Advisor Spotlight:
JoAnn May, Forest Asset Management

Like many advisors, JoAnn May, CFP® and co-founder of Forest Asset Management, uses referrals as a way to attract new clients. However, turning a referral into a client can take considerable time, effort, and patience. JoAnn explains how she uses Flourish to help with prospecting and connecting with people outside her typical client base. 

Flourish: Hi JoAnn, welcome. Could you start by telling us a bit about your personal background, what led you to wealth management, and then a bit about your firm?
JoAnn May: Early in my career, I worked as a CPA at a firm owned by my brother Mark (co-founder of Forest Asset Management) and his wife. I worked a ton during the busy season and then scaled back a little during the other months. Eventually I realized I wanted to go beyond doing taxes and, in 2005, I went back to school for my CFP credentials. When I told my brother that I probably would be leaving his firm to focus on financial planning, he said, "Let's just start our own RIA." And that’s how it all began.

Flourish: What’s the philosophy of your firm?
JoAnn: Our philosophy is not concentrating on rate of return but on tax-efficient returns and other small changes that can make a lasting impact over time. That is a huge focus of ours because of our tax background. We aim to build up tax-free accounts for clients: their Roth accounts, whether it's Roth IRAs or 401(k)s, through contributions or strategic conversions.

A lot of people are surprised that they can do it even though they make a lot of money. But it takes some maneuvering and patience.

I know there's a lot of focus on transfers of 401(k) funds into RIA firms to be managed under an IRA. Very often, we're doing the opposite and moving money out of IRAs into 401(k)s so that we can set clients up to do tax-free conversions of Roth contributions. We're always thinking in the client’s best interest, and not solely about increasing AUM for our firm.

Flourish: What kind of clients does the firm typically attract?
JoAnn: We have a lot of retirees, that's for sure. We try to involve the whole family and get to know their children.

I also have clients that own their own business. In the beginning, we had quite a few 401(k) plans from the CPA firm. Today, that has become less of a focus. Still, I think we appeal to clients who own their own businesses because we’re small business owners ourselves.

They understand the importance of small business in the economy. They could work with big players out there, but they choose a small, more boutique-style financial planning firm. We develop trust and build long-lasting relationships.

 
Flourish: What is your general process for attracting new clients?
JoAnn: Initially, a lot of the clients came from the CPA firm, but that has changed over time. In 2016, my brother and his wife sold their CPA firm. While we still get calls here and there from old CPA clients, that’s not where most of our business comes from now.

Today, new business comes from people who see me quoted in the paper or from organizations I’m involved in that have an advisor directory on their website. Then, of course, client referrals are probably the biggest source of new business.

We really don't market at all since it's only my son Ty and me who work here. My co-founder has stepped into a more consultive role. At this point, I'm comfortable with helping and keeping the clients I have versus going out there and getting more. But if we are adding clients, I'm trying to add the 40-something-year-old couple who are good savers but need assistance and focus, that sort of thing. I think it's a great niche for the future. My son's only 31, so he'll be able to assist clients for a long time.

Flourish: How do you and your clients use Flourish Cash?^†
JoAnn: I think it’s excellent for big windfalls where you don’t want to make a decision on investing the cash right away. Clients can park the money and have breathing room to get used to it.

I’ve had clients with a big tax bill coming due about ten months down the road as a result of a business sale. There were no estimated payments required before then. That was awesome because they just got to put the money into Flourish Cash and earn interest.

It’s also great for business owners. I have a business account with Flourish myself. Flourish Cash is the only place that I know of where you can have a business account and earn any meaningful interest. Banks just don't pay anything.

I've invited lots of people to Flourish. Not everyone has taken me up on it, which is a shame. I had a meeting yesterday with a client who I had previously invited to Flourish. They did nothing about it for the past year and a half. They've literally given up $10,000 in interest because they had it in their bank account. I re-invited them to Flourish yesterday.

Finally, with Flourish, I can see a client’s linked bank account balances, so I'm able to keep an eye on things. It allows me to easily offer something helpful to clients without spending too much time.

Flourish: How does Flourish help you with client referrals?
JoAnn: Flourish Cash gives me a way to get introductions and stay in touch. To share one story: the daughter of a client of mine is married to a man who had a minority interest in a business that was selling. He had a big cash out a couple of years ago. Then, he had a friend who worked with him who also had a cash out.

As a service to my client, I reached out to them and said, "Hey, there's this offering with Flourish Cash. There's no affiliation with me, but I do need to invite you. If you'd like to hear about it, I can talk to you about it." And that's how it started.

I kept hearing about this possible cash out for, I'm not kidding you, two or three years. I wasn’t really sure it would ever happen. When it did, they immediately became clients too. Flourish allowed us to stay in touch and make the connection.

They are not typical clients that I usually get. They're operations guys who work in a plant and they had a ton of money dropped in their laps at once.

I'm super happy to work with these clients because the windfall is money they never thought they would get and it changed their lives. Now, we’re trying to preserve some of the cash and prepare for the future.

Flourish: I’m so glad things worked out for your clients. Thanks for speaking with us, JoAnn!

Forest Asset Management and Flourish are separate and unaffiliated firms. This interview has been edited and condensed for clarity. This material is provided for informational purposes only. The views and opinions expressed in this interview are those of the individual being interviewed and do not necessarily reflect the views or opinions of the Firm. The inclusion of any external party in this interview does not constitute an endorsement or recommendation by the Firm. The information provided is not intended as financial, investment, or legal advice and should not be relied upon as such. This feedback may not be representative of the experience of other customers, and is not a guarantee of future performance or success.