A new, virtual RIA for ‘overlooked’ clients
Clients whose age, income, gender or ethnicity may have kept advisors from recruiting them have a new option: Two prominent female advisors, Lazetta Braxton and Rianka Dorsainvil, are joining forces to form a new virtual advisory firm, 2050 Wealth Partners.
Braxton, the chair of the Association of African American Financial Advisors, has headed her own RIA, Financial Fountains, since 2008. Dorsainvil, a podcast host, diversity advocate and popular industry speaker, founded her advisory firm, Your Greatest Contribution, in 2015.
In addition to entrepreneurs and professionals, 2050 is targeting clients who have been “overlooked” by advisory firms, Dorsainvil says, including first-generation wealth builders.
“We want to meet people where they are on their life’s journey towards amassing wealth,” says Braxton, “and we don’t want location, assets or age to be a barrier.”
Consequently, Braxton and Dorsainvil will work out of their home offices in New York and suburban Washington, D.C., respectively, and collaborate with clients around the country via video interaction on Zoom.
The advisors will meet clients in person with one stipulation: “We don’t talk business,” Dorsainvil says. “It’s just for pleasure.”
To encourage more inclusivity and diversity among their client base, Braxton and Dorsainvil are using a retainer fee model to encourage young and first-generation wealth builder prospects to work with 2050. The firm charges $4,500 as an annual retainer and switches over to a percentage of AUM model when clients’ assets rise accordingly.
The advisors say they wanted to remove barriers for clients who may not meet traditional standards of minimum investable assets.
“We want to use a model that’s not measured by assets under management but instead about human capital you generate from income,” Braxton says. “We want to help clients turn [that] into wealth … and support how they want to live and the legacy they want to leave.”
Braxton and Dorsainvil have been strong advocates for industry diversity and say that while gains have been made, challenges remain for a profession where less than 4% of certified professional advisors are people of color, according to the CFP Board.
Cultural issues remain a major hurdle for people of color in the advisory industry, Braxton says.
“It’s a question of what is valued,” she says. “[There has to be] room for persons to bring their full selves to the profession… and that takes courage and vulnerability.”