MoneyShow CEO Kim Githler by Advisors Magazine

MAR 2021

ISSUE 101

ADVISORS

magazine

kim githler

moneyshow ceo exclusive interview

She-cession Economy

Pandemic impacts women

Stephen Mayer on Marketing Professional service firms

Cryptocurrency Goes Mainstream

PayPal provides access for the masses

Celebrating International Women's Day

#choosetochallenge Page 36

ORLANDO JUNE 10-12, 2021 O M N I O R L A N D O R E S O R T AT

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LEARN THE BEST MONEY-MAKING STRATEGIES FOR THE NEW ECONOMY LEARN & DISCOVER: • From Washington to Wall Street • The New Debate: Crypto vs. Gold • Where to Invest in a Bubble Market • Value Investing for the 21st Century • ETF Hidden Gems and Rising Stars • Is the Future Inflationary or Deflationary? • Stocks to Buy Now for Post-Pandemic Profits

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THOMAS LEE

STEPHEN MOORE

CARLEY GARNER

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LAWRENCE KUDLOW

• Important Changes in IRAs & Retirement Strategies

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contents mar 2021 on the cover

An Interview with Kim Githler MoneyShow celebrates 40 years of sharing investment knowledge

features

Cryptocurrency Goes Mainstream Paypal provides access for the masses

She-Cession Economy Pandemic impacts women in the workforce

Stephen Mayer on Marketing

COVER STORY: KIM GITHLER CEO OF THE MONEYSHOW

Focus: Professional service firms

50 6

International Womens Day 2021 Inspirational words from notable women

cryptocurrency comes out the shadows

20 Not Working 9 to 5: It’s a “She-Cession” Economy

4 / ADVISORS MAGAZINE

MAR 2021

made for you

Our picks from around the globe

Stephen Mayer, PhD, PE

mar 2021 advisor interviews

Revealing an Advisor's Work Ethic

tapping into

Choosing the right advisor

core values

Tapping into Core Values

Advisors embrace servant leadership

Creating Staff Opportunities in 2021 Business growth in 2020 paves the way

opportunities in

POWER OF PERSISTENCE

SOCIAL INVESTING

2021

Expanding Financial Literacy Advisors provide free community programs

The Power of Persistence

GOING INDEPENDENT

Pushing for power of attorney during a pandemic

Specializing in sustainability and social investing

More alternatives available for breaking away

Pioneering ESG Portfolios

Brokers Weigh Going Independent

S T IM U L U S C H E C K E L IG IB L IT Y

ADVISORS MAGAZINE / 5

by amy armstrong

Cryptocurrency Comes Out of the Shadows

PayPal provides access for the masses

Cryptocurrency ownership was once the domain of the ultra-wealthy or patrons who wanted anonymity to prevent tracing of illegal activity – or didn’t want others to know what they were purchasing.

ot so much anymore, at least not if recent moves by one of the world’s leading electronic payment companies go according to plan. Cryptocurrency is hitting the financial mainstream in 2021 as PayPal moves forward with steps to add the online-based coins to its payment options. Not only is PayPal facilitating the buying and selling of several cryptocurrencies, according 6 / ADVISORS MAGAZINE

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to its press releases, but the company is shepherding the inclusion of cryptocurrency into everyday retail transactions by creating an option for its more than 350 million users and 26 million vendors to use and accept as payment for purchase of goods and services. “With over 300 million active users worldwide, this could become a pivotal turning point for an industry that has

been previously described as “niche,” “complicated,” and “inaccessible,” said the “Insider Monkey” in an article posted on Yahoo Finance, concluding that the move is, “allowing anybody from PayPal’s diverse userbase demographic to gain exposure to the cryptocurrency boom.” In other words, it sets the stage for a revolution in how the “not so wealthy” might access cryptocurrency in the future. Being able to purchase cryptocurrency via PayPal significantly increases the convenience factor. Recent moves by cryptocurrency brokers to offer fractional

shares of the online currency are beginning to remove the financial obstacles – namely the high price – to being a cryptocurrency owner. However, pricing for a whole coin remains an obstacle for the average investor. Prices for one bitcoin hovered around $12,000 during the summer of 2020. When the PayPal announcement broke in late fall, the price jumped to $13,200 per coin the following day. By mid-January 2021, the price soared to $40,000; and at the time of this publication one bitcoin was valued at $48,390 In its announcement, PayPal said it would initially support

four types of cryptocurrency: Bitcoin, Bitcoin Cash, Etherium, and Litecoin. Bitcoin is perhaps the most familiar to Americans. It was created in 2009 by an individual or group of persons using the name Satoshi Nakamoto. It was the first of the cryptocurrencies and it uses a peer-to-peer platform to receive and send payments between users, thus, bypassing the additional fees of banks or other brokers. Bitcoin Cash evolved from Bitcoin. It is fairly the same concept but differs in that its maximum block size online is 32 MB and Bitcoin is still limited to 2 MB.

Ethereum began in 2015 after Vitalik Buterin, a RussianCanadian and co-founder of Bitcoin Magazine, became frustrated when changes he suggested to Bitcoin were not acted upon. Three years prior, his father had given him some Bitcoin. Buterin was fascinated. He wrote a white paper describing what he wanted to create: a "decentralized mining network and software development platform rolled into one" that “facilitates the creation of new cryptocurrencies and programs that share a single blockchain (a cryptographic transaction ledger),” instead ADVISORS MAGAZINE / 7

of the numerous blockchains required by Bitcoin. On March,1 2021, one ether was valued at $1,519.98. It differs from Bitcoin in that it is a platform upon which users can build their own contracts. Technically, it is classified as an “altcoin” because it has different features than does Bitcoin. Litecoin in comparison is more accessible to a wider group of investors with its March starting price of $171.21 for one coin. It is often likened to the relationship between silver and gold with Litecoin being the silver and Bitcoin being the gold. Litecoin’s processing speed is much faster than Bitcoin. What takes Bitcoin ten minutes to process, Litecoin does in 2.5 minutes. It is a split from Bitcoin, or what the industry calls a “fork.” Litecoin is dubbed such as it 8 / ADVISORS MAGAZINE

MAR 2021

is intended for smaller value transactions. It also is an “altcoin.” One caveat for purchasing Litecoin via PayPal: according to PayPal’s guide to Litecoin, users must first purchase Bitcoin and then exchange it for Litecoin. The ability to purchase, sell, and use cryptocurrency on PayPal will be limited to the United States at first, company representatives said in recent press releases. Cryptocurrency used to make purchases on PayPal will be exchanged into dollars by PayPal for merchants. As the platform expands the use of cryptocurrency to other countries, a similar process will occur with each nation’s currency. There are more than 700 different types of cryptocurrency available. The four currencies referenced

above are currently the most popular, and while PayPal intends to begin integrating them into its expansive online purchasing platform, company officials did tell “Review Geek,” a website for techies, that it intends to expand its support of other cryptocurrencies. PayPal has put itself in a position of commanding the use of cryptocurrency for the masses, no longer will crypto just be found in the electronic wallets of the ultra-wealthy. “With PayPal accepting payments in cryptocurrency and paying out conventional money, not to mention its position as one of the most widely accepted forms of payment on the planet, the company could quickly become one of the most powerful players in the stillvolatile cryptocurrency market,’ concluded “Review Geek” writer Michael Crider.

by joe innace

ETHIC TALK

INTERVIEW

Revealing an Advisor's Work Ethic Check under the hood

TV host and podcaster Mike Rowe – of Dirty Jobs fame – likes to say: “Work ethic is important because, unlike intelligence, athleticism, charisma, or any other natural attribute, it’s a choice.” It’s also that intangible quality that many people look for when choosing someone to manage their money.

ike Bensey, MBA and president of Good Life Financial Advisors of Orlando, gets that. And a work ethic forged during his youth is something on which he now bases his firm’s central philosophy. “I grew up in West Virginia where my father and grandfather ran a gas station back when everything was full service,” Bensey recently told Advisors Magazine in an interview, “And I learned a work ethic where you help everybody.” It’s one of the reasons his firm does not require any minimum investment. In addition to comprehensive wealth management services, Good Life Financial Advisors of Orlando specializes in 401(k) planning, which is a relatively large part of the practice. Bensey estimates the

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firm has about 60-70 percent of assets in its 401(k) practice, but 6070 percent of the firm’s income is from wealth management. That split, he claimed, is unique from a lot of advisors. “And in that 401(k) practice, you help people at all levels,” he said, adding, “And we end up helping people that many advisors will turn away. But we want to treat them like everybody else.” Bensey figures the firm handles about $150 million in 401(k) assets. His firm manages the plans with the sponsors and providers by conducting quarterly trustee meetings and helping them fulfill their fiduciary responsibility for the plans. For plan participants, individual educational meetings are scheduled to review accounts, or discuss pretty much anything else besides 401(k)s. “We have a very MAR 2021

smooth-running operation on the 401(k) side, which brings in a lot of personal business to the wealth management side,” noted Bensey, who has been a wealth advisor for over 30 years. “We really have those two lines of business and I think we do the 401(k) side better than 90% of advisors out there who do it a little bit – some don’t do it at all.” An independent firm, Good Life Financial Advisors of Orlando is affiliated with publicly traded LPL Financial and able to draw on the major company’s

tools and resources to provide financial research, guidance and recommendations. LPL doesn’t offer proprietary investment products or engage in investment banking activities, which means advisors are not pressured or influenced by LPL to sell its products. Still, like his family’s gas station years ago in West Virginia, Bensey keeps things simple, grounded in personal service. “Our client service philosophy is to make it so easy to do business with us that

you wouldn’t want to go anywhere else,” he said, emphasizing that it’s the little things that matter, but which may be big things to clients – like including a return envelope for mailings, even though electronic signatures are common today, or streamlining paperwork, returning phone calls promptly, and responding quickly to emails and texts. “Even if we don’t have an immediate answer, we let clients know we’re working on it,” Bensey said. “It comes down to providing clear communication;

whatever it takes to make sure that they’re well serviced and well taken care of.” One upside of the pandemic, in fact, was the opportunity to reach out and take even greater care of clients. The threeperson firm includes Bensey, his son Drew as an investment analyst, and son-in-law Daniel Thornton is director of client relations. They all worked remotely during COVID and proactively called clients, or responded to requests for information. Such increased

communication led to adjustments in clients’ financial strategies, as needed. It also led Bensey to reinvent the firm’s approach to managing money for clients. “With our reinvention, we now have one core model in which we alter the amount of bonds or conservative money to fit

a client’s risk profile,” he explained. If a client profiles as aggressive growth or growth, then the investment portfolio might be as much as 98 percent equity and 2 percent cash and bonds. More conservative clients might have 10-20 percent in bonds or a fixed income category. ADVISORS MAGAZINE / 11

The firm’s simplified and April. With the core core model now may model’s foundation be based on bonds rooted in conservative and conservative vehicles and individual investments, with risk tolerance, a lot of varying components the fear, worry and stress matched to risk, but is mitigated.” more work and greater And while a singular attention to detail is core model has been actually involved. For adopted, the firm’s core one, the current low value has not changed. interest rate environment “I value every person and the lack of high and situation as unique,” interest-earning CDs, Bensey said. “We try not money markets, and so to impose our values on on, makes it all the more the client; meaning we challenging. may agree with certain “We narrowed our things that they think focus, but within that or believe, and we may there is a lot of flexibility disagree on others. But in terms of risk tolerance if there’s a way they want and we’ve become much to plan and do what they more focused on ETFs want to do, we work to and individual stocks, as help them achieve that opposed to just using —even if our values are mutual funds where not aligned with theirs.” there was less activity,” One thing most Bensey explained. all agree upon is the “More strategy and increasing challenge tactical moves are now to not outlive one’s made throughout the retirement money. year,” he said. “More According to profit taking and then Nationwide’s sixth reinvesting and shifting annual Advisor Authority things around, instead of study, some 72 percent just a long-term strategy of investors say the that’s just COVID-19 tweaked based pandemic has on trends.” had a negative MISSION He added: impact on how We strive “But the next long they are to provide time there’s comprehensive able to live off wealth a 30 percent their current management downturn or retirement services for greater—like savings. every stage of 2008—we and For many the journey. our clients clients, Good Our Advisor's don’t have to Life Financial mission is to go through Advisors of enhance your some of the Orlando will life by helping same pain and do a formal create sound, agony like we financial plan financial strategies. did in ’08 and to project out last March where they are 12 / ADVISORS MAGAZINE

MAR 2021

heading in terms of their assets, what they will save and grow, and what they might have in new income opportunities from social security or defined income benefit plans. “In that planning, we always plan for somebody to live a minimum of 90 years old, sometimes we’ll do longer,” Bensey said. For clients that have the resources and the cash flow, the firm may explore multi-care insurance alternatives, which Bensey says are harder to come by these days because most traditional insurance companies have gotten out of that business. Hybrid insurance products now proliferate and could be an answer for some people. “So, we work through all the options and let them figure out what they want to spend their money on or not spend their money on.” He added: “We explain what the alternatives are if you don’t insure; if you’re self-insuring,

it can be using assets like selling the house to pay for care. So, we just walk them through their options and sometimes they have the resources and sometimes they don’t – and it’s kind of decided for them and you make the best of it.” Despite the pandemic, Bensey said the work never really slowed down, and in fact, business has grown. He noted that he’s grown also, by adapting and now having two younger employees who look at the world a little differently than he does, who are very good in their areas of specialty, and who are preparing to carry on the West Virginia gas station work ethic. For more information on Good Life Financial Advisors of Orlando, visit: goodlifefinancialorlando. com

COVER FEATURE

by bobby l. hickman

Making Financial Education Enjoyable

MoneyShow looks forward after 40 years of sharing investment knowledge

eeping financial education interesting and relevant by partnering with leading experts has helped build MoneyShow into the world’s largest global network of investment and trading expert education over the last 40 years. “It's important to enjoy your education,” Kim Githler, the founder, CEO, and chair of MoneyShow, said in an interview with Advisors Magazine. “We work hard to find fascinating personalities and people who are genuine about wanting to create a better tomorrow and making a difference. We believe in our mission and our vision to educate but, more importantly, we believe in the impact that we have on our constituents.” Founded in 1981, MoneyShow is one of the pioneers in empowering individual investors and traders by sharing expert advice and strategies, Githler said. More than 1,500 presentations from 1,000-plus financial experts are available to the public on its newly expanded website. The range of experts includes Steve Forbes, Jim Rogers, Arthur Laffer, Anthony Scaramucci, and John Bollinger. MoneyShow has approximately 1.2

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million clients – primarily individual investors, but also some 50,000 financial advisors. The company offers digital courses, online articles, investor cruises, and virtual and face-to-face conferences. Clients who participate in virtual shows have an average net worth of $3 million, Githler said, while those who attended live events average $1 million. When MoneyShow started 40 years ago, participants skewed 90 percent male. Today the membership is split almost 50/50 between males and females, and includes people from virtually every walk of life. Prioritizing Online During COVID-19 Like many similar firms, the COVID-19 pandemic accelerated MoneyShow’s shift to more online events. Previously, the company ran 10 virtual conferences per year, but doubled that number during 2020. In March 2020, Githler said, “business as usual” came to a halt. MoneyShow worked with its technical team to create a robust virtual platform so it could offer more online conferences. “When we were doing live

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conferences, we would have up to 5,000 people attend,” she said. “In May, we put a simple email out to our community for our first virtual conference, and we had 19,000 registrations.” MoneyShow now offers virtual events on a bi-weekly basis. The events feature some 25 experts talking over several days on topics ranging from COVID vaccine progress to new U.S. government policies to global macro trends and emerging markets. MoneyShow has made a particular effort to ensure that its virtual presentations provide indepth information. It also provides opportunities for participants to pose questions to the experts as well as talk with each other during events. “The demand for diverse information continues to grow,” Githler said. “They want to know about gold and mining and global investing, about emerging markets and overvalued U.S. stocks and what’s happening in the index markets. “ After cutting back on live events last year, the company expects renewed growth once live conventions and face-to-face meetings resume later this year. The company is currently planning two investor cruises in August, returning to a popular venue that was postponed last year. The company also expects to hold a new series of live events this year in Orlando or Las Vegas. “We have a tremendous contingent of people in the Western Hemisphere that we feel like we have not been able to touch recently,” Githler added. “We would prefer Las Vegas, but meetings in Las Vegas are limited to 50 people. Otherwise, we will be in Orlando, as Florida is an open market.” Growing MoneyShow University Five years ago, the company launched MoneyShow University 16 / ADVISORS MAGAZINE

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to empower young people through financial knowledge. Sarasota-based MoneyShow has partnered with 14 Florida colleges (including the University of South Florida, Indian River State College, and Rollins College) plus a handful of high schools. MoneyShow buses 500 to 1,000 students from the colleges to its live events in Orlando, and the program has been highly successful. Spanning the generations, Githler observes that the investment strategies being pursued by young people are less conservative than those among older Americans. “Baby boomers, who are a large core audience of ours, are more buyand-hold oriented,” Githler said. “They take a longer-term view. They're more careful with their money. They're not as comfortable in the options world or with futures trading strategies.” However, she continued, the demographic groups that include millennials, Generation X, and Generation Z encompass more selfdirected investors. “They are extremely optionoriented. They want to dive into new products like Bitcoin. They're willing to take those opportunities through a more short-term approach. Trading can be very heady and exciting. You can have Tesla buying $1.5 billion worth of Bitcoin and see it go up two thousand dollars in a day, and that's terrific – but don't hold your breath.” The firm’s goal with financial education for young people is ensuring they understand the entire scope of diversified investment strategies. Githler said young investors need to be more than opportunistic, leveraged traders. They should simultaneously pursue a buy-and-hold approach through long-term portfolios they can nurture and grow for decades to come. For 2021, the company is expanding MoneyShow’s virtual platform to college investment clubs. While Githler ADVISORS MAGAZINE / 17

L/R: Dan Gramza, June Felix & Kim Githler MoneyShow TradersExpo Panel

noted that MoneyShow already has tens of thousands of students who come online, the continued growth of the internet and the COVID-19 pandemic have accelerated interest in online sessions. “We create no barriers to entry; most of our education is free,” she said. “Students were initially a bit overwhelmed with the subject matter but in reality, it is not that difficult. We offer a lot of great resources for students, individual investors, and financial advisors to educate themselves.”

MoneyShow TradersExpo

Serving Financial Advisors Financial advisory firms also comprise a small yet significant segment of MoneyShow’s audience. Over the years, Githler noted, the firm’s constituents have long relied on one or more advisors to help them with investments. In recent years, those advisors have largely evolved from the wire house brokers of 20 years ago to the independent advisors today. “They have moved away from selling stocks or products to a more holistic, approach more like education,” Githler said. “They talk about how 18 / ADVISORS MAGAZINE

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many working years clients will have, where they should invest, and how they should diversify their long-term trading account. They've done a great job.” Githler added that advisors continue shifting their focus to address emerging client demands. For example, a number of advisors are responding to demand from retail investors for more choices by moving into the growing number of alternative investments coming into the market. She added advisors are also dealing with a number of nervous investors who realize the market has become somewhat irrational, particularly in terms of how much money governments print to address current challenges. “I’m advising my friends to look at it their underlying asset values,” Githler said. “You should have five or ten percent of your portfolio in gold as your insurance policy. I believe we are going to see an evaporation of purchasing power. I don't know that we'll see inflation because we're seeing actually deflation going on, due to the level of debt around the world. When you print more money, it has to go somewhere.” Linking Government Policy, Investment Githler added that advisors are also getting calls from clients asking about how their finances may be

”

There is always an opportunity somewhere in the world. ‑ John Templeton

affected under the new presidential administration. They are concerned about taxes rising, or that direct interest rates will go up. “Policy is a big driver,” she added. “As a platform, MoneyShow features a number of policy experts, such as Gary Shilling and, within a few months, Larry Kudlow.” Githler said she feels it is important to provide knowledgeable advice to help MoneyShow clients understand the big picture. The platform includes speakers who address macroeconomics; how policies in Washington can affect the economy over time; and then tie that directly to specific strategies that range from passive investments such as ETFs to a portfolio-managed account like a mutual fund. Making those connections benefits both financial advisors and individual investors. While many investors are more interested in U.S. stocks, Githler said MoneyShow is also encouraging its viewers to look internationally. She quoted John Templeton (a MoneyShow speaker for many years) as saying, “There is always an opportunity somewhere in the world.” Looking ahead, she said, India and China offer significant economic opportunities (despite lingering transparency issues in China). With a combined three billion people, Githler added, China and India are expected to drive the emerging Asian Century. Technology is another powerful force that is changing the investment environment. Githler said she is a strong believer in artificial intelligence and data-driven decisions. However, she favors interacting with human advisors rather than relying on roboadvisors and automated financial planning platforms. “I do not believe that you will get your best return by putting your money in something and then closing your eyes,” she explained. “I wasn't

Steve Forbes, Chairman & Editor-in-Chief of Forbes Media

Githler, Forbes and Team, NYSE Closing Bell

a believer of putting your money with a broker and closing your eyes, or with a financial advisor and looking away. You want to learn from them. You want to be a part of the conversation, and you want to make a decision on why this is happening.” Githler suggests investors can expand their knowledge by creating their own personalized mentorship program. She proposes surrounding yourself with a half-dozen experts in different fields. Reading their books, following their newsletters, and watching presentations to expose you to a vast array of current, indepth expertise. “I would include at least two

economists who have their ear to the ground on both a global and a U.S. basis,” she said. “Another mentor could be an options strategist. Then I would look for a good value and small-cap investor, and another for large-caps and dividends. Finally, I would look for an advisor with skin in the game – someone who is putting their own money to work, who has other clients as well as himself. I want advisors who are knowledgeable, so I can learn from them as we go along.”

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Not Working 9 to 5: It’s a “She-Cession” Economy Pademic Impacts Women in the Workforce

he nation’s economy has taken a definitive feminine twist if you look at how the media is reporting recovery efforts from the COVID-19 pandemic. Call it the “She-Cession,” as first coined by C. Nicole Mason, president and CEO of the Institute for Women’s Policy based in Washington, D.C. Currently, this trending reference captures the data-driven notion that the COVID-19 pandemic has made a more significant economic impact on women than men. 20 / ADVISORS MAGAZINE

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Other labels are emerging. The “second pandemic” title is gaining ground as first stated by Lorna Borenstein, CEO of Grokker, a San Jose, Californiabased company providing employee health engagement and personal wellbeing services. In a nod to the classic girly color, “The Pink Collar Recession” moniker is highlighted in recent headlines accompanying articles discussing how employers are scrambling and struggling to get women back at work. Take your preferred pick:

by amy armstrong

The results are the same. The nation’s economy is suffering because women aren’t working in their former jobs. Economic Losses by the Numbers In an effort to frame the impacts COVID-19 has had on working women, here are some the not-so-pretty numbers: Women lost 5.5 million jobs during the first ten months of the pandemic. That is one million more jobs than what were lost by men. In January 2021, another 275,000 women left the

workforce, according to data from the U.S. Bureau of Labor Statistics. In December 2020, the U.S. economy lost 227,000 jobs – 196,00 of those were jobs held by women, according to the BLS (U.S. Bureau of Labor Statistics). When the nation’s overall unemployment rate jumped up to 14.7 percent in April 2020, the unemployment rates for African-American and Latino women were 16.9 and 20.2 percent respectfully. There isn’t enough ink to print all the statistics documenting how COVID-19 took women out of the workforce. Clearly, the path to emerging from the She-Cession is still being created. Here are some pieces of advice financial advisors can share with their clients to help them take the first necessary steps. Create a COVID-Free Revolving Child Care Pod In a creative twist on the adage, “it takes a village,” the idea of creating a child-care network in which all participants agree to cover child-care needs in a rotation based on work schedules is a proactive move mothers can make. “Consider creating a pandemic pod where you include a select number of people or families who have all been screened for coronavirus,” suggests Marie Thomasson, founder of Modern Assets, based in Los Angeles,

California, with its focus on advising women and their families. In a press release created by CISION PR Newswire, she advises the members of the pod “could help shoulder the burden of kid-watching duties.” Be sure to check regulations in your local area so that your pod doesn’t create a situation where you have more children than are allowed under in-home care and thus potentially end your childcare pod. Have a frank discussion regarding your concerns and make an agreement about how the cost of snacks, and meals will be handled. And, be ready to tolerate a bit more mess in your home when it is your turn. Take a Strong Grip on the Budget Reins An individual woman cannot control when the schools or daycare centers will reopen, but she can take even greater control of her household budget and spending. Now is the time for slashing spending, said Thomasson. Thomasson encouraged women to take another look at their household spending plan. She is not making that recommendation out of thin air – the single mother of twin boys said she had to do the same thing. “Cut everything that can be cut,” she said. “If it’s not essential, cut it back.” Focusing on the notion of living within the means you have, is another piece of advice from Shweta Lawande, an analyst at Francis Financial based in New York, New York. That idea is something an individual can master, she urges. “What we’re trying to share

with our clients in this time is to focus on what they can control,” Lawande said in a January 27, 2021, CNBC article regarding how women can rebuild their retirement accounts after losses resulting from the COVID-19 pandemic. She notes that “living with their means” has most likely changed due to the pandemic and budget shifts need to be made to reflect those changes. “While they can’t control lockdowns or the job market, they can make sure their budgets are airtight.” Lawande also suggests taking a second look at current investments. She is not advocating that people pull out of the market; but instead, her recommendation is to ensure that investments are adequately diversified in a mix of bonds, real estate, cash, stocks and other options. Get New Skills Change brings new opportunity, and the upheaval of COVID-19 fits that perspective. Thomasson suggests learning new technology-based skills such as coding. “There are a number of grants for women who want to expand their skill set or start a new business,” she said pointing to the Mom Project and its new program RISE, which is a scholarship offering women a way to pay for training to receive technical certification. A Challenge We’ve Always Had The COVID-19 pandemic aimed a spotlight on a longstanding problem in America, but one lurking in the shadows of the highly structured lives of working mothers. Kiddos going to school for ADVISORS MAGAZINE / 21

the bulk of the working day and babies and toddlers being brought to childcare centers while mom goes to her job are a critical support component making it possible for women to work. “The She-Cession is real, but truly, it’s just magnifying a situation that we’ve already had for far too long in our society,” Thomasson said. That fact is being recognized by Janet Yellen, the Biden administration’s Secretary of the Treasury. When she was a child, her mother quit her job to take care of her and her older brother; and Yellen has a son, so she knows firsthand how childcare impacts working women. Yellen is supporting Biden’s 1.9 trillion stimulus deal making its way through Congress as of press time. “The American rescue package that President Biden 22 / ADVISORS MAGAZINE

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has proposed really address the problems that women face,” Yellon told Democarcynow.org. “It places huge emphasis on getting our schools open safely, getting children back into school, providing paid family and medical leave during this crisis so that women don’t have to leave their jobs. I think this is really necessary to get women back to work.” In Conclusion American history is heavily dotted with instances of women playing an efficient role in overcoming adversity, including economic challenges. Women took care of the home front during the Revolutionary and Civil Wars. Women led the charge against slavery. Women characterized by Rosie the Riveter in World War II brought the nation’s economy out of its stagnant state and manufactured the

war reparations needed for the European and Pacific war theatres. During the ten-year period after the end Great Recession in 2010 caused by the 2007-2009 collapse of the housing bubble, women gained 11.1 million jobs. Between February and April of 2020, those gains were lost, according to a fact sheet produced by the Bahnsen Group of New York, New York, using data from the federal BLS. Certainly, that is a discouraging statistic, but through the annuls of history we find a plethora of examples in which women have bounced back. There is no reason why 2021 and beyond won’t be marked with more of the same.

by joe innace

TAPPING INTO CORE VALUES ADVISORS EMBRACE SERVANT LEADERSHIP 26 / ADVISORS MAGAZINE

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ore values are the deeply ingrained principles that guide all of a company’s actions; they serve as its cultural cornerstones, according to The Harvard Business Review. And the culture of a financial advisory firm, when its clearly laid out and its guiding principles widely communicated, is especially vital when managing clients’ wealth. It’s a lesson well-heeded and executed upon by Brian Roberts, CFS® and CEO of Synergy Wealth Solutions, based in St. Louis, Missouri. It’s a MassMutual firm with about 150 advisors serving clients in all 50 states. He maintains that the firm’s core values are what separate Synergy Wealth

Solutions from the pack, as long-term financial advisors who help clients and their families. In a recent interview with Advisors Magazine, Roberts was quick to define the company’s culture and delineate its five core values (in no particular order): Energy, Servant Leadership, Significance over Success, Results-driven, and Think Win-Win. “Synergy Energy means delivering an excitement and enthusiasm around education and planning and the relationships we have with clients,” Roberts said. “Too often, I think prospective clients have the idea that the conversation can be drab or dreary or they are so confused about their financial position.” Discussing financial matters doesn’t need to be mind-numbing. Prospective clients may think they’re not in a very good position or might feel like they are behind the eight ball. But at Synergy Wealth Solutions, Roberts explains that the culture of energy makes clients comfortable. ADVISORS MAGAZINE / 27

Advisors get a handle on where clients are and then deliver education at that point, building confidence by explaining the choices available. “The feedback that we get a lot of time is that we provide a totally different experience than they thought it would be,” Roberts said. “There is a lot of energy, education, enthusiasm and encouragement around taking the first steps. And after that, clients often see that they are not in as dreary a position as they initially thought.” Servant Leadership is another core value. Servant leadership, according to the Robert K. Greenleaf Center for Servant Leadership, is a philosophy and set of practices that enriches the lives of individuals, builds better organizations and ultimately creates a more just and caring world. Greenleaf first coined the phrase in an essay dating back to 1970. In essence, he stressed that a servantleader focuses primarily on the growth and well-being of people and the communities to which they belong. While traditional leadership generally involves the accumulation and exercise of power by one at the “top of the pyramid,” servant leadership is different. The servantleader shares power, puts the needs of others first and helps people develop and perform as highly as possible. “The thing about this business is we can’t further ourselves without

first serving and furthering others,” said Roberts explaining what servant leadership means at his firm. “So, we know that and there’s a pride at Synergy that we have. It’s important to be servant leaders for our clients and within our communities.” Roberts sees servant leadership as still unique in the world of financial advice. He maintains that such a mentality

makes the firm highly attractive, not only for clients to select and partner with Synergy Wealth Solutions, but also as a reflection of the firm’s culture. “Something special happens when people walk into our office and experience who we are as people,” he said. “And having a great, caring attitude is, unfortunately, kind of rare. To be able to do it in your profession

“Synergy Energy means delivering an excitement and enthusiasm around education and planning and the relationships we have with clients" -- BRIAN ROBERTS 28 / ADVISORS MAGAZINE

MAR 2021

and love the people that you work with and serve,” he continued, “that’s an attractive quality and it’s something that we’re definitely proud of.” Another core value: Significance over Success. “Here, we thrive on diving deep with our clients to have meaningful and productive relationships,” Roberts said. When leveraged with education, the significance over success emphasis allows the development of financial plans to deliver a legacy for clients’ loved ones and the things they are passionate about. “For us, we place far more value on this than anything else,” he added. Nonetheless, Synergy Wealth’s next core value is being ResultsOriented. “This is a performance-based culture and we have to deliver on expectations and get results,” Roberts noted. “Our clients are counting on us to bring the solutions, the confidence and the unique strategies to their situations, and we are committed to going above and beyond for our clients and exceed those expectations. This helps us forge longstanding, generational relationships.” Think Win-Win is the fifth core value, which furthers the resultsdriven nature of the firm. “We’re true partners with our clients,” Roberts said. “We’re with them at every single step of the journey. We’re always thinking win-win, and we strive to develop winning situations and deepening our relationships.” Inspired into the Industry The common thread running through the five core values is one of inspiration. Roberts, himself, was inspired as a young man to join the field of financial service. In 1998, he was a sophomore at the University of Missouri. He came from a relatively humble upbringing

and was working three jobs, funding his way through college. He recalls sitting in a finance class when a guest from the financial planning industry came to speak. “He was very eloquent and passionate about the industry – and he was selling the dream and I was buying,” Roberts remembered. “I had no idea about stocks or bonds or insurance or financial planning, but he discussed unlimited income, helping others, owning and running your own business. All the things that were super appealing to me.” It resonated with Roberts, but he had no idea at the time how transformational that speaker would ultimately be on his life. That speaker offered him an internship as a sophomore, which was uncharacteristic for the firm, which preferred to hire seniors. “I told him I’d work harder than anybody else, that I had a great capacity for learning the business,” Roberts recalled. And he did. He became increasingly successful in the business and in 2017, Roberts had an opportunity to create Synergy Wealth Solutions. He became the CEO and has grown the company to more than 40 locations. Today, Roberts likes to talk about leading with education. He recognizes that there is so much financial noise and that now, more than ever, information is so easily accessible. “The challenge with that is: what are the sources that you’re deriving

your interest or your education from?” he said, which makes it exceptionally difficult for clients to even take the first step. “Unfortunately, clients will just throw their hands up and say, ‘I’m so confused, I don’t know which direction to go.’” Such reaction was never more evident than during the pandemic. But Roberts and Synergy Wealth Solutions were up to task. “In my 23 years I don’t think I’ve ever seen a more important time for connectivity,” he remarked. “In times like this, I feel you have to be first; you have to adapt and you have to adopt – not only as a leader or somebody who is guiding and educating others, but especially when you are helping people care for their financial futures.” Roberts said his company was among the first to reach out with insight, providing guidance, knowledge and instilling confidence. “Communication is king in times of turmoil and chaos,” he said. “We worked exceptionally hard to update our clients daily.” The company produced newsletters, had extensive

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conversations, shared details in emails, and provided factual information. Technology like Microsoft Teams and Zoom videoconferencing were deployed, helping first the firm’s own advisors, and then helping clients to adapt to such platforms. “We held clients’ hands throughout the process, constantly educating – and it all helped build trust and confidence in our clients,” Roberts said. The Inspiration Niche Listening and greater mutual understanding are a couple of items that Roberts believes the financial services industry can improve upon. “The reality is we are more of a customizable society nowadays,” he said. “Nobody wants to be sold something. Nobody wants to be put into a box. There’s a strong desire, more than ever, for people to be able to be understood and to be heard.” Which explains why Roberts describes the niche at Synergy Wealth Solutions as providing innovative solutions for an inspired life. At its heart is getting to know what each client dreams of accomplishing and wants to accomplish. And Roberts emphasized that a cookiecutter approach, or off-the-shelf solutions to financial planning, just don’t work – because every family has a different dynamic and every person has a different goal for what they want out of their life. “To do great jobs as advisors, we first have to meet the client where they are and then build the confidence and trust to a point where they share with us the most intimate and important things in their life,” Roberts stressed. “And when you do that, there is no cookie-cutter solution.” Each Synergy Wealth Solutions client has a holistic financial plan, designed to protect them from the what-if scenarios that life may throw 30 / ADVISORS MAGAZINE

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at them, and at the same time being highly specific in order to match their goals with unique solutions and strategies. It comes back to the core value of servant leadership. Serving clients in an exceptional way that educates and empowers them, leading them to realize their own dreams. But beyond the clientfacing perspective of servant leadership, Roberts noted that it’s also the glue that binds all of Synergy Wealth Solutions advisors and staff together. “In supporting each other, through the whole global pandemic and beyond, it makes it an electric and

exciting place to build a profession,” he summarized. For more information on Synergy Wealth Solutions, visit: synergywealthsolutions. com

Local firms are sales offices of Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and are not subsidiaries of MassMutual or its affiliated companies. Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC. 16150 Main Circle Drive, Suite 400, Chesterfield, MO 63017. (636) 728-2400. CRN202302-277688.

made for you

In a world of fast food and one-size-fits-all sensibilities, how often does something feel made especially for you? The "Made for You" section celebrates those items that are created with such high quality of hand workmanship and degree of customization that they become individual to you. In each issue, our editors will endeavor to bring you special things from anywhere on the globe, choosing them solely on the basis of outstanding quality. Our goal is to give you guidance on the best of everything. 1 MONTBLANC — POLYCARBONATE SUITCASE As well as being able to slip through the tightest of airport queues and squeeze into the overhead cabin lockers, a stylish travel bag should add serious verve to your jet-setting outfit. How you emerge from an arrivals lounge says a lot about you, so a suitcase is worth dedicating some budget to. And, with air travel to an increasing number of destinations having now been given the OK (for the most part), some quality luggage is a particularly timely investment, too. mrporter.com.com

4 DIPLOMATICO — RUM RESERVA EXCLUSIVA A household name, it’s hard to go wrong with a bottle of Diplomatico. The brand originates from Venezuela and is one of the biggest rum producers in the country. Diplomatico aims to support its home country through its rum production by providing sustainable jobs and keeping the health of the environment at its core. The brand uses an ecological treatment process to transform residual water into fertiliser for its sugarcane. This bottle is aged for up to 12 years and combines mostly sweet flavours like fruit cake, rum and raisin ice cream, cocoa, dried ginger, cinnamon and clove. drizly.com

2 SALVATORE FERRAGAMO — OXFORD LACE UP A classic shoe with modern touches: slim line Oxford lace up with a fitted instep for an impeccable fit. The upper in soft calf leather is hand buffed to achieve a delicate chromatic nuance on the toe and heel, enriched by a broguing with a British flavor. Leather sole with double stitching and welt that narrows towards the heel for greater flexibility. The “Tramezza” construction, synonymous with the highest quality craftsmanship is used to create this shoe. The technique involves 160 distinct phases and over 6 hours of manual work by an expert shoemaker to combine strength and resistance with flexibility and absolute comfort. ferragamo.com

5 WOODEN WONDERLAND — THE WOODS IN MAINE Sitting 15 feet above the forest floor, The Woods Maine is elevating treetop living to new heights. Proving once and for all that, sleeping in the woods can be both an exciting adventure and luxurious experience. The two-bedroom two-bathroom refuge blends quintessentially New England style with a homey atmosphere. The two-story treehouse invites the outside in — from the expansive window views to the fresh moss touches and the strategic cutouts that let trees grow right up through the deck. Two night minimum. Up to 4 guests. thewoodsmaine.com

3 IWC SCHAFFHAUSEN — PORTUGIESER PERPETUAL IWC was founded in 1868 by a Bostonian: Florentine Ariosto Jones. The company created a name for itself by bringing together innovative new American production techniques with the traditional skills of master Swiss watchmakers. The result? World-class watches that stand out both aesthetically and in terms of reliability. An IWC watch is that dream combination of sophistication and durability. Effortless elegance alongside peerless quality and precision make an IWC watch one of the best on the market. mrporter.com.com

6 2021 CORVETTE — MID-ENGINE MASTERPIECE The mid-engine marvel continues to carve its legacy with every push of the ignition. Get behind the wheel and experience the balance of design and performance that puts Corvette, and whoever is driving it, out in front. For 2021, the head-turning presence and performance of Corvette is pushed even further with new available design options, FE2 suspension, Driver Mode Selector Visualization and Wireless Phone Projection. chevrolet.com

32 / ADVISORS MAGAZINE

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by joe innace

BUSINESS GROWTH TALK

INTERVIEW

BUSINESS GROWTH IN 2020 Creates Staff Opportunities in 2021

he U.S. Commerce Department reported in late January that real GDP decreased 3.5 percent in 2020 – the biggest annual decline since 1946 and the worst yearly plunge since 2009 and the Great Recession. The pandemic sapped demand for many services, especially food and lodgings, health care and recreation. Financial services, however, largely fared much better. Boston-based Sconset Wealth Management, under Northwestern Mutual, was among the strong performers. “The business has grown significantly in the past five years, and even more so throughout 2020, providing us an opportunity to have a record year,” Thomas W. Mitchell, CEO and wealth management advisor at Sconset Wealth Management told Advisors Magazine. The firm’s own record, according to Mitchell, is measured by servicing new assets and new net cash flow— while the whole team was working remotely. Mitchell explained that the pandemic inadvertently helped many people understand that they need to work with a wealth management team that is going to make sure every opportunity is seized; resources are maximized, and financial risks are planned for. “At the very beginning of 34 / ADVISORS MAGAZINE

Thomas W. Mitchell CFP®, CLU®, ChFC®, CASL®, RICP®

MY MISSION

Acting in your best interest, we employ evidencebased research, tools, and best practices to solve our clients' problems.

MAR 2021

the pandemic, even before we knew the world was going to make a seismic shift, I called every single one of my clients personally to let them know that the stock market has a correction on average one time every four years,” Mitchell said. “I reassured them this correction is something that is expected, and that their plan has a built-in strategy to help weather stock market volatility by having a safe buffer of cash reserve, earning a high fixed guaranteed rate of return to turn to when the portfolio drops in value.” But the COVID-induced downturn compelled Mitchell to call all of those clients again about 10 days later as stock market conditions got even

worse in March 2020 and scared many clients. “A second round of proactive calls was needed to calm the nerves and make sure people were not making decisions based on emotion,” he recalled. Pandemic or not, the heart of the current practice revolves around wealth management planning, which Mitchell views as different from financial advising. “I’ve noticed some financial advisors are focused solely on investment services, but wealth management is an all-hands-ondeck approach to helping the clients,” he said. Mitchell ticked off several things that a wealth management team will do to help clients:

• Create a vivid vision for what their financial future looks like. • See the gaps and inefficiencies and realize clarity on goals. • Walk through a rigorous wellbrainstormed financial plan. • Control clients’ natural tendencies to NOT follow through. • Urge clients to take their medicine and do their financial pushups. “In my wealth management practice, we often work on one-off complex financial decisions, so the clients don’t have to do it on their own,” Mitchell added. “My team has done everything from helping a divorcee buy a car to helping solve awkward family financial issues; we get involved in almost any area related to their finances.” He maintains that wealth

management always comes back to the financial plan that is created to help clients make future financial decisions. “If you decide to work with us, we will give you the nudge to make sure that you do all the things that you need to do, so things don’t slip between the cracks,” Mitchell said, noting that this means following up during open enrollment, selecting proper benefits, getting estate documents completed and signed off on, and more. And, in fact, the Sconset Wealth Management team — like its book of business — is also growing. In 2020, Mitchell added to staff, in order to help existing clients and the team simultaneously by increasing its capacity to ensure all clients at the firm get the best service possible and

to service new clients. The firm is also looking to hire CFP®/ CFA-credentialed personnel in 2021, including an investment operation lead. “In uniform, we follow a strict process, using the same general set of planning tools, the same set of pages in the financial plan, and employing the same strategies, tactics, and tools where they fit,” Mitchell added. Employees working with different client groups are cross trained to do other team members’ jobs, which is especially helpful when turnover occurs or people are out on vacation, sick time, or maternity leave. “When a firm is built with a good defense, no client or other team member needs to worry because we are all ultimately working for the greater good and we support one another,” Mitchell summarized. He recognizes that bringing in new people and investing the time to train is certainly a challenge, but always worth it. And in the very long-term, Mitchell sees his top advisors as his successors that will carry the firm forward for future generations. For more information on Sconset Wealth Management, visit: sconsetwealth.nm.com

No investment strategy can guarantee a profit or protect against a loss.

ADVISORS MAGAZINE / 35

NOTABLE WOMEN

”

Failure is not the opposite of success; it's part of sucess"

"A challenged world is an alert world. Individually, we're all responsible for our own thoughts and actions - all day, every day. We can all choose to challenge and call out gender bias and inequality. We can all choose to seek out and celebrate women's achievements. Collectively, we can all help create an inclusive world. From challenge comes change, so let's all choose to challenge." -- International Womens Day

Arianna Huffington, co-founder of the Huffington Post

Mary Barra, first female CEO of a major automaker General Motors Company

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”

If we win the hearts and minds of employees, we're going to have better business success."

One child, one teacher, one book and one pen can change the world"

Malala Yousafzai, Pakistani activist for female education and the youngest Nobel Prize laureate.

”

If you want something said, ask a man. If you want something done, ask a woman."

You may shoot me with your words, you may cut me with your eyes, you may kill me with your hatefulness, but still, like air, I'll rise! Maya Angelou, American poet, memoirist, and civil rights activist

Margaret Thatcher Former Prime Minister of the United Kingdom

IN RECOGNITION OF INTERNATIONAL WOMEN'S DAY

”

Shirley Chisholm, first black woman elected to the United States Congress, representing New York's 12th congressional district

”

At present, our country needs women's idealism and determination, perhaps more in politics than anywhere else."

Brave women risk their lives every day."

Amani Ballour, Syrianborn pediatrician and an advocate of women's and children's rights.

#ChooseToChallenge #IWD2021

ADVISORS MAGAZINE / 37

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EXPANDING FINANCIAL LITERACY

ADVISORS PROVIDE FREE COMMUNITY PROGRAMS American families continue to struggle with financial literacy – the ability to understand how to make smart money decisions. When people know how to handle their assets better, create solid saving habits, and invest wisely, they can improve their financial situation and reduce debt. BOBBY L. HICKMAN

evels of financial literary remain “alarmingly low” in the United States, according to a study by the FINRA Investor Education Foundation and the Global Financial Literacy Excellence Center. A recent Gallup poll found just 30 percent of U.S. households had a long-term financial plan. Meanwhile, an August 2020 Charles Schwab financial literacy survey found more than half of U.S. adults desire better money management skills. Helping both clients and the general public improve financial literacy is a top priority at Integra Capital Advisors, a fee-only fiduciary advisor with offices in Bradenton and Naples, Florida. “We do see financial education as being very important,” said Thomas Breiter, the firm’s president and CEO. “We don't consider ourselves a financial university, but we do want to teach our clients why we're doing what we're doing. Some are less interested in the information than others. Some seek us out because they just want us to take care of them. But the others are interested in what we're doing.” Improving financial literacy also plays a significant role in Integra Capital’s community

ADVISORS MAGAZINE / 39

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outreach activities which include serving on non-profit boards and public service volunteer work. The firm is a member of the Association of Financial Educators, a nationwide non-profit educational bureau that provides free educational workshops across the United States. AFE includes financial professionals in dozens of fields, such as investing, estate planning, accounting, tax, and real estate. Members provide complimentary financial education programs to companies and organizations that strive to enhance attendees’ chances for financial success. Breiter said members of his firm provide financial education seminars to community groups. Sessions were originally done through live meetings, but most currently are provided through video technology such as Zoom video conferencing. Seminars cover such topics as retirement planning, working with your 401(k), and how to plan for your estate. 40 / ADVISORS MAGAZINE

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“We have a broad spectrum of workshops that provide financial education,” Breiter added. “We do these as volunteers in our community. If someone attends a seminar, likes what they hear, and then decides they want our help, we make ourselves available to chat with them on a one-on-one basis. However, there's no obligation for them to become a client.” Integra’s “second opinion service” is another no-obligation offering to help the general public. If an existing client knows someone who is not getting the assistance they need to address a financial challenge or decision, Integra staff will meet with the person and provide the best advice we can. If that person ends up being a good fit for the firm, they may become a client. Breiter said his personal interest in investments originally led him to become a financial professional. Over time, his focus expanded

from investing to a deep planning process to help people plan their financial futures and reach their goals. “We've seen that so many people have a hard time dealing with the emotions of the markets when we reach the inflection points of extreme fear or greed,” he said. “Then people tend to make mistakes if they don't have a comprehensive plan. We want to help people plan for their financial futures so they can be ready to deal with critical life events as they come along, whether they are good or bad events. We all need to be prepared for those.” In the financial services industry overall, Breiter said, there had been a greater trend towards planning services in recent years. However, he said, a fundamental change is still needed to focus less on

transactions. “What’s missing is there are too many people getting advice from commissioned salespeople,” he explained. “They earn a commission by helping someone get their money invested, and then have little incentive to continue to help them. We need more focus on continuous planning that includes investment management, taxes, wills, trust, legacy giving, and other ways to help client work toward their personal goals. Integra Capital provides services to help a wide spectrum of clients. Breiter said the firm generally looks for clients with at least $500,000 in assets (although it does make exceptions for

referrals). He noted the ideal client is a successful couple with more than $1 million to invest. The practice also focuses on female clients who have are dealing with life transitions arising from such critical events as divorce and becoming widowed. The firm’s service philosophy is built around financial planning. If a client only needs investment management, for example, the firm can provide those services. But most clients are encouraged to construct and follow a comprehensive plan. Financial planning is not a one-and-done experience, Breiter said. It should be an ongoing process where someone develops a plan, implements it with

the advisor’s help, and reviews it periodically to adjust it as their lives change. “This isn't about us helping them beat the market,” Breiter explained. “This is about helping them become successful in reaching their financial goals. It’s more than investment performance: it's about controlling risk. Our client service philosophy is to blend risk tolerance and return. We want to find a comfortable spot where people can have the least amount of stress in their financial planning process as they work towards their goals.” ADVISORS MAGAZINE / 41

L/R Christina Sherman / Thomas H. Breiter, RICP®

Other core values include maintaining high levels of integrity and empathy. Integra Capital Advisors defines integrity as having the courage to be honest with themselves and their clients with the advice they provide. “Empathy means we want to do our best to understand our clients’ situation, and then be able to render the best advice for them,” Breiter added. “Even if we disagree with how they've handled something, we need to understand their situation and have the right human interaction with them so we can maintain a good relationship.” Those interpersonal skills are particularly important when helping people plan for retirement. Breiter said each client and each retirement plan is unique, so the firm draws from several investment models as starting points to create a customized plan. “We don’t try to fit everyone into one model, but we don’t see the need to create something new for everyone who comes in the door,” he

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said. “We assess their objectives; the rates of return they need to success; their personality for assuming risk, and so for. Then we blend different investment programs to structure their overall portfolio. The building blocks may come from different models, but the amount of money in each model is different. Everyone’s plan varies because of such factors as the amount of Social Security they will receive and lifestyle expectations during retirement. Every plan is unique in some way.” For most clients, Integra Capital uses a time segmentation approach (also known as a bucket approach) to calculate post-retirement income needs. Advisors determine how much money the client will need during the first five years of retirement, and then decide how they can provide that income stream regardless of how the stock market performs. As the plan looks forward to the second five years, the third five-year period, etc., time segmentation introduces more stock

market risk as the investment horizon increases. “We believe strongly in the time segmentation approach,” Breiter added. “When we present this to our clients, they sit back and breathe a sigh of relief. They say, ‘Hey, I'm going to be okay. I've got enough money to do this and I don't need to worry so much about what stock market might do in the first year of my retirement.’ We've become very good at putting those plans together and providing people a lot of peace of mind and confidence about the future.” For more information on Integra Capital Advisors, visit: integracapitaladvisors.com

VION Receivable Investments, headquartered in Atlanta, Georgia, is an international provider of receivable investment services to businesses managing consumer and commercial receivables. VION provides a single, comprehensive source of expertise in commercial receivable factoring and consumer receivable purchasing, valuations, and process consulting.

VION Receivable Investments 400 Interstate North Parkway Suite 800 Atlanta, GA 30339 877.845.5242 phone 678.815.1557 fax Mesquite Corporate Center 14646 N. Kierland Blvd. Suite 122 Scottsdale, AZ 85254 480.729.6419 phone 866.260.1826 fax 123 North College Avenue Suite 210B Fort Collins, CO 80524 877.845.5242 phone 970.672.8714 fax 11921 Freedom Drive Suite 550 Reston,VA 20190 703.736.8336 phone VION Advisory Services 18017 Chatsworth Street Suite 28 Granada Hills, CA 91344 818.216.9882 phone 818.891.8738 fax VION Europa Paseo de la Castellana 95-15 (Torre Europa) Madrid 28046 Espanha +34 91 418 50 88 phone www.vioneuropa.es

RE C E IVAB LE

Atlanta • Phoenix • Fort Collins • Reston • Los Angeles • Madrid

IN VE S TM ENTS

by joe innace

THE

POWER of

PERSISTENCE

pushing for power of attorney during a pandemic Slightly more than half of American adults have a power of attorney (POA) in place, according to a recent article from the AARP, with 83 percent of people over age 72 having this important document compared with 41 percent of millennials. Sadly, chances are many of the American victims and their families of COVID-19 did not have someone in place who was entrusted with financial decision-making.

s with most businesses this past year, the FFR Wealth Team of Northern Kentucky had to be pandemically nimble. The firm, like most financial advisors, pivoted proactively to helping clients over the phone or with more videobased calls and webinars. And it used such outreach to zero in on POA needs. FFR Wealth Team’s clients range in 44 / ADVISORS MAGAZINE

MAR 2021

age up to 98. “Initially, some clients were not as comfortable doing a video call, so part of the pivoting has been to reach out more diligently to their power of attorney, or their trusted contact,” Shelley Funke Frommeyer, CFP®, CEO, Founder and Wealth Advisor of FFR Wealth Team, told Advisors Magazine in a recent interview. “And it’s actually been a real positive to get so many of our aging clients more communicative with their family members that are going to help them with some of these financial

decisions,” she added. Funke Frommeyer estimates that the firm has been able to accelerate by years the typical timeframe for getting trusted contacts and POAs to join its phone or video calls. “It’s important to us to keep the clients’ priorities moving forward. Just in case a health situation arises, we need a financial power of attorney to authorize a clients need for additional redemptions. We’ve been especially persistent about this,” she said. And then, as part of those virtual visits and phone calls with a trusted contact, the FFR Wealth Team can more easily discuss detailed information, in order to serve a client’s best interest. For example, net worth can be summarized, banking information known and more. “Many clients simply don’t share such information with the person who they may think of as their power of

attorney, or trusted contact,” Funke Frommeyer explained, “So this pandemic has helped us get more clients to think harder about who they really trust, have the necessary family conversations, and then put that information in a secure, digital format.” A secure, website-based vault contains such information that is collectively known as the client experience. The client can log in, and while they cannot sell or trade, it presents a financial dashboard. “This allows clients to inform their family members completely about what they have and where,” Funke Frommeyer added, “and it can allow us, as advisors, to communicate more completely or concisely with their trusted people, using that digital client experience.” In fact, one upside of the pandemic is that digital and technological

elements in the field of financial services have accelerated tenfold in the past year alone, she noted. The pandemic also afforded the firm to put its core values to the test, as change happened quickly. Client relationships are built on education and trust, Funke Frommeyer emphasized, pointing to the importance of accountability, persistence and education. “Being a lifelong learner is one of our core values, as well as being positive, respectful and family-oriented,” she said. Toward that end, the firm publishes for clients a weekly newsletter to keep them familiar with the SECURE Act, The CARES Act, and so forth. “And because of this pandemic, some of those changes have been coming about rapidly,” Funke Frommeyer noted, adding, “We’ll provide clients not with an exorbitant amount of information because we want it to be digestible and not overwhelming, but to continue keeping them informed and feeling confident. And we’re also conveying that we’re taking it all into consideration, and will reach out proactively to make adjustments if needed.” The firm is also offering 30-45-minute client webinars, which were in-person up until the last nine months or so. Using Zoom videoconferencing or just with phone calls, FFR Wealth continues to keep clients up to speed on subjects ranging from Medicare and HIPAA to estate planning. Overall, the firm takes a holistic approach to financial planning. Funke Frommeyer describes the typical client as that person who starts dealing with enough financial complexity to the point where they feel the need to bring in some help. “Sometimes that occurs right around age 50, but sometimes that occurs a little earlier when a young

person around 35 is widowed, or it occurs when a person at 60 is widowed, but they’ve been sort of a do-it-yourself up until then,” she said. Clearly, it’s often at the time of a significant change in a person’s life. “Yet, they don’t just want us to manage their money. Only about 20 percent of our clients want that or just want a certain return on investment,” Funke Frommeyer added. “Most want us to provide an overall financial review that factors in all of their assets.” There is no investment minimum at FFR Wealth. Rather, the firm has a minimum financial planning fee of $2,500. For that fee, advisors will guide an initial client through their value system, learning a client’s dreams and goals, and then show clearly what can be solved to give clients some comfort and clarity around their current situation. Happening shortly thereafter is the discussion about whether or not FFR Wealth then manages the client’s money. For more information on FFR Wealth Team, visit: ffrwealthteam.com

Securities offered through Cetera Advisor Networks LLC, Member FINRA/ SIPC. Investment advisory services offered through CWM, LLC, an SEC Registered Investment Advisor. Cetera Advisor Networks LLC is under separate ownership from any other named entity. FFR Wealth Team – 50 E. Rivercenter Blvd. STE 1225, Covington KY, 41011.

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by bobby l. hickman by martin frost

INDEPENDENT TALK

INTERVIEW

CUT THROUGH THE CLUTTER

by joe innace

SPECIALIZING IN SUSTAINABILITY AND SOCIAL IMPACT INVESTING Pioneering ESG Portfolios

Since the late 1990s, market index providers have offered up indices to investors wishing to integrate environmental (E), social (S), and economic & governance (G) factors -- collectively known as ESG -- into their core investments. Such vehicles have done well in recent years, outperforming several traditional indices, according to S&P Global.

effrey Ball, CFP®, CSRIC® has remained ahead of the ESG curve. Now Senior Vice President-Financial Advisor, and Senior Portfolio ManagerPortfolio Focus at RBC Wealth Management in Red Bank, New Jersey, Ball’s interest in ESG investing dates back to 1988. That’s when he became 46 / ADVISORS MAGAZINE

an investment advisor. “I was immediately interested in companies that had a positive social impact,” he told Advisors Magazine in a recent interview. “When I researched this topic in the late 1980s, the only resource I found was a single investment newsletter with a small circulation,” Ball recalled. MAR 2021

“The only investment that I remember being highlighted was the stock of a hippie ice cream company in Vermont; I couldn’t build portfolios around that.” Ball notes that most historians of responsible investing point to the boycott of apartheid in South Africa in the 1980s. And he remembers Wall Street research analysts and brokerage firms at that time being focused on hard data – such as book values, debt ratios and technical trends. “They had very little interest in warm and fuzzy considerations of corporate culture and social impact,” Ball said. “In spite of that, there has been a small but vibrant subset of investors and institutions who have been concerned about social issues, ethical issues, and responsible investing for decades.”

With strategic vision and dedication to responsible stewardship, our management team is helping reshape the way you might think about a full-service securities firm. Meet Jeff Ball

Jeffrey Ball, CFP®, CSRIC®

Fittingly, his first job was as a high school social studies teacher. In that position, Ball was sharply focused on social problems that he hoped his students would address as they related to their own lives. He left teaching to become an investment advisor about 32 years ago, but maintained a keen interest in social problems and a concern for global issues. Starting out at Merrill Lynch in the late 1980s, Ball quickly discovered that he could not direct investments for his clients into socially responsible stocks or mutual funds. There was too little research and very few identifiable investments available to retail investors, as well as very few institutional investors with that focus. “Much of the early interest in socially responsible investing came from the investment committees of trusts and foundations which were mission-driven, and they wanted their portfolios to match their values,” Ball said. Nowadays, clients seek out Ball because they want ESG investing. Such a level of client interest and concern motivates him to share plenty of knowledge and information. “There are many ways you can invest that may reflect and support your values,” Ball explained. “Some investors may want to avoid stocks of companies that produce alcohol or cigarettes, while other investors focus on companies that have a very specific positive social impact.” Environmental issues

often equate to managing the carbon footprint of a company. Social issues focus on ethnic and gender diversity at all levels of a corporation. And governance scores reflect a company’s responsiveness to feedback. “Clients want to know that their investment selection is based on the most comprehensive research available,” Ball said, adding: “Looking at ESG scores simply gives investors more information to consider when evaluating stocks and bonds.” It’s only in the last 10 years or so that institutional investors have developed sophisticated metrics for comparing corporate behaviors that had never been measured before. “A company’s carbon footprint was measurable for many years before we had any way to compare ethnic and gender diversity or corporate responsiveness in quantitative ways,” Ball said. “Just one or two years ago research on corporate responsibility was only available with expensive institutional research subscriptions,” he added. Corporate sustainability

is effectively the bucket that contains all ESG elements. And while the phrase has become a cliché, it reflects the noble ideal of meeting the needs of the present without compromising the ability of future generations to meet theirs. “Corporate sustainability has three main pillars: economic, environmental, and social,” according to Investopedia. “These three pillars are informally referred to as people, planet and profits.” Sustainability ratings for thousands of mutual funds are now offered by Morningstar. Yahoo Finance publishes ESG scores for more than 1,000 publicly traded companies. “The data flow, along with the variety of available investments is very new,” Ball said. “It was dramatically different just two years ago.” And corporations also now recognize the value of being more forthcoming with data than ever before. Today, companies have a strong incentive to talk a good game on sustainability, diversity, openness, and accountability.

“Corporate imagemaking is big business,” Ball emphasized. “It is up to us as investors, and the research firms that provide us with information, to judge the sincerity and depth of a corporation’s commitment to the social good.” He noted that there are now sustainable investing vehicles in every asset class and every investment category, and he said it’s nearing the point where it may no longer be necessary to separate corporate social responsibility from stock and bond analysis – because most Wall Street firms are now studying and evaluating these issues as relevant and important. For more information on Jeff Ball, visit: rbcwealthmanagement.com/ jeffrey.ball Past performance is no guarantee of future results. RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC. Due diligence processes do not assure a profit or protect against loss. Like any type of investing, ESG investing involves risks, including possible loss of principal.

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by bobby l. hickman

JASON S. ANDREWS FOUNDER, CEO

Brokers Weigh

GOING INDEPENDENT

MORE ALTERNATIVES AVAILABLE FOR BREAKING AWAY

rokers who had recently delayed plans to break away from the large wirehouses and go independent are again exploring alternatives paths to go into business for themselves as the financial turmoil of 2020 fades. “More than a third (36 percent) of brokers are open to either joining an existing RIA firm as an employee or partnering with platforms that provide technology and operations

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MAR 2021

support – up from a combined 16 percent in the fall survey,” according to TD Ameritrade’s “Break Away to Independence Survey Spring 2020.” Those favoring the traditional route of launching a new independent registered investment advisory firm (RIA) fell to 25 percent over the same period, the report continued. Meanwhile, Investment News Research reported a net gain of 931 RIAs changing firms during the first

nine months of 2020. One company focusing on attracting wirehouse brokers who want to break away is Merritt Point Wealth Advisors in Old Greenwich, Connecticut. Jason Andrews, founder and CEO, said he worked at large wirehouses for more than a decade before launching his own independent company. He combined that background with experience running his own practice to create a new “plug and play” model for independent advisors. Andrews said the number of advisors moving to the independent channel was already increasing before the COVID-19 pandemic caused brokers to delay their plans. He believes that post-COVID more people are open to discussing their options for transitioning to the independent side with him. “We offer a modern approach to wealth management,” Andrews said. “I saw both the benefits and the pitfalls of the wirehouses first-hand. We took what I learned there and all the great things they provide and used that as a foundation. Then we added on technology, marketing, and a flexible infrastructure. It’s a fresh way to look at things: a new-age approach that I believe is cool and exciting.” Andrews said an advisor can move from a wirehouse to Merritt Point and bring their book of business the same way they would transition to another wirehouse. They can also acquire existing books of business through the company (which also offers financing). Advisors can then access wirehouselevel research while leveraging new technology that enhances the client experience. The company also offers support with individualized marketing, advertising, and social media activities. Third-party business development partners help Merritt Point advisors build their book and maintain client relationships. Other

benefits include sign-on bonuses become protocol,” he said. “There (depending on the size of the deal); are plenty of advisors moving from regulatory compliance; HR benefits protocol and from non-protocol firms. such as 401(k) plans and medical As long as you're following the rules, coverage; and potential tax savings we don't see that as an issue.” and flexibility through 1099 income. In my experience, one reason “We were able to create a business advisors are leaving the large where you have 80 to 90% of the houses is the way technology has benefits of being independent and dramatically changed the industry, running your own practice without Andrews said. Ten to 20 years ago, many of the hassles of day-to-day he said, wirehouses were the only operations,” he added. institutions that could provide the The model can assist advisors necessary infrastructure, research, and coming from both protocol and proprietary products required to meet non-protocol houses, client needs. Today, Andrews noted. Advisors technology makes those employed by firms "We were able to features readily available that joined the Broker to smaller firms. create a business Protocol agreement can “For many of the where you have more easily switch firms advisors I talk to, 80 to 90% of the or go independent than support staff is another those working at nonmajor issue,” Andrews benefits of being protocol firms. They can independent and continued. “They don't also contact their current get to hire and choose running your clients who may wish to their own support staff, own practice follow the advisor to the and the size of the staff without many new firm. is usually mandated. of the hassles of “Since we are affiliated I've spoken to advisors the day-to-day with a protocol firm, who are growing their operations." any advisors that join business so quickly that our practice would also they can't get support

to open the accounts fast enough. We can help circumvent that issue because providing quality support staff is one of our major focuses.” Succession planning provides another advantage for the Merritt Point approach, Andrews continued. As advisors get older, some houses are setting the time frames when they must leave the company. He said his company offers more flexibility for advisors to decide how and when they will turn over clients to their successors. Andrews said Merritt Point will have eight financial advisors by early 2021. The three-year goal is to reach 25 advisors and at least three more offices. By the end of the decade, he hopes to reach 100 advisors in at least five offices – primarily in the New York metropolitan area, plus possibly Florida. “Not everyone is going to be the right fit for us, and we're not going to be the right fit for everyone,” he added. “We're looking for the right type of people who want to grow with us. It might be someone considered to be on the lower end for a wirehouse, and who thinks they can grow through social media or book acquisition or financing. I believe that provides the benefits for us, for them, and for their clients.” For more information on Merritt Point Wealth Advisors, visit merrittpointwealthadvisors.com/ for.advisors

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Merritt Point Wealth Advisors is a separate entity from WFAFN. CAR-0121-03267 Ad

ADVISORS MAGAZINE / 49

by joe innace

business strategies for licensed professionals When an outside expert can help

The consulting industry in the United States generates more than $150 billion in revenue a year, according to the website Consulting.us. The number of independent operators is steadily rising and most consulting firms are solo enterprises.

Exploring Life One Poem at a Time, is available on Amazon

50 / ADVISORS MAGAZINE

MAR 2021

Stephen Mayer, PhD, PE

Among those more than 700,000 consultants in the U.S., Stephen Mayer, PhD, PE (professional engineer) — and owner/principal of SF Mayer LLC — is likely one of the few who use poems to help set him apart. Writing poetry is one of his creative outlets. And he says it enlightens his consultant work as a specialist with a niche serving design firms, construction and engineering companies, financial services firms and investment banking. “When I write poetry, it helps me have an empathetic look at businesses,” Mayer recently told Advisors Magazine. “There are plenty of Excel jockeys; you can get a teenager to run your numbers,” he explained. “But the numbers don’t deal with the emotional IQ and emotional intelligence. And I

work hard at blending that emotional intelligence side with the hard analytics side.” Mayer is also a college professor and leadership educator who relishes sharing his knowledge about winning more work. As a licensed engineer who was general manager for Buffalo, New York’s Peace Bridge for over 10 years, he recalled seeing so many business proposals and presentations that were numbers-heavy. “Such proposals might boast ‘we have 300 engineers,’ to which I would always say, ‘so what?’,” Mayer added, noting that in crowded, competitive markets there is always a firm somewhere that can top another’s numbers. “So, the question is how do we really capture that emotional, or the soft side of a client’s interest

in demonstrating what’s really important,” Mayer said. “From a client perspective, what’s really going on here that your service or product is going to bring to me to enrich my life, my business.” Presentation coaching is a big area for Mayer. He sees himself as a movie director of mock presentations — often good-sized productions with graphics, simulations and augmented reality scenes — to help clients hone their skills. “Even with the best proposal in the world, the client needs to see you,” Mayer said. “You want them thinking, ‘I want to work with her, or I want to work with him. And without that, it’s tough to win work.” And winning work, increasing profitability and building lasting relationships are the hallmarks of

Mayer’s consulting practice. Such tenets are also at the core of his classroom work as an adjunct professor with the MBA program at western New York’s Niagara University. Recently, he was asked to develop a new course that he’ll begin teaching in April. It’s called Marketing for Professional Services. “It’s for firms that do financial planning, engineering and architecture, maybe even law firms,” Mayer said. “So many of our graduates go into accounting, finance—those types of disciplines— and they’re going to find themselves working in firms, helping to grow the business.” The Marketing for Professional Services curriculum, inspired by Mayer’s consulting, applies to all licensed business activities — from CFPs to professional engineers, and even doctors, lawyers and CPAs. As part of the course, Mayer will initially set the groundwork on the importance of professional services to the economy. He will then show how firms are positioning themselves. Most professions are very crowded fields, so the challenge is around how a company stands out. “I have a fun little exercise,” Mayer remarked. “I take firms through a visioning exercise; and I have to be honest, I used to be negative on vision statements,” he continued. “Until I realized that preparing them is what’s most powerful. That’s because it forces you to distill the essence of what you’re all about.” After determining what a firm is really about, there’s a look at some of the major factors that can lead to success. There are many, but Mayer — echoing his PhD research work — points to main ones like reputation and relationship management, which fuel growth at professional service firms. Also vital are the people a firm has on point; for example, a top financial advisor at a wealth management firm, a project manager at an engineering/construction

company, or a top personal-injury attorney. “So, then we explore how to promote these,” Mayer said, which delves into the sales and proposal process. All along the way, Mayer has fused his professional and academic activities. A case in point: when proposals are written, Mayer has red teams — groups of students or a client’s team — that review documents with critical eyes. “They must ask: So what? What’s the point you’re trying to make here?” he explained. “So, this approach hones the very best sales offering, the very best proposal that you can provide to the client.” Through his years of experience, Mayer has encountered some common problems that can hold back businesses. One is people letting their egos get in the way. Another is companies wanting to pursue every sales lead, when they should do a better job of selectively matching their own strengths to qualified business or projects. Another mistake is not spending enough time to build relationships in the community, with zero emphasis on selling. Non-work-related activities with the Boy Scouts, a local house of worship or food pantry, can go a long way. “It’s here where the professional service provider can become known as a great person with an ethical reputation and most importantly, somebody to trust,” Mayer summarized. For more information, visit: sfmayerllc.com

ADVISORS MAGAZINE / 51

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Articles inside

Making Financial Education Enjoyable

Not Working 9 to 5: It’s a “She-Cession” Economy

Business Strategies for Licensed Professionals

Brokers Weigh GOING INDEPENDENT

SPECIALIZING IN SUSTAINABILITY AND SOCIAL IMPACT INVESTING

The Power of Persistence

EXPANDING FINANCIAL LITERACY

BUSINESS GROWTH IN 2020

TAPPING INTO CORE VALUES

Revealing an Advisor's Work Ethic

Cryptocurrency Comes Out of the Shadows