Regulatory Compliance 2022 & Beyond

ADVISORS

MARCH 2022

ISSUE 107

magazine

RIA

GROWTH MORE COMPLIANCE NEW OPTIONS

FROM VICTIM TO LEADERSHIP who is steve white

INFLATION RETURNS AFTER HIATUS Mapping Financial Success

leila shaver compliance nerd

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I N V E S T M E N T S

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CEO & Publisher Managing Editor Editor-in-Chief Writer-at-Large

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Creative Director

Robert Jordan Amy Armstrong Joe Innace Bill Millar Harold Gonzales

Business Reporter Feature Writer Senior Feature Writer Feature Writer Business Reporter

CONTRIBUTORS & GUESTS Steven Selengut IAR, Jeffry Weldon, Elaine Eisenman, John Lohrenz, Tim Sheehan

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mar 2022

contents features 6

39

Engaging Familes in Financial Planning

Inflation Returns after Hiatus

16

42

Advisors strive to keep spouses, heirs in the loop.

ON THE COVER

Regulatory Compliance 2022 & Beyond

Regulatory constraints are poised to become even more intense. Good news — expertise is available!

26

RIA Growth Spawns more Compliance Providers

Factoring higher prices into financial planning strategies.

39 42

From Victim to Perfecting Leadership

A journey from the projects to the boardroom.

32

MADE FOR YOU Our picks from the around the globe

ADVISOR INTERVIEWS

A directory of companies that can help with compliance and regulatory matters.

10

Mapping Financial Success The art of wealth navigation

24

Boutique Firm Sets the Pace Getting closer to clients

16

4 / ADVISORS MAGAZINE

MAR 2022

30

Reimagining Mortgage Advice

The first step on a full financial journey 34

Small Firm, Big on Talent It’s secret: recruiting acumen

30

By Bobby Hickman

Engaging Families in

Financial Planning

Advisors Strive to Keep Spouses, Heirs in the Loop Advisors who prioritize keeping clients’ families involved in the financial planning process find the approach beneficial for both their customers and their practices.

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wenty-seven percent of North American clients ask their financial advisors to educate family members about investing, according to a recent global survey of financial professionals conducted by Natixis Investment Managers. Eight percent had also helped clients address family-related matters, such as mediating conflicts or trust and estate planning. The survey also found that 39% of advisors considered establishing relationships across family generations as one of their most effective prospective activities.

“Estate and wealth transfer planning is extremely important because it’s inevitable for us all to transfer wealth someday,” according to Rashonner K. Lillie, CFP®, CRPC®, private wealth advisor and managing director at Reveal Wealth Strategies in Houston. However, those transfers are not always triggered by expected events. Lillie said she helps clients plan ahead for what she terms the “4 D’s”: divorce, disability, death, and disease.

“During the 17 years of my career, at least one of these “D’s” has happened to a client each year – and it’s not age dependent,” Lillie told 6 / ADVISORS MAGAZINE

MAR 2022

Advisors Magazine. “Not discussing unexpected life changes doesn’t make them disappear.”

Christopher Mankoff, CFP®, chief portfolio strategist at JTL Wealth Partners in Southlake, Texas, added, “A situation that happens far too often is when one spouse passes away and the surviving spouse is unable to pay bills, cover medical expenses, or even buy groceries because the deceased spouse always handled the finances.

That situation confirms my belief that both spouses or partners should always be involved and educated when it comes to their financial health and future.”

To prevent those scenarios, Mankoff said, he requires both parties to attend at least one of the two semi-annual review meetings he conducts each year. He also lets potential clients know before their first meeting that he cannot take them on as new clients unless they both agree to meet regularly during the initial planning phase.

Four Options for Educating Families Jennifer R Lee, AWMA®, AIF®, founder of Modern-Wealth LLC in Sarasota, agreed that involving family members

in the conversation is a significant consideration for her clients and for her firm. Subjects such as beneficiary designations, inheritance, and legacy provide natural opportunities for advisors and clients to consider whether heirs have the aptitude and the skillset to manage wealth.

“Money can be a burden and it can be squandered,” she said. “When I ask clients if they believe their kids or grandkids are capable and prepared, they often say no. Financial literacy is not widely taught, and many people lack the depth or preparedness necessary to manage, retain, and enjoy the assets. For many clients, they have little to no interest; for others, it means lifelong learning.”

Lee said advisors have several options for getting heirs and family members up to speed on finances: 1. Conduct a series of family meetings. Financial advisors can provide context and stories of experience while educating the family about saving, values, the time value of money, and how to leverage professionals (attorney, accountant, advisor, banker, mortgage broker, etc.).

2. Introduce family members to your advisor and get them started on the education journey. Topics in this approach include those listed above, plus cash flow planning, discretionary spending, asset allocation, income planning, and business consulting.

3. Meet with an estate planning attorney and plan to control things through trust documents.

4. Let them fend for themselves and whatever happens, happens.

“I vote for options 1, 2 or 3,” Lee continued. “In my practice, we discuss the aptitude of the kids.

Sometimes we engage them early and establish an advisory relationship.

At other times, we coordinate family meetings. It really depends on the personal desires of the elders. I also encourage everyone to write a family love letter. The love letter connects the dots and can act as a natural and valuable complement to your will and other documents.”

Lillie said that, in every review meeting with her client, she ensures they have a power of attorney (POA) or trusted contact person listed on their accounts, and that beneficiaries are up to date. She also asks for permission to connect with beneficiaries or POAs by email to make them aware of her own relationship with the client. Lillie also advises clients to create a file at their home listing their professional relationships such as financial advisor, attorney, and CPA. In addition, she recommends that clients tell POAs and beneficiaries which institutions hold their assets (without revealing balances) so they will know who to contact if they need money or if the client passes away.

“It is extremely important to have these basic estate documents in force because once a life event occurs, it is either difficult, costly, or impossible to make changes to beneficiaries or decision makers,” Lillie added.

Keeping Heirs Involved Mankoff also said, “Including heirs in conversations is just as important as including spouses. I encourage clients to have a conversation with their heirs or trustees before establishing any type of legacy plan.”

Clients should also ensure their intentions align with the trusted person’s ability, desire, and agreement to perform such tasks as health care power of attorney, financial power of attorney, advance health care directives, designation of guardian of minor children, and administering a trust as the trustee. If the client is not comfortable having the conversation, Mankoff offers to set up and facilitate a meeting with everyone involved to discuss the client’s wishes and educate the heirs on the responsibilities of each task.

Lillie also pointed out it is important that loved ones are involved to ensure they agree with the choices clients are making for them and can accept the responsibility.

“I’ve had clients that didn’t want to be the beneficiary or power of attorney on an account their parent was leaving to them,” she said.

“Often one spouse isn’t engaged financially. When the other spouse dies, they have the added burden of learning to manage finances and often make costly mistakes.”

Overall, Lillie added, “Family financial transparency is a gift that protects relationships from turmoil and confusion.”

ADVISORS MAGAZINE / 7

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The alphabet soup menu of certifications for financial advisors has grown to be quite extensive. According to a Kiplinger newsletter article some ten years ago, there were more than 100 types.

Most observers agree there are maybe 125-150 designations nowadays.

A recent account published in September 2021 by “U.S. News and World Report” listed the “10 Best Financial Certifications” for professionals. In no particular order, these were: Chartered Financial Analyst (CFA), Chartered Investment Counselor (CIC), Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC), Retirement Income Certified Professional (RICP), Certified Public Accountant (CPA), Certified Management Accountant (CMA), Accredited Investment Fiduciary (AIF), Chartered Alternative Investment Analyst (CAIA), and Financial Risk Manager (FRM).

But talk to Richard Tegge, president and owner of Marquette, Michigan-based Wealth Strategy Group — and also an AIF® and PPC™ — and he will boil down that menu into simple terms. Tegge considers himself a navigator, first and foremost.

“My dad, Richard Sr., was a decorated U.S. Air Force Navigator who successfully guided his crews to destinations around the globe, from the jungles of 10 / ADVISORS MAGAZINE

MAR 2022

Southeast Asia to the frozen tundras of the north and south poles,” Tegge writes on his website. “I inherited his passion for navigation, only I develop routes to desired wealth/financial destinations.”

The entrepreneurial Tegge did not start out in the investment business.

“Soon after college, I started a business with another gentleman when I was in Florida that dealt with field force automation,” he told “Advisors Magazine” in a recent interview. In short, field force automation leverages software, geo-tracking and assorted mobile wireless devices, allowing technicians in the field to collect data, sync it in real time with a central system and share the information with other users.

After selling that business, Tegge moved back home to Michigan and entered the world of financial advice.

He did two years with Edward Jones before being lured by Smith Barney, where he spent nine years running a satellite office as a financial advisor. Smith Barney closed the office in the fall of 2008.

And Tegge started his own independent practice in January 2009.

“A very interesting time to be launching out on your own as we were at the depth of the Great Recession,” he recalled. “There were many challenges, especially leaving a name like Smith Barney where I was doing a lot of institutional money management with several hospitals and other entities. And that business doesn’t roll over to an independent firm right away; it takes time.”

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ADVISORS MAGAZINE / 11

Time is needed to build a level of they can now turn on an income confidence in one’s own name versus stream based on those efforts,” riding the name of a major wirehouse Tegge explained. “And there’s a broker. variety of things that go into that “So, during that timeframe well before the business owner is I reinvented my ready to retire. There business,” Tegge are things that we said. “I focused on can do in preparation MISSION the needs of small for that retirement to business owners, help improve the net as well as those amount they take after preparing for and taxes through the sale entering into and of the business, for enjoying retirement.” example,” he added.

For business-owner Such clarity and and individual clients confidence also applies alike, Wealth Strategy to individual accounts Group’s credo is where Tegge’s clients ‘creating clarity and come to understand confidence.’ the investment “For business process, resulting in owners it’s about fewer concerns. understanding the To date, it has all process of basically worked out well. “We monetizing all those have a great team years of work that here, composed of an were put into the additional advisor who business so that is also our planning

Creating Clarity & Confidence in the Financial Lives of Individuals, Families & Business Owners

12 / ADVISORS MAGAZINE

MAR 2022

specialist as well as client service associates focused on the day to day needs of clients. We are blessed with some great folks to work for.”

Reflecting his respect for navigation, Tegge deploys a proprietary financial planning piece called Route2Retire, or R2R. It’s a tool designed to educate, navigate, and motivate clients when on the road to their retirement dreams.

“So many times, people go online to a planning app and they start putting in all their information,” Tegge explained. “All of a sudden, it’s then asking for a copy of this, or copy of that, or more details and information—and the individual doesn’t have that all in front of them.”

What usually happens the informational input process stalls and people never get back to completing the online app.

“With our focus, the first step is to gather all the information that’s needed to put into the software,” Tegge said. This is done through the

Route2Retire workbook.

“Additionally, we have embraced quantitative analysis on the investment side in building out full portfolios,” he added. “And we feel that taking a variety of the bias out of the investment selection process with quant-based models can help our clients.”

Navigating through nasty weather That approach has served both clients and the firm well, especially early in the pandemic when the markets took a major hit. Tegge notes that his clients didn’t panic because they knew Wealth Strategy Group was focused on the situation.

“They understood that we were navigating the issues for them.”

But as the pandemic has stretched into 2022, Tegge and his team are more concerned about something else; something not directly related to financial wellbeing, but rather, overall wellbeing.

“We deal with a lot of folks already in retirement and formerly very active business owners who are now in their 70s and 80s,” Tegge said. “And as this pandemic has dragged on, many are losing their ability to get out, socialize and complete themselves.

They’ve really drawn in their social exposure, and that’s a big concern of ours.”

As such, Tegge and his team are making sure to reach out with a call or a visit on a regular basis to those clients.

“There are a range of emotional aspects associated with this pandemic, and it’s important to just talk, or to see if there is anything we can do to help as a result of the different world that we’re in.”

And should their clients want to talk investments and general economic conditions, Wealth Strategy Group is prepared to do so.

“Although the markets have maintained themselves very well through the pandemic until just

recently, we’re now starting to see inflation, and that is a concern,” Tegge said. “It’s something that had not been an issue for many, many years, but now inflation is having an impact on some of the investment management that we’re doing.”

Some of Wealth Strategy Group’s clients, according to Tegge, are very

“Investors that understand the history of the markets know that such things occur periodically,” he added.

“We make sure that clients are aware such things can happen, that we’ve already discussed it, and that we will make adjustments to their portfolios in order to manage through those kinds of situations,” Tegge said.

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concerned with the massive amounts of money the government is printing and distributing to the public and how it may all impact markets and their investments.

“We address such concerns in portfolios, but no one really knows how such government actions might affect interest-bearing investments,” Tegge said. “We explain to clients that we could see a sizeable downward market correction of maybe 20 percent, and we’re always preparing for our clients for that type of event.”

Tegge’s remarks, in fact, were made before the Dow Jones Industrials, S&P 500 and NASDAQ all saw double-digit percentage declines during the first three weeks of January 2022. He emphasizes that education and a sense of perspective is vital.

Indeed. A navigator’s skillset is perhaps never more valuable than when faced with a turbulent storm.

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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All indices are unmanaged and may not be invested into directly. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC.

ADVISORS MAGAZINE / 13

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MAR MAR 2022 2022

ADVISORS ADVISORSMAGAZINE MAGAZINE / / 17 17

REGULATORY COMPLIANCE 2022 & BEYOND: FULL SPEED AHEAD

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MAR 2022

LEILA SHAVER

Compliance Nerd, Securities Attorney, RIA Expert and Founder of My RIA Lawyer

Many registered investment advisors (RIAs) and other financial professionals in the United States may wince when it comes to the myriad of regulatory and compliance matters they are required to address. It can be especially daunting for RIAs required to register with the U.S. Securities and Exchange Commission (SEC), or state securities regulators.

Well, hold on to your hats; because, if anything, the regulatory environment is poised to become even more intense. The good news is, there is plenty of expert help available from those who specialize in serving the compliance needs of RIAs and other financial advisory professionals.

“Regulation is not going to slow down, in fact, it’s only going to speed up,” Leila Shaver, founder of My RIA Lawyer told Advisors Magazine in a recent interview.

The securities attorney and self-described “compliance nerd,” explained that a lot of advisors who are in the brokerage space continue to make a break into the RIA space because of how much more freedom it can provide.

“But it’s that very movement from the brokerage arena to the advisory space that’s also drawing all of the regulatory attention,” she added. “So, regulators are seeing this trend and they want to put more structure in place with the whole idea being that ADVISORS MAGAZINE / 19

SEC

they want to protect the investor.”

That’s a good thing she acknowledges, but Shaver also points out that many regulators have never worked in a financial services company. “They’re long-time regulators; they don’t really get the dayto-day burden. They’re all about theory and they don’t understand the practice, or what regulations might mean for a firm.”

Her warning to RIAs and other financial professional firms: “Don’t think there is going to be less regulation. We’re only going see more regulation this year and in the years to come.”

What’s more, it won’t matter which political party is in power.

“We’ve seen [financial-related] regulation under Republican administrations, and we’ve seen it under Democratic administrations,” Shaver said.

The growth in cryptocurrency platforms, trading and as a fast-emerging vehicle for investment is a good example of why regulators are definitely not asleep 20 / ADVISORS MAGAZINE

MAR 2022

at the switch. In fact, Bitcoin, Ethereum, NFTs, the private funds that are investing in crypto are all areas of wide-eyed interest for regulators.

“What a lot of advisors fail to recognize is the SEC has developed a whole department that looks at crypto and digital assets,” Shaver said. “When the SEC does that, it’s going to be an ongoing area of concern. If it was a one-off thing, they wouldn’t create a whole department and team that looks at those things.”

She says advisors should take note of crypto emerging as an area of scrutiny.

“A lot of everyday investors are interested in it,” Shaver explained.

“And the SEC is looking at it and looking at how financial advisors are representing these digital assets to clients and if they are doing so in the best interest of clients.”

Hottest Compliance Issues While digital asset regulation and compliance is a key subject to monitor going forward, it placed

fourth in the Investment Advisor Association’s (IAA) 2021 compliance poll. Advisors were asked for their three hottest compliance topics for 2021, and advertising/ marketing, cybersecurity and ESG/ sustainability were the ones leading the list.

Advertising and marketing was the leading compliance concern based on responses to the IAA poll, and for good reason: The SEC’s update of the rules governing the advertising and cash solicitation practices of investment advisors registered or required to be registered with the SEC became effective May 4, 2021. More commonly known as the “Marketing Rule,” advisors have until November 4, 2022, to come into compliance—an 18-month transition period.

Dating back more than 80 years, a new Marketing Rule was certainly overdue.

“The Marketing Rule modernizes and combines two rules under the Investment Advisers Act of 1940

(Advisers Act),” wrote Amy S. Matsuo, regulatory and ESG Insights Leader at KPMG US in a special alert last May. The rules that were combined are specifically referred to as the Advertising Rule (Rule 206(4)-1) and the Cash Solicitation Rule (Rule 206(4)-3). “These two rules were originally adopted in 1961 and 1979, respectively, and the SEC indicates they have not been substantively updated since adoption,” Matsuo explained.

“The amended framework under the Marketing Rule is designed to recognize the increasing and

evolving use of electronic media and mobile communications.”

For sure, the world has come a long way since 1940, 1961 and 1979. Computers, cell phones, the Internet, social media, websites and software programs are just some of the tools which speed the creation and delivery of marketing and advertising materials.

Since last May, law firms and compliance experts have been helping financial-advisor clients get ready for the Marketing Rule’s November 4 compliance deadline.

“To prepare our clients for the Marketing Rule, we’ve been developing customized policies and procedures tailored to their specific marketing strategies and operational capabilities,” Cary Kvitka, partner at RIA Lawyers told Advisors Magazine in an email. RIA Lawyers was founded earlier this year by Kvitka and partners Max Schatzow and Ryan Walter.

“Ryan, Max, and I have been engaging with the SEC examiners about advertising for years, so we’ve developed a sense of intuition on the issue,” Kvitka added.

“It also helps to work with attorneys who have carefully studied the adopting release, and who can all lean on each other when it comes making difficult judgment calls as we venture into uncharted territory.”

“Few compliance officers have time to work their way through the

430-page final release of the rule,” wrote Courtney Raymond, director of RIA Services at AdvisorLaw, a Colorado-based firm that does not provide legal services, but does have the expertise to guide financial professionals.

“And while the rule only affects SEC-registered advisers for now, states will likely begin to adopt their own advertising rules that mirror the new SEC rule over the next few years,” Raymond added in a website post. “To complicate things further, the SEC will likely continue to provide guidance and opinions, clarifying and interpreting aspects of the rule.”

Some rule changes are helpful No matter the industry, those subject to oft-changing rules and regulations tend to automatically look upon complying with them as onerous. Experts who are willing to dig a little deeper, however, can often help discover some advantages.

Shaver’s take on the Marketing Rule, for instance, is largely positive and she recognizes its benefits to RIAs. “The Marketing Rule—and it doesn’t happen very often—is a regulation that actually benefits the advisor and their firms,” she said.

Shaver explained that her firm finds its clients fall into two categories: those who are afraid of

RIA LAWYERS Trusted counsel for investment advisers.

ADVISORS MAGAZINE / 21 ADVISORS MAGAZINE / 21

“We can sum up this year’s compliance report with one word.” marketing, and those who embrace it. For those hesitant about marketing, the Marketing Rule is likely to have no impact because they weren’t doing anything to begin with and they will probably continue to do nothing. “And then there’s a second bucket of clients that are super-excited and they’re gearing up for as much marketing as they can do for their firm.”

For My RIA Lawyer’s compliance clients, Shaver says her firm started working on the Marketing Rule when it went into effect last May. But her practice provides a range of other services from SEC 22 / ADVISORS MAGAZINE

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registration and ongoing compliance, to servicing outsourced C-Suite roles such as CFO, COO and Chief Compliance Officer and General Counsel. The firm also takes on regulatory defense enforcement, and arbitration matters.

She added: “Now that the SEC’s kind of come into the 21st century, it will allow the marketing-savvy firms to use testimonials and endorsements and has even gives them the ability to compensate clients for referring their friends and family.”

VedderPrice, a Chicago-based

law firm with offices in six other major U.S. cities and Singapore, wrote that permitting the use of testimonials and endorsements was “perhaps the most stunning reversal of the prior advertising regime.” Advisors, however, must comply with certain disclosure, oversight and disqualification provisions.

“We can only imagine the number of possible celebrity endorsements in the future,” VedderPrice quipped in an article posted on its website’s Vedder Thinking section.

Arnold & Porter, a huge law firm with offices in the U.S., Europe

and Asia and nearly 1,000 lawyers globally, also published on its website a recent article related to the Marketing Rule. “Before providing any benefit to a person that provides or will be providing a testimonial or endorsement,” Arnold & Porter urged, “consider whether that benefit may constitute compensation for the testimonial or endorsement, whether compensation may be provided to that person and whether a written agreement is required with respect to the benefit so provided.”

As far compensating clients for referrals, Shaver explained what’s

different and how it can help RIAs. Under the old rule, anyone compensated for referring a client to a firm was deemed to be a solicitor, and there was no dollar amount attached.

“Compensating someone, theoretically, even a dollar would have implicated them as a solicitor,” Shaver said, which could mean more red tape. She noted that in many states solicitors need to get registered and licensed, or treated as an investment advisor representative engaged in solicitation activities.

“What the recent rule change has done is create a de minimis, whereby in a 12-month period, you can compensate someone up to a thousand dollars for referring clients to your firm,” she said.

In short, if a longtime client refers a friend, the financial advisor now has the opportunity to compensate or provide something of value (a gift card, for example) in exchange for that referral – without making that person a solicitor, according to Shaver.

VedderPrice also pointed out that the new rule allows the use of third-party ratings in an advertisement, subject to certain disclosure and other criteria related to the preparation of the rating.

The new Marketing Rule defines the term third-party rating as “a rating or ranking of an investment adviser provided by a person who is not a related person… and such person provides such ratings or rankings in the ordinary course of its business.” This would ostensibly apply to the ratings and rankings often seen in the industry from media and others, which list the ‘top’ or ‘best’ advisors.

In terms of overall preparation, Arnold & Porter said advisors must

update any investor communications that would be considered advertisements. These would include offering materials such as private placement memoranda (to the extent they include marketing information), pitchbooks and other marketing materials. “And be prepared to substantiate any statements of material fact included in such materials,” they emphasized.

Marketing and advertising, while foremost in the minds of most financial advisors, is joined by several other compliance concerns.

Shaver said some of these are related to the Boomer generation and the number of people nearing or already in retirement.

“Qualified rollovers, documenting rollovers—these can be a big headache and burden for advisors right now,” Shaver said.

“Regulators, in particular, are showing much interest in private funds and private fund managers, and they’re seeking to bring more transparency to that part of the industry,” she added. “So, you’re seeing more reporting requirements around capitalization and greater scrutiny of any adverse financial issues with a fund.”

In general, Shavers sees a well-intentioned push for more transparency under the Biden administration. “And while that is coming from a good place, it creates a lot of administrative compliance and regulatory headaches for advisors and their firms.”

Such headaches, however, need not turn into debilitating migraines. And standing by to help investment advisors are a sizable number of legal and compliance specialists.

ADVISORS MAGAZINE / 23

by advisors staff

GETTING CLOSER TO CLIENTS Boutique firms set the pace

B

outique investment firms have outpaced benchmark indices, according to Investopedia.com. “The typical boutique investment strategy has outperformed its benchmark index in all 11 equity product categories annually by 135 basis points (bps),” notes the leading source for online financial content.

Timothy Charles Financial LLC of

the firm. “Clients come and visit us like family. They like the fact that we are a family-oriented business. We talk about much more than business. We try to go above and beyond for everyone.”

Now in the financial services industry for just over 25 years, Mortellite began his career on the insurance side of the industry, specializing in estate planning

“Our company is based on the principle that education and understanding of your current financial situation is vital to successfully make prudent.”

Lynnfield, Massachusetts, is one such practice — a small, independent investment advisory boutique founded by Tim Mortellite, president and CEO, who’s also a registered financial consultant (RFC) and an accredited investment fiduciary (AIF).

“We break down the entire financial planning process into four pieces of a pie,” Mortellite told Advisors Magazine in a recent interview. “Retirement income planning, investment management, estate planning and asset management.”

His wife Tanya Mortellite is also part of 24 / ADVISORS MAGAZINE

MAR 2022

and asset protection. After several years with a financial planning firm where he received his licensing and certifications, he further honed his talents for investing and comprehensive financial planning.

Mortellite founded Timothy Charles Financial (TCF) in 2006. “TCF is a fiduciary firm, a big part of our practice is managing money. Our custodian is Charles Schwab.” Mortellite is a member of the Financial Services Institute, the Financial Planning Association, and is also a 2013, 2014, 2016 and 2019 Five Star Wealth Manager, as rated by Boston

Magazine and the Wall Street Journal. The firm offers a complimentary meeting to potential clients.

“We will sit down with anyone for a complimentary meeting,” he said. “I’ll see if we can guide them in the right direction.

A minimum investment is not required.”

He notes, nonetheless, that it must be a good, mutual fit. And that generally comes into focus as he takes clients through his financial planning process.

“Our financial planning goal is to educate clients along the way. Most importantly to find out where they are today, and their future goals and desires. Then we put together the map to get there.”

“Educated clients are the best clients,” he added, “But there is so much information out there today—it’s a 24hour newsfeed with a lot of talking heads on the radio and TV—that people will come in overwhelmed.” “Investing should be kept simple, with simple ideas and strategies.”

Mortellite emphasizes that his financial planning process tends to calm and clarify things because he’s able to educate clients along the way.

A silver lining of the pandemic, in fact, has been that the bonds with clients have grown even stronger. “We were always a firm that met with clients face to face a few times a year, and we have always had very strong bonds. I think the whole pandemic was a way to get closer to clients,” Mortellite said. “It changed the way we communicate with clients.”

“But when the pandemic happened, we found other ways to reach out and just let clients know we were there for them,” Mortellite noted. “It was a good way for us to keep in touch; and for the few clients that we weren’t really close with, we were able to form better relationships.”

For more information, visit: Timothycharlesfinancial.com

ADVISORS MAGAZINE / 25

RIA GROWTH spawns more compliance service providers Specialization options emerge

The number of registered investment advisors (RIAs) with the U.S. Securities and Exchange Commission (SEC) continues to swell. There are now more than 13,500 RIAs in the country, based on information from statista.com, the Hamburg, Germany-based leading provider of market and consumer data.

The growth of RIAs has also driven a rise in specialty firms dedicated to serving them.

The good news is there is plenty of expertise, consultants and legal talent for an RIA to consider—and for every budget.

What follows, in no particular order, is a snapshot of such firms—companies that can help with compliance and regulatory matters, freeing up financial advisors to concentrate on their client interests and overall business. [Ed. Note: This is not an exhaustive list and Advisors Magazine makes no endorsements. Rather, consider it a short-list directory for starting an initial search of such services.]

MY RIA LAWYER

Website: Atlanta Legal & Compliance Specialist | Atlanta, GA 30339 - My RIA Lawyer Securities attorney, self-de-

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MAR 2022

scribed “compliance nerd,” and RIA expert Leila Shaver founded My Ria Lawyer in 2012 to help financial advisors and firms navigate the legal complexities of the RIA world.

She was a Chief Compliance Officer for a $2 billion AUM firm, General Counsel and CCO for a $600 million AUM firm, and compliance and legal partner for a $1 billion Turnkey Asset Management Program (TAMP). The firm specializes in three practice areas: general counsel, regulatory defense, and compliance. With more than 75 years of experience, the practice has grown to now serving all 50 states. It has in excess of 100 clients and has litigated more than 100 successful cases. Current locations include Atlanta, Chicago and Dallas, but after growing

900 percent last year, the firm is in expansion mode. The staff of 15 provides My Ria Lawyer with a legal team, a compliance team and a support team. “In life, it’s not that we don’t have enough time; it’s that we lose so much of it,” Shaver notes on the website.

“We waste time on things that can be outsourced instead of spending time on things and people we love. I’d rather pay someone to clean my house and take that time to spend with my children. Our clients are happier letting us ‘clean house’ while they work with their clients. In the end, they have more satisfaction in their businesses and they’re happier overall.”

RIA LAWYERS

Website: RIA LAWYERS – Trusted counsel for investment advisers.

Launched January 10 of this year, RIA Lawyers is a new specialty legal practice dedicated to representing investment advisors. Founded

by Cary Kvitka, Max Schatzow and Ryan Walter, the three are business partners and attorneys at RIA Lawyers. They each focus almost exclusively on representing registered and exempt investments advisers in legal, regulatory and compliance matters. Each is licensed to practice law in New Jersey.

Cary Kvitka and Max Schatzow are licensed to practice law in Pennsylvania and New York, respectively. “We have each spent the better part of the last ten years counseling investment professionals about their legal and compliance needs, including the benefits of going independent,” they note on their website. “As we enter 2022, we thought it was finally time to practice what we preach. We believe that independence is important in the financial services industry as well as in the legal field.” RIA Lawyers says they can serve as outsourced Chief Compliance Officer and General Counsel,

and that their service is most appropriate for advisors with between $100 million and $10 billion in assets under management.

Parker MacIntyre Legal, Regulatory and Compliance Services Website: https://www.riacompliancelawyer.com/ With a staff of eight attorneys, Parker MacIntyre provides customized legal and compliance solutions for investment advisors and other financial professionals. The law firm “represents some of the best-known brokerage firms and investment advisors in the country,” according to its website. “Our experienced securities attorneys handle legal matters related to securities, securities regulation, broker-dealer regulation, investment advisor regulation, litigation and arbitration.” Many

of Parker MacIntyre’s attorneys developed skills and specialized knowledge while serving as regulatory counsel and regulators, the firm notes. Others served as compliance officers for national broker dealers and investment advisors to private funds. “As a result, our BD and RIA compliance lawyers know the financial services industry from two perspectives: that of the regulator and of the regulated firm. This kind of

ADVISORS MAGAZINE / 27

understanding that only comes from experience is invaluable to us as we advise our clients.”

Among its range of services, the firm also advises start-up and existing investment advisors, including those who must register with the SEC or with a state regulatory agency. Its RIA compliance lawyers prosecute and defend legal actions on behalf of individuals and firms

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MAR 2022

that participate in the financial services industry. Parker MacIntyre’s attorneys are licensed to practice in Georgia, Alabama, Maryland, Washington DC, and North Carolina.

Schwartz Law Group, LLC Website: http://www.ria-law. com/ Scare tactics are shunned

by Todd E. Schwartz, partner at the Schwartz Law Group, according to his firm’s website. Instead, he works to ease clients’ concerns by “demystifying compliance mandates.”

And since 2001, he has been helping investment advisors build their businesses without fear of regulatory repercussions. Clientele are investment advisory firms throughout the nation. The practice focuses entirely on investment advisory compliance and legal matters. Services include: invest-

ment advisory firm formation and registration, mock audits, Form ADV Part 1, Form ADV Part 2 and U-4 Form Updates, ongoing compliance support, SEC examination and state audit representation, breakaway broker strategies, FINRA arbitrations, investor fraud cases, SEC and state-based compliance manuals, corporate, employment and contract law expertise, and FINRA and CRD account administration.

“Too often, when resolving compliance concerns, CYA trumps ROI,” Schwartz notes on his website. “Sure, limiting your RIA business’s liabilities is a primary concern. But what good is a compliance program if it does not balance business interests with compliance risks?” He adds: “We can provide you the perfect risk/ reward balance based on the particular needs of your RIA firm. Whether you are seeking assistance with a SEC/State RIA registration or want to bolster your current compli-

ance program Schwartz Law Group has a ‘common-sense’ compliance solution to fit your needs.”

their clients and meet their regulatory responsibilities.”

RIA COMPLIANCE CONSULTANTS

Website: https://www.securitieslaw.com/ From their offices in Chicago the attorneys at Lewitas Hyman have extensive experience with financial services matters gathered from over 55 collective years of advocating on behalf of financial advisors, other financial professionals, the world’s largest financial institutions and investors. Having also worked for the SEC, they know well not only the Advisers Act, but also the rules and provisions specific to RIAs. The firm has helped RIAs deal with everything from formation to complex litigation and regulatory and compliance issues. Some examples include: Preparing and filing investment advisory and securities industry registrations on both state and federal levels, including Forms U4 and U5 and the Form ADV; Developing compliance policies and procedures; Drafting and reviewing client-facing advisory agreements; Drafting and reviewing employment contracts, non-compete and non-solicitation agreements; Advising on compliance examinations, investigations and enforcement actions initiated

Website: https://www.ria-compliance-consultants.com/ RIA Compliance Consultants (RCC) is a team of industry experienced professionals dedicated to working with investment advisors who are also committed to implementing good compliance and risk management strategies. By working together, RIA Compliance Consultants helps investment advisors navigate the maze of investment advisor compliance regulations and find the best ways to satisfy their obligations. RCC is not a law firm and does not provide legal advice. RIA Compliance Consultants offers a wide range of sample investment adviser compliance forms, training materials and webinars. Its mission statement: “RIA Compliance Consultants helps investment advisors identify regulatory and risk management challenges, and then build and implement practical solutions that protect

LEWITAS/HYMAN

by the SEC, state regulatory agencies and other self-regulatory organizations.

ADVISORLAW

Website: https://advisorlawllc. com AdvisorLaw, based in Colorado, notes on its website that it is not a law firm and does not provide legal services.

“AdvisorLaw does have the expertise to advise and assist financial professionals when it’s time to defend your good name,” it says. The firm will partner with attorneys who specialize in issues facing financial professionals. Rather than trying to be all things to all people, AdvisorLaw stresses that its only focus is on the financial advisor or wealth manager. It claims to be the leading full-service firm providing industry representation to thousands of financial advisors and wealth managers, nationwide. With clients in all 50 states as well as Washington, DC and Puerto Rico, AdvisorLaw helps RIAs stay compliant with current SEC and state regulations. Its ongoing compliance service provides a custom portal and calendar designed to make task management and reporting easy.

Through advanced technology integration, AdvisorLaw offers efficient automation and full control.

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INTERVIEW

by advisors staff

reimagining mortgage advice The first step on a full financial journey

I

t’s such a clichéd scene, that it’s now embedded in the minds of most homeowners: the day when the mortgage is paid off and it’s ceremonially burned in a fireplace or an ashtray. And conventional financial wisdom—from the likes of Dave Ramsey to Suze Orman—is to pay off a mortgage as soon as possible.

But there’s little that’s conventional about David Ingle, Accredited Wealth Management Advisor (AWMA®), Certified Mortgage Planning Specialist (CMPS®) and founder/CEO of Synergistic Wealth Management, LLC, located in Chandler, Arizona.

Sure, his practice provides the full range of financial advisory services — from investment planning for every stage of life, to helping clients

Ingle said in an interview with Advisors Magazine.

“My opinion is that a mortgage is not bad debt,” he explained.

“When people tell you to pay off your home as soon as possible, I feel that’s among the most destructive advice you can follow.

For the average American, I believe that is absolutely the wrong decision to make.”

Challenging mainstream thinking, however, is part of Ingle’s DNA. Even his path to a financial services career was atypical. It dates back to 1979 when at the age of eight he was playing in a Pee Wee Football league. Ingle recalls being bored after his game ended and having to wait around for his brother’s game to finish.

“I was just walking along the

“YOUR MORTGAGE IS PROBABLY ONE OF THE GREATEST WEALTH BUILDING TOOLS YOU HAVE.” design retirement strategies aimed at reducing risk and increasing cash flow. His niche, however, is mortgage wealth management, because he firmly believes a client’s home is one of the things that can have the largest impact on their financial success.

“I believe your mortgage is probably one of the greatest wealth building tools you have access to, regardless of your level of wealth,” 30 / ADVISORS MAGAZINE

MAR 2022

bleachers,” he recalled. “I looked down at my feet and saw a Wall Street Journal. And I recalled my grandmother telling me that when you’re bored, or can’t figure out something, pick up a newspaper and maybe it will inspire you.”

Mesmerized by the numbers in the paper’s midsection, Ingle was inspired to read an article about Coca-Cola stock. It was then that the owner of the paper — a

good family friend who was into securities — showed up. Impressed with Ingle’s eagerness to learn, he took him under his wing and in the ensuing years began teaching Ingle all about markets and investments.

At one point, years later, Ingle says he even met Warren Buffet.

Today, Ingle is registered as an Investment Adviser Representative.

He has worked at Merrill Lynch and completed Yale School of Management’s program for designation as a Certified Private Wealth Advisor (CPWA®). Ingle is also trained as a Certified Financial Coach and Certified Behavioral Finance Expert. Before launching Synergistic Wealth Management in 2018, he served as a top mortgage loan officer at Bank of America and trained in Private Wealth Management.

All that experience means that educating clients plays a pivotal role at Synergistic Wealth Management. But it’s a two-way street. The process allows Ingle to learn about each individual client, and then he can teach them about new financial planning methods to minimize the chances they will keep repeating the same potentially costly mistakes.

“Everybody’s retirement planning is different,” Ingle noted, “but I don’t think it’s challenging to provide a custom solution. Our challenge often is getting clients educated so they understand there are different facets of their life to consider and there are different reasons why we’re doing certain things.”

He added: “Sometimes it is harder to talk to clients about the

plan than the actual planning itself.”

Ingle lamented that many people are not taught finance in school anymore.

“When I was a kid in grade school, our school had these packets where you practiced applying for phone service, setting up a bank account, and balancing a checkbook,” he said. “We see that many of today’s kids really struggle with the whole concept of money – what it does and what they should do with it. “ Ingle also believes that the industry’s overall approach, as well as the individual dialogue between financial advisors and clients, needs to turn more positive, open and transparent. Prospect messaging, in his view, is too often designed to make people feel uncomfortable.

“There is just too much marketing

of doom and gloom,” he said, “because on the behavioral side, most people will not make a decision to do anything or change their situation unless something happens and/or they have been made to feel uncomfortable.”

Not paying down a mortgage quickly is a frequent message that can cause discomfort, or even panic.

“There are headlines decade after decade saying Americans aren’t saving enough and don’t have enough to retire,” Ingle emphasized. “But handling mortgages are where the biggest mistakes happen. In fact, it’s so wrong that it’s destroying Americans’ ability to be able to retire with enough income.”

And while he does agree that people should generally pay off a mortgage by the time they retire, or perhaps a few years afterwards, Ingle maintains that mortgage planning can play a particularly meaningful role in holistic planning for retirement. For example, there may be tax efficiencies in carrying a mortgage that can help offset a substantial required minimum distribution (RMD).

That’s why his process starts with a client’s largest asset – their home – and then works through other factors, such as IRAs, tax management strategies, and income withdrawal strategies.

Ingle’s core philosophy might be summed up as follows: ‘Mortgage’ doesn’t need to be a dirty word; it should be a primary topic in any wealth-building conversation.

For more information, visit: synwm.com

ADVISORS MAGAZINE / 31

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By Joe Innace

TALENT SMALL FIRM, BIG ON

It’s secret: recruiting acumen

The impact of the labor shortage on the financial and business services sector in the U.S. could amount to $436 billion by 2030, according to a recent report from Korn Ferry, the global organizational consulting firm.

“Financial and business services is one of the world’s most important sectors in terms of contribution to GDP and it’s the sector most threatened by severe talent shortages,” the study noted, pointing to a global deficit of 10.7 million workers by 2030.

By all accounts, financial advisory practices are in for a bumpy ride should they need to hire qualified people or find the contract services to complement their own specialties.

Nestegg Wealth Advisors, LLC of Rowlett, Texas, however, appears to be in great shape. That’s because Rick Lucas, president and founder/RIA, has previous experience as an executive recruiter. As such, he’s already found sharp talent and built a formidable team.

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“As an executive recruiter, I was paid by companies to go out and find talent for them that they couldn’t find on their own,” Lucas told Advisors Magazine in a recent interview. But then 9/11 happened, and the recruiting business became more difficult. Companies were not as willing to pay Lucas a fee amounting to 25-30 percent of a person’s salary because there were suddenly so many people out looking for work.

“Financial services was always something that I had wanted to do, but just didn’t know how to get into the business,” Lucas said. “So, I pretty much did what any good recruiter would do; I found the hiring manager at G.E. Financial, cold-called him and convinced him to give me an interview.”

Flash forward 20 years or so, and Nestegg Wealth Advisors, LLC is the independent firm founded

by Lucas. It provides planning and investment services mostly to retirees, or individuals nearing retirement, in Rowlett (a suburb of Dallas) and surrounding areas.

Lucas maintains that it’s important for prospective clients to find an independent advisor that’s in business for themselves, but not operating by themselves.

“Some people feel more comfortable going with a big firm,” he said. “But there are many people who find it’s better to be with an independent practice because we can we have more flexibility and can have more access to a broader range of tools

to help them,” Lucas added.

A large firm may have extensive resources, but its client service people are locked into using only their own company’s resources.

“I have a great team that supports me here in the office,” Lucas beamed. “I have other professionals that I work with – attorneys, CPAs and an investment committee.”

In short, the exrecruiter has assembled a team of professionals consisting of internal and external talent. “Without all of them,” Lucas said, “I could not do what I do, and I would not be successful.”

And in doing what Nestegg does, the firm requires no minimum investment.

“I made a decision a long time ago that if I wasn’t going to have a firm maximum, then I’m not going to have a firm minimum,” Lucas said.

“We do have preferred types of clients that when

we do advertising or workshops and things like that, we look for certain qualifications,” he added. “But that’s not to say if somebody comes in under that mark, that we wouldn’t try and help them.”

What’s more, Lucas says that many times he will bring in a client that has had a bad experience with another advisor.

“Often, that other advisor treated them like a name or account number in a database and not a person,” he said. “Or they sold them some product or put them in a mutual fund, never to be heard from again — except for a preprinted Christmas card or something like that.”

Running counter to such behavior, Lucas has implemented what he calls the ‘Nestegg family,’ and it includes two events each year.

“These are just gettogethers with clients,” Lucas said. “We do not talk business or anything like that, it’s just for fun.”

R/L: Abby Masters, Rick Lucas, Angie Brown

Fun, with a healthy dose of appreciation. “Our clients have worked their whole lives for the money, and we are blessed that they have given us the privilege of managing that for them,” he added.

“We all get freaked out a little bit at times with events going on in the world, with the market and other things that happen

handholding with your clients.”

That was especially the case while operating during a pandemic. And Lucas says these past two years have also opened his eyes, allowing him to evolve further as a business owner and entrepreneur.

“We’ve had to branch out and find new methods

“Our clients have worked their whole lives for the money, and we are blessed at the privilege of managing that for them.”

– Rick Lucas

out of nowhere for what seems like no reason,” Lucas noted. “Sometimes we just have to talk, and I can be that calming voice,” he said.

In fact, ask Lucas what needs to change in the profession, and he will say there needs to be more personal communication.

“I have clients that went through the Dot-com bubble burst, the 20082009 Great Recession, and when they reached out to their advisors, they never got calls back,” Lucas recalled. “These people were terrified to open their statements because they didn’t understand them.

Personal communication, in this time of online and mobile trading platforms, is more critical than ever, Lucas contends.

“There needs to be more

for getting clients, and we’ve also learned how to provide a high level of service in a virtual world,” he said.

Lucas admits he has had to adjust and he has grown in the process. “I mean, I’m a face-to-face guy,” he smiled. “I like sitting down face-to-face, belly-to-belly, talking to people and getting to know them on a personal level.”

And that’s an important soft skill well-suited for both an executive recruiter and a financial advisor.

For more information, visit: nesteggadvice.com Fee-based financial planning and investment advisory services are offered by Nestegg Wealth Advisors, LLC, a Registered Investment Advisor in the State of Texas.

ADVISORS MAGAZINE / 35

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Inflation Returns After Long Hiatus Higher prices cause advnaced planning strategies Americans who should be enjoying a resurgent economy and low unemployment instead face worries over how they can cope with a new threat: the highest inflation rate in 40 years.

Inflation has drawn little attention in recent years as rates remained low.

However, the Consumer Price Index increased by 7% during 2021, the highest 12-month increase since June 1982, according to the U.S. Bureau of Labor Statistics. Over the previous decade, the rate had fluctuated between 1.5% and 3.2%.

Over the past 18 months, the Federal Reserve Board has focused on spurring economic growth as the country recovered from the COVID-19 pandemic. When inflation began to climb in mid-2021, the Fed expressed optimism the increases were a “transitory” trend primarily caused by pandemic supply chain delays and higher consumer demand.

However, by the end of the year, the Federal Reserve shifted from recovery measures (such as buying bonds and slashing interest rates to almost zero) to aggressive inflation-fighting strategies. The Fed has signaled that by March, its board will approve the first of several incremental increases in the federal funds rate over coming years (which will also drive up short-term borrowing costs).

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The funds rate has stood at .25% since March 2020 and the prime interest rate at 3.25%. The Fed currently projects it will increase the funds rate to 2.1% by the end of 2024, which means a prime rate of just over 5%.

While most economists expect the U.S. inflation rate will decline to 3% by the end of 2022, Americans experiencing higher prices at grocery stores and gas stations remain concerned about the return of significant inflation following years of moderate rates – and about how to plan for the financial impact of potentially continued increases ahead.

“Inflation is real, and sound financial planning will always factor inflation into the overall strategy,” Rick Kent CFP®, ChFC, AIF®, CEO and founder of Alpharetta, Georgia-based Merit Financial Advisors, told Advisors Magazine. “Recognizing the true impact of inflation is quite eye-opening. Therefore, it is imperative that inflation be factored into one’s forward-looking financial strategy. Failing to do so would certainly be detrimental to the overall effectiveness of the plan.”

Higher inflation could be with us for a long time, according to Karen L. Asbra, CFP®, principal and chief operating Officer at Rappaport Reiches Capital Management, LLC, in Skokie, Illinois.

However, attempting to forecast future inflation and interest rates is challenging. Rather than making short-term changes based on predictions, Asbra said, a better approach is preparing for a variety of outcomes (including increased inflation risk) as part of a long-term financial strategy.

“Protecting client portfolios starts with fundamental planning,” she continued. “How much risk are they comfortable taking? What mix of cash, stocks, and bonds makes sense for their situation? Remember: stocks, as a growth asset, remain a terrific hedge against inflation, as companies generally can pass on increased costs to maintain their margins. Bond portfolios that are high quality and conservative in terms of maturities, including an allocation to Treasury Inflation-Protected Securities, make sense as well.”

Make a Plan, Stick to It Kent said his first concern is for individuals who may be waiting to see how the financial picture plays out before they take action, as well as those who delay implementing a strategic financial plan for many other reasons.

“With the likelihood of rising

inflation ever-increasing, it is critical that investors have a sound a financial plan in place to help them weather any potential storm, he said.”

Once a plan is in place, Kent added, it is critical for investors to remain steadfast and stick to that plan. Entering and exiting the market in attempts to time the market can wreak havoc on their finances, he added. A better approach is to formulate a long-term plan and make slight adjustments along the way if needed. Otherwise, allowing emotions to overrule logic and reason often brings a hasty decision to abandon the plan completely.

The first step investors should take to mitigate higher inflation and higher interest rates is “a no-brainer”, said Karen R. Keatley, MBA, CFA®, CFP®, principal and chief wealth management officer at Modera Wealth Management in Charlotte North Carolina. She recommends locking in current low mortgage rates before they go up.

“If clients have floating rate mortgages, now is a good time to lock in attractive long-term fixed rate loans,” Keatley said. “It might even make sense for a client who doesn’t have a mortgage to get one. Inflation favors borrowers because debt amounts remain fixed while asset values increase.

It’s the ultimate inflation play.”

Compared with other asset classes, stocks perform extremely well as an inflation hedge, she added, as they

provide increasing income over time.

Historically, both stock prices and dividend income have grown much faster than the rate of inflation.

Healthcare Inflation Plagues Retirees Rising prices are particularly damaging for retirees. Even before inflation began dominating the headlines in 2021, Keatley said, retirees had been challenged for several years by excess inflation in healthcare costs. In the past, the conventional wisdom was that a retired person’s investment portfolio should be “conservative” with a weighting toward bonds, she said.

Typical retirement date funds offered by retirement plans are structured to increase the percentage of bond investments versus stocks over time.

“A fixed income translates to declining purchasing power,” Keatley continued. “If higher inflation persists, the result of this prevalent advice could be catastrophic. For retirees, living with portfolios weighted toward bonds doesn’t sound ‘conservative’ to me. It sounds incredibly risky.”

The conventional wisdom traditionally measures investment risk in terms of volatility, she said. Since bond returns are relatively stable, they are normally considered a more conservative instrument than stocks.

“However, as advisors and planners, we need to re-frame our client conversations around risk,” Keatley added. “We should be talking about risk in terms of purchasing power over time. Your client isn’t taking his entire brokerage account to the grocery store: he just needs to be able to buy groceries – today and 30 years from now. Volatility doesn’t matter as much as people think.”

While persistent inflation remains possible, Asbra noted, her firm encourages clients to focus on what they can control. That means preparing for a range of risks – including potentially higher inflation – in their financial plans.

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by joe innace

FROM PERFECT VICTIM TO PERFECTING LEADERSHIP A journey from the projects to the boardroom

A

single mother with an eighth-grade education cleaning motel rooms to provide for her four young sons — on her own, while living in the projects of Indianapolis.

Often, sadly, it’s a story that does end well.

Steven A. White was the oldest of those four sons. “It was the perfect case for me to be a victim,” he told Advisors Magazine in a recent interview, “but certainly my mother had a clearly different vision for her four little boys.”

Today, White serves as President and Special Counsel at Comcast.

In his current role, he works with Comcast Cable leadership and the company on a number of important initiatives, including Diversity, Equality & Inclusion (DE&I), leadership programming and development, and the advancement of digital equity in the areas of accessibility and affordability.

He previously served as President of Comcast’s West Division.

Steve’s mother understood that while she was unlikely to realize all her own personal dreams, her goal was to ensure that her sons did. She would often take the boys to her motel cleaning jobs because she could not afford a babysitter.

“At the time, I didn’t realize the lessons I was learning,” White said.

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MAR 2022

“Clearly her skillset was much greater than a motel cleaner, but she approached that job with great attitude, great focus, great commitment.”

White and his brothers also came to appreciate the sacrifices she had to make. And they saw how she realized and embraced her primary purpose, which was to raise four young boys, so that they would become contributing members of society. And today, they all are.

“I didn’t realize it at the time, but what was being instilled in me is you never work a day in your life — if you find why you’re on this earth,” White said.

And that’s a key theme in White’s book, which will be released nationwide during Black History Month (222-22). Its title: UNCOMPROMISING: How an Unwavering Commitment to Your Why Leads to an Impactful Life and a Lasting Legacy.

White had considerable success coming out of college. But his first big job in a management role saw him fired within 12 months.

The same day he was fired, however, he also received a call from another executive in a different division of the same company. That executive and soon-to-be-mentor was Darnell Martin.

“Steve, I see more in you than you see in yourself,” White recalls Martin told him. “However, if you leave and

manage the way you’re doing today, you’ll never be successful,” White remembers.

Martin said he wanted to move Steve from Michigan to Chicago. “He told me: ‘I don’t have a job, but I’m going to create a position for you. There will be no P&L responsibility. You’ll have no people. All I want you to do is watch, learn, and grow.’”

And that’s what White did. He quickly realized that leading is about serving your team. “People support you when you support them,” he says. “Their efforts and loyalty intensify when they see it from you.”

“That’s why God put me on this earth -- to lead and motivate, to inspire men and women to be better than they even thought they could be.”

That was the light bulb moment for White. “I realized because I learned leadership early on as the oldest of four boys in that motel room, or when my mother had to work two jobs, it was my responsibility to get my little brothers ready for bed, and homework done and all of that,” he explained.

“So, I recalled how I really enjoyed that—serving our family team. And that became my purpose.”

White adds: “That’s why God put me on this earth -- to lead and motivate, to inspire men and women to be better

than they even thought they could be.”

White had initially identified his purpose, but there was still the question of why him?

“I’ve had eight core friends,” he told Advisors Magazine. “We all have friends that have been with us 20, 30, 40 years, whatever. Of those eight, only four of us are still alive. The other four died tragic deaths based on where and how we grew up.”

And over the years people have asked Steve: ‘How are you still here?

You grew up in the same circumstanc-

es. Why and how are you here?’

White acknowledges: “I was curious enough to go find out my why, and I truly believe that allowed me to get through some difficult circumstances and to not become a victim.”

Many of these points are addressed in White’s book. The Uncompromising title, however, does not mean one should be inflexible or stubborn, it relates to one’s dedication to purpose.

“Life is built around compromise,” White said, “But once you find out your purpose and you find out why ADVISORS MAGAZINE / 41

you’ve been placed on this earth, you should be uncompromising. You should be ruthless in your pursuit of your why,” he urged.

There are many business management and leadership lessons to be learned from White’s book, but at its heart, this is a story about realizing the American Dream.

“We just do not teach the American dream in school anymore,” White said.

“And as an African American, I can certainly attest that it’s not an easy road for people of color, but it is available.”

He emphasized: “And through hard work and perseverance and obviously a few breaks and a few hand-ups — not handouts but hand-ups, which represent opportunity — I think the

market, the gap only widens and that’s a major issue.”

But such issues, White maintains, are being affected by what he calls The Great Reset. “I choose to ignore the label ‘Great Resignation’ in favor of The Great Reset,” he said.

White insists that the pandemic forced all who thought we were in complete control of our lives to slow ourselves down and to reflect on where we are. What’s more, he points to George Floyd’s murder on May 25, 2020, as a pivotal moment that showed how we are all vulnerable.

“When George Floyd was murdered, it really captured the attention of everybody in this country,” White said.

“Because if you’re an African Ameri-

observed. “So there is this desire to go out there and find your purpose.

And then that ties into income and The Great Reset.”

He added: “Now, people are saying, ‘Look at my skillset, I truly believe my talent is greater than what I’m being recognized for; I’m looking for an opportunity that’s more equal to what I am worth.’”

Reflection, in fact, is a critical part of being a leader, according to White.

Every morning he still carves out time to reflect – to figure out why a decision worked or didn’t pan out, or what mistakes he made, as well as what went well.

As always, White is thoughtfully uncompromising in his commitment to

“Life is built around compromise ... but once you find out your purpose and you find out why you’ve been placed on this earth, you should be uncompromising.

You should be ruthless in your pursuit of your why.”

American dream is available to everyone.”

For most everyone, that dream is rooted in self-sufficiency. “I want to be independent enough where I can make my own decisions,” White said. “I want to be able to care for my family, my loved ones. We all want a level of freedom and choice to do as we please, right? And you need to have a level of success to do that.”

The Wealth Gap, The Pandemic and ‘The Great Reset’ While affirming that success and opportunity are available to all, White agrees that the wealth gap and income inequality are serious concerns. “Just look at the stock market the last few years and the wealth that has been created,” he said. “But if you don’t have the capital to participate in the 42 / ADVISORS MAGAZINE

MAR 2022

can, that’s not a new story, but it captured America’s attention because so many of us were at home and feeling our most vulnerable.”

At the time, the nation was only three months or so into the pandemic.

People were on ventilators and dying and a man was killed in the street by law enforcement. “It was a very frightening time for a lot of people,” White said, “because we just didn’t know what would happen. You didn’t know if you were going to die.”

As people of all kinds witnessed and experienced such events, White says they began evaluating and reflecting on how they were living their lives. It was a time to take stock.

“They started to realize that they were spending hours and hours doing something or working for someone that maybe did not fulfill them,” White

having a positive impact.

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