Valerie Rivera, CFP, is the founder of FirstGen Wealth, a virtual, fee-only, financial-life planning practice founded by a first-generation American wealth builder.
Prior to FirstGen Wealth, Rivera previously worked at primarily large wealth-management firms including AllianceBernstein, Merrill Lynch and TIAA, serving clients with $5-10 million of net worth. She entered financial services in 2008 at ShoreBank, a community development bank.
Rivera recently shared her thoughts and expertise on several topics ahead of the CNBC FA Summit on October 12.
CNBC: Tell us about why you started FirstGen. From your bio, it seems that there's a personal connection given your background, but you saw a business opportunity as well.
Rivera: Close your eyes and envision a financial advisor. Does the image of a 5'2 Latina with hoops and wavy hair come to mind? Perhaps not.
Just over 1% of the CFP professionals in this country are Latina. I am one of them. I started my career 15 years ago and throughout that time, worked in six different financial institutions, from banking to asset management to traditional wealth management. Most of my career has been spent working with people who had an average of $5-$10 million of assets.
My driving force is to normalize quality financial advice for people in their 30's and 40's who are the first in their family to build wealth. I serve the pioneers, those who might be the first in their family to embark on the journey of higher education, to leave their small town to start anew, or the first generation born in this country. They didn't learn about money growing up and can't go to mom and dad for advice. In fact, they may need to think about how to help them financially in the future.
Join CNBC's Financial Advisor Summit on Oct. 12, where we'll talk with top advisors, investors, market experts, technologists and economists about what advisors can do now to position their clients for the best possible outcomes as we head into the last quarter of 2023, and face the unknown in 2024. Learn more and get your ticket.
CNBC: What advice would you give financial advisors who are trying to find more clients among what could be considered traditionally underserved communities? What questions should they be asking?
Rivera: It's not enough for a firm to simply profess a commitment to diversity in words alone. The true measure is seen in action, especially in leadership.
As an advisor, I've personally felt disheartened by firms lacking diversity among their staff. It sends a powerful message: a lack of appreciation for the richness that comes from diverse perspectives. This, for me, is a deal breaker. I believe this sentiment may resonate with potential clients too. They seek that feeling of 'you get me,' and they often gauge it from a firm's website.
So, advisors, let's open our website homepage and ask a critical question: 'Who does my site truly speak to?' Are we addressing the real questions and concerns of our audience, using the language they use? Are we genuinely equipped to guide them through their financial journey?
A commitment to diversity and inclusion must be reflected not just in words, but in the very essence of our practice.
CNBC: Talk to us a little bit about the current economic climate. What are you telling clients about how to navigate things like higher inflation and fears of a recession?
Rivera: While inflation may be a factor we can't change, we focus on the areas we can. It's about making conscious choices, from planning for more home-cooked meals to having the confidence to say no to every invitation that involves spending money. Yet, one of the most transformative elements is recognizing that income isn't fixed. It's a dynamic aspect of our financial lives that, with the right approach, can lead to tremendous opportunities.
For those navigating the challenges of six-figure incomes and higher living costs, our strategy is about finding a harmonious balance. We fine-tune investment strategies, ensuring they align with personal goals and risk tolerance. This isn't just about numbers; it's about creating a financial foundation that supports the life you want to live.
CNBC: To follow that up, what are some of the most important developments you're seeing in the financial advisory space?
Rivera: The financial planning space has been this rigid system of serving a specific demographic in a box. It's shedding the rigidity of serving a narrow demographic and embracing a more inclusive approach, meeting people right where they are in their unique life journeys.
The emergence of financial coaches is a testament to this shift. These coaches empower individuals to strengthen their cash flow and conquer debt, providing a tailored and personalized approach. Group coaching programs are creating vibrant communities where people can learn, grow, and support each other collectively.
What's exciting is how content creators are revolutionizing the financial landscape. They're infusing it with energy and accessibility, making it engaging and relatable for a broader audience deeply ignored by the greater industry.
In the corporate world, the trend of companies offering financial support is a game-changer. Recognizing the importance of financial wellness, organizations are incentivizing employees to seek guidance from advisors. It's a win-win scenario; financially healthy employees are not only happier but also more productive, creating a positive ripple effect throughout the workplace.
