's not an overnight one. So don't let anyone try to sell you on that notion.
Nikki Rogers: And I like part two of that, cannot be solved by a product.
Kaitlyn Carlson: That's very important because there are a lot of people that hold themselves out as financial advisors that might just be selling you an insurance product. So definitely do your homework, ask around, also just a good part of interviewing is potentially asking if you can speak to a client to see how their experience has gone. All that stuff is very important because, again, it's a long-term relationship. So you want to feel like they have your best interest.
Nikki Rogers: Well, thank you for those tips. I think those are great. And I think one of the last things in this vein I'll ask is why is it so important for business owners, in particular, to have a financial planner?
Kaitlyn Carlson: Because they will not look out for themselves is what I've found. As a business owner, you're always putting everyone else before yourself especially your company. And if you have employees, your employees. So as a financial advisor, I find that one of my biggest benefits is that I'm the one that's looking out for them and tapping them on the shoulder and saying, hey, we can't forget about you.
These are the things that you need to be doing and also taking a long-term approach, because like I said earlier, it's just so easy to get stuck in the day to day and taking a step back and having those strategic conversations, can lead to small tweaks that make a significant difference over time. And really where that's going to have the biggest benefit is down the road, getting towards retirement whenever you want that to be. I just saw so many business owners get to that point in time where they were burned out. They didn't want to work anymore. They wanted to sell their company, and it's like the house is on fire and we need to throw all these band-aids in there. If you begin earlier with someone that you trust, you can take these baby steps so that you never have to go through that negative experience if you will.
Nikki Rogers: I think that's great because we plan for our business, we create strategies for our business. But I think being strategic about our financial wellbeing is something that is often left on the back burner. I've worked with coaching clients who were not paying themselves.
Kaitlyn Carlson: Yes, classic.
Nikki Rogers: You're in business, you're not paying yourself. So basically, what other income is coming into your household is funding this business.
Kaitlyn Carlson: Yes. I always say if your business is not helping you achieve financial freedom, it's a hobby.
Nikki Rogers: Right, it's a really expensive hobby. It is amazing how many entrepreneurs, business owners out here have these really expensive hobbies because it's not contributing to their bottom line. And I think I alluded to this earlier that they're just waiting for their exit in order to be able to fund whatever happens next.
Kaitlyn Carlson: Yes, and sadly, 80% of the businesses that go up for sale do not sell.
Nikki Rogers: Wow.
Kaitlyn Carlson: Yes. So massive concessions are being made, a really important time in someone's life. And when you're 60 years old, you don't really have a lot of leverage at that point in time. So I saw that repeatedly where deals fell through and someone was contingent. They were waiting on that to fund their retirement and they're having to live off of maybe half of what they were accustomed to living off of just due to poor planning.
Nikki Rogers: You just dropped the bombshell.
Kaitlyn Carlson: I have to do a separate episode.
Nikki Rogers: One from that whole idea of like, if you're waiting to get out and your business doesn't sell, but also on the flip side of that, there's a massive opportunity for entrepreneurs to come in. If you have the wherewithal and you're interested in the business, it sounds like there are lots of business opportunities that are available that you can walk right into.
Kaitlyn Carlson: Oh my goodness. Especially for the baby boomers.
Nikki Rogers: Okay, that will be another episode. You just blew my mind with that one. And funny enough, I was talking to the CEO of a company that I'm partnering with and he talked about his journey of purchasing the business, and I had never thought of that. I just thought you start a business, and so this idea of buying a business is already up and running is fairly new to me. And then talking to people who have actually done it and seeing like, that's actually a way to go. It is one path along this entrepreneurial journey so yes, we need to have a whole conversation about this. You just dropped a bomb at the end of the conversation.
Kaitlyn Carlson: Sorry about that.
Nikki Rogers: No, no, this is good stuff. There are two questions I like to ask all my guests. So the first one is what are one or two songs that are on your power playlist, and why?
Kaitlyn Carlson: Oh my goodness. One or two songs are on my power playlist. Well, Super Bass by Nicki Minaj will always be on my list. That song just gets me pumped up. And I think another one would have to be, We Found Love in a Hopeless Place by Rihanna. Those are just two songs I don't know, it just made me silly dance around the house like that I could run to those songs forever. Those are the first two that come to mind.
Nikki Rogers: What is one book that has helped you thrive in business?
Kaitlyn Carlson: The Four Agreements.
Nikki Rogers: Okay.
Kaitlyn Carlson: That is my favorite book. I think because it's so simple and it's so easy to remember the agreements. And one of them that has really transformed my life is the, don't take anything personally. I think when things happen, it's so easy to make up stories in your head. And I really try not to waste energy doing that anymore. I just find that it detracts from my focus. And so, if someone doesn't get back to me right away, or someone has to postpone coming on board, I just don't take it personally. And the same thing with putting myself out there which I mentioned before, it's scary for me to do. I don't know. I'm shy on social media. So I think keeping those four agreements in the back of my head has really helped me with this breakthrough of building the business. And of course, I'm from New England, and Tom Brady read it during deflate-gate. So of course I have to hop on board with the Patriot way.
Nikki Rogers: Well, other than that, it is a great book. I'm a die-hard Pittsburgh Steelers fan.
Kaitlyn Carlson: Oh no, yes, we'll try not to hold it against me then.
Nikki Rogers: But the book, I think is great and it's one that, for me, it's like rereading it always gives you some new perspective or it's just a reminder of oh, things are really that simple. So I think that's a great book. And I think it is very helpful in business, even though you might not think of it as a business book, but again goes back to mindset and how you approach things and how you respond to the things that are inevitably going to come your way. So thank you for sharing that book. So Kaitlyn, if folks want to get in contact with you, how can they find you?
Kaitlyn Carlson: Sure. So I mentioned this a little bit earlier, but please feel free to come to my website. It's theoryplanning.com, and you can also follow me on Instagram. I am @kmcarlson13.
Nikki Rogers: Great, and we'll add that information to the show notes. Well, Kaitlyn, it has certainly been great talking to you today. I definitely learned a bit more about the financial advising and wealth management industry and the professionals that work in it as well as loved hearing all about why you're doing what you're doing. So thank you for joining us today.
Kaitlyn Carlson: Thank you, Nikki. It was so much fun. It was really a pleasure.
Nikki Rogers: All right. I look forward to seeing what happens next with you.
Kaitlyn Carlson: Thank you, likewise.
Nikki Rogers: Take care.
Nikki Rogers: Thank you for listening to this week's episode of Women Thriving in Business Podcasts. If you like this episode, share it with a friend. You can also join us on social media to share your feedback and comments. We'd love to hear from you. Be sure to like, review and subscribe on iTunes so you never miss an episode. Until next week, keep thriving.