Robert Irvine: Revitalization Reality Chef Irvine takes on his most difficult challenge yet

MAY 2021

ISSUE 102

ADVISORS

magazine

robert irvine

impossible comebacks

Teens & Financial Literacy Financial education matters

Skills Every Entrepreneur Needs Successful tips for business owners

Covid19 Impact on Credit in America Credit fixer Robert Ross weighs in

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contents may 2021 on the cover

14

Robert Irvine: Revitalization Reality Chef Irvine takes on his most difficult challenge yet – helping restaurant owners recover from the pandemic shutdown

features

6

Teens Believe Financial Education Matters Lack confidence in literacy skills

21

5 Skills Every Entrepreneur Needs Offering successful tips to business owners

14 6

COVER STORY: CHEF ROBERT IRVINE EXPANDS “IMPOSSIBLE” FRANCHISE

37

COVID -19 Impact on Credit in America Repairable credit fixer Robert Ross weighs in

made for you

teens and financial literacy

38

interest in sustainable investing grows

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52

Our picks from around the globe

58

investing for generations

may 2021 advisor interviews

strategic financial advisors

42

10

history, heroes, heartaches & hopes

44

Convenience is King Creating a financial advice superstore

26

Making Sense of Federal Benefits Specializing in underserved markets

34

smart moves for retirement

30

Enjoying a Healthy Dialogue with Clients Questions produce positive results

32

Advisors Targeting Millennial Investors

50

federal benefits: solving the mystery

Firm recruits young advisors serving next generations

34

Planning Ahead for a Secure Retirement Many people need advice to properly prepare

38

26

Growing a Sustainable Garden of Business Happiness working from home yields fruit

42

50

More firms seek strategic financial advisors

Not everyone is required to put clients first

44

54

“4 H’s” Model builds closer relationships

Holistic approach to planning brings better results

46

58

Good rapport important for mutual success

Focused on generational diversity

Expertise to Boost the Bottom Line

Getting to Know your Clients

Making a Good Advisor-Client Match

Is Your Advisor a Fiduciary

Getting The Whole Picture

Growing a Practice Through M&A

ADVISORS MAGAZINE / 5

by amy armstrong

Teens Believe Financial Education Matters But they lack confidence in their skills

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early half of American teens say they are concerned that their general lack of understanding basic financial matters will keep them from achieving economic security in their adult lives. eIn a new survey from Junior Achievement – the national organization dedicated to helping high school students learn how to run businesses and gain financial skills – 46 percent of the respondents ranging in age from 13 to 17 indicated they view their own lack of knowledge regarding 6 / ADVISORS MAGAZINE

MAY 2021

money matters as a “major” barrier to their future financial security.

That percentage reflects similar numbers reported in prior years – and if looked at only in its own silo, the trend is discouraging to those working to ramp up the financial capability and knowledge of the nation’s teenage population.

“It is just frustrating,” said Jack E. Kosakowski, president and CEO of Junior Achievement USA in a MSN.com April 2021 article.

“Year after year, we keep seeing the same challenges, despite

people doing their very best to turn things around.

The JA study conducted in late March 2021 represents a departure from previous surveys solely focused on what percentage of teens could correctly answer rudimentary financial questions. This study expanded its attention to include how the perceived lack of financial skills made the teens feel negatively regarding their potential to succeed.

It isn’t that the teens don’t care about money and being proficient with its usage.

They do.

In fact, it appears they care a lot – 97 percent of teens

surveyed indicated that financial literacy is important, according to a recent study released by Step, a new mobile banking startup promising to educate teens on sound money practices so they can make informed financial decisions now and in the future.

The company, founded in 2018 and based in California’s Silicon Valley, concentrates on providing parents with tools to teach their children under the age of 18 fiscal responsibility by providing FDIC-backed bank accounts and VISA cards “designed for the next generation.”

The founders of Step, CJ MacDonald and Alexey Kalinichenko, designed their

system so that kids can make saving and spending decisions independent of guardian or parental control, but the adult(s) sponsoring the child’s account are notified when such decisions are made.

It gives kids the opportunity to make mistakes without drastic penalties – a luxury they won’t have as adults.

Hilary S. Jones Rojo, CEO and wealth advisor with Guardian Wealth Builders, LLC, located in Holbrook, Arizona, supports intentional financial education efforts aimed at the younger generation in hopes that children will avoid the common financial mistakes of youth such as credit card abuse and poor spending habits. As a part-time adjunct faculty member at a local community college, she welcomed the opportunity to create and teach a personal finance course among other business courses offered at the college.

“I was amazed how few of my students even knew what a stock or a bond was or how to finance a business or a home,” Jones Rojo said.

Start Learning at Home The reality that life is full of hard lessons applies to financial education as well. It is even more relevant when parents start teaching kids about government taxation and its impact on their finances.

One financial professional – a mom herself – believes parents are the best choice to introduce the role of taxes in a financial life.

Kelli Lanino, a financial advisor and branch manager at KL Wealth Strategies based in Riverhead, New York, designated taxes as one of three buckets she established with her children. It

is a mini version of the bucket system she uses at work for her clients, but its application is apropos. The three buckets are: current needs/wants; future needs/wants; and taxes.

“The tax portion was the harder conversation,” she admits. “But they had to understand that not every penny they made was truly theirs to spend.”

The discipline to adhere to not overspending in each bucket didn’t come easy, she said, but years later the dividends of her children having a firm grasp of basic financial knowledge was well worth it.

“My son once told that he was the only one among his peers who knew how to handle his monthly finances, including saving in a 401K/IRA,” Lanino said.

“Unfortunately, if children are not taught these basic concepts at home, and they are also not taught in school, it sets them up for financial failure in life.”

Stats That Motivate Adults to Educate Youth Here are some glimmers of hope that may encourage grown-ups to make sure the next generation learns financial lessons.

Watching their parents and or guardians struggle financially through the COVID-19 pandemic has motivated youth to be in a better financial position, according to yahoo!finance. com: 70 percent of teens in the Step survey indicated the correct definition of a credit score, 56 percent were aware of cryptocurrency, and 55 percent could explain how a federal stimulus bill works.

Youth receiving financial education prior to age 18 have better average credit scores and lower rates of delinquency as ADVISORS MAGAZINE / 7

adults, according to data from the Financial Industry Regulatory Authority’s Investor Education Foundation.

“Notable improvements” in credit outcomes were documented by the foundation for 18 to 22 year-olds in three states – Idaho, Georgia and Texas – where the Council for Economic Education rates the mandatory financial education in secondary schools as “rigorous” as compared to other states.

And here’s a number to 8 / ADVISORS MAGAZINE

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encourage parents of collegebound teens: The National Endowment for Financial Education showed that teens required to take courses in personal finance are more likely to utilize lower-cost loans and grants for higher education, as reported by CNBC. A Long-Term Investment Improving youth financial education won’t happen overnight, but each effort can help.

“There is a causal link with literacy and financial outcomes,” Gary Mottola, director of research at the Financial Industry Regulatory Authority Foundation in Washington, D.C., told CNBC. Noting that finance is a lifelong lesson, he continued, “financial education is not a one-anddone endeavor just like math is not a one-and-done endeavor.

A more constant drumbeat of financial education is likely more effective.”

CONVENIENCE IS KING

CREATING A FINANCIAL ADVICE SUPERSTORE

BY JOE INNACE

While employed as the manager of 94 small Kroger Grocery & Baking Company stores in Illinois, Michael Cullen wrote a letter to a Kroger vice president describing his ideas that would eventually revolutionize the grocery industry. His letter was never answered, but steadfast in his vision, Cullen resigned and moved his family to Long Island.

King Kullen opened its doors August 4, 1930 on Jamaica Avenue in Queens, New York. Success was immediate.

Shopping became convenient, and King Kullen supermarkets meant affordable food. No less than the Smithsonian Institute recognizes King Kullen as America’s first supermarket, according to an official history on the King Kullen website.

Today, about 20 miles from that first King Kullen location is another man with a vision. By combining real estate savvy with wealth management expertise and an entrepreneurial flair, Eric R. Nirenberg just might be drafting the next business-model blueprint for boutique financial advisory firms.

A boutique is a small financial firm that provides specialized services for a particular segment of the market, as defined by Investopedia. “Although they may lack some of the resources of larger firms, boutique firms aim to offer more individualized services and tailor their offerings to the needs of their clients,” Investopedia notes.

As president, chief vision officer, and owner of ClearVision Wealth Management Inc., Nirenberg was encouraged by his wife to purchase a building in Bellmore, New York, which he’d long had his eye on. And by so doing, he seems to have navigated the resource limitations of many boutique firms, by providing a range of professional financial services under one roof.

Competition is fierce in the financial advice arena. Market size of the financial planning and advice sector in the United States

10 / ADVISORS MAGAZINE

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is projected to be $52.9 billion in 2021, measured by total revenue, according to industry research company Ibisworld.com. That represents growth of 3.5 percent over an average of 2.1 percent per year between 2016-2020.

Driving growth is the number of households in the U.S. earning more than $100,000. “But the primary negative factor affecting this industry is high competition,” Ibisworld noted.

That building represented far more than just a home for Nirenberg’s practice; he long envisioned it as the springboard for leapfrogging the competition and the foundation for a new business model. He has since run with his idea to lease space to other professionals whose common bond is servicing clients’ financial needs, and transformed the location into a one-stop financial center.

While ClearVision Wealth Management serves a range of clients, most of Nirenberg’s business comes from people in the construction, architectural and building trades. He says most clients are a stone’s throw away. And they now have access to specialists in financial planning, insurance, investing, healthcare, eldercare, estate planning, taxation, money management and more.

Nirenberg told Advisors Magazine in a recent interview that his ideal client is the person who gets in there and does the things it takes to become wealthy.

The type of client who is able to tell themselves ‘No’, and demonstrates discipline in order to build wealth.

And, in a metaphorical nod to his mainly constructionrelated base, he likes to say, “The callouses you create building wealth today are the foundation for you keeping it tomorrow.”

ADVISORS MAGAZINE / 11

Always good with numbers and a selfdescribed supersaver, Nirenberg got into financial planning in 1996. With more than 25 years of seeing what clients wanted, he was able to leverage certain synergies.

“There’s an elder law attorney in our office; I met her through a client,” Nirenberg recalled. “A client was organizing his estate with her and she called me and said, ‘I’m working for this individual and he told me you’re his financial advisor.’” The attorney needed information and the two initiated a dialogue.

“Gradually, she started to see what we were doing here and how we separate ourselves from all the other people in this business,” Nirenberg said. “She liked our approach and was obviously a perfect fit for us.”

After he bought the building, Nirenberg made an office suite for her, and the collaboration started in earnest.

“She has clients that aren’t mine and we have clients that may not be hers, but there is obvious synergy there,” Nirenberg explained. “It feeds into this real estate investment that I made and the scalability of the business.

And clients love it, they gravitate here because we can handle all their affairs.”

In fact, a recent Deloitte study recommended that financial advisors should adjust their offerings and service delivery models “to win the battle” for the investor of the future. It’s a lesson and an analogy that resonates with Nirenberg.

“When you’re building wealth, every single day your money is in the trenches and it needs to be tended to,” Nirenberg said. “In some way, shape or form — whether it’s the debt management side, the asset creation side, the upside to the market, reallocating the funds — every little thing requires the right team of people handling your money — because your money’s at war.”

And Nirenberg wants to bolster 12 / ADVISORS MAGAZINE

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wartime troops by scaling up and opening more of his one-stop shops.

Franchising the concept is being considered.

“I’d like to do one in 2021 out east somewhere, maybe have one covering the south shore of Long Island, maybe one on the north shore,” Nirenberg said.

He recognizes, however, that it can’t be done alone and Nirenberg is quick to credit his team for their passion and dedication. “I owe a great deal of my success to the people that I surround myself with — one of whom is Andrew Heyman our managing director — as well as my wife and family at home.”

While the plan is to grow the brand by opening up more offices like the one in Bellmore, the difference

is these won’t revolve around Nirenberg. Another advisor will bring in their attorney, their tax specialist other professionals they work with, and he or she will be able to curate and maintain their own relationships, leveraging the model pioneered by ClearVision Wealth Management.

Nirenberg will serve as a mentor for that process.

Similar to Michael Cullen some 90 years ago, Nirenberg is determined to realize his own dream — that of a financial services superstore.

For more information on ClearVision Wealth Management, visit: clearvisionwm.com

CHEF

IRVINE’S ROBERT

14 / ADVISORS MAGAZINE MAY 2021 14 / ADVISORS MAGAZINE MAY 2021

CHEF

IRVINE’S ROBERT

Revitalization Reality Behind the Scenes of Restaurant: Impossible As of December 2020, more than 110,000 U.S. restaurants were closed for business temporarily, or permanently, according to the National Restaurant Association. America’s eating and drinking establishments finished 2020 nearly 2.5 million jobs below the pre-coronavirus level, and total restaurant and food service industry sales fell by $240 billion in 2020.

S

taggering data by almost any measure, the restaurant sector was negatively impacted more than any other industry in the country, according to the Washington-based association.

But be they films like Rocky and Rudy, or that restaurant around the corner that’s suddenly fallen on hard times, Americans tend to love a good comeback story.

Comeback stories are entrepreneurial Chef Robert Irvine’s stock in trade. His popular show, Restaurant: Impossible was turning around restaurants well before COVID-19. But now the stakes are even higher. Airing since last year has been an offshoot of Restaurant: Impossible called Restaurant: Impossible Back in Business, which addresses pandemic-specific issues.

From the set of a recent filming,

Irvine shared some advice and insights with Advisors Magazine.

“We revisited a lot of restaurants— many of which we had just been to— and helped them deal with the changes they’d need to make in the new climate,” Irvine said, explaining, “How to revamp the menu for take-out or walk-up service, how to implement new social distancing and cleaning protocols—everything that would keep their doors open during the pandemic.”

The Back in Business shows were done with a skeleton crew that drove around in a bus when it wasn’t easy to fly.

“It’s kind of a miracle that those episodes came together, but I’m proud that they did. I think it was a natural— and necessary—extension of the work we do,” Irvine added. Those episodes and others can be seen on Food Network and Discovery+.

ADVISORS MAGAZINE / 15

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The original Restaurant: Impossible started airing on Food Network in 2011 and ran to 2016. After a three-year hiatus, the show returned in April 2019. The basic premise of the now more than 200-episode series is that within two days and on a modest budget, Irvine and team renovate a struggling American restaurant, aiming to help restore it to profitability and prominence.

The producers screen numerous applications, according to Irvine. A wide range of factors are considered, but the two major ones are: How bad is the situation? And how long have they been in business?

“Preserving a neighborhood cornerstone that’s fallen on hard times would usually get priority over something that just opened and never developed a foothold in the community,” Irvine said.

48-hour turnaround Irvine and team have 48 hours to restore the failing restaurant; hence the name Restaurant: Impossible, because the mission is intense. Irvine noted that the 48-hour deadline is self-imposed, and not just there to create dramatic television.

The 48-hour turnaround is meant to provide a powerful jump start for the restaurant owners, and to remind them of what is possible.

“Remember, by the time we arrive on the scene, they’ve been struggling for years,” Irvine stressed. “To have a menu redesign and renovation happen in such a compressed time frame—as opposed to taking place over a course of several weeks or months—immediately puts them in a totally different head space.”

He’s quick to credit his builder, Tom Bury and designers Taniya Nayak and Lynn Kegan. “You could search the world and not find people who do better work under such intense 16 / ADVISORS MAGAZINE 16 / ADVISORS MAGAZINE

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pressure and they’ve been with me for the long haul, Tom since the very beginning,” Irvine said.

He explained that often the builder needs to serve up a cold hard reality check on the designer.

“The designers may come up with something beautiful and then Tom discovers a load-bearing beam that can’t be moved, and it throws a wrench into the whole idea,” Irvine noted. “And yet they don’t linger on those miniature defeats. They pick up and keep moving immediately. It’s inspiring.”

Irvine added that he and the designers/builders don’t feel constrained by the deadline and are not limited by what they can offer. After that it becomes a matter of implementation and the restaurant owners’ ability to keep it all going.

“We leave and they have a new lease on life,” Irvine said, “And of course it’s an emotional experience, hence all the tears you see.”

He always mentions in his shows: "I can fix the menu, I can fix the decor that's easy, but real change starts within you."

And Irvine, who can be tough on the owners on day one, doesn’t abandon those he’s helped. There is some aftercare.

“I think because it’s such a big change and a such an emotional experience it creates the conditions for real, lasting change,” he said. “Intense pressure creates a diamond, right?”

He points out that it’s important to remember that the renovations cannot be done without a lot of volunteer help from the community.

“So yes, I leave after two days, but your friends and neighbors who all turned out to sand down your tabletops and reupholster your chairs, they will continue to live with you and be your customers,” Irvine said. “That creates a pretty powerful motivation to not fall back on old habits.”

For any newly implemented recipes or operating procedures, which the owners might struggle with, there are regular check-ins after the cameras stop rolling to help them make any necessary adjustments.

“Data is the only thing [owners] should feel beholden to,” Irvine said. “If I give them a new recipe and they call me up and say, ‘Hey, it’s not selling,’ well then we get rid of it and we can work on creating something new. We do not just throw up our hands and walk away.”

The real deal: everything’s at stake During a time of so many scripted “reality” TV shows, Restaurant: Impossible has often been called the most real of the lot.

“If you ever have an opportunity to watch us film, you’ll see there’s virtually no difference between how those two days play out in real time versus how the whole thing is presented on television,” Irvine said. “We don’t inject drama into anything. We don’t coach anyone on what to say.”

ADVISORSMAGAZINE MAGAZINE/ /1717 ADVISORS

Indeed, at the show’s core are the honest conversations between Irvine and the restaurant owners.

“To be on the brink of losing everything you’ve ever worked for is inherently dramatic. You shouldn’t need creative editing to make that compelling. Reality itself is compelling,” he said.

As far as the advice shared with restaurant owners, Irvine said nothing is left to the imagination. He insisted that every piece of advice he offers to the owners is captured on camera.

At the heart of it, Irvine operates as a therapist. He deals with many families and business partners in stressful circumstances. Often, he uncovers perceptions holding people back from success and has an uncanny ability to pinpoint long-held resentments between people.

“I think I learned early in life that I was a good reader of people, that I could figure out what a person really wanted even if they weren’t spelling it out,” Irvine said.

Turning philosophical, he believes that when a person has met many different people and has much life experience, that person recognizes 18 / ADVISORS MAGAZINE

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basic human needs are pretty much the same. The underlying motivation for just about all human activity, according to Irvine, is rooted in a desire for personal fulfillment, a sense of community, a sense of accomplishment and most importantly, a desire to matter.

“Where someone else might just see a stubborn chef who won’t change his menu, I see a guy who’s afraid that his idea doesn’t matter, and by extension that he doesn’t matter,” Irvine explained. “That doesn’t make him a bad guy; He just hasn’t learned how to be honest with himself.”

As for how that plays out on the show: “I don’t dance around it. I jump in and confront it head-on,” he said. “I understand people and I can ask an incisive question. In most instances, I can take you by the hand and lead you to the revelation.”

Then and Now Irvine admits to signing up for home economics in high school to meet girls.

“I didn’t meet any girls,” he laughed, “but in a pleasant twist of fate it turned out that I had a knack

for the kitchen and really enjoyed transforming raw ingredients into a finished dish. I love to serve others, and being a chef is a very rewarding way to do that.”

Irvine’s first show for Food Network was Dinner: Impossible, which aired from January 2007 to 2010. The premise of the show challenged chefs to prepare a multi-course dinner for a big group of people, with limited resources, in a short period of time and with no advance planning.

“I’m very fortunate that it became a hit, and I couldn’t be happier that we’re back making new episodes after all these years,” Irvine beamed.

Dinner: Impossible returned this spring (March 11) to Food Network for a four-episode run. In the premiere, Irvine was whisked away on a helicopter for his first mission in Oahu, Hawaii – to make a feast without a kitchen for local residents using only produce and proteins he could gather on Kualoa Ranch, the location for the film Jurassic Park.

Nowadays, television is chockfull of cooking and food-travel shows, and as with anything garnering a lot of media attention, the trend creates a lot of new interest. Irvine thinks many of the shows are great and deal very honestly with how hard it can be to run a restaurant or work as a chef.

But anyone thinking about opening a restaurant needs to look beyond the hype, the perceived fun and glamor — and focus on the reality.

“There’s nothing that can really prepare you for the daily grind and how many hours it takes to be successful in the restaurant industry,” Irvine said.

That’s not to sound negative on the business, it’s just Irvine keeping it real—as he does on the show. “It’s an unforgiving marketplace with very little room for error,” he said.

Irvine’s core message, however, is applicable to all businesses and virtually any endeavor: nothing is impossible.

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The Dish robert irvine

World class chef, fitness guru, author and entrepreneur, Robert Irvine is also an unflinching supporter of military veterans.

Born in England, he joined the British Royal Navy at the age of 15 where his kitchen skills quickly became evident. As part of his Royal Navy service, Irvine worked aboard the Royal Yacht Britannia. As part of a guest chef program, he trained U.S. Navy chefs and worked in the White House kitchens.

Irvine has deftly shifted between serving 6,000 servicemen and women on a U.S. aircraft carrier and planning the menu for an after-party at the Academy Awards.

Believing that none of his success would be possible without the brave men and women who defend our freedoms, he founded The Robert Irvine Foundation in 2014 to support veterans and veteran causes.

A portion of the proceeds from Robert Irvine Foods goes directly to the foundation, along with public donations. The total amount of these funds is then disbursed through the foundation’s grants program. Past grants have been awarded to the USO, Valor Service Dogs, the Gary Sinise Foundation, and the American Veterans Center.

He is also the author of four books: Impossible to Easy, Mission: Cook, Fit Fuel, and Family Table.

For more information, visit: www.chefirvine.com 20 / ADVISORS MAGAZINE

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I N V E S T M E N T S

5 Skills Every New Entrepreneur Needs and How to Get Them Entrepreneurs of Success offers tips to help business owners become more successful

A

ccording to the U.S. Small Business Administration, there are nearly 30 million small businesses in the country. Many of them are started by entrepreneurs who have an idea or a dream but may not necessarily know what it takes to start or keep a business going. The good news is that the skills needed to do just that can be learned along the way. Taking the time to learn what they are and adopt them will help entrepreneurs to be more successful with their business ventures. “Nobody knows everything right from the start, but if you are willing to learn along the way, then you will have no problem gaining the skills 22 / ADVISORS MAGAZINE

MAY 2021

you need to be successful,” explains Sara Khoudary, founder of Entrepreneurs of Success and the Mentor Momentum Community. “Entrepreneurs are a special group of people who are usually willing to do what it takes to see their business through.”

Having the skills it takes to be successful can make running a business easier and keep it less stressful. It can also make it easier to find your way around challenges that arise, such as those we have had to deal with over the last year with the pandemic.

Not having important skills can leave entrepreneurs feeling overwhelmed, stressed, and stuck where they are.

Here are 5 skills every new entrepreneur needs, as well as tips on how to get them: Communication skills. Being able to effectively communicate is essential in every business, whether you are selling to the public or other businesses.

Improve upon your business communication skills by reading books on the topic, taking an online class, or even joining a group such as your local Toastmasters.

Patience. Not everything is going to happen overnight. Even the most successful businesses take time to grow.

Overnight successes usually have years under their foundation before they suddenly take off. Learn patience

by being mindful and celebrating the small milestones. It’s important to realize that things take time, and to focus more on the progress being made along the way.

Stress management. Being an entrepreneur can be stressful. If you don’t do something to manage the stress, then you may quickly become burned out or it can lead to health issues. Do something regularly that helps you reduce stress, such as meditation, hiking, exercising, journaling, etc.

Networking abilities. When you have a solid network, you will be able to get advice from others. A mentor or group of people that you can turn to with questions, to vent to, or to hear

advice from can be golden. Find a mentor or join at least one group, such as Entrepreneurs of Success, that will put you in touch with others who are successful.

Hiring abilities. Many entrepreneurs need to hire people, but they are not familiar with such a task. Hiring the right people will make a huge difference in your business and can be the difference between thriving and diving. Learn hiring skills by reading books, discussing it with mentors, and attending conferences on the topic.

“Our mission is to help entrepreneurs be more successful,” added Khoudary. “When you have a support group that you can turn to, such as

with our mentoring program, you will find that you get the answers you need to move forward, overcome challenges, and continue to grow.”

Entrepreneurs of Success offers a close-knit community for entrepreneurs. Members of the group are able to tap into unlimited support by a group of successful mentors, access special tools, collaborate, book club, network, and more. Memberships start at just $15 per month. The group also has a “Leaders of Impact” program that awards top mentors each year who are nominated by the community.

To get more information or become a member, visit the site: entrepreneursofsuccess.com ADVISORS MAGAZINE / 23

MAKING SENSE

OF FEDERAL BENEFITS

Specializing in an underserved market

By Joe Innace

Some 2.1 million Americans are employed as federal workers, according to the U.S. Office of Personnel Management (OPM), the independent agency that serves as the Chief Human Resources and Personnel Policy Manager for the Federal Government.

T

hese workers participate in what is known as the Thrift Savings Plan (TSP). TSP is a tax-deferred retirement saving and investment plan. It offers federal employees the same type of savings and tax benefits that many private corporations offer their employees under 401(k) plans. By participating in the TSP, federal employees have the opportunity to save part of their income for retirement, receive matching agency contributions, and reduce their current taxes.

Sounds fairly straightforward, right?

The world of federal benefits can often be very daunting to most civilians employed by the government, according to the experts

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MAY 2021

at Federal Retirement Experts (a wholly-owned subsidiary of Jameson Financial Solutions, Inc). And Harry E. Jameson, president and CEO, ChFEBC, (Chartered Federal Employee Benefits Consultant) should know – it’s been his niche for more than 20 years.

“Specialization spells success,” Jameson told Advisors Magazine in a recent interview. “We’re not trying to be everything to everybody; we specialize. Federal employees have very unique benefits that most do not understand fully, these can be very complicated and confusing.”

He added: “We do get referred people who are not federal employees because we can help those people too. It’s just that we

specifically work in this niche market because it’s very underserved.”

Jameson explained that federal workers have between $50,000$2,000,000 in their TSP. The OPM reports the average annual salary for a federal employee is $87,312.

“Most major financial corporations tend to overlook people with modest savings, and therefore they don’t get the financial attention or help that they deserve,” he said. “We work with people who’ve been employed by the government for 25, 30 years, or more. Despite their longevity with the federal government, they still don’t understand how their federal benefits will impact their retirement.”

Jameson’s designation as a Ch-

FEBC is similar to that of a Chartered Financial Consultant (ChFC).

“For money-minded consumers who need advanced financial planning services, a chartered financial consultant (ChFC) could be a great place to start,” according to a Forbes article published in late March. “While ChFC may be less well known than the certified financial planner (CFP) designation, advisors who earn it actually have even more training designed to enhance their financial planning skills,” the same article noted.

His practice also serves as a government vendor. Jameson’s 3–4-hour seminars have trained thousands of federal employees, showing precisely how their government benefits work. From those

thousands trained, Federal Retirement Experts have brought in hundreds of clients.

“When we first meet with federal employees, we do a federal benefits analysis for them,” Jameson said. “It’s a highly detailed and personalized retirement report that tends to be very eye-opening.

From there we provide customized retirement solutions, of which there is no minimum and that sets us apart.”

Client investments they work with can range from as little as $20,000 to $1 million or more.

Federal employees or not, many people don’t understand where they are when it comes to what their retirement will look like, Jameson acknowledged.

“As one of my favorite baseball players, Yogi Berra, once said: ‘If you don’t know where you’re going, by the time you get there, you’re lost.’ Well, a lot of people don’t know where they’re going, and they need a plan,” Jameson said, adding that most of his clients are looking for sustainable, reliable income—either for a certain time or for the rest of their lives.

“The choices before them might be more income in the early years of retirement, or more in the later years. Or do they want a steady income stream? Others don’t need the guaranteed income, but look for significant growth that turns into a legacy they pass on to their families. These are the things we go through in the discovery and ADVISORS MAGAZINE / 27

THRIFT SAVINGS PLAN 1

the best retirement savings plan for federal employees is the tsp

2

tsp funds have extremely low fees

3

fers and blended retirement systems match up to 5% of your annual pay

4

maximize the tsp to receive the best possible benefits at retirement

5

once you set up the allotment / allocation you never have to touch it again if you choose not too

6

maximum tsp allocation is $19,500 in

7

2021

set it, and forget it

educational process. In the end, we help people attain what is most important to them.”

Never any Client Fees Federal Retirement Experts do not charge any fees and always does an in-depth needs analysis for every client and prospective client.

“We’re not just promoting products to people,” said Jameson. “People should know how advisors are being compensated, and our clients appreciate the fact that they are not paying us a fee. We provide them with a service and our compensation is not coming out of their investments where they start with a negative balance.”

According to Forbes, a consultant facilitates the process of a client buying the products the consultant recommends. The consultant then receives a referral payment from the company that sold the product.

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MAY 2021

Nowadays, it’s common for feebased advisors to disparage their no-fee counterparts. Jameson will have none of that.

“Fiduciary is a fancy word for trust,” he said. “Trust is the bedrock of a relationship, especially when it comes to money. We’re always looking out for the client which includes making sure the solution fits their circumstances, then we offer the best of what’s available.”

Integrity and honesty are paramount to Jameson. And he’s quick to point out that his firm has always had an A+ rating from the Better Business Bureau, which he says means there has never been a client complaint.

“One of the reasons we’ve never had a complaint,” he explained, “We only utilize safe money strategies for our clients,” and he emphasized, “Our client’s never lose money due to market risks!”

Jameson said, all of the firm’s clients are approaching retirement or are already there. He maintains that people in retirement or close to it, don’t have the luxury to recoup losses over long periods of time.

“We don’t have a crystal ball — no one does — we have to find strategies for our clients that provide guarantees,” Jameson said.

“The guarantees we look for have full upside potential, without the possibility of losing any money.

Meaning that the money will only continue to grow despite people taking lifetime income or withdrawals out. If TSP is leveraged correctly with the right solutions, people can experience significant growth, then utilize those funds when the need for assisted living, long-term care, or nursing care arises.”

Jameson says he’s always had a desire to help people, not only to do well in his career. From his earliest years in the business, he’s been driven to cultivate win-win relationships.

Specialize. Specialize. Specialize.

This year marks Jameson’s 50th anniversary in the financial services industry. He’s also turning 71 in 2021, but has no plans to retire because he loves what he does. It wasn’t, however, always easy.

In 1969, Jameson was working for General Electric in Los Angeles. But he wanted to get into what he describes as “real” financial services when he was hired by a manager at a large agency in Los Angeles. Later, his manager decided to return to his old company, Modern America, a division of CNA Financial. A year later, that manager called Jameson and offered him a position.

After being trained by his former manager, Jameson got his Securities license (Series 1 at the time) and soon after he went out on his own. At the time CNA was offering a program that had been endorsed by the major oil companies and Jameson was offering this retirement plan to service stations — Mobil, Sunoco, and others.

After his first month, in 1973, Jameson went on to become the top regional retirement plan consultant for that national CNA agency, staying with the company for about six years. After that, he spent 20 years as an institutional bond trader ultimately creating his own brokerage firm. He then became adept at tax shelter annuities (TSAs) and did TSAs for several more years.

“And that’s one of the lessons I learned in this business — to specialize, to get very good at something, and to serve your clients with that expertise,” Jameson shared.

The TSA work led him to the federal employee market, which he soon embraced as a specialty. After getting his ChFEBC designation, Jameson began marketing himself directly to the local federal employee community in the central Florida area.

That went very well. And the

Harry Jameson: President & CEO

Cindy Jameson: Chief Financial Officer

Maria Jameson-Mendivil: Executive VP

Steven Pecinovcky: Advisory Board Chairman

Donna Sandoval: Chief Operating Officer

Kendra Snodgrass: Administrative Assistant

Gregory Jameson: Benefits Consultant

Jim Simonelli: Benefits Consultant

Lee Dailey: Benefits Consultant

next move was to expand upon that experience through effective marketing and outreach, and hiring additional staff agents to grow the firm. One of those hires is Jameson’s daughter. She came from a corporate background that included 10 years of financial services, plus time in the healthcare and IT fields.

“She came to me and said, ‘I see what you’re doing, I’d like to be a part of it, and also help it grow,’” Jameson recalled. “So I trained her, and she is now our top federal benefits specialist within the company.” He continued: “Also, my son — similar story — he wanted to get involved, and he has great people skills. He did his training and is also doing extraordinarily well. Having my daughter and son play major roles in the company assures our clients of ongoing business continuity.”

Several others have also joined the firm, some with experience in working with federal employees, and all with proven track records.

The business has enjoyed significant growth over the last several years.

“This year, we will probably

quadruple our business, which will put us in the highest percentile of financial firms in the country,” said Jameson.

But the challenges of running any business are always the same, according to Jameson — you’re either growing or you’re not; there is no status quo. He reminds himself of that by remembering the saying he has found to be true: “No obstacle or problem can sustain itself against constant thought.”

“Our key to success is continually working on our strategic plan which helps us implement and achieve our goals,” Jameson said.

“We are constantly examining our market and figuring out how to better serve our niche of federal employees.”

For more information on Federal Retirement Experts, visit: federalretirementexperts.com

ADVISORS MAGAZINE / 29

by joe innace

EDUCATIONAL TALK

Enjoying a Healthy Dialog with Clients

W

Michael Kentor, JD, CLU®, ChFC® Founder and President of KENTOR

With panoramic financial vision, Kentor looks at every factor affecting your financial well being, from investments to estate planning to insurance.

30 / ADVISORS MAGAZINE

omen have made major strides in recent years “to become the most powerful consumers and gain social and professional positions,” according to a Penn State Financial Literacy course called MoneyCounts. “They shape the future of the nation, but many pay little attention to combating their personal financial challenges through life and into retirement.”

There is no ‘typical’ client at Austin-based KENTOR. They engage in Comprehensive Financial Strategies, but the vast majority of the firm’s clientele are women, according to Founder and President Michael Kentor, JD, CLU®, ChFC®.

“Our clientele is 70 percent female and 30 percent male,” Kentor told Advisors Magazine in a recent interview. “Women tend to ask questions; to fully understand the rationale of the advice. They like being spoken to and not talked

MAY 2021

INTERVIEW

Questions produce positive results

down to,” he explained.

“Some prospective clients tend to come in with predilections of what they know,” he added. “And they don’t want to spend the time to explore the relevance to their own situation.”

Kentor said he looks for clients comfortable discussing what their concerns are, what they want, their needs, wishes, and able to speak about any hidden liabilities. Out of those discussions, a customized financial plan can be developed.

“Sometimes people will come in and say they are willing to work with you, but then they are never available to talk at any time,” Kentor said. “And the client has to be available to review their circumstances periodically.”

There is no minimum investment required, and Kentor emphasized that the firm’s “religion” is diversification. “We get no comfort in seeing an all-eggs-in-one basket approach,” he said.

For prospective clients who are looking to put their assets into an account, Kentor said the key question is: “When do you need and want the funds? Because to me, the time horizon is the greatest indicator of what can be done and what should be done.”

Discovery, as in a courtroom, is big for Kentor who holds a degree in law.

If a client says they want

access to funds in six months, he then has information pointing to the need for secure investments, such as certificates of deposit, insured funds and Treasuries.

“We’ll also see people who often will have sold off some substantial interest, and will have a large tax bill,” Kentor noted. “And the first thing we do is make sure that after-tax liquidity will be available at the time it’s needed. So, we’re very sensitive to the time horizon for funds, on asset allocations and diversification.”

With experience in the insurance industry dating back to 1969, graduating law school in 1972, and heading his asset investment management firm since the early 1990s, the Kentor practice today encompasses hundreds of clients from Seattle to Paris, France.

“My personal goal is to have 75 years of work doing this,” Kentor summarized.

“I’m now in my 53rd year, and we’re growing the business by bringing in some young people and giving the clients the comfort of continuity.”

For more information on Kentor Comprehensive Financial Strategies, visit: kentor.com

Securities offered through Lion Street Financial, LLC, member FINRA & SIPC. Investment advisory services offered through Kentor and Lion Street Advisors, LLC.

by bobby l. hickman

MILLENNIAL

TALK

ADVISORS TARGETING MILLENNIAL INVESTORS

Firms recruit young advisors to better serve next generation of clients

F

inancial advisory firms are increasingly recruiting younger advisors to help members of the millennial generation invest for the future.

Millennials already make up more than 35 percent of the U.S. workforce according to the Pew Research Center, and are expected to inherit more than $30 trillion over the next few decades. However, only 25 percent of financial advisors are below the age of 40 – and only 10 percent are less than 30, Pew noted.

Meanwhile, Cerulli Associates reports that 66 percent of children who receive an inheritance do not stay with their parents’ advisors. Add in millennials’ preferences to deal with people from their own generation, plus the expected retirement of 37 percent of today’s advisors within the next decade, and it’s no surprise that more firms are actively recruiting younger financial advisors.

“It is certainly necessary to expand 32 / ADVISORS MAGAZINE

MAY 2021

into the younger generation,” said Jeffrey Lesniewicz, senior partner at The LAT Group – and a financial advisor with Raymond James Financial Services – in Downers Grove, Illinois. “We’re bringing in younger people, training them, and making them part of our team so we will be prepared as the millennial opportunities open up.”

The growth in automated trading platforms such as Robinhood reflects young people’s growing interest in investment opportunities. While some advisors seem threatened by these technology-driven trends, Lesniewicz said, he feels the platforms add new liquidity and volatility to markets while providing opportunities to more people to participate.

“It brings a more educated investor to the marketplace across the board,” he said. “It’s only going to create more valued and educated people in the market.”

At some point, Lesniewicz said, some of today’s independent young traders will be looking for advisors who can help them build on their gains from individual investment activities, such as those produced in the recent GameStop stock price surges.

“What happens one day when they say, ‘I don't want to do this myself anymore’ and they begin to seek out long-term advice? They're going to come find someone like us,” he said.

Once the pandemic ends and people are no longer stuck at home, many of these investors may no longer continually monitor the markets through apps and devices, Lesniewicz added. New and different trading strategies are likely to emerge once these new traders are no longer watching their screens all day.

“I'm not saying I encourage my clients to get on our mobile app and start trading all the time,” he added.

“But I have to be an open book.

They want our opinion. If they think they can go trade something, I'm not going to tell them don't do it.”

Regardless of client age or expertise, educating investors is a central part of The LAT Group’s approach. The firm has offered educational workshops for many years and continued that process during the pandemic through webinars.

“I coach a lot of kids’ sports,” Lesniewicz said, “and we're always preaching repetition and preparation. The same goes for our business. We want our clients to know what we're doing. There's no

clients 24/7 if needed. During the pandemic, that open access paid off in reassured clients and increased business.

“Unfortunately, it took the pandemic for some people to see who we actually are,” Lesniewicz said. “People called us with concerns about everything last year – not just about money. Most brokers and many RFAs {registered financial advisors} will not let you call them when the market is closed.

We were able to keep our lines of communication open with our clients during these uncertain times.

The pandemic has also given the firm time reflect on how it

more groups like ourselves,” he said. “We know there are guys at the wire houses who are looking to move independent, and we can help with that transition. That helps our business grow, too, by adding revenue streams.”

Regardless of future growth, Lesniewicz said, The LAT Group will continue seeking clients that it likes to work with on a personal and professional level.

“The character relationship is the part we look for,” he said. “I'm not saying we all have to agree on everything, but this is a long-term deal. You don't want to be working with someone for 25 years that

LAT Logos

L/R: Jeffrey Lesniewicz, Brian M. Ahern, ChFC® , CRPC®, Danieh Kaser, James M. Thorton

worse question than a client asking, ‘Why did we do that?’ So we take a lot of time educating our clients.

We don't want them ever to look at their statement and ask why we are buying something. We've already given them the reasons why we do certain things for them.”

The firm also emphasizes transparency and remaining open to each individual's opinions, needs, and individual goals. The LAT Group follows a concierge-type model and advisors are available to

can reinvigorate its business and make things better for its clients in the future. Lesniewicz said he has been able to step back from daily activities, appreciate what has been accomplished, and decide how to best move forward.

Beyond adding more young advisors, The LAT Group’s growth strategy includes increasing the number of offices under its umbrella.

“We want to expand our independent branches by finding

you're never going to see eye-toeye with. We have the opportunity to help make things right for our community of families in our book.

Who doesn't want to work with people?”

For more information on The LAT Group, visit latgrp.com

ADVISORS MAGAZINE / 33

RETIREMENT TALK INTERVIEW

by bobby l. hickman

PLANNING AHEAD FOR A SECURE RETIREMENT

Many people need advice to properly prepare

M

any people nearing retirement age do not understand basic retirement planning concepts, potentially preventing them from enjoying the lifestyle they desire during their golden years.

A December 2020 study by research firm MoneyRates found most Americans are poorly equipped to conduct their own financial retirement planning. The Investor Aptitude Survey found twothirds of respondents have not projected whether their savings will be enough to last through their retirement. Only 55 percent had created a monthly budget for retirement spending, while 25 percent thought their retirement savings would last less than five years.

While the MoneyRates survey 34 / ADVISORS MAGAZINE

MAY 2021

stated many people know little about planning, creating a retirement plan tailored to each individual’s needs is actually not that challenging, according to Benjamin Quilty, Certified Financial Planner™ and CEO of Pinnacle Investments, LLC in Syracuse, New York.

“It does require time to gather the necessary data,” Quilty said. “The first step is always just listening to the client talk about their goals, and occasionally asking questions to help them clarify those goals.”

Quilty said he has certain strategies he follows for portfolio management that are largely based on the risk tolerance of each individual client. He noted that his clients fall somewhere in the middle of the spectrum, between aggressive and highly conservative. His portfolio management techniques include several distinguishing factors that allow each

client to feel comfortable.

“At the end of the day, buying quality, having patience, diversifying, and implementing the investment plan through proven portfolio managers sets clients up to be financially successful in the long run,” said Quilty. “In most cases, the underlying portfolios are designed by experienced managers I believe in, who have long track records of success throughout many different market environments.”

Quilty said his approach can be summed up simply as, “Control what you can control.” He said his firm creates portfolios that are structured to weather significant market volatility. A well-diversified portfolio is based on a client’s risk tolerance, time horizon, and the quality of underlying investments – but does not attempt to time the market.

One key to the financial planning process is understanding the variables clients encounter outside the investment world that can change a financial plan. Those may include

PI

death, disability, and long-term care issues for a client or their spouse.

“We have great what-if conversations to make sure those are discussed and planned for,” Quilty said. “You can develop an effective strategy for clients which incorporates their Social Security benefits, however, to achieve that goal, you have to invest their savings and retirement dollars appropriately.

It all comes down to setting realistic expectations.”

“The retirement strategy may mean people will have to continue working longer than they anticipated”, he continued. “With modern medicine continuing to improve, people will live longer than they expect, which means more retirement dollars will be needed.”

Another significant factor affecting retirement planning is the current low interest rate environment, which has been ongoing for more than 10 years.

Lower interest limits the opportunities available to clients for safe, conservative investments.

Inflation is another growing concern.

While inflation has been low for many years, he said, expectations are growing that inflation rates may rise, particularly in response to various monetary and fiscal stimulus measures taken in response to the Covid-19 pandemic.

“That’s the dilemma facing advisors today,” Quilty noted. “There are several economic variables that we may have to deal with that make retirement planning a little more difficult. This makes it even more important to construct portfolios that are invested appropriately, and for clients to understand the risk and return of the strategy. That is how we approach retirement planning.”

Financial education is a huge part of that process. He said the firm educates clients throughout the data-gathering and planning process and continues communicating regularly thereafter.

As 2020 progressed, Quilty said, the firm focused on being more proactive, efficient, and transparent. He said the year brought economic shocks not seen since the 2008-2009 financial crisis. He and his team stayed in regular contact with clients, whether to simply say “Hello” or to discuss their portfolios.

He said the level of communication was basically the same as before 2020; it simply shifted to different communication modes, such as phone or videoconferencing calls rather than in-person visits.

“We were ready to help clients find peace of mind, since they were looking for someone to lean on and hold their hand during these uncertain times,” he said. “There are many individuals and families that still appreciate the handholding of a financial professional, and they are willing to pay a reasonable fee or commission for that advice. During the market times we’ve experienced recently, hand-holding goes a long way.”

Despite those challenges, the firm had its best year on record in 2020.

Quilty said Pinnacle Investments could not have maintained that growth

without a solid team and the support of its parent organization, Pinnacle Holding Company.

The firm is making critical investments – such as moving to a new office in Syracuse – to build on several consecutive years of growth.

“Our goals for 2021 include continued growth primarily by adding advisors to our team nationwide,” he said. “We are a dual-registered firm, meaning we are a broker dealer and a registered investment advisor.

We support financial professionals regardless of whether they are independent or looking to join us as an employee. We understand how advisors want to run their businesses, and we let them do that successfully.”

For more information on Pinnacle Investments, visit pinnacleinvestments.com

ADVISORS MAGAZINE / 35

CREDIT FIXER, INC.

FIX A 1“BAD” way to....

CREDIT SCORE

36 / ADVISORS MAGAZINE

MAY 2021

By Amy Armstrong

COVID-DAMAGED CREDIT IS REPAIRABLE Credit Fixer Robert Ross weighs in

T

he cash flow squeeze in 2020 brought on by the COVID-19 pandemic forced many Americans to make a choice between putting food on the table or making ontime payments for everything from cable bills to mortgages. Last year, one in four Americans missed making a payment by the due date thus triggering a potential ding to their credit report.

What’s more, a recent survey by market research company OnePoll reported by StudyFinds.org revealed that missing a payment wasn’t a singular event. In fact, many people surveyed admitted to missing an average of five payments.

That’s just a smattering of the bad news regarding missed payments. Let’s just skip over the rest of it and move on to the good news.

Credit Repair Strategy If your credit report took a hit or two or more during the COVID-19 pandemic, there’s empowering news, according to a credit repair expert.

Now is the best time to get those items removed from your credit report says Robert Ross, owner of Credit Fixer, Inc., located on Long Island, New York.

“This is a great time to take advantage of a basic loophole in the credit industry in which disputes often are resolved in favor of the creditor because the credit bureaus and the creditors they contact are just overwhelmed with the amount of

requests they are receiving – and they do not have the physical time to answer all of these requests within the required time frame that the law prescribes,” Ross said.

The Federal Trade Commission’s Fair Credit Reporting Act specifies that creditors have 30 days to respond to disputes filed with the credit bureaus. Those disputes can range from challenging the dollar amount owed – to the legitimacy of the entire debt listed on an individual’s credit report.

Often, that 30-day mandate cannot be met by the staff of companies struggling to do the research necessary to validate the accuracy of a debt, Ross explained.

“If they don’t respond within the 30 days, it drops off the credit report,” he said.

When new clients – who generally come to Ross by referral – grant him permission to run their credit reports, Ross scrutinizes each document searching for any errors and omissions.

“The credit bureaus make a lot of mistakes,” he said.

For instance, incorrect surnames, mistaken generational suffixes in which a “Jr.” or “Sr.” are mislabeled, and people with the same or similar names having someone else’s information attributed to them are all too common errors, Ross said.

As the nation attempts to emerge from the grip of COVID-19, Ross said he sees a large number of disputes not being an-

swered within the federally required time frame which bodes well for the consumer.

However, he warns, credit repair is not an overnight process and patience is a virtue.

“Some people are in a rush. They say they need this tomorrow,” Ross said. “It doesn’t work like that. It is a process. But even if it does take six months, what do you have to lose except bad credit?”

After 22 years in the credit repair profession, there isn’t much Ross hasn’t seen – and his perspective on the consumer credit industry was uniquely shaped by his early career path. He owned a car dealership and watched how the credit industry rated potential buyers. He saw the errors and trends, and how these events held people back from acquiring what they needed or wanted. Post the dealership, a friend suggested he consider a career in credit repair. He hasn’t looked back since.

“The hook is that I love helping people,” Ross said. “When someone calls me and says, ‘Hey Bobby, thanks so much, I got approved…’ for the car, or the apartment, or the mortgage for a house when they started with a 550 credit score and we were able to bring their score up to 740. That is what makes this worthwhile for me.”

For more information on Robert Ross and Credit Fixer, Inc., call: (516) 5045755.

ADVISORS MAGAZINE / 37

by joe innace

GROWING A SUSTAINABLE GARDEN OF BUSINESS

Happiness Working from Home Yields Fruit

P “

There are a lot of advisors out there who don’t know how to manage certain investments and that’s why they come to us.”

-Kimberly Griego-Kiel

38 / ADVISORS MAGAZINE

MAY 2021

eople working from home report a Workforce Happiness Index of 75 out of 100, compared to 71 for in-office employees, according to a CNBC/ SurveyMonkey Workforce Survey conducted in 2020. What’s more, remote workers indicated they are more likely to report being satisfied with their jobs than office-based workers, by a margin of 57 percent to 50 percent.

Count Kimberly Griego-Kiel, MBA, AIF® and president of Horizons Sustainable Financial Services Inc. among the converts for working from home.

“I always said for the past 20 years that I could never work at home; I would be so distracted that I’d never get anything done,” Griego-Kiel told Advisors Magazine

in a recent interview. “But what I’ve found in the last 12 months is that I have been more productive.”

Although she’s back now in the Santa Fe, New Mexico office about a third of the time, GriegoKiel reflected on how she’s grown personally and gotten better at balancing work and life. In short, it’s okay to get distracted because breaks can be beneficial.

“Last summer, I had the most amazing garden I’ve ever had in my life,” she chuckled. “I’ve always gardened, but last year it was great.

Those 20- or 30-minute breaks to go out and do a few things in the garden actually made me a lot more productive and it was a great learning experience,” she said.

Like her garden, Griego-Kiel’s practice has also flourished. In the past year, the firm’s assets

L/R: Johann A. Klaasen CFP®, AIF®, Chief Investment Officer and Kim Griego Kiel AIF®, President

under management have more than doubled, and it’s serving some 300 client households. The new business stems mainly from an influx of work from Investment Advisory Representatives (IARs) that need her company’s expertise in socially responsible investing. Since 1998, Horizons Sustainable Financial Services has maintained an exclusive, laser-like focus in Sustainable, Responsible Impact Investments, or SRI. “There are a lot of advisors out there who don’t know how to manage certain investments and that’s why they come to us,” she explained, adding, “And we have a reasonable price structure.”

Now in her 23rd year in the financial services industry, Griego-Kiel recalled how she fell into the business by accident. An Oregon native, she

moved to Santa Fe in late 1998 on a whim, yearning for a complete change of lifestyle. She took a part-time job as an office manager with a gentleman who had a successful financial practice, specializing only in sustainable investing.

“I didn’t even know what a mutual fund was when I started with him,” Griego-Kiel said. “But I told him this is really interesting. I like this, and I would be interested in getting a license. And he said, ‘Great, I’ll pay for it.’”

She got all her licenses while working at the broker-dealer firm, started servicing clients and gradually developed her own client base. A few years later, the business owner asked her to be his partner and an agreement was formalized. They worked very well together for a number of years, and when he decided to retire, Griego-Kiel bought the practice from him in 2007. The timing, perhaps, could have been better.

“There I was, alone, through the market crash of 2008,” she recounted. “But I managed to maintain the business and started growing it again, working only in the sustainable investment industry.”

In 2013 she brought in a business partner — Johann A. Klaassen, CFP®, AIF®— with whom she still works. With Klaassen as chief investment officer, they’ve grown the practice together into a $120 million assets under management company.

From not knowing anything about finance back in the late 1990s, Griego-Kiel now serves on the board of directors of the US SIF, The Forum for Sustainable and Responsible Investment.

US SIF (ussif.org) is a non-profit, policy-advocating organization in Washington, DC, whose stated mission is to rapidly shift investment practices toward sustainability.

The work being done by the US SIF is significant to Griego-Kiel.

“At the end of the last administration we saw some rulings from the DOL that would have been somewhat detrimental to the sustainable investment industry,” she said. “There was so much concern around that, that some clients were thinking of pulling back from socially ADVISORS MAGAZINE / 39

responsible funds. But as we’ve gone into this new administration, we’re seeing such rulings put on hold.”

She was quick to point out that the US SIF is now pushing for creation of a White House Office of Sustainable Finance and Business, and for appointing leadership at the SEC and the Department of Labor with knowledge of sustainable investment.

A dedicated social consciousness has been the strongest link throughout the chain of GriegoKiel’s career. Fittingly, one of the first things a visitor to her firm’s website sees are the words ‘Invest Like You Give a Damn.’ She marvels at the growth of impact investing.

“When I first started, something like one in every 12 dollars was in socially responsible investing, and now it’s one in every three dollars,” she said, “So the demand has grown so much in 20-plus years; It’s

-Kimberly Griego-Kiel

40 / ADVISORS MAGAZINE

MAY 2021

phenomenal,” she commented.

“We’re very open on our website with blog posts and content about who we are. The right clients tend to find us. And while we can tailor a portfolio to pretty much any client’s needs, we tend to attract clients concerned about social issues,” she said.

One of the first things she tells prospective clients interested in SRI is that a portfolio will be created around their own values.

“It’s about what’s socially impactful to them, not to me,” Griego-Kiel explained. “Because I can invest what I want in my portfolio, but I want theirs to be tailored to them.”

Toward that end, the firm has a social values worksheet that’s used for every client in order to customize their own portfolio.

In addition to the social policy questionnaire, the firm also uses a more traditional financial values worksheet for prospective clients.

Where the responses intersect can indicate the sweet spots for the individual clients in starting to build customized portfolios.

Horizons Sustainable Financial Services is a fee-based only practice. There usually is no account minimum because the firm maintains that everyone deserves sound financial advice.

“We want to help people get started—especially young people, the millennials who want to open their first IRA—so, we will help folks on an hourly rate basis.”

In fact, throughout the pandemic, the practice saw a hefty uptick in clients.

“So many people have been moving assets from nonsustainable investments into sustainable investment portfolios

over the last 12 months,” GriegoKiel said. “I can’t say for sure that has a lot to do with COVID — I think most of it has to do with more awareness, which has been building over the last four to five years.”

Client communication has been key in the age of COVID — via phone calls, video conferencing, and blogs and podcasts on the website. For Griego-Kiel, it’s been so effective that many of her clients now prefer not to visit the office.

“It sounds funny, but they appreciate the video component even if they live down the street,” she said. “I think the video meetings may feel a little more secure for them. So many people have become accustomed to the video piece and now prefer it, that I’ve had more success having my clients doing their regular reviews in this way.”

Over the next few years, the firm’s main goal is to expand its offerings to other firms.

“We have several clients where we’re working in the background managing assets,” she said.

“Traditional registered investment advisor (RIA) firms have clients asking about sustainable investments, but they really don’t know how to manage their clients’ assets in fully diversified portfolios — but we do.”

Such other firms retain the client, but farm out the portfolio management process to Horizons Sustainable Financial Services.

And by so doing, everyone’s garden grows.

For more information on Horizons Sustainable Financial Services, visit: horizonssfs.com

by bobby l. hickman

EXPERTISE TO BOOST THE BOTTOM LINE More firms seek strategic financial advisors

CFO Consulting

Restructure Advisory

Management Advisory

Organizations of all sizes are increasingly turning to strategic financial advisors and consultants to supplement their internal financial capabilities.

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MAY 2021

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ompanies are using experienced consultants and specialized firms to help them handle a number of financial functions, according to Protiviti’s 2020 Finance Trends Survey of CFOs and similar executives. For example, the study found that while 59 percent of companies used full-time staff to handle financial reporting, 28 percent used consultants and freelancers to augment employees; 21percent

relied on managed services vendors; and 9 percent fully outsourced financial reporting. Similar trends were seen in such functions as financial planning and analysis, strategic finance (M&A), treasury, and accounting operations.

How does a business executive or owner know it is time to hire a consulting firm?

“When they're unhappy with the profitability of their business,” replied Alan Chaffee, CEO and founder of

Turning Point.

Turning Point is a strategic financial and business advisory firm with 28 consultants in the Seattle area. Its offerings include CFO consulting and cash flow improvement; talent sourcing; and capital advisory services. The company uses its own set of tools and technologies to identify and address issues with cash flow, profitability, and reporting.

Chaffee said the size of Turning Point’s clients

has risen in recent years. The average client has $30 million in sales, with revenues ranging from $5 million to as much as $400 million. Most referrals come from banks whose clients are struggling with cash flow and profitability.

“Our niche in the marketplace is producing financial statements and handing them over to the client,” Chaffee said. “Our message to the marketplace is that we're going to improve your cash flow. We're going to improve your practice;

we’re going to improve your enterprise value. That's how we compete.”

He added every client is assigned a team with the specific skills the client needs.

His group includes such specialists as analysts who only do data analytics, Excel spreadsheets, budgeting, and forecasting. There are also controllers who are CPAs that do reconciled trial balance; consulting CFOs; and a range of other financial experts.

“Most of the CFO consulting practices in the Seattle area are basically marketing arms for independent contractors,” Chaffee said. “All our employees are W-2. We don't transfer financial reporting to someone else; we own the outcome. When people hire us, I guarantee that outcome – as opposed to guaranteeing the ability to do debits and credits.

Our job is to improve your cash flow and your financial situation.”

When clients outsource projects to Turning Point, about 80 percent of the work is with financials, Chaffee said.

However, the other 20 percent is related to providing ideas to help companies improve their business, such as increasing cash flow and enterprise value.

He suggested organizations considering hiring a CFO consulting firm should request ideas and case studies that show how the firm will help the client make better decisions.

Chaffee said his firm uses a combination of the three common approaches to providing business value – asset approach, income approach, and market approach. Areas to review

TURNING FINANCIAL EXPERTISE AND OPERATIONAL IMPROVEMENTS INTO IMPROVED CASH FLOW

include revenue sources, expenses, and optimizing assets and liabilities to manage cash flow.

“Short term, we want to improve cash flow. I go straight to the balance sheet and look at the income statement. I look at accounts receivable and what deals we can make to get paid faster, as well as delinquent accounts we could pursue aggressively. If there is inventory, we look at how it is generated and paid. Then we address accounts payable, such as cutting deals with the vendors to delay payments.

Next we go to short-term lending and lines of credit.”

Once the short-term cash flow factors are addressed, Turning Point turns its attention to long-term profitability. Those measures include removing businesses with lower or negative margins; negotiating changes with customers; and aggressively addressing expenses, beginning with higher paid executives.

“Honestly, what we do is not magic,” he said. “What we do is not hard. How you go about it is hard.”

Chaffee added, “I spend most of my day when I'm talking to clients giving away

the gold. I tell them exactly what I would do if they hired us. They may know what needs to be done, but we don't tell them how we’re going to do it.

I'm a firm believer that knowing ‘how’ is the secret sauce.”

As the economy rebounds in 2021, Chaffee said, the company expects more growth from its recruiting division which sources employee talent for clients. He said the company placed eight candidates during the first two months of the year, versus two in all of 2020.

“Our clients are looking for financial professionals, operations staff, controllers, CFOs, COOs, and CEOs,” he added, “Many of them ended up out of work last year. Everybody's looking ahead towards the economy kicking back off. I think the big opportunity for Turning Point in 2021 and 2022 is helping our clients bring in the right talent because there is still a shortage of financial expertise.”

Turning Point also offers capital advisory services.

Chaffee said some clients need additional cash, but cannot generate enough funds by squeezing the balance sheet in the short run, or through existing debt and equity capital source. He said the firm has a group of investors and lenders who will tackle distressed situations and provide additional cash flow.

For more information on Turning Point, visit turningpoint.com

ADVISORS MAGAZINE / 43

by bobby l. hickman

CLIENT TALK

GETTING TO KNOW

TALK INTERVIEW

YOUR CLIENTS

“4 H’s” model builds closer relationships

F

inancial planning clients tend to favor advisors who get to know them on a personal level and provide individual guidance to help them purse their goals. Advisors may also agree that the time and effort it takes to build a personal relationship with clients pays off in recommendations better tailored to their unique circumstances.

Qualtric’s recent Financial Advisor Client Experience Research Report cited “lack of personalized attention” as the second most common reason clients switch advisors, trailing only “high fees” and tied with “poor 44 / ADVISORS MAGAZINE

customer service”. Similarly, the 2020 Global Survey of Financial Professionals

by Natixis found the top reasons clients leave firms was advisors’ failure to listen to client needs (60%) and communications shortcomings (58%).

“I spend a lot of time in getting to know my clients,” said Gilbert Hawkins, founder of CaliforniaHawk Wealth Management in Santa Rosa.

“I know for a fact that my recommendations are going to be so much better when I know my client’s history and hopes.”

Hawkins follows the “4 H’s” model for building

MAY 2021

relationships with clients.

He shares stories about his personal “4 H’s” – history, heroes, heartaches, and hopes – and encourages clients to do the same.

“The 4H's didn’t come from me,” he added. “Other people and organizations have used them and have confidence in them.”

The model has gained considerable attention in recent years – particularly for its role in helping rebuild the Cleveland Browns football team into a contender during the 2020 season.

The team reversed decades of underperformance by winning their first playoff

game in 36 years.

“Do you know what the difference was for the Browns last year?” Hawkins asked. “Everyone had to share their 4H's. We are talking about a group of professional athletes who

got to know each other – despite huge differences – by sharing their history, heroes, heartaches, and hopes. I share their story with my clients and referrals so they can understand what we are doing.”

Hawkins said using the “4 H’s” model to guide his conversations with new clients has proven to be an ideal method for him to become familiar with them, and for clients to get to know him. The information he gathers allows him to set priorities for financial planning and make appropriate recommendations.

“When I’m talking to an individual, I look for the desire and persistence to become self-reliant,” he explained. “I learn about the historical events of their lives without passing judgment.

Discovering who some of their heroes have been also helps me get to know them a little bit better.

The toughest thing I listen to is their heartache, those difficult experiences they’ve had in life -- but I’ve learned that people are resilient.

Those stories tell me so much more about them, plus indicate whether I am probably in a position to really help them. The fourth stage is finding out what they hope for and what they desire going forward.”

For example, that fourth “H” – hope – can guide retirement planning. Hawkins asks about their long-range plans and what they hope to be doing at retirement. The discussion then turns to how they could meet their hopes and expectations.

Hawkins started his financial career in the insurance industry in 1968, the following year he later obtained his securities license so he could better help clients adhere to their goals through investments.

He asks four main questions when meeting with new

clients to understand their financial situation: • What have you done to protect your family from hardship?

• How much consumer debt do you have (and how much other debt)?

• What are your beliefs about saving and investing money?

• Do you plan to create a family legacy?

“Too often I find that a young single person today has $10,000 or $15,000 in consumer debt,” Hawkins said. “That keeps them from comfortably investing. I have three main priorities: protecting your family from hardship; becoming debt-free; and saving and investing for the future. We cover those in our discussions and in our recommendations – regardless of whether this is a brand-new referral, a 35-year client, or an existing client’s children or grandchildren.”

Hawkins said his own persistency and determination helped him overcome his greatest challenge during the pandemic: learning to use new technologies to stay in touch with clients and prospects. He had to replace traditional in-person meetings with phone calls and virtual meetings. He also created a variety of easy-to-understand reports clients could receive through the mail or view on their personal devices.

“I’m surprised and pleased this past year has brought in more referrals and a lot more money under management than I expected or planned for,” he added. “We’re off to a good start for the first months of 2021 as well.”

Going forward, Hawkins said he plans to continue sharing his philosophy of selfreliance, persistency, and the “4 H’s” with as many people as he can.

“If I’m going to work with somebody, I believe you really need to know each other,” he added. “It just takes four things: history, heroes, heartaches, and hope.”

For more information on CaliforniaHawk Wealth Management, visit https:// www.californiahawk.com

ADVISORS MAGAZINE / 45

by bobby l. hickman

MAKING A GOOD ADVISOR-CLIENT MATCH Good rapport important for mutual success

Establishing a solid personal relationship in which financial advisors and their clients are comfortable working together provides the foundation for a successful, long-term relationship.

F

ifty percent of financial advisors believe getting to know their clients personally is a critical factor in their success, according to the 2020 Global Survey of Financial Professionals. The survey, conducted by Natixis Investment Management, also found 54 percent cited frequent client communication as a major factor, while 40 percent said it was important to 46 / ADVISORS MAGAZINE

MAY 2021

proactively communicate during times of crisis.

Working and communicating with the right clients has been particularly important during the COVID-19 pandemic, according to Melvin L. Pope III, managing partner and owner at Financial Partners of North Florida in Tallahassee. The firm evolved from Pope’s insurance background to encompass three

practices: investment advisory services, boutique employee benefits, and life insurance.

“We want people who want and need great advice and are willing to listen,” Pope said. “One of the keys to having a good/great client relationship is us giving good/great advice and the client taking it. Clients rely on us to provide the best information available in the marketplace. There's so much more to client portfolio management than buying an index fund or following a robo-advisor.”

Building a solid working adult relationship allows all the parties to have an open and honest dialogue about whatever is happening per-

sonally and in the market.

“I've never been someone who advertises, because I don't really want to get clients that way,” he said. “I want clients who are attracted to the work we do for others and in our community, and the people that we are. If we're suitable for them for those reasons, then we're going to be a good fit for a long time.”

Pope added, “My minimum criteria for a client is for them to be a really a good person. My clients range from sheriff’s deputies to high-net-worth individuals.

Making sure there is a good rapport is important for both advisors and their clients. When people

choose a financial advisor, Pope said, they should approach it as they do with other professionals, such as doctors and lawyers.

“You need to decide: ‘Is this the kind of person I want to work with long-term? Can this person work on my team with my CPA, my lawyer, and my family if something happens to me?’ If you're comfortable with them, then you can drill down to the analytics: What does it cost? What do you do? Who else do you work with?”

Educating clients to improve financial literacy helps support that relationship.

“Simplicity is the key to education,” Pope said. “I use simple

analogies to eliminate jargon and make it simple for people to understand. I try to work with them and be a good storyteller.”

He said one challenge he encounters is many people are not saving enough.

“I think advisors are sometimes a little bit timid about telling their clients that they need to save more money,” Pope added. “You have to be frank with them.” Let them know you can’t get there from here” if it is true.

Like most financial firms, Financial Partners of North Florida’s staff moved from the office to their homes in early 2020. His staff pivoted to managing the workflow ADVISORS MAGAZINE / 47

Clients and professionals aren’t always on the same page about risk Individual Investors 4 Losing wealth/assets

31% 22%

Exposing assets to market volatility

18% 25%

Investments undeperforming the market

18% 7%

Not meeting financial goals

10% 24%

Not being able to access money when needed

10% 7%

Missing out on potential investment returns

8% 8%

Leaving too much money in cash

6% 6%

Financial Professionals

Surveyed by Natixis Distribution, L.P. © – All rights reserved

remotely while continuing meaningful conversations with clients.

Pope said he had not participated in a Zoom videoconference until last spring. As more clients began working from home, the number of Zoom calls increased.

“People at home were doing some introspective planning, which created opportunities we didn't have when everybody was busy,” he said. “We first began getting some smaller life insurance cases.

We had already begun handling those online, but we did that much more regularly in the spring.”

The firm also brought some larger, more complex cases to market during the shutdown. Those cases took more time, more calls, and 48 / ADVISORS MAGAZINE

MAY 2021

greater attention to client needs and details as those cases moved forward. Pope added the firm decided not to spend time on its “maybe” cases, setting them aside until later.

Another major focus for the practice is retirement planning. Diverse client needs require every retirement plan to be tailored to meet their individual situations. Pope said his firm does not like “one size fits all” programs” that provide a cookie-cutter solution for every case. While that might streamline efficiency, he noted, they can also limit what components are included in the financial plan.

“We believe that people create a number of different buckets,

and we like that” he continued.

“Those can be buckets of money or buckets of opportunities to improve their long-term planning, such as proper defensive planning with insurance or maximizing an HSA. These tools are all part of the financial web we weave. The more products you include, the stronger the web you create for your financial planning needs. We like to see a lot of different things for our clients – qualified and non-qualified money, college savings, life insurance, HSAs – all in the web.

All these tools are coordinated to make a strong financial plan.”

For example, Pope said he has recently been using the newer life insurance tools that include long-

term care riders to help people protect their retirement savings, and provide the ability to provide a modest legacy and gift-giving opportunity. This approach also helps the firm address the downside risk and costs of long-term care protection so retirement planning can focus more on long-term portfolio growth.

However, the firm does not offer standalone fee-based financial planning.

“If somebody wants to do straight-up financial planning, I'm happy to partner with a fee planner,” he noted. “The name of our firm is Financial Partners and we prefer to Partner and be team players”. “I like to work with others who charge fees, such as having a CPA or tax attorney on the team. We're the investment and insurance professionals, and that's where we're going to stay.”

The practice is an independent advisory firm with its own independent broker-dealer. That creates an Independent dual registration environment with an open architecture, said Pope, who is a dual-registered advisor. Dual-registered advisors can offer financial advice as a fiduciary while also selling investment products that pay commissions as a non-fiduciary. Fiduciaries are held to a higher marketplace conduct standard to always put the best interests of a client first. However, non-fiduciaries are only required to make “suitable” recommendations.

Pope said he and his associates always hold themselves to the fiduciary standard, regardless of the scenario. He added his firm treats its clients like family members, providing advice as though they were his own father, mother, brother, sister, or wife.

“When we put on the broker hat, we're going to get paid commissions,” he explained. “If we're pro-

viding financial advice, we’re going to be paid fees. In either case, we automatically hold ourselves to the fiduciary standard. I don't even look at suitability from the compliance standpoint. Suitability is not the standard we work to meet.

We always go for the regulatory fiduciary bar when we're helping people.”

Pope also believes that many financial professionals spend too much time focusing on the details of their platforms. He said it is more important to focus on the client and their family and their needs and how to solve them.

“It's our job to know the platforms,” he added. “It’s our client’s job to make sure that I am the right person and that we are the right fit for them.”

Pope said he is at the point in his career where he has accumulated decades of knowledge and experience, positioning him as a

“wise old man” whose clients seek his professional expertise. Going forward, Pope says he personally plans to focus less on the benefits and 401(k) parts of his business, and more on life insurance and money management.

“I don't want to spend as much time in those areas as I did when I built my practice,” he added. Money Management and Life insurance today takes special experience and expertise “I don't want us to become a large firm: I just want us to be a great firm representing our great team, for our great clients and their families.”

For more information on Financial Partners of North Florida, visit: fpnf.com Securities offered through Lion Street Financial, LLC. (LSF), member FINRA & SIPC. Investment Advisory Services offered through Lion Street Advisors, LLC. LSF is not affiliated with Financial Partners of North Florida.

ADVISORS MAGAZINE / 49

by bobby l. hickman

FIDUCIARY TALK

TALK INTERVIEW

IS YOUR ADVISOR A FIDUCIARY? Not Everyone Is Required to Put Clients First

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any investors assume their financial advisors always put their customers’ interests first, continuing years of misperceptions over which professionals are actually held to the fiduciary standard.

Almost half of Americans surveyed incorrectly believe all financial advisors are required by law to act as fiduciaries, according to the most recent Financial Trust Report from Personal Capital. The study also found that 65 percent of investors already working with a financial advisor mistakenly believed advisors can only make recommendations that are in the client’s best interest. However, different types of financial professionals are held to different standards of market conduct.

The easiest way to tell the difference between a fiduciary, a broker, and a dual registered advisor is to simply ask the person which role they fill, according to Ed Bamberg, AIF®, CFP®, managing partner and financial advisor at Integrity Advisors, LLC in Vero Beach, Florida. Financial professionals

Ed Bamberg, AIF®, CFP® Managing Partner 50 / ADVISORS MAGAZINE

MAY 2021

are required to disclose whether they charge commissions on their products, he added, which indicates whether they are required to act as a fiduciary.

Bamberg said the simplest definition of a fiduciary is someone who puts their clients’ needs ahead of their own.

Fiduciaries also have an obligation to explain to clients their products – inside and out – in the simplest terms possible.

“As financial professionals, we know a lot about our industry and we understand the terminology,” Bamberg said. “However, many end up confusing clients when all they are trying to do is educate them. Most clients want to know what time it is, but they are being told how the watch works.”

When a prospective client meets an advisor for the first time, Bamberg said, asking whether they are a fiduciary is one of the three most important questions to ask. The second is how they would protect your portfolio during a stock or bond market collapse. Thirdly, prospects should ask what surrender charges and time commitments are associated with their products.

“Many clients get into something because it sounds good,” Bamberg said, “but then they realize that (because of the surrender charges and time commitments) they don’t have a chance to get out for many years. Granted, it is all spelled out in the prospectus. But as we know, most clients don’t read the prospectus and they rely on advisors to inform them. Some advisors are not going to volunteer that information. The client needs to ask up front what they would have to pay in surrender charges.”

“The financial industry as a whole would be better served by simplifying its disclosures and prospectuses,” he continued. One suggested approach

is highlighting and summarizing key features with bullet points. “If you want people to actually read the documents, have a summary of bullet points that tell the clients what page contains more details about the topics,” Bamberg said. “Bullet points about the most important points in the prospectus need to be right there in the front where the client can see them. It doesn’t have to be that hard.” Bamberg started out in the life insurance business in 1996, and soon realized he wanted to offer more comprehensive planning and services to his clients. To do that,

The Bamberg Family - L/R: Noah, Ed, Dawn, Cana

Dawn and Ed Bamberg at the finish line of the Spartan Beast obstacle race

he earned his Certified Financial Planner® (CFP®) certification in 1999.

Today, Integrity Advisors works almost exclusively with clients from a large Florida-based corporation providing retirement planning, retirement account rollovers, and investment management services. Most of those clients are fee-based, and the firm retains approximately 98 percent of them.

“From a planning standpoint, most of our clients’ assets are the same type because most of them are from the same company. However, their level of assets and their retirement income needs are different, so we customize our retirement planning process for each of them.”

Bamberg said he follows the advice of a former colleague who said each client should know what they own and why they own it. He said too many clients have little or no idea what is in their portfolio and why those investments were recommended.

Integrity Advisors tries to help its clients understand those details of their managed portfolios.

The recent pandemic created some interesting results for the firm. “When the governor of Florida issued the stay-at-home order in April

2020,” Bamberg said, “I decided to further my education. I earned my Accredited Investment Fiduciary (AIF®) designation, which has become a prominent accreditation in our industry and is a great compliment to my CFP®.” In addition, despite a turbulent 2020, Integrity’s revenues increased during its first full year as an independent firm. Goals for 2021 include additional client acquisitions and revenue growth. Due to an increase in early retirees, as well as referrals, the firm has achieved most of their 2021 goals as of this April interview.

For more information on Integrity Advisors, visit integrityadvs.com

These are the opinions of Ed Bamberg and not necessarily those of Cambridge Investment Research. They are for informational purposes only and should not be construed or acted upon as individual investment advice.

ADVISORS MAGAZINE / 51

made for you

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GRAVITY-DEFYING DESIGN

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5

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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 FITBIT CHARGE 4 — FITNESS & ACTIVITY TRACKER Stuck in a fitness rut? Ready for a health revolution? Then get your hands on the Fitbit Charge 4, our pick for the best overall fitness tracker. It’s got everything. Built-in GPS, active Zone Minutes feature which alerts you with a buzz when you reach your target heart rate and heart rate monitor. Making fitness fun is not easy but the Fitbit Charge 4 manages to do just that with insightful monitoring of basically every aspect of your health. A great gift for her. Fitbit4.com

4 MERCEDES BENZ GLE — OVERALL BEST LUXURY SUV Our best overall SUV award goes to another Mercedes-Benz: The alltime popular GLE. It’s been redesigned as a hybrid for 2021, and it’s setting out to shape the future of sustainable sports utility vehicles. This SUV features a six-cylinder engine, Mercedes-Benz’s EQ Boost system, and an advanced suspension. It’s available in its standard GLE version but also a GLE Coupé. All in all, this is the best SUV of 2021 for most people – and it’s certainly our pick overall. mercedes-benz.com

2 THE MIRROR — OXFORD LACE UP Known as the nearly invisible home gym, Mirror works by combining advanced camera technology and its own algorithms to guide you through your workout. Expert instructors, including celebrity guest trainer Tracy Anderson, provide live feedback while you workout, helping you to hit your goals from the safety of your own house. And, once you’re done, check out how you performed. mirror.co

5 THE BARISTA EXPRESS — BREVILLE BES870XL This Breville The Barista Express not only has a built-in burr grinder for ultimate freshness, but also has digital temperature control so that your water is always the perfect temperature for espresso extraction. An on-board milk foamer also delivers micro-foamed milk for enhanced flavour, creaminess, and picture-worthy art for your espresso beverages. breville.com

3 ROMANTIC GETAWAY — THE CHANLER BOUTIQUE The Chanler is the perfect romantic couple retreat for a weekend of leisure and exploration along Newport’s Cliff Walk on the East coast, RI. It’s the perfect romantic couple retreat for a weekend of leisure and exploration along Newport’s Cliff Walk on the East coast. The Chanler at Cliff Walk offers 20 carefully curated and uniquely designed guest rooms. Each room is inspired by a different theme or historical period. thechanler.com

6 DRAGON GLASSWARE — DIAMOND DESIGN Inspired by diamonds, Dragon Glassware Diamond Whiskey Glasses allow your whisky to aerate while sipping and being swirled around the glass. The unique design seemingly defies gravity, positioned at an anti-rocking, spill-proof, 50-degree tilted angle that’s comfortable to hold and elegant to admire.

Dragon is a luxurious, designer glassware company that produces a brilliant on-the-rocks experience with a glass that definitely draws attention. dragonglassware.com

52 / ADVISORS MAGAZINE

MAY 2021

STILL PUZZLED ... by your supply chain solution?

Streamlining supply chains throughout the automotive, retail, pharmaceutical, pulp & paper, logistic, and food industries. www.meadewillis.com

Contact Meade Willis today for a free consultation regarding your e-commerce, EDI, supply-chain requirements: (866) 369-1146 | www.meadewillis.com ADVISORS MAGAZINE / 53

by bobby l. hickman

HOLISTIC TALK

INTERVIEW

GETTING THE WHOLE PICTURE

Holistic approach to planning brings better results

Longevity in business speaks well to the long-term success of any business, and financial advisory services are no exception.

KEY INSIGHTS • Providing personalized financial investment, estate and tax advice to individuals and business owners.

• Fee-only registered investment advisors • Saltmarsh Financial Advisors is an affiliate of Saltmarsh, Cleaveland & Gund, a large CPA-led business advisory firm deeply rooted in the Southeast since 1944.

54 / ADVISORS MAGAZINE

Saltmarsh, Cleaveland & Gund, founded in 1944, is one of the largest CPA-led business advisory and consulting firms in the Southeast, with four offices in Florida and one in Tennessee. Many Saltmarsh clients are business owners and professionals who have spent their entire economic lives with the firm – some for its entire 77-year history.

Back in 1995, at the request of clients, the firm created Saltmarsh Financial Advisors, LLC, to provide additional planning services for its clients. Saltmarsh Financial Advisors takes a holistic view of the client’s balance sheet. The team executes an integrated plan by leveraging in-house services and firm expertise in tax, estate and trust, financial planning, business succession planning, and wealth management.

Saltmarsh Financial Advisors has been highly successful with its integrated approach to planning, according to Christina Doss, AAMS®. Doss is a shareholder of Saltmarsh, Cleaveland & Gund and is managing director of Saltmarsh Financial Advisors, LLC. “We work closely with our firm’s tax, MAY 2021

trust and estate partners to bring a more holistic approach to wealth management “Given that every investment decision is also a tax decision, we are in the unique position to help our clients achieve the best possible outcome while reducing the stress and work of managing communications across multiple advisory relationships.” Doss said.

Saltmarsh pursues a team-centric approach to serving its clients. The Saltmarsh Financial Services team is supported by other Saltmarsh, Cleaveland & Gund professionals, ranging from accounting and taxation to consulting and investment management. The team approach is based on the firm’s mission statement: “Achieving Success by Contributing to the Success of Others.”

Taking a holistic approach to financial planning and wealth management has been shown to produce better results for clients and their advisors. Such planning goes beyond a traditional monetaryonly focus to consider additional factors in clients’ lives, such as family, personal beliefs, and lifetime goals.

Only one out of five financial advisors

L/R: Chris Stennett, CFP®, Financial Advisor; David Uslan, CPA, Shareholder, Tax & Accounting; Pierce Broscious, Associate Financial Advisor; Christina Doss, AAMS®, Managing Director and Shareholder; Stephen Reyes, CISA, CISSP, Shareholder, Information Technology; Brett Snyder, JD, LL.M, Manager, Tax & Accounting; Charles Gund, CPA, Shareholder, Tax & Accounting; Beth Skarda, CPA, Senior Manager, Tax & Accounting.

practice holistic planning, according to a 2020 study by Fidelity Investments.

However, the study found holistic advisors reported 47 percent greater growth in assets under management and 67 percent higher increases in their number of clients.

“Many times our wealth management clients come to us from our trust and estate partners, or from our tax clients who have expressed dissatisfaction with advice they’re receiving elsewhere,” Doss said. “They may not understand what fees they are paying or how their assets are being managed. Most people are trying to answer questions such as, ‘When can I retire? How much do I need to comfortably live on in retirement? How much risk do I need to take?’ Sometimes these questions are not being answered for them.”

Doss said Saltmarsh believes every

wealth management relationship should begin with a cash-flow based financial plan as a foundation for multi-year tax planning decisions and implementation.

“Cash-flow based planning is an invaluable resource that becomes the cornerstone of our ongoing dialogue throughout the relationship and ensures a customized plan for each client,” she added. “The output is only as good as the input, so clients have to be invested in the process.”

Doss noted the financial plan is an ongoing living document. For some, advisors may revisit the plan with clients at multiple times during a year. Others may review it once every two to three years, depending upon a client’s life events or stage of life.

Financial education is also central to the firm’s client service philosophy.

Saltmarsh strives to take the emotion out

Christina L. Doss AAMS® Managing Director We Practice What We Preach At Saltmarsh Financial Advisors, our team members invest using the same guiding principles we advise our clients to follow.

We strongly believe that our approach to longterm investing is best achieved when advisors and clients are working with a shared interest.

ADVISORS MAGAZINE / 55

of investing, helping clients stay focused on what they can control versus what they cannot control.

“Everyone – regardless of age, gender, income or wealth – can benefit from financial education.

Imagine the benefits to our society if the dialogue were to shift to a more practical approach to planning and investing for one's future.”

She added, “It is unfortunate that a focus on financial literacy is not an inherent part of our educational system, given the proven benefits to individuals and society as a whole.

Instead, there is an over-reliance on the financial media, which tends to focus on stock picking, getrich quick schemes, and creating a culture of envy. Rarely is there a mention of the money that has been lost on the latest trends in investing.”

“For over 25 years,” Doss said, “Saltmarsh has successfully created broadly diversified, taxefficient and low-cost portfolios. A common-sense dialogue about the importance of having an investment philosophy you can stick with

through good and bad markets won't make the cover of financial magazines or drive network ratings, but it works...it has for generations of our clients.”

Operating as a fiduciary firm is another important consideration.

Doss was a broker for major firms for 20 years before joining Saltmarsh eight years ago.

“I spent much of my time in the brokerage world in a management capacity, ensuring that we provide appropriate oversight on conflicts of interest. There is a lot of confusion within the industry, so understanding that difference between a fiduciary and a broker is more important than ever for clients.”

“A licensed fiduciary, like Saltmarsh Financial Advisors, has a specific legal obligation to put their clients’ best interest ahead of their own.” Doss explained. “A broker is held to the lesser standard of making recommendations that are simply suitable. Dual-registered advisors can switch between both roles, depending upon which products or services they are

presenting. Often, the products or funds which are best for the broker have higher costs for the investor.”

“The true fiduciary, such as Saltmarsh, believes in transparency and does not sell products or receive any compensation from the funds we recommend,” she said.

“Our goal is to ensure we are always acting in the best interest of our clients. Having worked and lived in the brokerage world where there is so much gray area, I came to Saltmarsh because I wanted to have the ability to sit on the same side of the table as the client and truly have their best interest at heart.”

For more information on Saltmarsh Financial Advisors, LLC, visit saltmarshfa.com

L/R: Bob Slaby, CVA, CPA, Director, Estate & Trust Services; David Uslan, CPA, Shareholder, Tax & Accounting; Christina Maslen, Manager, Estate & Trust Services; Christina Doss, AAMS®, Managing Director and Shareholder.

56 / ADVISORS MAGAZINE

MAY 2021

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GROWING A PRACTICE

THROUGH M&A Focused on generational diversity by joe innace

A

fter eight months of record-breaking activity in the registered investment advisor (RIA) market, deal-making cooled off slightly in February 2021, according to the latest data on wealth management merger and acquisitions (M&A) transactions from Fidelity Investments. “There were seven RIA deals totaling a substantial $13.7 billion in assets under management (AUM), including five deals that involved sellers with more than $1.0B AUM,” Fidelity reported.

“There have already been 31 RIA deals representing $61.7 billion in client assets during 2021,” added Fidelity, which tracks monthly M&A activity among RIAs and independent broker-dealers (IBDs). “By comparison, these totals surpass the 20 transactions and $28.8 billion during the same period in 2020, which was considered a rapid pace of transaction activity at the time.” IBD activity picked up in early 2021 after a quiet 2020, Fidelity noted.

One wealth management team that has a key part of its growth strategy rooted in M&A is Florida-based Wealth Bridge Financial Group. Investment services offered through Waddell & Reed, Inc., a separate entity. Patrick B. Gallagher, President is one of the founders of this 3 partner wealth management firm (Patrick Gallagher, MBA/Tom Halvorsen, CFP/Dan Ramsey, CFP). The pandemic’s timing and impact have afforded this practice a two-fold opportunity to both grow the business and to help out other financial advisors.

Working in favor of Wealth Bridge Financial Group is the generational crisis in the industry. The average age of financial advisors is about 55, and approximately one-fifth of advisors are 65 or older, according to a 2019 J.D. Power report. As these advisors move into retirement – and with more of them considering to do so as a result of the pandemic – leading firms will be those that effectively attract, develop and retain 58 / ADVISORS MAGAZINE

MAY 2021

ADVISORS MAGAZINE / 59

Our team of professionals have years of experience in financial services. We can help you address your needs of today and for many years to come. We look forward to working with you.

Patrick Gallagher, President Wealth Bridge Financial Group

new advisor talent, according to the consumer satisfaction and market data company.

“We’re seeing a shortage of advisors in the industry,” Gallagher told Advisors Magazine in a recent interview, “And we’ve used this time to reach out to other financial advisors in the area and have some offers out there to acquire other 60 / ADVISORS MAGAZINE

MAY 2021

practices.”

The 35-year-old Gallagher explained some of these older advisors have been working quite a while building successful practices, but are perhaps reluctant to change with the times, and often struggle with technology. Many have done a very good job planning their clients retirement but have neglected to plan their own and do not have a succession plan in place.

“We’ve seen this time as an opportunity to grow our business, acquire other financial practices and to get in now and help those individuals get up to speed with technology,” he said. “We can acquire their practice, retain them if they choose, and help them by introducing them to a newer way of doing business.”

Leveraging Technology Indeed, leveraging today’s technology — from social media to Zoom calls — is critical to surviving in the financial advisory arena. The J.D. Power survey indicated that “high-functioning tech drives advisor loyalty and advocacy.”

Gallagher’s firm now advises approximately 1,700 households with about $550 Million under management.

The average client age is about 65, so the practice also uses its technological proficiency to advance clients’ own use of technology.

“Florida didn’t have the restrictions as in other states and we remained open, but many of our clients were considered vulnerable to COVID-19,” Gallagher said. “During this time when we weren’t seeing as many people in person, we really hit the phones and tried to talk to as many of our clients as often as possible.”

There was a lot of proactive outreach, teaching clients how to use Zoom and other video-conferencing tools, for example.

“Many of our clients who were not technologically savvy are now,” Gallagher said. “They were appreciative

beyond just financial matters, because they suddenly had a means to see their family or their grandchildren.”

Interestingly, Gallagher’s own friends and family tried to talk him out of becoming a financial advisor.

Always entrepreneurial, he was attending college in the early 2000s and running several businesses during the day — including car detailing, pressure cleaning, roll-off dumpsters and landscaping — and taking classes at night. The economy was doing well in 2004-2007, and Gallagher was not really sure what he’d do after graduation, but he had decided while doing his master’s degree that his concentration would be in finance.

After graduating college, he sold his businesses and all the equipment.

He interviewed at several different financial firms — from major players like Edward Jones, Merrill Lynch and Morgan Stanley — to a smaller broker dealer that he liked the best at the time, because it offered greater independence.

“You were able to work your own hours, build your own book of business and that just kind of intrigued me because I didn’t fit into the typical employee mold,” Gallagher recalled.

“Also, this was in 2008. I remember my friends saying, ‘You’re going to be a financial advisor? Why would you do that? The market’s going to zero, there’s no money left to manage.’” But he was determined to give it a shot.

“What looked like the worst time to get into the business turned out to be the best time to get into the business,” Gallagher said. “Getting there at the bottom, everybody was open to talking to people, so I was able to get clients and grow relatively quickly, starting out at a young age of 22.”

A Generational Advantage Today, Gallagher holds that MBA as well as his Series 7 and 66, and the 2-15 insurance license. Wealth Bridge

L/R: Tom Halvorsen President, Patrick Gallagher President, Dan Ramsey Vice President, Lindsey Kuklin

Financial Group is a practice that requires no minimum investment. Its staff numbers some 8 people, and generational diversity is not only evident, but by design.

“We have advisors on our team that are Baby Boomers, Gen Xers, Millennials and everything in between,” Gallagher said. “I think we are different than most because we are a multi-generational independent financial planning team.”

As such, the firm’s team understands that every generation comes of age during different economic circumstances, and this can have a major impact on their ensuing financial habits.

Despite the proliferation of mobile trading, robo-advisors and online investing platforms, Wealth Bridge Financial Group doesn’t see such do-it-yourself tools as a threat – no matter the generation.

“The majority of our clients are Baby Boomers and Traditionalists,” Gallagher said. “They really enjoy the face-to-face and having that person to talk through situations, and they are less apt to gravitate toward mobile platforms and do-it-yourself online tools.”

Curiously, according to a July 2020

LPL Financial report, while a financial professional will often recommend that Boomers move retirement funds out of risky assets like stocks and into bonds or money market funds, all Boomers haven’t listened. “In fact, a full eight percent of Boomers are entirely invested in stocks, while nearly half of all Boomers have a riskier allocation than analysts recommend.”

Gen Xers, according to the same LPL report, are also more likely than Millennials to seek out the help of a financial professional. “But because they’re in their prime-earning years, with some of the older Gen X cohorts nearing early retirement, they expect quick, accurate answers from those who are managing their money.”

Gallagher would concur with that LPL finding.

“The senior Generation Xers — you know the latch-key kids — are much more independent,” he said.

“They were the first generation to come home and mom wasn’t in the kitchen making them a snack; mom was out working and they had to make their own snack.”

As a result, Gallagher recognizes that Gen Xers may be more apt to use online tools and do things ADVISORS MAGAZINE / 61

mindset.

“It’s all fine when markets are strong,” Gallagher noted. “But when there’s a 34 percent decline like last March, it’s all about emotional support. And that’s a big part of our job — our value add is in helping people not make poor financial decisions, especially in the time of market turbulence.”

When markets are good, Gallagher said that talking to clients and educating them is standard operating practice. “But when things are bad, we really talk to our clients even more so,” he emphasized.

Overall, Gallagher describes Wealth Bridge Financial Group as a team of holistic financial planners, wealth advisors, and investment managers.

He’s quick to say, “We’re not stock brokers. We’re not get rich quick.

We’re not going to double your money in three months,” Gallagher said. “We’re really looking for people who have goals that are achievable and are realistic about getting there.”

L/R Back: Tom Halvorsen President, Dan Ramsey Vice President - L/R Front: Lindsey Kuklin Financial Advisors, Patrick Gallagher President

62 / ADVISORS MAGAZINE

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“

one of our primary

goals is to develop a long-term, trusting

“

themselves.

“But the other side of that is, as they start accumulating more and more money, they now see they need more advice,” he said. “And that advice is usually driven by a human being and not an online tool. Because there is so much information out there today, it is easy to get confused and they want validation — someone else’s perspective.”

Fact is, Gallagher says the firm has more Millennial clients than Gen Xers, and he’s noticed the same tendencies with the youngest, highly tech-savvy generation.

“Millennials are much more apt to talking to a financial professional and getting opinions,” he said. “Yes, they still want to do it themselves, so they’ll usually have some play money on the side for online apps, but for their larger accounts they feel safer working with a financial professional.”

Whatever the generation, it still comes down to an individual’s own investment philosophy and money

relationship our clients

At the top of the agenda with prospective clients is to have a conversation about mutual expectations. Gallagher wants to know the expectations a client has for his firm, and he needs to share his expectations of the client.

“We want to make sure we’re aligned,” he said. “We don’t want to sit here and have hours and hours of meetings if we do not have the same expectations of each other.

This is a long-term relationship that we form with our clients and they not only become our friends but also become a part of our family over the generations.”

At the outset, Gallagher also urges prospects to attend any of the firm’s upcoming events in order to interact with existing clients.

“We’ll be starting these again shortly and we always invite all prospects, so they can mingle with our clients and ask them any questions they want,” Gallagher summarized.

For more information on Wealth Bridge Financial Group, visit: wealthbridgefinancialgroup.com or call 727-844-3232

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