Dana Perino Political News Analyst

JULY 2021

ISSUE 103

ADVISORS

magazine

exclusive interview

dana perino political news analyst

Dementia and Financial Planning Helping families navigate

How to Choose a Financial Advisor 3 critical questions to ask

Divorce Leads to Financial Burden

Unexpected side-effects of splitting up

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contents july 2021 on the cover

14

Dana Perino The FOX News analyst talks about her patriotism, and discusses the importance of mentoring young women

features

6

How to Choose Your Financial Advisor Exploring three areas of questioning

22

Divorce Leads to Financial Burden Unexpected side-effects of splitting up - areas to consider

14

COVER STORY: DANA PERINO TALKS PATRIOTISM AND HER ROLE AS A MENTOR

10 6

made for you

47

Our Picks From Around the Globe

book review

58

choosing a financial advisor

A Helpful Guide to Empower Investors

“Active Retirement Investing,” By Hunter Bailey

22

divorce leads to financial burden

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JULY 2021

analyzing the risk of longevity

july 2021 advisor interviews

all about the process

10

36

Analyzing the Risk of Longevity

financial planning for all

The importance of honesty

26

42

Frequent Contact = Satisfied Clients Regular interaction boosts advisor relationships

30

More Americans Planning to Retire Early Greater number working to retire by age 55

52

narrowing black - white wealth gap

44

what about an advisor’s legacy

32

46

It’s a “Marathon, Not a Sprint”

planning for dementia’s toll

Advisor uses triathlon lessons to educate clients

34

46

It’s nothing like your father’s retirement

Helping families navigate long-term care

36

48

Sound strategies for all income levels

The span of financial planning

38

52

Financial planning doesn’t have to be

A systematic approach to intergrating financials

42

56

A Philadelphia Story

More education needed to help older Americans

44

60

Secure it with a succession plan

Thoughts from a battled-hardened advisor

Retirement Planning Becomes More Difficult

Financial Planning for All

Life is Hard Enough

Narrowing the Black - White Wealth Gap

What About an Advisor’s Legacy?

Financial Planning for Those With Dementia

Bridging the Wage Gap

All About the Process

Retirement Literacy Remains Low

More to Retirement than Choosing a Community ADVISORS MAGAZINE / 5

by bill millar

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Exploring these 3 areas of questioning

HOW TO CHOOSE YOUR FINANCIAL ADVISOR

CERTIFIED FINANCIAL PLANNER

VE

ED IN

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ARE YOU THE RIGHT FOR ME?

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hoosing the right financial advisor is one of the most important decisions you can make.

Particularly for those who are getting close to retirement, you’ll want to find an advisor who understands your specific needs.

But you will also want to know a great deal more about an advisor before making your choices. With that in mind, we polled our panel of advisors to share their ideas for the most insightful questions to ask in evaluating a potential relationship. Their ideas fall into three core categories: 1. Make certain your advisor is a fiduciary.

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JULY 2021

The starting point should always be your advisors’ credentials. If the advisor cannot attest that they are sworn to act always in your interest, then there is no reason to continue the discussion.

“The first question you need to ask a prospective advisor is whether or not they have a certification” says Christopher Calabro, CFP®, CEO of CPC Financial Group. “Certain designations such as the “CFP®” means that your advisor is held to a strict standard of fiduciary duty, meaning they must put your financial best interest ahead of their own.”

Closely related, continues

Calabro, are questions to further establish that the advisor will be providing unbiased suggestions. To learn more about the provider’s affiliations and directives, ask about fee structures and whether or not “the advisor works with proprietary products and sales quotas,” says Calabro. “You want to walk away from the meeting with a sense of trust that you can lean on your advisor and that they will remain objective when you need them the most.”

Carolyn Larsen-Wieber, CEO at CLW Financial Planning LLC agrees and recommends always beginning the conversation

with: “Are you a fiduciary?”

Brokers, she explains “operate under a standard of care where they are required to prove only suitability for the products they’re recommending.”

Fiduciaries, on the other hand, are held to a higher standard of care,” says Larsen-Wieber.

2. Make certain the advisor gives you a sense of comfort and confidence.

Chemistry is an essential component of the financial advisor/client relationship.

“Meeting with a financial planner for the first time can be very intimidating as finances are really not discussed openly,

ever” says Nicholas A. Ibello, CFP®, AIF®, vice president of wealth management at Williams Asset Management. “People are keener to discuss sex and politics than they are their cashflows and retirement.”

This sense of discomfort is both natural and common, particularly the first time you are meeting with a financial planner.

But once you’ve established their credentials and status as a fiduciary, the next relationship element you should be seeking in that initial discussion is whether or not they imbue in you a sense of comfort and openness.

As Ibello explains, the right advisor for each of us is someone who can “create an environment of space and trust to facilitate efficient and powerful financial conversations.” By “powerful,” Ibello means that if you and your financial advisor can achieve a state of deep communication and trust, the financial advisor will obtain a clearer understanding of who you are, the state of your current finances as well as your wants and needs in retirement. They will also want to learn all they can about your risk tolerances and capacities.

The greater the honesty and intimacy, the more your advisor will know how to do their work. All of this leads to greater effectiveness and appropriateness of the wealth and retirement plan which ultimately becomes a close collaboration. The relationship should be so close, Ibello likens it to a marriage.

“Your advisor will be with you for a very long time: through the ups and the downs and major life transitions like birth of your grandchildren, death of a loved one, a new home.”

Your relationship with your advisor must be open and intimate.

3. Ask questions that zero in on your specific needs.

They’re a fiduciary, so you won’t need to worry about whether or not you’re being shown products and services that meet your needs to accomplish your goals. The fee structure is standard – you’re not being overor undercharged.

You’re also confident that you’re feeling comfortable with the advisor – so that when the time comes you would be willing to share the most intricate details of your spending and finances.

Now it’s time to gauge the fine points of whether this is a fit.

Here, Robert L. Kilroy, CLU, CFP® at Point Wealth suggests being well-prepared with a laundry list of key questions that can provide deeper insight into the quality of the match. Some of the most pertinent include: • “What are the advisor’s philosophical beliefs regarding investing and wealth management?”

• “How many clients do they manage?”

• “What is the composition and skillsets of their team?”

• “What is their value proposition?”

• “Can they describe their ideal client?”

• “How would their best client describe their advisor?”

Drilling deeper From this platform, Bridget Riley of Riley & Higgins Associates LLC offers a handful of pointed questions that should lead to invaluable insights regarding the pairing.

ADVISORS MAGAZINE / 7

In the first of these she asks: “Do you have many clients who are in a similar financial situation as I am?” Riley insists that “you want to be certain you’re getting a financial advisor who is comfortable and very familiar with your specific pain points and financial needs.” This can be especially important for those getting close to retirement, a group whose needs are very different from those just getting started in the wealth management journey.

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Next, “a great question – that nobody asks – is how long have your worked with your longest client?” says Riley. “That is a very revealing question that tells quite a bit about the advisor and how they treat their relationships.”

Third, “What can you do to help me minimize my taxes in retirement?” asks Riley. “Taxes are the biggest drag on your retirement. You need someone with strong tax expertise who can minimize your tax and thus

increase your bottom line.”

Finally, “What does becoming a client look like?” says Riley.

She suggests insisting the advisor walk you through the process of client onboarding; how often will you meet; what reporting and access you can expect – if you agree to become a client. As Riley explains, “this can prevent disappointment from unmet expectations on both sides.”

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by joe innace

ANALYZING THE RISK OF LONGEVITY

AND THE IMPORTANCE OF HONESTY

T

he number of people in the U.S. age 100 or older last year was projected at 92,000, according to the Washington-based Population Research Bureau. That number has increased from around 32,000 in 1980 and 53,000 in 2010.

PRB estimates the centenarian segment of the country’s population could increase to nearly 600,000 by 2060.

“Longevity will be an ongoing 10 / ADVISORS MAGAZINE

JULY 2021

issue,” Pete A. Martinez, president and owner of Insight Financial Services, told Advisors Magazine in a recent interview.

“People reaching 100 may well be the fastest growing age demographic in the country,” he added.

So, when Martinez and his team of nine, located in Overland Park, Kansas, talk with clients about retirement planning, they discuss the gorilla being in the room for

possibly 100 years or more.

“We don’t like to plan for someone to live under 90 and for many clients we are planning until 100,” he added. “And we’re doing so because we learn they are healthy. We talk about health.

We talk about family medical history. Their families may live long, and with medicine today we know they can live even longer,” Martinez explained.

“With couples we ask if one

random variables, according to Investopedia. It’s a technique used to understand the impact of risk and uncertainty in prediction and forecasting models.

Martinez and his team will typically run 1,000 iterations of a Monte Carlo simulation for a client’s portfolio to assess the probabilities of success or failure.

is healthier than the other,” he emphasized, which can help make decisions about long-term care planning needs.

Armed with information from the health side of the equation, Insight Financial Services is better equipped to provide realistic projections about retirement finances. The firm uses Monte Carlo simulation to evaluate the risk of running out of money in retirement.

Broadly, Monte Carlo simulations are used to model the probability of different outcomes in a process that cannot easily be predicted due to the intervention of

Start Early Retirement planning is an ongoing, defined process at Insight Financial Services, where the typical client is 62 years old, according to Martinez.

Retirement planning is not a oneoff calculation left alone to run its course.

“And the sooner we start, the better,” he said. “I prefer to put a stake in the ground—say ten years out—and decide with the client how to work forward.”

At the very least, Martinez said the practice is to take a 36-month approach to getting a client prepared for retirement. When a client is 25-36 months away from retirement, spending habits are scrutinized. This is a time to get organized.

“We look at where their income is really going,” he said.

“Together, we evaluate all the likely sources of income, and we determine if retirement is feasible or if the client may need to think about downsizing their home or lifestyle.”

Then, when a client is 1324 months away from their retirement date, Martinez examines what else needs to be done if not fully organized, and they begin to prepare to live on the expected income.

“And then those last 12 months,

we want you to live as though you were retired,” Martinez said. You know what your social security income is going to be, you know your pension, you know what you can get from retirement assets.”

In short, there is a specific number. And Martinez insists on ensuring that the client can live off that number.

“I’ve found, traditionally, that if you give them a number, they will work towards it,” he said.

“Because of that, I have not had anyone that I have retired, in a very long time, have to return to work.”

That’s because, as Martinez explains, clients fully understood the consequences. They didn’t have any surprises later.

No second-guessing if they miscalculated or mismanaged something. Going into retirement, everything was already laid out.

Tell the Truth Any earnest discussion of health and income/spending habits must come from an honest place.

And Martinez, who served on active duty in the United States Air Force during the Gulf War, asks for two things from his clients: Be truthful and go see him.

“Tell me the truth,” he insisted.

“I can’t help you if I don’t have all the information.”

Martinez, who holds a degree

We believe insight is derived from taking the time to listen. Listening leads to guidance, strategies, and appropriate solutions.

ADVISORS MAGAZINE / 11

L/R Front: Lisa Meyer, Kelly Stephenson, Pete Martinez, MBA, Kira Hephner L/R Back: Lorinda Gregg, Jace Champlin, Larry Broxterman, Michael Rood, Greg Keal CLU®, RFC® , BFATM

in finance as well as an MBA, notes that people may often be embarrassed about their credit card debt and don’t want to tell him about it. But the best laid plans will fall apart if such items are not accounted for, or if any actual spending habits remain secret.

“Come see me,” Martinez added. “Good times, bad times, indifferent times, I want to see you. We have to look each other in the eye to tell each other what’s going on in each other’s worlds so that I can plan for you effectively.”

And come, or contact, they do.

Even pre-pandemic, Martinez says he would communicate with clients frequently, including at least one face-to-face meeting each year.

Also, if the firm is handling a couple’s financial matters, Martinez will not see one of them alone.

This is because if something happens to one person in the relationship, the other must know that there is a plan in place. At the outset, however, Martinez makes a couple fill out a risk tolerance questionnaire independently— because their respective risk levels 12 / ADVISORS MAGAZINE

JULY 2021

might be divergent, and then would need some alignment.

At the present time, Insight Financial Services has an investment minimum of about $250,000 – but it’s poised to increase, according to Martinez.

“For many years we took on a client at $100,000, but we were not a firm that could realistically take on less than that,” he said.

“I see our minimum going to $500,000 in the next few years as our average client is considerably above that at this point already.”

RIA and an ETF Emphasis Martinez founded the firm about 15 years ago, originally as a broker-dealer practice. But he then re-launched the company as a registered investment advisor (RIA).

In fact, the number of RIAs working in the U.S. has grown steadily during the last decade.

Such advisors are registered with the U.S. Securities and Exchange Commission or a securities administrator of the state in which they practice. In 2020, the number of registered investment advisors reached 13,494, according to

statistica.com.

“Being an RIA allows us to put everything in writing,” Martinez emphasized. “We demonstrate all fees—not only our fees but the expenses of holdings. We are primarily an ETF-strategy shop, so the average portfolio is going to be from 0.03% to 0.10% in internal expenses, which is very inexpensive.”

When Insight Financial manages a client’s portfolio, all financial planning is included at no additional charge.

“We believe that to be good stewards of their money, we have to be able to understand the whole picture,” Martinez said.

“You don’t invest in a vacuum. You invest based on your needs, your family’s needs, your income, your tax consequences and your risks.”

The firm prefers ETFs because Martinez sees them as considerably more tax efficient and lower cost than mutual funds.

“And I like the ability that if I need to trade the ETF in an instant—a national disaster or the like—I can pull out of the market in the best interest of my clients,” he said.

“More often than not, the people coming to us are taking considerably more risk than they should,” he said, describing the practice as relatively conservative when it comes to investing. Insight Financial serves a wide range of clients in different states. Martinez describes his typical client as the ‘millionaire next door.’

For more information on Insight Financial Services, visit: ifsadvisors. com

COVER STORY

CHEF

IRVINE’ S PERINO Tells America: ROBERT

DANA

Everything Will Be Okay by amy armstrong

The FOX News Star Talks About Her Patriotism, Role as a Mentor and Being a Dog Mom

D

ana Perino was the tender age of seven when she made her first trip to the White House. It was 1979 during the Carter Administration. Her mom had a friend “on the inside” who secured the mother and daughter behind-the-scenes tour. While there, Perino was allowed to sit in front of an official White House typewriter and tap out a letter.

“I certainly have loved this country ever since I was a little girl,” Perino told Advisors Magazine with a nostalgic tone. “I still have the photo of me holding the red phone and just the other day, my mom found the first letter I ever typed at the White House on that trip when they let me play on a typewriter. Having that is very meaningful.”

Little did Perino know at the time, but years later she would stand at the podium in the White House briefing room fielding questions from journalists, correspondents, and members of the media in her role as the 26th White House Press Secretary serving under President George W. Bush.

Even though it has been more than a decade, the professional relationship between the two remains strong. In a recent FOX News special, Perino 14 / ADVISORS MAGAZINE

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MAY 2021

highlighted Bush’s post-presidential passion – painting portraits of immigrants.

In a quote obtained from the external affairs department of the George W. Bush Presidential Center in Dallas, the former president told Advisors Magazine, “Dana grew up in the heartland and brought the patriotic values she learned there with her to the White House. I was proud to be represented by her and am pleased to see her continue to flourish in her career.”

Today, her patriotic bent matched with her love of politics continues with her strong presence as a news analyst and anchor at FOX News Media.

The five-foot blonde born in Wyoming’s ranching country joined the right-learning network in 2011 as a co-host of “The Five” airing at 5 p.m. EST where she and a cast of FOX News on-air anchors discuss the day’s political news and events. In 2017, “The Daily Briefing with Dana Perino,” which often coincided with 2 p.m. White House press briefings, gave Perino’s viewers an insightful look at the latest developments in Washington, D.C. Currently, she is co-host with Bill Hemmer of “America’s Newsroom” from 9 to 11 a.m. and remains a regular co-host of “The Five.”

"If you were lucky enough to be born in the United States, you have basically won life's lottery."

ADVISORS MAGAZINE / 15

Perino is also the author of three books – with the most recent, “Everything Will Be Okay: Life Lessons for Young Women (from a Former Young Woman)” hitting the market in March 2021 and unofficially serving as a national pep talk as the United States began to emerge from COVID-19 lockdowns and restrictions.

Along with many Americans, Perino is celebrating this Fourth of July holiday with renewed hope that not only marks the 245th anniversary of breaking ties with England but also the start of regained freedom from a global pandemic that killed nearly 650,000 Americans and left millions more living reclusive lives in fear of catching the virus.

“This year is wonderful to see all the people reemerging from their homes and reconnecting,” said Perino. “I love the reunions. It is especially touching to see the grandparents finally able to give hugs to their grandchildren.”

A Conservative Journalist As a leading news anchor for the right-leaning FOX network, Perino – a self-described conservative – does bleed a lot of red in her version of the good ole, “red, white and blue,” even though her red isn’t necessarily a hue that exactly matches that of the Republican Party.

She is, after all, a television news journalist and 16 / ADVISORS MAGAZINE

JULY 2021

“DANA GREW UP IN THE HEARTLAND AND BROUGHT THE PATRIOTIC VALUES SHE LEARNED THERE WITH HER TO THE WHITE HOUSE. I WAS PROUD TO BE REPRESENTED BY HER AND AM PLEASED TO SEE HER CONTINUE TO FLOURISH IN HER CAREER.” - GEORGE W. BUSH most viewers do expect some degree of objectivity.

Watch her programming long enough and you will see she is selective – choosing which topics she comments on and which she’ll bypass with a simple smile as she transitions to the next segment.

Her background as President Bush’s press secretary gives Perino rare insight that few other television news anchors can draw from.

A Mentor at Heart Perino and her husband, Peter McMahon, are longtime philanthropists dedicating their financial resources and time to projects in Africa after a trip there during her tenure with the Bush Administration. There, Perino saw a firsthand look at the continent’s challenges.

That trip helped form her mantra: “If you were lucky enough to be born in the United States, you have basically won life’s lottery,” Perino said on March 20, 2021 during a Dana Perino Live appearance at the Florida Theatre in Jacksonville, Florida.

It seemed fitting that the patriotic Perino headlined one of the nation’s first public events with a live audience since the pandemic shutdown typical American life during 2020.

“It is so good to see humans again,” she gushed as the socially distanced, mask-wearing crowd cheered.

At that recent appearance, those gathered were predominantly couples in their late 50s to mid-80s.

Certainly there were younger faces in the audience, but the bulk of those attending one of the nation’s first public events since COVID-19 lockdowns represented a seasoned generation who have worked their careers and have paid their dues. They are the loyal Perino viewer base, but not the subject of her latest book on mentoring.

Yet, that doesn’t bother her.

They are the buyers – the financially established with hard-earned discretionary income – that catapulted her third book to the top of the New York Times Bestseller list soon after it was released.

One of her deepest desires has been to help mentor young professional women.

“I see so much anxiety in young women today,” Perino said. “It doesn’t have to be that way.”

That is why she wrote, “Everything Will Be Okay,” with hopes that anecdotes from her early career and the advice she garnered along the way will help younger female professionals appreciate the value

of the process they are currently going through with the knowledge that they can – and will – come out on the other side having achieved their goals – both professional and personal.

Following Her Own Counsel In a nod to her own advice to keep growing professionally, Perino has taken to podcasting. Not surprisingly, her podcast shares the same name as her new book. Probably something to do with smart branding – another tactic she mentions to young female professionals.

For a June episode coinciding with Father’s Day this year, Perino interviewed Condoleezza Rice, director of the Hoover Institute at Stanford University, and who, as former U.S. Secretary of State from 2005 to 2009, had the same boss as Perino: Bush 43.

Rice discussed the role her father played in shaping her career. Perino understood. Her own father helped to significantly shape her love of news.

As an elementary student growing up outside of Denver, Perino was tasked with reading the Denver Post and The Rocky Mountain News each day selecting an article from each that she would discuss with him during the family’s dinner that evening.

“It is something I will always be grateful to him for doing,” Perino said.

ADVISORS MAGAZINE / 17

Financial Advice In an economic world where some investors are fickle when it comes to working with members of the financial services industry, Perino and McMahon – an international business man specializing in the marketing and sale of medical supplies – stay steady: the couple has been with the same financial advisor for decades and they consider him to be a friend – a goal many financial advisors will tell you they seek.

“He has been the core of helping us to figure out our charitable donations as well as investments,” Perino said. “And, he never forgets a birthday, and he celebrates every single one of my career promotions.”

Having come from a middle-class family where the world of Wall Street and its stocks and bonds were just a page in the newspaper that no one in her family ever looked at, Perino said she knew she needed a financial professional to guide her – especially when her paychecks became dollar amounts that were much more than a month-tomonth existence.

She knew the importance of saving – her parents had not only taught her that; they modeled it.

“When I first started saving, it wasn’t a lot, but I started saving early and investing early and letting that money grow because I knew it was going to be important to me later on in life,” Perino said.

Her best piece of financial advice for young professional women: Even if it is difficult to do so, even if it means sacrificing for a certain period of time, be sure to secure six months of savings as a backup in case they find themselves unemployed –

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whether that be through a firing or needing to walk away from a bad workplace.

“There is nothing worse than being stuck in a toxic work environment,” she said. “For too many young women, that is the case. But again, it doesn’t have to be. When you have six months of savings, you have freedom to walk away.”

Change is OK Perino recommends remaining open to change.

She followed that advice earlier in this year when the leadership at FOX News announced that the “Daily Briefing” was ending and Perino would join longtime television journalist, Hemmer, for a morning show with his solo show, “Bill Hemmer Reports” also being cancelled.

Both shows had strong ratings and media was abuzz with questions of why FOX News was making the changes.

Thus far, “America’s Newsroom with Bill Hemmer and Dana Perino” posts consistent viewership numbers between 1.3 and 1.4 million, according to “Cable Rankings.” In February of this year, FOX News dominated cable news with several programs drawing top viewership numbers, including “America’s Newsroom” earning the most-watched program in their timeslot according to Nielsen Media Research and reported by Business Wire.

“Dana has built a powerful connection with our audience and has thrived in her new role on America’s Newsroom – her versatility is just one of the many keys to her success and stardom,” Suzanne Scott, CEO of FOX News Media, told Advisor’s Magazine.

ADVISORS MAGAZINE / 19

A Day in Her Life Perino is up at 5 a.m. and begins reading the morning news – as well as the work of political columnists from all different perspectives.

She makes a point of being well-read and knowledgeable about what is being touted from the left to the right. She heads to work by 6:30 a.m. often listening to podcasts at 1.5 speed so she can buzz through more of them. She is in “hair and makeup” by 8 a.m. allowing the appearance professionals to do their thing.

“We are so incredibly blessed here at FOX,” she said. “They [hair and makeup pros] do so much better than I ever could.”

There are quick morning meetings with producers for her 9 a.m. show. Her afternoons are filled with interviews, research, and reading – always reading, she says – in preparation for what is next. Then it’s prep time for the 5 p.m. show.

And at the end of her jam-packed day, Perino is met by her husband and Jasper – the couple’s solid brown-colored Vizsla – for the walk home. There is

a mom-and-pop pet shop on the way that Jasper often “pulls” his human parents into, said Perino, adding that Jasper is a big fan of the cow’s ear chew toy.

“He carries it in his mouth on the way home walking down the block and into the elevator, to his bed, and then he starts chewing on it,” she said with a laugh that only dog moms understand.

The trio is celebrating July 4th at the Jersey Shore – their weekend getaway. Perino said it will be a quieter celebration for her as she hosts a songwriter friend from Nashville.

Of course, they’ll be watching fireworks, she said. But how well does Jasper cope with the loud, explosive part of the holiday?

“Oh, he does okay with it,” answered Perino.

“Peter and I hold him and tell him he’s a good boy and that he is okay.”

Perhaps her words to Jasper echo the core of what seems to be Perino’s approach to life: there is the good, sometimes the bad and the ugly – but in the end, everything will be okay.

Tips for Success From Dana Perino’s latest book “Everything Will Be Okay.”

“Ideally, I like to have under twenty emails in my inbox. That makes me feel like I have a handle on things. When I get over a hundred emails in there, I feel uncomfortable, like I’m being chased by a monster in a nightmare.” – page 102 “I’m a proponent of handwritten thankyou notes, written on decent stationery and sent in the actual mail … with a stamp and everything. If you ever find yourself asking, ‘Should I send a thank-you note … the answer is always yes.” – page 99 “You will realistically only get through about five tasks in any one day. It keeps you more honest, and it stops you from feeling overwhelmed.” – page 57 20 / ADVISORS MAGAZINE

JULY 2021

by amy armstrong

Divorce is Often as Financially Unfriendly as it is Emotionally Unpleasant Breaking up often creates financial instability for each party

F

or some marriages, the COVID-19 pandemic produced the perfect storm: financial stress and too much quarantine togetherness. The result? An increase in divorce rates as American couples were pelted with the factors most often cited for splitting up.

According to Legal Templates, an online firm providing access to legal documents, the number of people searching for divorce information and purchasing the firm’s divorce kit was 34 percent greater from March to June 2020 as compared to same four months in 2019.

Here, we talked with various industry professionals who share their thoughts on the financial complications of divorce and what to look out for.

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Think About Dollars Post the Divorce Decree Too many divorcing couples – in particular, the women in the disintegrating relationship – do not force themselves to consider divorce’s future financial impacts. Often, they just want out regardless of the consequences – even the ones with dollars attached.

That’s not a gainful approach to a secure financial future post-divorce, according to at least one financial advisor specializing in divorce matters.

“The most important thing is not only to think about your financial need through the divorce process but even more so after the divorce process,” said Stacy Francis, a

certified divorce financial analyst with Francis Financial, Inc., based in Manhattan. “Not only do you have to review your expenses now, but you have to take an honest look at what those expenses will be after the divorce.”

Standard of Living Takes a Nosedive It is not a matter of “if” your standard of living is going to change, but how resilient you will be once the divorce is final and change takes place.

“For the vast majority of individuals, their lifestyle and standard of living drop significantly during and after divorce,” said Francis. “They are being squeezed with higher expenses of living separately and lower income. A lot of divorcing couples

imposed on men to support their former wives. Now, a growing number of dads are facing the challenges that previously impacted stay-at-home moms going through divorce.

“Challenges for men vary based on their family role before the divorce,” said Dianne Nolin, a certified divorce financial analyst and co-founder of Argent Bridge Advisors located in Vienna, Virginia. “With more men taking on the role of at-home parent, they may find themselves re-entering the workforce, trimming a budget to live within a spousal support award, or juggling new expenses such as healthcare costs. This has long been an issue for women in a more traditional single income family with husbands working outside the home.”

are struggling.”

According to a U.S. Census 2020 report released April 22, 2021, titled, “Number, Timing and Duration of Marriages and Divorces: 2016,” more divorced women (20%) as compared to divorced men (11%) have incomes at or below the poverty level when measured 12 months post the split.

Gray Divorce Defined as divorce that occurs past age 50, “gray divorce” is a killer of financial stability, as per the results of a recent study from the National Center for Family & Marriage Research at Bowling Green State University in Ohio.

The report states that divorcees age 50 or older can expect their wealth to drop by about 50 percent.

“It is a grim picture,” was how Susan Brown, the BGSU sociology professor and co-director of the NCFMR conducting the research of more than 20,000 American divorcees born before 1960 described the results in an article published in 2019 by the Los Angeles Times.

Bouncing back – financially speaking – is more challenging at an older age.

“There just isn’t enough time,” said Brown.

Mr. Moms Face “Women’s Issues” after Split With more men staying home to care for the kids, the roles in divorce have changed for some couples.

In decades past, child support and spousal support orders mostly were

That Ring Has Value…for Her As divorce divides the marital assets and courts put the final stamp of approval on who gets what, former spouses often wonder about the fate of that sparkly engagement ring: Who gets to keep it? Who gets its economic value?

The answer does vary state-to-state, but in general, the engagement ring remains an asset for the one who received it.

“It was a gift given prior to the contract (the legal marriage),” explained Judy Herbst, executive director of Savvy Ladies, a New York City based non-profit offering free financial assistance to women.

Before joining Savvy Ladies, Herbst established a thriving niche business model: helping divorced women tap into the value of the ring(s) from their failed marriages. In 2005, she established an online clearinghouse dedicated to the sale of rings owned by divorcees.

“The ring is a financial asset,” said Herbst. “For her.”

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Breakthrough Actionable Strategies

by bobby l. hickman

RELATIONSHIP TALK

INTERVIEW

FREQUENT CONTACT = SATISFIED CLIENTS

Regular interaction boosts advisor relationships

F

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“

I really miss that personal connection with people, said Massaro.

JULY 2021

“

inancial advisors who engage with clients on a regular basis can reap greater benefits through more highly satisfied customers who perceive additional value through the professional relationship.

Almost 96 percent of advisors who connect with clients at least four times a year, including in-person, email, and phone call interactions, are perceived as providing the value customers expect – three times higher than those who met only once a year, according to Carson Coaching’s 2020 Advisor Value Survey. Those with

frequent interaction also reported they were more financially literate and felt more confident that they were prepared for retirement.

At M Financial Planning Services, Inc., advisors spend about 80 percent of their time on client interactions, according to Ted Massaro CLU®, AEP®, ChFC®, president of the Marlton, New Jersey, firm. Those interactions include meeting one-on-one with clients, plus joint sessions with customers and other advisors, such as CPAs, attorneys, or estate planning professionals.

“We conduct semi-annual

meetings with our clients,” Massaro said. “We dig deeper to understand as much as we can about each client and their family. It goes beyond simply knowing the name of each person. We know our clients’ priorities, problems, challenges, and goals.”

That interaction became more difficult when the inperson social environment was lost in 2020, Massaro noted. Unable to hold face-toface meetings, the company ramped up technology-based communications, such as Zoom videoconferencing, to maintain customer contact.

Periodic “reality checks” throughout 2020 kept clients

aware of how the COVID-19 pandemic was evolving and how it impacted the markets.

The firm has also moved its continuing educational environment to a web-based platform.

“I really miss that personal connection with people,” said Massaro. “Hopefully by summer, we will have activities where we can interact with clients in social settings.

While I prefer the one-on-one meetings, we've made a lot of technology available to help our clients communicate and stay in contact with us.

We have clients in nine states, so we use various types of ongoing communication with them all the time.”

Founded in 1982, the firm manages assets totaling some $350 million, about 90 percent of which is feebased. M Financial operates as a corporate Registered Investment Advisor (RIA) registered with the states of New Jersey and Pennsylvania.

The firm is affiliated with LPL Financial, the largest independent broker/dealer in the country*, which provides securities and advisory services.

Fifty percent of M Financial’s clients are self-employed business owners, Massaro said, and most of those are family businesses. He likes working with entrepreneurs and business owners who are looking for a trusted advisor to help them address the many different issues they constantly juggle. While Ted’s minimum is $500,000, the firm works with clients at all asset

levels, particularly second and third-generation clients.

Massaro adds: “We pride ourselves on our client tenure – the average client has been with us for over 25 years.”

M Financial creates a complete financial plan for all clients. The Carson survey found that 65 percent of clients whose advisors Ted Massaro, CLU, AEP provide them a written plan Chartered Financial Consultant are confident about their own preparedness for retirement, versus 54 percent of those without a written plan. In addition, 81 percent of those with a formal plan were highly satisfied with their advisor, while only 67 percent of those without a plan were satisfied.

“When any individual comes with us – whether they are a business owner, an executive, or a family member – they must start with a comprehensive plan,” Massaro said. “That includes those in the beginning stages of developing their own profession or career.

Obviously, their plan will be more rudimentary at that point. But our goal is to develop good habits early on, and then work with them and their families to establish long-term goals to meet their objectives.”

Involving family members is a priority to help identify and address client concerns.

Massaro said advisors make sure they understand the chemistry within each family.

Since most client families cover multiple generations, he added, it is not uncommon to hold annual family meetings that include members of each

generation.

“Our goal is to develop a long-term planning relationship,” Massaro added. “Our fee-based planning does not require that clients do any investment or insurance purchases through us.”

Additionally, M Financial offers fee-only subscription services to clients who prefer that model. “Hopefully, when clients are satisfied with us, they will move their investment assets to us and allow us to address any other planning issues going forward.”

Financial education is one of the most fundamental areas advisors address from the beginning of the engagement, Massaro said. During the initial interview, advisors strive to understand the client’s overall values and goals.

They create a complete client profile through a series of questions that address goals, asset levels, risk tolerance, previous investment experience, and their interest in financial advice so advisors can understand the client’s viewpoint.

“The most important thing we try to develop with our clients is a solid foundation of confidence and trust that we're going to be there whenever they need information, and that it will be independent and objective,” he said.

“It's a very personalized, customized approach; we don't use anything in a template form.”

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Massaro added the firm emphasizes educating children as well as adults. New Jersey high schools now require students to take a financial literacy course, and M Financial provides ongoing education to support that effort.

He said the firm offers quarterly webinars on financial education topics; weekly or monthly communications on market and economic issues; and other valueadded interactions to keep clients informed and up to date. Similarly, the ongoing planning process connects their personal situation with current events that may affect their finances.

Retirement planning comprises a significant component within the comprehensive approach. Rather than using a boilerplate or standard model, Massaro said, his firm finds it more valuable to customize the retirement planning process to address the goals and needs of each individual client. Strategies include finding guaranteed sources of income in retirement (i.e., annuities); understanding the tax consequences of portfolio allocation both before and during retirement; Social Security considerations; and long-term healthcare planning needs.

“When we look at retirement planning, it is critical to consider

F/B - L/R: Ted Massaro, CLU, AEP / Edward Garruto, CFP® / Scott Wark, RICP® Michael Young / Eric T. Allen, CFP® Jennifer Markowski / Anthony Massaro, CFP®, CSLP® / Jessica Greaser

where the income is going to come from, how you're going to achieve your goals, and what a realistic timeline to retire would be,” he added.

Another vital component is estate planning. One of the first questions in the planning process is asking clients whether they have the appropriate legal documents and, if so, when they were last reviewed. For those who do not have a will and related documents, he said, advisors emphasize the risk of not having the proper estate planning documents in place.

“Estate planning has always been a core part of our financial planning process,” Massaro added. “Estate planning education

is important to us. We help individuals understand that you don't have to be a high-networth individual to need estate planning. We work with a number of estate attorneys, as estate planning obviously has had a lot of evolutionary changes in recent years. We coordinate with an attorney that works with them on wills, health directives, powers of attorney, and other documents appropriate to their situation.”

Looking to the future, Massaro said his son recently joined the firm, helping M Financial expand its services to young professionals in the millennial generation. The company will further expand its technology, and plans to add two to three new advisors in addition to the three senior advisors already at the firm. He added the company is actively searching for a practice to acquire that fits their core philosophy.

For more information on M Financial Planning Services, visit: mfinancialplanningservices.com

*As reported by Financial Planning magazine, June 1996-2020, based on total revenue.

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by bobby l. hickman

More Americans Planning to Retire Early

Greater number working to retire by age 55 The number of Americans who want to retire early has grown in recent years as more people plan to stop working by age 55. Thirty-eight percent of Americans under age 54 (who also head some 11.5 million U.S. households) hope to retire by age 55, according to a 2021 report by Hearts & Wallets. The “Aspire to Retire by 55” report also found that 44 percent of those ages 55 to 64 have already retired, while the number of Americans overall who expect to retire before age 65 totals 39 percent – the largest percentage since 2010.

“Most advisors tell clients to work as long as you possibly can and wait to take Social Security until age 70,” said Cubby Bice, AAMS®, CRPC®, president and owner of Bice Wealth Management in Mooresville, North Carolina. “Not me: I want to get you retired as early as possible. If I can do that, I've done my job well.”

Bice said his goal is getting clients’ finances to a point where they can wake up every day and choose how they spend every second of their day as soon as possible.

“We try to get our clients focused on the idea that money is not your wealth,” he continued. “Time is your wealth; money is the tool that allows you to choose how you spend that time. I don't think the winner in this game is the person who dies with the most money in the bank. The winner is the one who made the most deep connections and memories.”

Each person has their own goals and visions of what their retirement will look like, he said. Bice Wealth Management has worked with clients from their early 50s through age 70 to create customized retirement solutions that target those needs. There are several variables people cannot foresee – such as future tax policy changes, healthcare expenses, and longevity – so Bice tries to build in as much cushion as possible to account for the unknowns.

“During more than 20 years in the business, I have never run into two identical situations,” Bice said.

“Every retirement is different. But we still employ the same fundamentals, reducing risk – as much risk as is humanly possible – and giving ourselves the greatest chance for a successful outcome.”

The main factor that people fail to plan for sufficiently is longevity.

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Bice said his firm models how much money clients will need through age 100. He added it is better to plan to live for 100 easiest way to find that person: talk to someone you years and live to 88, versus living longer and outliving their already trust and find out who they trust. Building trusting money. relationships with clients has helped make referrals the Since Bice Wealth Management provides solutions main driver for the firm’s business. tailored to individual situations, new Bice also said he feels the financial tools like automated trading platforms industry focuses too much on fees. and robo-advisors are not competitors creating an He said there should be a broader for his firm’s services, he noted. He said experience understanding that fees are just one part investing, retirement planning, and wealth that inspires of the value proposition. He noted people management is not something people can can pay zero percent fees but still lose 60 do on their own unless they have financial our clients percent of their account value in less than expertise. People who win with trading to make well two years – as happened during 2008apps get plenty of media attention, but 2009. informed little is said about those who lose their "Fees are certainly part of it, but the money. decisions more important factor in the equation “Advice is not a commodity,” he through is value. You are making an investment continued. “Our perfect client is someone through the fees you pay; what are you education who realizes the value of financial planning getting in return? I endeavor to provide expertise. We're not looking for clients the best value of anybody in the industry.” who want to actively participate in the He added, “For the people I deal with, I've done a good management of their account. We're looking for someone job of helping them save money for the future. It's my who knows that they cannot do it, and who seeks an expert job to protect and grow their money. We're not traders to guide them.” and we're not gamblers. We're just the opposite: we take Financial education plays a significant role in the client a long-term approach that eliminates risk. That’s hugely relationship, Bice said. However, there is no way to quickly important in someone's life.” provide clients with the depth of knowledge his firm has For more information on Bice Wealth Management, visit gained from decades of experience and training in the bicewealth.com industry.

“I want to make sure that you're very comfortable, and that you understand what we're trying to do and how we're going to go about accomplishing it. We work hard to create messages our clients can understand while stripping out as much of the jargon and financial lingo as possible.”

The most important step financial planning clients can take is to find an advisor that they trust, Bice said. The

*

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by bobby l. hickman

"MARATHON, NOT A SPRINT" Advisor uses triathlon lessons to educate clients “Investing is a marathon, not a sprint” is a metaphor financial companies and business journalists sometimes use to describe long-term investment strategies.

H

owever, when Ari Baum uses the analogy with his clients, he speaks from personal experience as a competitive marathon runner and Ironman triathlete.

Baum, founder and CEO of Endurance Wealth Partners in New York City, often uses sports metaphors with clients to convey financial concepts while avoiding Wall Street jargon.

“Part of the reason our company is called Endurance Wealth Partners is this core belief that sports is a microcosm for life,” said Baum, who is also a CFP®.

“We can learn a lot through sports, and then translate those experiences into life lessons.”

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with clients who need to accumulate millions of dollars in their 401(k)s or IRAs to retire comfortably. Some people have trouble envisioning themselves saving that much money.

“A parallel is to think of a person wanting to run a marathon,” Baum explained. “It’s hard to imagine running 26.2 miles all at once. But you can run one mile 26.2 times. So, when someone asks, ‘How am I going to reach $2 million in one shot?’, I tell them, ‘That option doesn't exist.’ People have to take small steps over time and gradually work up to something bigger.”

Another analogy is particularly appropriate during the market turmoil in recent months. Baum said many

people hear horror stories about marathoners “hitting the wall” at mile 20 of the 26.2-mile race and their bodies shutting down. Runners specifically train for the challenges of mile 20 so they are prepared to power through the discomfort and cross the finish line.

“The same thing happens with investing,” Baum said. “There are times when the market is scary and ugly. No one could foresee COVID-19 happening last year, or the 2008 recession. Similarly, we prepare people mentally for the investing ‘mile 20’ by creating a written financial plan. When mile 20 comes financially, you are prepared; you know what to expect.”

When people are under stress, Baum continued, they tend to make poor financial decisions. Money triggers a number of emotional factors that advisors can help them address.

Automated trading platforms and

Investing is like running a marathon.

It requires you to execute a disciplined training plan to put you in the best position to finish the race.

There will be times when you feel great and times when you feel like you “hit the wall”. By trusting the time tested process, you are able to reduce the emotions and stick to the plan.

At Endurance Wealth Partners, we apply the same metrics to our portfolios. By developing a personalized risk score for each client, we are able to create, monitor, and stress test portfolios to keep you invested to your “finish line”.

robo-advisors cannot prevent people from making the wrong choice, such as exiting investments when the market plummeted in March 2020.

“That’s scary because the market came roaring back soon afterwards,” Baum noted. “Many people missed out on the recovery because they panicked. If they had someone to speak with, that advisor might have found they were taking more risk in their portfolios than they could tolerate, for example. People need an advisor who is proactively connecting and communicating with them to fill their needs.”

Retirement planning also requires taking a long-term view of both financial and psychological factors. For the monetary aspects, Endurance Wealth Partners has various tools to help clients first determine how they want their lifestyle to look when they retire. Once clients and advisors budget their expenses and income, EWP can create a plan to help them meet those goals without outliving their money.

“The other aspect of retirement we see a lot of people struggling with is mental health,” Baum said. “Most people start working in their early 20s and continue into their mid-sixties or seventies. They become their job or their profession: they are known as the lawyer, the accountant, or the doctor.

Then when they retire, it's difficult for them to adjust to life beyond work.”

With people living longer, he noted, more people can have a work-optional retirement.

“If you want to work because you enjoy doing what you are doing, that’s great.

Their second act may be doing something they always wanted to do but did not because it does not make money. That is okay too: you do not have to just sit at home all day. What’s point of saving and investing all this money for retirement if you’re not going to be able to enjoy it?”

The financial industry’s orientation towards short-term results over long-term growth creates another challenge, Baum said. Many clients get their information from news channels where analysts mainly focus on quarterly earnings.

“Imagine that the house you live in had a phone app or a ticker tape telling you the real-time market price of your home,” he said. “One day the price is $1.2 million; later it’s $900,000; then it’s back up to $1.1 million. That could drive you crazy and might lead you to make an emotional decision. It’s better to sit back and say, ‘I live here, and I’ll be here for the next 20 or 30 years. What difference does the price make?’ Similarly, when it comes to investing, it shouldn't matter so much what happens in the short term.”

He added, “The people that are sitting at the top of Forbes billionaire list are investors. I haven't seen any day traders there.”

When Baum explains investing through the lens of sports, he said, people can better understand and relate to the underlying principles. Financial education and knowledge make them less likely to make an emotional decision at the wrong time.

“The events and experiences I have had while swimming, biking, and running competitively have made me the best I can be for my clients,” he added. “Delayed gratification through training means better results on race day. The same is true for investors: delaying use of your money for the future enables you to do more.”

For more information on Endurance Wealth Partners, visit: endurancewealthpartners.com

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by bobby l. hickman

RETIREMENT TALK

INTERVIEW

retirement planning becomes more difficult

It's nothing like your father's retirement

R

etirement planning had already become more challenging in recent years before the COVID-19 pandemic upended the global economy and panicked investors.

During the early months of the pandemic, 43 percent of financial planners made changes to their clients’ retirement accounts, according to the 2020 AICPA Personal Financial Planning Trends survey.

Approximately 31 percent modified retirement income drawdowns during this time while 62 percent changed investment allocations, and 59 percent updated spending plans.

“I don't know if there's ever been a more difficult time to contemplate retirement, to enter retirement, or to be retired,” Peyton R. Hawkes, principal at Hawkes Wealth Management, a fee-only financial planning firm in Binghamton, New York, told Advisors Magazine. “It's not easy to be conservative and produce portfolio income in this low interest rate environment.”

One complicating factor has been the new market highs. After the pandemic-driven stock market crash of early 2020, the stock market has rebounded to set new records into 2021.

“By almost every measure, these markets are fully priced – particularly considering that we're not even out of the pandemic yet,” Hawkes said. “Markets are very expensive and they're also very narrow.”

The other challenge lies in the bond

markets. Fifteen years ago, Hawkes said, a balanced investor would own a portfolio comprised of half in stocks and the other half bonds. Future stock returns are never known, but a bond yield in the high single digits provided known returns regardless of how stocks performed. Today’s low interest rates changed that equation.

“If half your portfolio is in bonds, you are holding very low yielding assets,” he continued. “When interest rates do eventually rise, a bondholder’s principal may actually be at risk depending on how long you hold the bond. The longer, higheryielding bonds will fall more in price. So, investors they suffer low yields AND risk to the principal. That’s not a great situation.”

In the current environment, investors must take on more risk to realize the same weighted average returns previously achieved by balancing bonds and stocks.

Hawkes said his firm employs several riskreduction strategies to address the situation, including employing hedging strategies, alternate asset classes, and employing Artificial Intelligence, (AI).

Another challenge is that people are living longer lives, requiring more retirement savings and income. Strategies to address longevity include private annuities, life insurance policies life is filled with with long-term care riders, and opportunities. estate planning. will you be ready?

“One of the biggest

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protections against unexpected longevity is making Social Security the centerpiece of your retirement,” Hawkes said. “It is a lifetime benefit you cannot outlive, so you want to design an appropriate Social Security strategy.”

Effective retirement planning – and financial planning overall – requires individual plans tailored to individual circumstances.

“Each family is different with their own unique strengths and weaknesses,” he noted. “It's really necessary to build a custom plan for them. With that in place, you can be savvier with tax planning and retirement planning.”

Each Hawkes Wealth Management engagement involves at least a basic comprehensive plan, a financial inventory, and a map of the family situation, Hawkes said.

“As fiduciaries, we need to know their circumstances before we can offer holistic advice. Most clients appreciate that approach. For many, that’s a refreshing experience when it comes to financial services.”

For more information on Hawkes Wealth Management, visit: hawkeswealthmanagement.net

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INTERVIEW

by bobby l. hickman

financial planning for all Sound strategiesfor all income levels

A

dvisors are often divided over the question of whether to set client minimums. Some prefer to focus on clients with higher levels of investable assets to ensure they generate enough revenue to support their practice. Others reject minimums so they can serve any client who needs financial advice.

Only 10 percent of financial advisors do not set client minimums (based on assets under management or revenue) and have no plans to add them, according to a recent study by Facet Wealth and CANA Research. Twenty-five percent of those surveyed have minimums they always follow; 44 percent do not enforce their firm’s minimums; and 17 percent are considering

“For someone who has $50,000, that money is just as valuable to them as $1 million is to someone else,” Esposito said. “We can still provide financial solutions for them.

They might not be able to invest, but they may still need life insurance or mortgage insurance.”

Another reason for the nominimum policy is that most of Esposito’s clients come through referrals. He said he always looks for a good fit between prospects and advisors, and always takes referrals regardless of the circumstances, as those come from existing clients who have confidence in him and are proud of their working relationship.

Esposito said he has recruited several large producers into his 44-member firm who prefer to work

WE UNDERSTAND THE CHALLENGES SMALL BUSINESS OWNERS AND ENTREPRENEURS FACE. adopting account minimums. The survey also found most advisors spend 10 to 20 percent of their time servicing unprofitable accounts.

The Pinnacle Financial Group on Long Island has no minimums, allowing it to serve a wide range of clients, according to Joseph Esposito, president and founder.

His clients range from teachers and blue-collar workers to small business owners and high-net-worth individuals.

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with high-net-worth clients.

“I understand that’s the way they do business. Sometimes I question myself for not having a minimum, but I always decide not to do it,” he said.

He gave an example of working with a teacher to rollover $100,000 in a 401(k) plan. Later, after his parents pass away and he receives a sizeable inheritance, the situation changes and the client needs more help.

“That’s when they call you asking what to do next. Now the person who only had $100,000 now has $1 million – it’s rewarding to help them with financial solutions they haven’t had to think about before.”

Working with a variety of clients makes financial education and solid communication top priorities at The Pinnacle Financial Group. Esposito said his team is trained well to avoid slipping into industry jargon.

“Sometimes I catch myself asking a client who they would like to add as a bene on their account, they look at me and say, ‘What is a bene?’ We have to remember that they don’t know the industry jargon.

I find that it works best when I speak plainly to a client. I also use stories and personal experiences to help describe what we’re going to do.”

He described a recent call from a client who is a highly intelligent chemistry teacher. The client fumbled through his questions and apologized repeatedly, saying he felt stupid. Esposito responded that he knows nothing about chemistry, so he would feel the same way trying to discuss the teacher’s field.

Esposito told the teacher he should ask his questions as plainly as possible so they could decide how to move forward.

“I have always run my business the same way: very client-centric,” he added. “Even before the pandemic, I was always there for them and kept lines of communication open. From our first meeting, I give them all the information they need and tell them to reach out to me for anything at all. We have regular conversations

about their accounts because everybody wants to know about their money. We always go the extra mile – anything to help.”

The key to a client-centric approach is simply listening closely to understand what is most important to clients. For example, when Esposito meets with a young family with a modest income, planning for retirement is not as important as protecting their children. In that situation, Esposito discusses insurance.

“Financial planning is not always about retirement planning: it’s about the whole picture,” he said.

“Whether clients are closing in on retirement or not, you do the same thing. You basically evaluate their needs and create an inventory of their financial life and what they

will need. We don’t need to try to knock the cover off the ball. It can be a conservative plan with a reasonable rate of return that gives you confidence.”

With certified financial planners on staff, Esposito said, all the firm’s advisors look at each client’s entire financial picture. Then they recommend steps to protect assets, which may include investments, life insurance, long-term care riders, and estate planning. He is also a dual-registered advisory, which carries fiduciary responsibilities to always operate with the clients’ best interest.

Esposito said one shortcoming in the financial services industry is an over-emphasis on pricing. He noted there is a lack of emphasis on the value of advice, the value of risk management, and the value of having a person who can help others. He noted one company describes itself as a “financial translator,” a useful term that shifts the focus of industry marketing away from price back to more important concerns.

“I’m not a stockbroker who just sells you IBM or McDonald’s stock,” he added. “I’m managing a portfolio and managing risk to address your objectives, your goals, and your wishes.”

For more information on Pinnacle Financial Group, visit: thepinnaclefg.com

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through The Pinnacle Financial Group, a registered investment advisor and separate entity from LPL Financial.

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by joe innace

Jake Reardon, AIF Owner and CEO Haddon Planning Group

LIFE IS HARD ENOUGH Financial planning doesn’t have to be

French philosopher Jean-Paul Sartre once said: “Only the guy who isn’t rowing has time to rock the boat.” And many years later, American author and business management guru Patrick Lencioni noted: “If you could get all the people in the organization rowing in the same direction, you could dominate any industry, in any market, against any competition, at any time.”

N

o one understands this better than financial advisor, Jake Reardon, owner and CEO of Haddon Planning Group – both figuratively and literally. In high school and college, Jake was a member of the crew team and not long after, straight out of college, began his career as a successful business owner. Starting out in the financial industry at Ameriprise at age 21, he is now the wellrespected fiduciary to over 1,500 clients.

“Crew wasn’t really popular in our small, blue-collar town,” Reardon recalled in a recent interview with Advisors Magazine.

“What we lacked in numbers we made up for in determination and heart. Our small, tight-knit team surpassed some of the top38 / ADVISORS MAGAZINE

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ranking experienced schools to win national championships. It gave me the foundation to become successful in a business where eight out of 10 financial advisors fail. My triumph in the sport taught me how to be persistent and determined.”

Reardon continues to row, has run an IronMan Triathlon and the Boston Marathon – achievements that, according to Reardon, have helped keep him at the top of his game.

Growing up, Reardon recalled that his parents didn’t make a lot of money. They worked full time and did an amazing job providing for him and his siblings, but always sacrificed for themselves.

“They could’ve done both,” Reardon said.

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L/R: Bob Protesto, CFP®, CRPC®, – Jake Reardon, AIF – Mike Rochonchou discussions at company strategic planning session

One-on-one individual client review meeting

Employee lunch meeting at client location for “Benefits Education Day”

“If my parents understood finance and investing, they could’ve given us that same great life while also affording extras for themselves. It was the same situation for everyone in the neighborhood.”

And that’s why he became a financial advisor. According to Reardon, “It’s one of the few careers where you can have the heart of a social worker with the paycheck of an entrepreneur.”

Reardon was with Ameriprise for 10 years before moving on to BCG Securities where he managed 25 advisors in addition to running his own business for nearly 17 years.

Ahead of the current M&A craze that has seen a record number of registered investment advisors (RIAs) sell their practices, Reardon had the opportunity to purchase Haddon Planning Group from the retiring owner. Reardon’s own business was a decent size but grew exponentially after the acquisition.

He recently purchased a second firm from an advisor who has been in the business for 50 years.

“We now have over 1,500 clients, including 250 business clients of whom I manage their 401(k) plans and health benefits,” Reardon said. “I have 10 independent financial advisors who work with me and a staff of seven who help run my practice.”

Simple Sophistication Taking some of the stress out of everyday life and helping clients achieve their goals is what Reardon sees as his main role.

“Life is hard enough,” he said, “I want to be able to share my knowledge, provide answers, educate and empower my clients. Simplify at least one aspect of their lives.”

He describes this foundational approach as “simple sophistication.”

“A typical scenario might be a potential client whose financial plan includes investing, saving for college, tax implications, insurance decisions and planning for retirement. We could sit down with a 40-page illustration

40 / ADVISORS MAGAZINE

JULY 2021

of investment products and policies, overwhelming the client with industry jargon. Instead, we take the time to educate; highlighting the key points of the 40 pages in the simplest terms, empowering the client to make the most financially sound decisions.”

Reardon shared an actual case in which the firm was managing a few hundred thousand dollars for a husband and wife who were among the clients who never had any questions, never reached out, seldom returned phone calls. Haddon Planning Group was managing their money but there was very little interaction.

“Before they knew it, their daughter was ready for college,” he remembered. “They called and asked: ‘Do you have any advice on college loans? We’re trying to figure out how we’re going to put the kids through school.’” This phone call was a gamechanger according to Reardon.

“The couple didn’t have enough in the 529 plan to cover the entire cost of tuition, room and board, and everything else their daughter would need, so they were exploring loan options. We started discussing their goals and objectives, what they had saved in other accounts, income vs expenditures, their entire financial snapshot. They were well over where they needed to be for retirement and still a long way off. They were saving $25,000 per year in their 401(k) and I remember telling them, ‘You’re rich for retirement but are willing to go into debt for college? Don’t do that.’

“We mapped out a plan that would exhaust the funds in the 529 plan which would account for 70% of the cost and rather than continuing to contribute to the 401(k), use that to cover another 20%, then take a student loan out in their daughter’s name for the remaining 10%, giving her a little skin in the game. By doing this, she would understand the importance of doing her best while appreciating the benefit of the money her parents had set aside for her. Her

first lesson in finance.”

The game-changer? “Seven referrals called me, five of which are clients of mine to this day. All of the couple’s friends were in the same boat.” Pun intended.

That experience prompted the firm’s three core values according to Reardon: “Accountability – Haddon Planning advisors do what they say they’re going to do.

Honesty – explaining the truth in the simplest of terms, even if it is not what the client wants to hear.

Professionalism – putting knowledge and expertise to work in the best interest of the client.”

Focus on the Basics Stepping outside of the box worked during last year’s pandemic too, when the practice was faced with a major decision around changing brokerdealers. It was poised to change over to American Portfolios, an independent broker-dealer registered with FINRA and SIPC, but the timing wasn’t great.

“We were planning on moving from one broker-dealer to another when the pandemic hit,” Reardon said “So, we’re a month into everything shutting down, the market dropping, and I had to make the decision; are we going or not?”

The Haddon team was working remotely compounding the challenge of sending out some 2,000 packets of mail to let clients know about the shift to American Portfolios – a daunting task. Reardon consulted with his advisors and staff, and made the call to transition broker-dealers on April 2020.

“We had a hug mail campaign, and the major task of transitioning accounts over,” Reardon said. “And I knew it was either going to be a great decision or a miserable one. But it worked out great. We retained 98 percent of our clients. Plus, the rate of return of their accounts has soared since then.”

What’s more, the decision helped

on other fronts as well. While existing clients needed to sign consent forms regarding the switch to American Portfolios, that became secondary when the Haddon team reached out and started talking to people.

“We were able to talk with clients about everything else that was going on in their lives, and to make sure they were okay,” Reardon said. “This brought in a ton of referrals because we were among the first to reach out, to be proactive, and to engage our clients. It was a major decision at a crazy time – and we grew the business by 18 percent.”

“The pandemic was a good opportunity for a real gut check”, Reardon said, “and the goal continues to stay sharply focused on the basics.”

Reardon’s basic core philosophy: “Our culture is one where goals are achieved, and quality of life is improved.”

What’s next for Haddon Planning Group?

Reardon sees a couple of missing pieces. While he acknowledges that today’s trend is for financial advisors to have relationships with attorneys and CPAs, the better solution is to acquire them. To make them part of the practice.

“Acquiring an accounting firm will only make our clients’ lives that much easier.”

As always with Reardon, simplicity from sophistication.

For more information on Haddon Planning Group, please visit: haddonplanning.com.

Above: Head of The Charles Regatta, Boston, MA

Above & Below: Ironman, Coeur d’Alene, ID

Or call (856) 428-5300 or email Jake directly at jreardon@haddonplanning.com

ADVISORS MAGAZINE / 41

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by joe innace

NARROWING THE BLACK - WHITE WEALTH GAP

A Philadelphia Story

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he net worth of a typical White family in the U.S. is $171,000, but it is only $17,150 for a typical Black family, according to a February 2020 report from the Washington-based Brookings Institution.

That nearly 10-fold chasm between Black and White wealth has long been evident to James Veal, president and CEO of JRV Wealth Management Group of Philadelphia, whose niche is providing financial advice geared toward the African American community.

“I came up from humble beginnings, raised in a Philadelphia housing project,” Veal told Advisors Magazine 42 / ADVISORS MAGAZINE

JULY 2021

in a recent interview. “I knew education was the way out, so I studied hard and went to college.”

He excelled at math and started out as an engineering major, but Veal ultimately decided on finance because he enjoyed business, collaborating with others, and had an entrepreneurial flair. He worked for several years as a Wall Street stockbroker, and in the predominantly White world of investment banking.

“A lot of people I had worked with didn’t look like me,” Veal recalled. “I was using my skills to make rich people become richer. So, I thought, African Americans need to know this stuff because we’re poor.”

Veal decided to leave Wall Street and returned to Philadelphia. Aiming

to help others in the community, he initially worked at a bank. But his entrepreneurial spirit kept tugging at him and in 2008 – at a time of the worst economic environment since the Great Depression – he started his own financial practice.

Initially, Veal admits to taking on any client who had money to build the business. But he knew he needed a niche and made the decision to specialize in primarily serving African Americans.

Even more specifically, employees of the City of Philadelphia between the ages of 50 and 65, gravitated toward Veal. When he worked at the bank, he realized that this precise demographic needed the most financial help. Some didn’t even know how to write a check.

The firm’s mission, which still stands today, is to elevate financial literacy.

Veal teaches his clients the power of money, and how to invest.

Financial education is the foundation, according to Veal. In fact, a person can glean a lot of knowledge just by visiting his website. Among the statistics shared there: • Only one in 10 African Americans work with a financial advisor.

• The average 401(k) balance for African Americans is just $23,000.

• Less than 42% of African Americans own their homes compared to 73% of White families.

“Unfortunately, most people in America lack a lot of money management skills, but especially African Americans,” Veal said. “We’re last on every financial data poll that’s out there because of the lack of education.”

To address that challenge, some 20 years ago Veal launched a six-week

TO ERADICATE FINANCIAL ILLITERACY, OUR MISSION IS TO TEACH, EMPOWER, AND BUILD WEALTH APPLYING THE STRATEGIES OF STOCK INVESTING, REAL ESTATE, AND ENTREPRENEURSHIP ENDEAVORS.

adult learning course at Temple University. It’s called: “Sick and Tired of Being Broke.” It’s a class that starts with the basics, and also emphasizes the importance of saving.

“The Black community spends over $1.5 trillion, and a lot of it is going to junk, they’re not buying assets,” Veal said. “This is a problem in America as a whole, but the Black community is really in trouble. I see this every day.”

The message from Veal is clear: Save or struggle in poverty. “You have to save,” he stresses. “That’s what we stress in our seminars: you’re going to retire in poverty or you’re going retire comfortably. If you don’t do these certain things, then you are at risk.”

For his existing clients, such as those employed by the City of Philadelphia and others, Veal recommends that each year they increase their retirement plan contribution by at least 1 percent.

“It’s so important, but we have to push them to do this – and the only way to do that is to stop buying crap.”

Veal acknowledges that it’s a tough situation for many people, but he’s also upbeat and encouraged.

“The greatest skill in this business is helping people change their financial

lives,” he said. And that doesn’t only apply to clients. People will spot Veal around town, stop him and tell him that he changed their life.

“I’ll ask them how, and they say it’s because of that class, ‘Sick and Tired of Being Broke.’ And that’s a beautiful thing,” Veal smiled.

Building off that course, Veal recently launched a new subscription service for younger people (under 50) who want ongoing advice. It helps keep them informed and to stay on track, after the initial six-week class, which went virtual during the pandemic.

It also represents a new revenue stream for JRV Wealth Management Group. Veal charges subscribers a certain amount each month to help them navigate or learn investments.

Most recently the service has been conducted via Zoom calls, and Veal sees it as a strong growth opportunity.

For more information on JRV Wealth Management Group, visit: http:// jrvwealth.com

ADVISORS MAGAZINE / 43

by joe innace

SUCCESSION TALK

TALK INTERVIEW

WHAT ABOUT AN ADVISOR’S LEGACY? Secure it with a succession plan

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inancial advisors, by and large, are sharply focused on planning properly for their clients, but often they don’t do enough planning for themselves and their own practice.

That irony first surfaced in a 2015 Fidelity Registered Investment Advisor Benchmarking Study that found while most firms (59 percent) preferred an internal succession, only 27 percent of firms had a next-generation owner in place or designated.

The situation, in fact, has been exacerbated by the pandemic, with many older advisors considering exiting their practices. And it has been compounded by an aging financial advisor profession in which the average age is between 51 and 55 years old.

The trend is upsetting to Christina A. Nash, CFP® and founding partner of Knox Grove Financial, LLC of Pennington, New Jersey. She places a high value on succession planning.

“Something that has been really important to me as an entrepreneur has been succession planning,” Nash told

Christina Nash CFP®

44 / ADVISORS MAGAZINE

JULY 2021

Advisors Magazine in a recent interview.

“When you look at the statistics in our industry of those that do not have a succession plan in place, that disturbs me.”

At the age of 43, she hired a company to help her develop a succession plan for Knox Grove Financial and the consultants told her she was among their youngest clients ever to do so.

But it was important to Nash to get a succession plan in place for her company.

“I hope more and more advisors become aware of this, particularly with the level of advisors that are retiring,” Nash added. “Advisors need to focus on a succession plan, and that’s what we’ve done at Knox Grove,” she said. “We have advisors in training and a wonderful team in place, which is something that has brought a lot of value to me— knowing that my clients will be taken care of should something happen to me, and for my older advisors, as well—that there is a plan in place.”

Nash’s diverse, six-person team offers holistic financial planning without being solely fixated on extremely high networth clients. “I feel that my team and I get more reward from working with everyday, main street type of clients,” she said.

Nash explained her team likes to focus on the whole client, mainly because the number one reason most people leave their advisors is because they never hear from them.

“And that baffles me, because it’s one of the easiest things to do,” Nash emphasized. “Communication is the core service philosophy,” she said. “We communicate with our clients on an ordinary, sustainable level to where they

know that we are always here for them and we are always very proactive in their lives.”

Nash said that given changes in policies and regulations, Knox Grove is constantly reaching out to clients. Last year with COVID, the team spent a lot of time on the phone—not emailing, she stressed.

“Sometimes, emailing is great, but there are times when clients just want to hear your voice,” Nash noted. “We call our clients, we reach out, we pick up the phone and we provide them with ongoing resources.”

L/R: William S. Stolow CFP®, Financial Advisor, Christina A. Nash CFP®, Founding Partner, Jodi Viaud CFP® Partner

Another key philosophy is making sure clients are comfortable with their investments. But Nash said it’s not solely about investing. It’s about how those investments fit into an individual’s overall financial plan.

“We are not just portfolio managers, we are CERTIFIED FINANCIAL PLANNER™ professionals,” she said.

“We work with the client on identifying their goals and how to reach those goals; we dream board it with them.”

Nash continued: “And when you do that, oftentimes you can explain to the client during periods of volatility,

or something like COVID—’Hey, we anticipated this, and we will get through this and even with this, you’re still going to reach your goals.’ Having that plan in place has been key in getting clients through this pandemic.”

In addition to her Bachelor of Science in Finance from Florida State University, Nash has a Master of Education from the University of South Alabama, and early in her career she was a teacher and volleyball coach at her old high school. As a result, education has long been a mainstay at her independent financial practice.

Nash believes that education allows clients to see why she and her team are in their lives and the value that financial advisors provide—so they can understand what they have from an investment standpoint and why they have it.

“For example, right now we’re doing a financial challenge for clients and others in the community,” Nash said. “It’s a 30-day challenge in which they learn and have weekly steps that they must complete to succeed in the challenge.”

And at a time when online trading platforms, apps and robo-advisors are challenging financial advisors, Nash is a big fan of the trend.

“I think robo-advisors and the online trading platforms are wonderful because they are bringing the younger generation into investing early on,” she said. “It’s creating a savvy investor, long-term and hopefully that will actually combat the issue we’re having with the lack of savings in this country.”

Nash has a message for financial advisors afraid of such industry change: “If you’re an advisor who thinks a robo-advisor is a scary thing, who sees the trend threatening your profession, then I think you’re in a situation where you’re not doing enough for your clients — ask yourself if you’re providing real value.”

For more information on Knox Grove Financial, visit: knoxgrovefinancial.com

Securities and investment advisory services offered through Royal Alliance Associates, Inc. member FINRA/SIPC. Royal Alliance Associates, Inc. is separately owned and other entities and/or marketing names, products or services referenced here are independent of Royal Alliance Associates, Inc.

ADVISORS MAGAZINE / 45

by joe innace

SPECIAL NEEDS TALK

financial planning for those with dementia - and their caregivers Helping families navigate long-term care

Walking with Grace Team

A

Alzheimer’s and other stages of the disease. We make sure that dementias will cost the nation key issues that come up during this illness $355 billion in 2021, the Chiare addressed, planned for, and put into cago-based Alzheimer’s Asplace,” Stock-Lopez told Advisors Magasociation estimates. For sure, the financial zine in a recent interview. ramifications of providing long-term care Her goal is that the individual with the can be staggering for individudisease can stay at home as als afflicted with the disease, as long as possible, and that their YOUR FUTURE family is aware of all financial well as their families.

Leslea Stock-Lopez, CRPC®, resources and entitlements. president of Star Group “I’m very proud to be on the A holistic Wealth Management, is deeply steering committee for this new approach involved with the Alzheimer’s financial presentation that is to investing Association and has been a volavailable nationally,” Stock-Lobegins with pez added. unteer since 1995. In honor of her grandmother, Grace Stock, Long-term care, in general, is client goals, who had the disease, Stock-Loa key part of her Houston-based building pez established the “Walking relationships practice. “I make sure clients With Grace” team dedicated understand that if they do have and preparing to raising funds for Alzheimer’s a long-term care incident, that for lifestyle awareness and research. we’ve done rigorous studies changes in “I am now on the steering on how that will impact the committee for the new financial portfolio, and if we need to add retirement program for caregivers and long-term care insurance, we those who are in the early do so,” she said. “If they are 46 / ADVISORS MAGAZINE

JULY 2021

INTERVIEW

able to self-insure, I show them what the impact will be on their portfolio.”

The financial plan is squarely at the center of Star Group Wealth Management, and it’s the favorite part of the business for Stock-Lopez.

“I act as sort of the quarterback for all of a client’s financial needs,” she said. “I guide them through all those major life decisions—retirement, educating the children, buying and selling a business, when to start social security, how to navigate Medicare, estate planning, tax, everything.”

The firm charges for a full financial plan.

For money management, the minimum investment is $500,000. A core value at Star Group is education. Stock-Lopez hosts “Lunch and Learns,” shares market reports, and every client meeting has an educational element to it.

Now in the industry for over two decades, she has always understood that it’s a people business and not just about transactions and returns.

“We do a lot of talking in our industry and not enough listening,” Stock-Lopez said. She suggests that when an individual is first looking for a financial advisor that they listen for a lot of “yous” in the conversation. “’What do you want? How will getting there make you feel?’ are the questions a client should be hearing,” she explained.

“If you hear a lot of I’s, ‘I know what clients need’ — ‘I do it this way’ — that tells you the advisor might be more interested in fitting you into their plan.”

Stock-Lopez maintains that every advisor, at a minimum, should have the fiduciary mindset—always putting the client’s best interests first—and that clients need to hear that from the outset.

For more information on Star Group Wealth Management, visit: star-tx.com or call 713-783-3400

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3 UNAGI — BEST OVERALL ELECTRIC SCOOTER Unagi took a little from column A and a little from column B when designing The Model One. And, on top of that, it also included a little from column C, D and E along with basically the rest of the alphabet. Its aluminium and carbon fibre makeup helps you to glide along the road in a slim, portable fashion that works for both commuting and journeying for pleasure. Incorporating into your lifestyle like a second pair of legs. unagiscooters.com

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ADVISOR INTERVIEW

By Joe Innace

Bridging the Wage Gap

THE SPAN OF FINANCIAL PLANNING

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n 2020, women made only $0.81 for every dollar men made, according to payscale. com, widely regarded as the world’s most advanced compensation platform.

Increasingly, that wage gap – and particularly its potential cumulative effect – can have profound impact in financial planning.

Divorcing women, especially, face some major challenges in terms of retirement planning.

And that’s why it’s an area of specialty for Angie Hall, CDFA®, and founder of North Carolinabased Ancora Wealth Partners.

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“When you have two spouses that are equal in education and training, the male is typically paid more than the female,” Hall said in a recent interview with Advisors Magazine. “And when you have a marriage that’s dissolving or broken up, typically the woman in that relationship has earned less which can mean lower savings in retirement plans.”

Hall also noted that, historically – and especially in modest or single-income families – the woman is the one who stays home with the children. When that happens,

she loses years of experience in the workforce, misses out on the annual salary increases that ongoing employment can deliver, as well as opportunities afforded by a company’s 401 (k) plan or similar retirement benefits.

“These can all lead to lower savings for the individual,” Hall said.

She added that women also tend to have less formal education when it comes to financial literacy, and in most relationships, they usually rely on the spouse for such matters.

“Another issue is women

live longer,” Hall emphasized.

“Therefore, the planning needs are different than for men. If a woman is living anywhere from five to ten years longer than her spouse then we have to account for that in the financial planning.

And if the other elements come into play – that she has saved less, has been making less – then it’s going to take more to cover those years in retirement.”

Hall shared that she has some personal experience in divorce, which is one of the reasons she pursued her Certified Divorce Financial Analyst designation.

“A person’s financial landscape

in normal circumstances is constantly changing, so when you add the divorce and all the other factors for women,” she explained, “it’s not only emotional going through the divorce process, but it can really complicate the financial process.”

Hall noted that alimony and the way child support works are also constantly changing with the tax laws. “It’s just the political nature of things,” she adds, “and when that happens then the planning process needs to evolve and consider those changes as well.”

Similar to an attorney who maintains client confidentiality, Hall will not usually advise both spouses on their financial matters in a divorce situation.

“I’m not against helping a couple that’s willing to work to sort out things, but it’s easier to deal with one side versus the other,” she said.

Financial analysis for those affected by divorce is not Hall’s only specialty. Her niche is working on behalf of many law enforcement and state employees. Such families, she observes, present unique planning opportunities in light of the benefits they typically receive. Hall said such clients appreciate the knowledge and financial literacy she provides because it can help them retire successfully from very demanding careers. In addition to working with such families and individual women, Hall also has a good number of clients from the fields of agricultural and utilities.

Hall started in the industry in 1999 as an assistant to three stock brokers, a time when the business was more

focused on trading and not financial planning aspects. She received her undergraduate degree while working full time in the industry. Also, during this time period, she obtained her series 7 and series 65 license. She moved on from being a registered client associate after a few years to a position as a operations branch manager where she learned the compliance side of the business.

By 2016, Hall establish an independent branch of Raymond James Financial Services and recently rebranded that practice. “Ancora Wealth Partners was formed and this allowed me to focus more on the planning side for clients and creating that holistic way of doing business,” she said.

Hall describes herself as a strong believer that everyone needs to start somewhere. As such, she does not require a minimum investment. “If you help people attain and reach their goals from whatever starting point, then they will become lifelong clients and lifelong friends,” she said.

Toward that end, Hall uses a planning model that she created, which focuses on the holistic aspects of financial planning.

Once Hall and a prospective

We want our clients to see us as a partner, coach, planner and knowledgeable resource who can help them reach their particular financial goals.

ADVISORS MAGAZINE / 49

L/R: Kyle Pickard Client Advocate, Angie Hall CDFA®, Wealth Planner & Founding Partner, Melissa Spoon Office Manager

client agree to work together, the meetings and conversations start. “I gather information about what their desires are, what their goals are and how their finances look,” she explained. “I then take that information, analyze it and create a strategy that best fits their scenario and from that develop a recommendation.”

The recommendation might be for Hall to manage client assets and how best to do that, or provide insurance products that give a client guaranteed income, or life insurance for legacy planning. The recommendation might cover risk management, while also considering a longterm care component that can protect assets – or all of the above and more.

“Once we agree on how that fits and helps them meet their goals and objectives, we put the plan into action,” Hall said. “And then after we put the plan into action, I let my client know that it is an evolving process. So, just as life changes, your planning needs change.” The plan is reviewed annually, and at least biannually, the management of assets is reviewed.

Hall acknowledges that the majority of Americans, as shown 50 / ADVISORS MAGAZINE

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from recent studies, cannot pass a basic financial literacy test. To offset that, she is on a financial literacy mission in Burlington, North Carolina, and surrounding communities.

“I created a financial literacy platform for women, and I’m looking to gear that back up by the end of 2021, possibly for both men and women,” Hall said. “I want to use social media and blogging more, and do virtual videos to provide little tidbits of information that bolster financial literacy.”

And like everyone, she’s looking forward to a postpandemic world when she can once again interact with people, face-to-face.

Hall’s is a law enforcement family; her husband is retired law enforcement. She plans to continue to do benefits training for the law enforcement agencies here in her community.

Prior to COVID, in fact, she had started working with one of those larger agencies to build financial literacy training into the onboarding process for new employees.

“I found that through my research and my studies those in law enforcement are usually very

good at their jobs, but they tend to be emotional and impulsive with money and have a lack of understanding about their benefits and what’s available to them,” Hall noted.

So, she created a training platform that’s focused on specific benefits. It delves into why it’s important to do certain things, and why it’s important not to rely on just a state pension and supplemental pensions for retirement income at the age of 55, which is the age those in law enforcement typically retire.

Such initiatives should help Hall expand her book of business, but client referrals have been the main driver of new business to this point, especially from those in law enforcement.

And after about six years now as an independent advisor, she is still in the client acquisition phase.

As for growth goals, she admits to having a client base number in mind, but quickly pointed out: “It’s really about building what brings me joy – and that’s helping the clients, getting close to them. That’s what makes it fun coming to work every day.”

For more information on Ancora Wealth Partners, visit: ancorawealth.com

Ancora Wealth Partners, 2006 S. Church Street, Suite A, Burlington, NC 27215.

336-967-6497. Investment Advisory services offered through Raymond James Financial Services Advisors, Inc. Ancora Wealth Partners is not a registered broker/ dealer and is independent of Raymond James Financial Services. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC.

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by joe innace

ALL ABOUT THE PROCESS

A Systematic Approach to Integrating Financials “If I had one hour to save the world, I would spend fifty-five minutes defining the problem and only five minutes finding the solution,” Albert Einstein once said, emphasizing his dedication to process.

T

oday, from small companies to major corporations, the number of employees who specialize in business process management, or BPM, has grown exponentially in the past three decades.

Well ahead of that trend was Michael R. Noland, CLU®,, ChFC®, AEP®, founder and president of Integrated Financial, an M.R. Noland company. He is so much about the process that he trademarked an approach to wealth management known as The Integrated Planning Process™.

“What we’re known for in our community is being very process-oriented and goals-based,” Noland told Advisors Magazine in a recent interview.

During his college years at the University of Tulsa, Noland worked as an assistant at a large public golf course and ultimately became the head assistant. He made decisions on staffing, work schedules, merchandising, financial management and more. To this day, he describes the experience as the best MBA program he could have ever taken.

“I knew I wanted to be in business for myself, and after being introduced to a person in the personal financial services business, I realized I liked the idea of helping individuals make wise decisions regarding their financial matters,” Noland recalled. “One thing that appealed to me about the financial services industry is that it did not require hundreds of thousands of dollars of capital to open your door.”

Noland steadily built his practice, headquartered in Tulsa, and after more than four decades in business, it now serves clients in 33 states.

About 10 years into the practice, Noland noticed that people were mainly doing what

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he calls silo planning.

“They’d go to an attorney or maybe an accountant or their investment person or an insurance professional and they would get some very good recommendations, but all seen through that person’s professional lenses,” Noland said. “And the recommendations were not really integrated around the client’s goals and objectives.”

The recommendations were not integrated because not one of the professionals took the time to do a deep dive into a client’s goals for themselves, their families, their business or possibly any philanthropic endeavor.

“No one would really ask the right questions and listen objectively, and then ask the next question, and then the next and put those goals and objectives into a written family financial objective philosophy,” Noland explained. “I have found that once there is clarity on goals and objectives, the recommendations are much more on point and the client is more likely to take action.”

Process-oriented and methodical And that’s what led Noland to develop the core idea behind his business of Integrated Financial – pulling everything together in a highly methodical manner by first obtaining clarity on one’s financial goals and objectives.

His Integrated Planning Process uses a fourstep, personal, values-driven process to assist clients in developing a wealth management strategy consistent with their mission, vision, values, and goals. The ultimate objective is to optimize the use and deployment of financial, human and intellectual capital consistent with each client’s core values.

“I like to say to clients that there’s economics to planning and psycho-nomics to planning,”

Michael R. Noland, CLU®, ChFC®, AEP® Managing Principal

Advisor Symposium Michael R. Noland, CLU®, ChFC®, AEP®

Founded 1983

Advisor Symposium Robert S. Keebler, CPA/PFS, MST, AEP (Distinguished), CGMA

Advisor Symposium Samuel A. Donaldson, J.D., LL.M.

Noland explained, “because any plan has to feel right to them.”

Discovery is the first step in the process, in which Noland and his team garner the necessary insights making sure there’s clarity on goals and objectives. The specific purpose of this first step is fivefold: • To crystallize planning objectives by documenting and verifying core goals and values.

• Define financial independence, family legacy, and social capital goals.

• Analyze current financial position, planning documents, and life insurance.

• Identify an ideal plan objectives checklist.

• Produce a GAP analysis and identify

inconsistencies and opportunities.

At this initial step, the client can expect to attain clarity related to their ideal plan, which addresses what and why, not how. Criteria is established for a client’s advisory team, potential results are explained, and a written vision statement is prepared for the client, which provides critical insight and perspective to their advisory team.

“This is all played back to the client, and once we have agreement on that, then we can drop down to solutions,” Noland said.

Solutions modeling is the second step. Its purpose is to explore potential solutions consistent with the client’s vision, values, and goals. Economic

Advisor Symposium Michael R. Noland, CLU®, ChFC®, AEP®

models are provided, as well as education about strategies and tactics to help clients achieve desired results.

Noland mentions that clients can expect all solutions to be consistent with the established planning benchmark for their ideal plan, as established in step one.

Clients can also expect the solutions step, heavy on explanation and education, to empower them with knowledge to help make educated decisions on what strategies, variations, and combinations they may wish to pursue. Another expectation of step two: the client’s advisory team begins to take shape.

Implementation is the third step. Here, the client’s advisory team executes the ADVISORS MAGAZINE / 53

solutions that allow the ideal plan vision to become a reality. Appropriate vendors for financial products and fiduciary roles are selected. A client can begin to expect actual results that are consistent with the established planning benchmark set in step one.

“Often, during implementation, we find that things have fallen through the cracks,” Noland remarked. “Documents aren’t in place, trusts aren’t funded, beneficiaries aren’t designated or corrected on accounts. So, this step is about taking responsibility and executing properly. Plans on paper are meaningless unless they are implemented.”

Maintenance is the fourth part of the process cycle. Noland likes to say, “a great plan will become only average if not maintained.”

And this is the stage where the ideal plan becomes the master plan with everything all in one place, ready to be reviewed and revisited. One portfolio is assembled as an integrated and multidisciplinary summary of a client’s wealth management planning. It collates copies of planning documents, financial data, life insurance information, along with advisory team contact details.

Comprehensive and clear, the master plan also provides peace of mind to clients. They are secure in the knowledge, according to Noland, that their heirs and advisory team have that master plan to assist them during the transition period, following death.

During the maintenance phase, regular meetings take place with clients to determine if any plan changes are necessary.

“So, we effectively find ourselves back at the discovery step to see if any modifications are required, and then it’s finding the solutions, implementing and maintaining – the process cycle begins once again,” Noland said.

While Noland and the team at Integrated Financial are sticklers for the process and its uniformity, the results always turn out highly customized for clients.

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“From a distance, all snowflakes look alike, don’t they? But when you examine them up close, they’re all unique and different,” Noland offered as an analogy. “Their crystalline structures are all different and that’s how we approach each client.

“From a distance, all snowflakes look alike, don’t they? But when you examine them up close, they’re all unique and different,” Noland offered as an analogy.

“Their crystalline structures are all different and that’s how we approach each client. By starting at the same spot with everyone – discovery – to make sure we have clarity on goals and objectives, it allows us to craft a unique plan around their individual circumstances.”

Integrated Financial does have a firm minimum, according to Noland, which is based on income, assets, and other complexities. For example, a business owner would have different circumstances than an individual and therefore more comprehensive planning needs.

In fact, in addition to trademarking Integrated Planning Process™, Noland also uses his strategic partner, The Nautilus Group®, they offer a defined planning process for business owners called Life Plan for Your Business®

Michael R. Noland, CLU®, ChFC®, AEP® / Managing Principal

which is a proprietary collection of tools and resources specifically for business owners.

The Life Plan strategy focuses on business planning by carefully examining short- and long-term goals. The process is paramount here also. A series of six steps help business owners create a succession plan that meets their objectives and individual situations.

For more information on Integrated Financial, visit: nolandcompanies.com

Michael R. Noland is a Registered Representative offering securities through NYLIFE Securities LLC (member FINRA/SIPC) A Licensed Insurance Agency, 15 W 6th Street Tulsa, OK 74119, (918) 592-5885. Michael R. Noland, Member Agent, The Nautilus Group®, a service of New York Life Insurance Company. Integrated Financial is not owned or operated by NYLIFE Securities LLC or its affiliates. Michael R. Noland is a Financial Adviser offering investment advisory services through Eagle Strategies LLC, a Registered Investment Adviser.

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Contact Meade Willis today for a free consultation regarding your e-commerce, EDI, supply-chain requirements: (866) 369-1146 | www.meadewillis.com ADVISORS MAGAZINE / 55

by bobby hickman

RETIREMENT LITERACY

REMAINS LOW

More education needed to help older Americans prepare

R

etirement literacy – understanding how to successfully plan for a financially secure retirement – remains low despite helpful information available to guide the growing number of people planning to retire.

“Four in five older Americans fail to understand the basics on how to successfully plan for a financially secure retirement,” according to The American College of Financial Services’ 2020 Retirement Income Literacy Survey. The college surveyed more than 1,500 retirees and pre-retirees ages 50 through 75 with at least $100,000 in assets. The poll found most Americans lack sufficient knowledge about retirement income and investment management, continuing the trends revealed in the group’s 2014 and 2017 surveys.

Most schools do not teach young people the basics of investing, financial planning, and preparing for retirement, according to Jim Merklinghaus, founder and president of JM Wealth Management in Vero Beach, Florida. For most, he said, the best solution 56 / ADVISORS MAGAZINE

is finding a well-educated financial advisor who can explain the various programs, strategies, and options available so consumers can properly plan for retirement.

“Financial education is a primary concern for our firm,” Merklinghaus said. “We aim to teach people how to be able to retire, since you don’t get this information when you go to high school, college, or during your career. We essentially educate you to succeed.”

Understanding each client’s particular situation is crucial to creating a solid financial plan, Merklinghaus said. The most important question is always, “What is the purpose of the money? Is the money for college, retirement, emergency fund, etc. What is the time horizon for these monies as it relates to the investment choices available in the financial markets?”

That answer indicates the guidelines for how JM Wealth Management will construct a comprehensive retirement plan.

“In our practice, we use a laddering structure that provides income models at different ages so they can keep up with inflation,” he JULY 2021

continued. “We use different types of software programs, such as the Retirement Analyzer, to help us understand inflation’s impact. Inflation affects each item in a person’s budget differently as we go through the plan with clients.

If your plan does not factor in inflation your money will fall short by at least 10 years in retirement.”

Individual clients need customized solutions, he continued. Not every program can be used for every client.

Advisors must listen to their clients, find out how they want to use their money, and then structure a financial plan that meets their needs.

“You should also have plans A, B, C, and D, because life never goes perfectly for your clients,” Merklinghaus added.

“As long as you can have a flexible plan that can meet a client’s changing needs, you will be able to successfully hit their target goal of what they’re looking to do for retirement. In many cases today, clients want to have the ability to retire, but that doesn’t mean that they have to retire.”

As Americans live longer lives than ever before, one of the largest concerns for many people is the possibility they will run out of money during retirement. The American

College survey found only one-third of consumers consider themselves highly knowledgeable when it comes to planning for adequate retirement income.

“With our practice, it’s impossible for people to outlive their funds and it’s impossible for them to lose their principal with us,” Merklinghaus said. “Using our core products – no matter which age you’re at – you are not able to outlive the income that your money provides. We’ve created a synergy between monies that are invested in the market and monies that are invested in the core products that we

use, which are fixed index annuities.”

Using this technique, he explained, clients can live off the income from investments while the market is high.

When the market goes down, they can rely on annuities that provide contractually guaranteed payments.

“Instead of people taking a loss to their portfolio, they can use our products to be able to meet their monthly expenses,” Merklinghaus continued.

“They’re able to wait out the paper losses until the market returns to its pre-loss position.

This approach offers excellent opportunities because, as our portfolios keep pace with their

financial plans, they don’t have to worry about how to invest their money during those down periods.”

Merklinghaus said his firm focuses on helping clients retire before Social Security benefits begin. He said most people live in retirement for 30 years, while some do so for 40 years. The first 15 years of retirement are typically the better years, he noted.

However, Social Security tables are currently structured to provide full retirements benefits for new retirees beginning at age 66 to 70 depending on your year of birth.

“We feel the way the system is set up right now is totally incorrect,” he said. “You should really be focusing on getting retired by age 60.

Then during the first 15 years, you will be 60 to 75 years old, so you can relax and enjoy retirement.”

Longevity and rising medical expenses have also made planning for longterm healthcare needs more important. The American College survey found only 31 percent of those surveyed had plans to handle long-term care funding, and just 23 percent had long-term care insurance.

“No matter how wealthy you are, a long-term care situation can severely affect your income,” Merklinghaus said. “These expenses also reduce the amount of money

you can pass along to the next generation. Again, you need planning that will allow you to adjust your finances.”

Financial services professional also need to be able to react to unexpected changes and help their clients adjust. A recent example is the 2020 pandemic, when the CARES Act temporarily allowed early distributions for retirement plans such as IRAs and 401(k)s without penalty.

“We actually had our best year during COVID-19 because we had more opportunities than before,” Merklinghaus said. “The continuously updated legislation gave clients opportunities to be able to handle their money in a different way.”

He added JM Wealth Management experienced few challenges when the pandemic shut down businesses, as the firm was already conducting remote interactions with clients.

“Four years ago, we shifted our practice from New Jersey to Florida,” he said. “We have clients across the United States. That presented us a unique opportunity to operate our practice using Zoom meetings and conference calls pre-pandemic.”

For more information on JM Wealth Management, visit jimwealth.net

ADVISORS MAGAZINE / 57

BOOK REVIEW by amy armstrong

A Helpful Guide to Empower Investors with Education and Gauge the Skills of Their Financial Advisor

A

blueprint is more than just handy when building anything. Whether it be a new home, an office building, or even a new business or career, having specific instructions and detailed plans to guide you through the entire process is invaluable.

Yet, when Hunter William (Bill) Bailey started his career in financial services, he could not find a “blueprint” to guide him in this new enterprise.

Thus, he struggled. He made mistakes. He dealt with frustrations and obstacles that looking back now were ones he could have avoided.

He couldn’t change what happened to him, but Bailey could facilitate change for other financial advisors – especially those just starting in the business.

Enter Bailey’s authorship of, “Active Retirement Investing: The Process.”

“This book is the recipe book for advisors,” Bailey, owner of Wealth Strategies-Retirement Asset Management Services located just outside of Sacramento, told Advisors Magazine. “I am excited to help them have a process because I did not have that throughout the years.”

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The 251-page book is a tell-all guide for advisors as well as a heap of financial advice for do-ityourselfers or prudent investors that want to verify the effectiveness of their current advisor.

The book describes three phases of interaction that advisors and clients should have based on Bailey’s experience.

Phase I is the financial planning process. Here, a variety of diagnostic reports are run on the

client’s current financial status.

Topics include a thorough examination of the client’ estate, insurance, investments and portfolio, personal cash flow, and taxes.

“We have to know where we are starting from,” Bailey said.

The last part of the first phase involves developing a punch list to address any inadequacies found in the diagnostic reports.

Phase II focuses on portfolio construction and aligning invest-

123RF-Copyright-kasto

ments with the client’s goals. This phase, Bailey explained, ranges from minor tweaks to a complete portfolio overhaul.

Phase III in Bailey’s book and in his private practice is portfolio monitoring. This includes daily, weekly, monthly, quarterly, biannual and annual tasks performed by the advisor – and reported to the client – to ensure investing goals remain on track.

The back of the book includes eight pages of resources for readers to explore as well as a 25-question self-test for readers – advisors and clients alike – to test their knowledge of financial topics. The cliff notes section is seven pages of guidance and notes on how to conduct client meetings and informational events. A comprehensive glossary of the various types of investments and a glossary of financial terms defined in layman’s language make up the back end of the book.

There are a couple of common industry practices that Bailey makes clear he is not a fan of in his writing of this book.

The first is the “one-stop” financial service trend in which a firm

employs under its one roof the following professionals: accountants, attorneys, CPAs, estate planners, financial planners, insurance agents, etc.

“It is not fair for a client to come in and have a team of people all owned by one company who all have an incentive to promote and support each other servicing that client’s needs,” Bailey said. “When a client works with a team of advisors that are independent of each other, those various advisors are protecting the client instead. It is a lot safer to have independent advisors going to war on your behalf than it is to have five advisors all protecting each other because they belong to the same company.”

A second pet peeve for Bailey is the idea of auto rebalancing an account just because a certain time period has elapsed. Worse yet and even more adamantly so, he is against the idea of letting a computer determine the rebalancing.

“I am totally for rebalancing when it is done on an individual basis by a live person,” Bailey said. “To have a computer decide between stocks and bonds is a little absurd. The computer does not know the client

the way that the advisor does.”

In reading the book, it seems each page has at least one bit of financial advice that Bailey wants to share with readers whether they be other advisors or potential investors and savers looking for better ways to secure a future nest egg.

“This book is full of those little things that are not so glamorous but very well could save you a lot in the end,” Bailey said.

For instance, when buying a home, he highlights the need for a thorough home inspection before purchase. Once in the home, he stresses the necessity of having home safety procedures in place.

“Having been carried out of a burning house at age five, I know the importance of that one,” he said.

"Active Retirement Investing: The Process" is available on Amazon.

ADVISORS MAGAZINE / 59

by joe innace

INTERGENERATIONAL

MORE TO RETIREMENT THAN CHOOSING A COMMUNITY Says battle-hardened advisor

N

owadays, retirees can choose from about 5,000 55-andover communities in the U.S., according to SeniorLiving. org. Still, such age-restricted communities — often offering clubhouses, pools, golf and more.

Popular as they are, they are not the only choice.

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Case in point: Stephen R. Judge, ChFC®, CLU®. Although not ready for retirement himself, Judge is happy to discuss his own goals as he is a client’s.

“For some people an adult-only community is the perfect place to land. That’s fine if that’s what you want,” said Judge, an advisor with LPL Financial in Asheville, North Carolina, in a recent interview for

TALK

Advisors Magazine.

“My wife and I favor living in a more intergenerational setting.” he continued, “I want to live where there are young people, old people, mothers with crying babies, teenagers flirting, middle-aged people working through their issues.

I want to hear the sound of kids playing.”

Judge chuckled: “My mom is my hero. Before she passed at 96, she made a point of making friends with people at least 20 years younger. As a result, she had 150 people come to her funeral. If you complained about your aches and pains, she would

say hers were worse, so be quiet.

She lived in her condo with the help of my sister. Mom went the YMCA Aquatics Class three times a week until just before she passed.”

A chat with Judge is refreshing and engaging. He describes his journey in the industry as eclectic.

He is a person driven by curiosity.

His musical tastes run from Vivaldi to Springsteen. He can talk about Shakespeare and Behavioral Finance.

“I joke with my wife Deb (who runs the operations side of the practice) that my bucket list is too long and my bucket too small,” Judge

laughed. “Every day, show up and appreciate what the day puts in front of you.”

A 1977 graduate of the University of Notre Dame, Judge received his Army commission as an Infantry Lieutenant. Ranger Tab qualified, he served as peacekeeper on the DMZ in Korea and then with the 82nd Airborne Division at Fort Bragg, NC. He was honorably discharged in the rank of Captain in 1981.

“I learned a lot about leadership and discipline,” Judge recalled.

“Military service gives a person an edge in terms of flexibility and staying power.”

The Investing Battlefield Judge views the world of investing as a battlefield. He sees three ways to engage.

One general study’s the past to learn what worked, and did not under different conditions. “We call this modern portfolio theory,” Judge explained. “You draw inferences from history, and allocate resources based on concepts that have been proven over time.”

The second type of general guesses at the future. Judge calls this the fortune teller approach. The problem is most crystal balls are hazy at best.

The third type of general is like the famous Chinese general Sun Tzu. Tzu emphasized having the most accurate understanding of what was in front of him. “That was Napoleon’s genius as well,” said Judge.

“It’s okay to be curious about the future. We can certainly learn from the past,” he said. “But the most important thing, I think, is to know what is actually going on,” Judge emphasized. “That is a habit of mind that is not easy to practice.”

Judge employs a range of technical indicators to assess the battlefield.

He believes in relied-upon indicators like relative strength, trend, and sentiment. But not at the expense of neglecting fundamentals.

“I don’t use technicals to time the market.” Judge stressed. “I use them to have a sober, accurate view of the demand forces at work in the market. Always preference good fundamentals.”

Judge credits LPL Financial as “the best company I’ve ever been affiliated with in terms of research and analysis.

I visit the LPL Research blog daily.”

Be a friend Judge said he learned his craft as a financial advisor at Edward Jones, starting an office from scratch. After ADVISORS MAGAZINE / 61

ten years, he had built it into about $40 million in assets under care.

He still has a lot of admiration for Edward Jones. Judge also spent a few years in the wire-house environment, which he recognized as a big mistake.

“There are certainly great people on that side of the industry, but the truth is I felt like I was treating people as commodities.” Judge recalled. ‘My district manager told me to fire my little clients and focus only on the high-net-worth clients.’

“I’m from the kind of people that don’t cut and run,” Judge. “So, I fired the wire-house and went to the independent channel.”

Flash forward to the present day. Judge says the wonderful thing about LPL Financial is there is no firm minimum. “I can take on anyone on as a client, as long as I feel we are a good fit.”

Judge’s typical new account is between $100,000-$200,000. He has his share of accounts north of $500,000. That said, he is happy to open an account for say $25,000 if he senses they would both benefit from the relationship.

“I see myself as a teacher/learner, not a salesperson. My clients educate me as much as I do them” he added. “I like people. As a result I take on clients that other advisors do not want to retain. That’s fine by

me.”

Smaller clients pay their own kind of dividends, asserts Judge. “We are talking about nice people. They bring us baked goods at Christmas. They thank us for birthday cards. My wife and I love that,” Judge said.

For Judge, being a friend is a core value proposition.

“I do business with people I like,” he said. “I am not interested in having clients that are hard to get along with even if they are profitable. We see our client group as neighbors even if they live 4 states away.”

To better support his clients, Judge has developed a specialization in Medicare, for which he retrains every year. More than 70 percent of future retirees wish they had a better understanding of Medicare, according to CNBC.

Judge knows health care in retirement is important for many of his clients. He is able to help them comprehend their healthcare options.

“It’s not a big profit center, but I’ve made the investment in it because it serves my clients in an area crucial to their retirement solvency,” he said.

“Bottom line, it makes me a better advisor.”

Competency is also at the heart of Judge’s value proposition.

“It’s a dangerous world. My job is to be a guide. I help people make better decisions — not perfect decisions, but better decisions because of our collaboration,” he said.

Judge also believes an advisors must know their own boundaries.

“I’ve had clients come to me with problems that are outside my expertise,” Judge said. “Now I am

WE KNOW THAT THESE CAN BE FRIGHTENING TIMES, BUT WE WANT TO ASSURE YOU THAT ONE THING YOU DON'T NEED TO WORRY ABOUT IS US SUPPORTING YOU THROUGH THEM R/L: Deborah Judge, Director of Operations & Stephen R. Judge, ChFC®, CLU®

62 / ADVISORS MAGAZINE

JULY 2021

pretty well educated in this business.

I’ve been around for 30 years. I also know my limits. I have no problem telling them what I am not good at. I do not trade or write options, for example. I am just not good at options. I proved that to myself on my own dime. The tuition was expensive.”

Judge maintains that a financial advisor must serve as a conscience to his investors. “I help my clients gut check important decisions. I try to be a guard rail against emotions. The truth is, there is no guarantee that I am right. Their impulse may be dead on, but I help them think it through.

If they go ahead with a decision I disagree with, ok, then I hope they are right.”

“Again, I see myself as both a teacher and learner. “Working to help people make their own best decisions makes us both stronger,” Judge said. “I love it when my clients teach me. That’s what I find most satisfying.”

Key retirement questions Income planning in retirement, Judge says, it starts with one simple question: who or what do you love?

“If you love yourself, that creates one solution. If you love yourself and you love your spouse, that creates another solution,” he said. “If you love your church, grandchildren or your community, that’s another solution.”

Another question is how does a client expect to live?

“I have people come to me with resources that are astonishingly large, but appetites for spending that are very small,” Judge said. “I have other people who would be happy to spend every last nickel. They just don’t want to run out of nickels before they die.”

about a proposal he prepared for a cardiac surgeon, tops in his field.

The prospect challenged the plan on almost every point. Instead of acting upon any of Judge’s proposal, the surgeon and his wife invested several hundred thousand dollars in an emu farm in Argentina. They were convinced that demand for emu meat was about to skyrocket. It did not. That portion of their nest egg vanished.

“A little humility can keep you out of a lot of trouble,” says Judge.

Cutting through noise is important. “The financial shows on cable bombard people with a lot of information. These shows sell eyeballs to advertisers. They bias the sensational. I help my investors re-refocus on the long term,” says Judge.

As for immediate goals, Judge aims to increase assets under his care by about 20 percent per year over the next five years and grow his advisory business.

“My wife and are always updating our business plan,” he said, “We’re putting in the procedures we need for successorship. I am building a business where if I need to, I could step back and turn it over to someone else in an orderly way that’s

good for my clients.”

Judge quickly added that he is perfectly content and blessed with good health. He keeps fit and is still having fun. “When it stops being fun, maybe I will do full time volunteer work teaching English as a second language. I need to stay useful.

Besides, my golf game is so bad no one would play with me” he laughed.

“A nice thing about being an older advisor is I do not think about commissions or fees when I meet with a client or prospect. That stuff takes care of itself. I ask myself, is this relationship going to be interesting for both of us? What can we learn from each other?”

One thing is clear: Judge does not plan to escape to an adult only retirement community any time soon.

For more information on LPL Financial Advisor Stephen R. Judge, visit: stephenrjudge.com

Stephen R. Judge, ChFC CLU is a financial advisor with LPL Financial Tracking # 01-05165135 07/09/2021 He is located at: One Oak Plz, Suite 206, Asheville, NC 28801. He can be reached between 9am and 5pm weekdays at 828-348-5216 His email is: steve. judge@LPL.com Securities and Advisory Services are offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC

“It is dangerous to think you have all the answers” says Judge. He tells the story from his early days ADVISORS MAGAZINE / 63

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