Ep 3: Why The Role Of Your Financial Advisor Isn’t What It Used To Be

On This Episode

As the financial industry has changed, the role of the financial advisor has also changed in order to fit the needs of today’s retirees and pre-retirees. So let’s talk about some of the crucial elements that your advisor should be providing you with in a retirement plan, as well as how you can spot an advisor that may not have your best interests in mind.

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PFG Private Wealth Management, LLC is an SEC Registered Investment Advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. The topics and information discussed during this podcast are not intended to provide tax or legal advice. Investments involve risk, and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed on this podcast. Past performance is not indicative of future performance. Insurance products and services are offered and sold through individually licensed and appointed insurance agents.

Here is a transcript of today’s episode:

Marc Killian: Hey everybody, welcome in to another podcast edition of Retirement Planning Redefined, with financial advisors John Teixeira and Nick McDevitt of PFG Private Wealth, an independent RIA serving you in the Tampa Bay area. Their office there is in Tampa Bay. If you want to get on the counter and come in for a consultation or a conversation, or you know someone who needs a little help, give them a jingle at 8132867776, that’s 8132867776 to give them a call and always, you can check us out online, check out the team and there’s some good tools, tips, and resources to be found at PFGPrivateWealth.com, that is PFGPrivateWealth.com. You’ll be able to click on podcast and also subscribe to the program, catch past episodes, and future episodes as we continue to put these out. Hopefully you’ll extract a useful nugget or two of information to help you along your retirement journey. PFGPrivateWealth.com.

Marc Killian: And guys, welcome in this week. Thanks for being here, I hope you’re doing well.

Nick McDevitt: Doing well. And how are you doing, Marc?

Marc Killian: I’m doing very well, thanks I appreciate you asking me that. John, how are you, buddy?

John Teixeira: I’m great, how are you?

Marc Killian: Doing pretty good. How’s the weather been here lately? It’s been pretty hot in my neck of the woods. You guys are starting to roast a little bit, or at least it’s coming anyway, right?

John Teixeira: It came.

Nick McDevitt: You know, it’s actually pretty nice and then all of a sudden the next day it’s like mid-90s.

Marc Killian: Just bam, huh? Out of the blue? Well that’s Florida, right? And as they say, if you don’t like the weather wait five minutes, it’ll change.

Nick McDevitt: Winter’s not coming here right now

Marc Killian: Yeah, winter’s not coming. That’s right. A little Game of Thrones thing there, uh-oh. So let me ask you guys a question this week if you caught our previous podcast last week folks you know we talked a little bit about industry overview, just, I guess, how things have changed in the last decade. I kinda threw this bull market we’ve been on, honestly it’s been a lot going on the last ten years so we’ve teased up the fact that we were gonna talk about how the financial advisor’s role itself has changed. So let’s kick it off and talk about that. Over the last decade what have you guys seen that’s changed for your specific role as financial advisors?

Nick McDevitt: Yeah, so, in the classes that we teach, one of the things that we talk about quite a bit are that seeing that the majority of the clients, and the majority of the people that come through our class, are kinda that and that, 50-55 years and up range. Many of them have, at one time in their life, maybe earlier on but maybe still, have worked for an employer where there was a pension plan or maybe a significant benefit packages, and their lives are very closely, have been very closely touched by one company’s head pensions for everybody and one really employer took on the major amount of risk from the standpoint of a person having a respectable retirement. So, [inaudible 00:02:43] transition from the worker having a pension plan, having really good benefits, to them becoming more responsible for their retirement.

Nick McDevitt: So that’s kinda driven the changes as an advisor where maybe before, the advisor really only had to worry about managing the investments, where now it’s much more planning and strategy focused. And really it’s trying to take all of these different decisions that have to be made like maybe it’s a couple situation, one of them has a pension, they’re both in the social security system, they haven’t paid off the house yet, they’re trying to determine, “Do I pay off the house? Do I save? What age should we retire? Shall we both take social security at the same time or should one of us wait? What sort of options should we take on our pension plan?” And so it’s taking all these different decisions and putting them together, and then making sure that the risk that they’re taking with their investments lines up properly with what they’re actually comfortable taking as they approach retirement.

Nick McDevitt: That transition of what we’ll kind of talk about as accumulation, where they go to work, they save money into their retirement plan, and now, all of a sudden, they’re starting to realize that, “Hey, I need this money to start to generate income for me. How do we work through that transition and how do we give ourselves, how do we empower ourselves with the information that we need to make the right decisions, and also feel comfortable so that we don’t derail that plan if, let’s say there’s a pull back in the market or something like that.”

Marc Killian: I gotcha. Okay, so, if we’re gonna talk about some of these variances when it comes to how these roles have changed, let’s talk a little about advice and planning versus investment management.

Nick McDevitt: Sure, so it’s always an interesting kind of experience as we will go through and teach these classes where just like any sort of situation you have certain people that are very comfortable asking questions that are particular to them, and other people are quiet. So, we’ll have people that will raise their hand and will say to us, “Oh, I’m going to retire in two years, and I’m a teacher, and I’m gonna have my pension. And how much should I take out of my retirement account?” And John and I kinda typically joke with them, and we just oftentimes say, “It may be frustrating for you to hear it, but what you’re gonna hear from us a lot is it depends.” And that’s where we really try to shift people into having that mindset of building that plan and trying to walk through the decisions that they’re trying to make in the basis of a plan, and then that plan then dictating how they manage their investments. And even if they’re gonna have us managing investments or they’re gonna manage them themselves, they need to have a broad based plan and we want the risk that they’re gonna take in the investments to be dictated by the overall plan.

Nick McDevitt: We’ll oftentimes make a joke that, “I’m sure that your mailman, or your plumber, or your electrician, or your cousin, or your brother have great advice for you but their situation is different than yours. And they may have a much higher ability to handle risk, they might have a pension, they may not have kids that they want to leave money to, they may have a house that’s paid off. And so everybody’s situation is different and how they develop their investment strategy should be based upon that plan first. Where, in the past, most people have just said, “Hey, I wanna achieve some arbitrary sort of way to return their investments.” And there’s no rationale or rhyme or reason behind how they’re doing that.

Marc Killian: You’re listening to Retirement Plan Redefined podcast with John and Nick from PFG Private Wealth. And so John let me get you in on this conversation a little bit. Let’s talk a little bit about focus on the strategy and broad based planning and how that’s changed over the last few years.

John Teixeira: Yeah, so, most people that we meet with we like to call if they have the financial junk drawer.

Marc Killian: Right. [crosstalk 00:06:46]

John Teixeira: It’s kinda going through work and they’re really just purchasing financial vehicles and there’s really no rhyme or reason to it. So we make sure that whenever we meet with someone or we’re going through the classes, that we really focus on A) establish what your goals are, let’s put a strategy in place to hit those goals; and then second, is really then let’s put the investments in the products that are appropriate to make sure that you do [inaudible 00:07:10] those goals versus vice-versa where a lot of people will just end up, “Hey, let me get all these things.”

Marc Killian: Right.

John Teixeira: And then really no strategy to make it happen. The negative to that, or what could be bad is that you back yourself into a corner where you can’t adjust. So it’s important, when you’re doing the plan, as Nick mentioned, the plan really dictates how you should be investing your money, what type of rate of return should you shoot for. So example, we’ve seen some people where their plan looks good and they’re investing very aggressive, shooting for 9%, and in reality they can hit all their goals with a 4-5% expectation in the portfolio. And what that does is if your plan works at 4-5%, why take the risk of 8-9%? [crosstalk 00:07:51] We really want our clients to be able to sleep at night. So that’s kinda part of focusing on the strategy, which ultimately will let you focus on what investments in your strategy to go into.

Marc Killian: Yeah, and I think that makes a lot of sense. Especially when you’re talking about time horizon because as you’re aging and getting close to retirement, if you don’t need to reach for those higher return rates, I mean I get it, everybody wants to make as much as they can make but why take the risk? Especially as you’re getting closer if you don’t need to.

Nick McDevitt: Yeah and where planning can actually help with that is, so let’s say for example, because people tend to think about all of their money in one pot, so there will be times where we’ll have conversations, and sometimes it’ll be referred to as bucket strategy or something like that, and so while we’re having our conversation we’ll say, “How about we carve out, let’s say, 10% of the overall nest egg and that 10% we can invest for a long term growth and that’s gonna have a little bit more ups and downs, but that’s gonna replace the money you’re gonna spend in the meantime.” So that lets them get that kind of exposure that they may want just on a smaller scale. And it makes the whole transition a lot smoother for them.

Marc Killian: Okay. Well I think we’ll finish up this week’s podcast, we talked about some of the financial advisor role changes here. And a lot of times, guys, people just are a little overwhelmed, as we touched on. There’s the kind of wondering, well this person has this designation, and that designation. All the little stuff that goes on your business card, right? And so it can get a little overwhelming. So John, is there some things we can do when we’re doing a little research, when we’re looking at people we want to talk to, maybe sit down with, some ways we can kind of do our own homework on if it’s maybe the right fit or not?

John Teixeira: Yeah, so we always recommend that if you’re interviewing or looking at advisors, you wanna do a broker or adviser look up. So you can look at Finnvera.org, you can look up, put in their last name, their location, and you can do a broker check and then also the SEC advisor website has an advisor lookup that you can do. And what that will tell you is where have they worked? So you can kinda see how long they’ve been in the industry, where they’ve been, and more importantly are there any complaints or any issues with that advisor.

John Teixeira: So we like to tell stories, and Nick and I had a meeting with someone and something wasn’t right. It was an initial consult to really get to know who we’re sitting with. We could tell that something was off, and Nick likes to google quite a bit, so he went on there and pulled up the advisor’s history and there was a lot of complaints and there were actually, Nick, jump in if I miss something, they were actually kicked out of the industry. So it raised a lot of red flags, had those people looked him up prior they would have saw that and maybe not backed themselves into a corner kinda going back to just focusing on what we were talking about, just focusing on products versus strategy. It’s just important to really know who you’re dealing with.

Nick McDevitt: And more specifically, when you do that lookup you can see what sort of license they have, and that license will tell you what kind of role that they can have as far as, are they able to provide advice or are they simply a broker where they’re just selling products? And so as John mentioned, you can see if there’s been suspensions, you can see if there’s been complaints, you can see if they’ve had to settle financially, if they’ve had to pay out money to maybe a past client that’s complained about them.

Nick McDevitt: And it will also will show if they’ve had any personal financial issues. So a lot of people, especially back through kind of the 0809, one of the things that popped up that we’d have questions on from people where they or their advisor had gone through some sort of bankruptcy or something like that. And that doesn’t necessarily mean that that person’s no longer a good person or they’re not trying to do what’s best for the client.

Nick McDevitt: But, they way that we approach it and they way that we think about it is that it’s important for people to arm themselves with as much information as possible to help them make smart decisions. So being able to look up that information, seeing what kind of licenses they have, see if there’s been any complaints, see if they’ve been at a different firm, if they’ve been at five different firms for one year at a time then that’s usually a red flag [crosstalk 00:12:01] that’s something they should be asking questions about. Again, it’s just one of those things where it’s good to know things like that.

John Teixeira: Yeah [crosstalk 00:12:09] sorry, so one thing I do wanna mention on this and I kinda feel passionate about, so I do wanna jump in on it. We’ve run into some people where they thought they were working with an advisor that, let’s say, had all the licenses, but they were only insurance license. So basically, what I mean by that is, they can only sell certain insurance products so, specifically, certain types of life insurance and annuities. And basically, what they did with this one person I was working with is they just jammed him into all annuities and life insurance because they couldn’t sell anything else or offer advice for anything else. So important where you are looking up someone, make sure that they can offer you everything that comes into the financial planning world.

Marc Killian: Yeah, and I think, when you’re doing your homework, folks, do a little bit of research again, it’s one of those situations where it’s your money, it’s your retirement obviously you need to care about it more than the person you’re hiring. But you wanna hire someone who is gonna have your best interests at heart. Which is we talked about that last week as the fiduciary versus the suitability. But do a little homework, check some things out. The guys gave you some good places to consider to take a look when you’re kinda checking someone out. And because we all are gonna have that gut feeling as well. So when you sit down and talk with someone, you’re gonna also be able to decide if they give you the warm fuzzies, so to speak. So do a little bit of homework, sitting down and checking out some different people, certainly a good way to go when you’re trying to find that right advisor to build that relationship with.

Marc Killian: And if you’d like to come in and talk with John and Nick, and have that conversation with them, feel free to do so. Give them a call at 8132867776, again 8132867776. They do classes throughout the year as well, there’s more information you can find on that at the website PFGPrivateWealth.com. You can learn about when those are gonna take place, and how to get involved, and all that good kind of stuff. And while you’re there make sure you subscribe to the podcast on iTunes, Google Play, and whatnot.

Marc Killian: And, John, Nick, thanks for your time here on Retirement Planning Redefined. I hope you guys have a great week or two, and I’ll see you the next time we do one of these.

Nick McDevitt: Thanks, Marc.

John Teixeira: Alright, thanks. Have a good one.

Marc Killian: Take care of yourself and enjoy yourself, and have yourself a fantastic day, and we’ll see you next time here on Retirement Planning Redefined, with John Teixeira and Nick McDevitt of PFG Private Wealth an independent RIA. We’ll talk to you next time, bye bye.

Ep 2: How The Financial Industry Has Changed In The Last Decade

On This Episode

Things are changing in the financial world, and they’re changing for the better. This week, we’ll look into how advisor fee structures have changed, and we’ll talk about why more and more advisors are becoming independent fiduciaries and separating themselves from the larger wirehouses. We’ll also explain the difference between the suitability and fiduciary standards, and discuss why holistic planning is becoming so popular.

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PFG Private Wealth Management, LLC is an SEC Registered Investment Advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. The topics and information discussed during this podcast are not intended to provide tax or legal advice. Investments involve risk, and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed on this podcast. Past performance is not indicative of future performance. Insurance products and services are offered and sold through individually licensed and appointed insurance agents.

Here is a transcript of today’s episode:

Marc Killian: Hello, and welcome in to another addition of Retirement Planning Redefined with the team from PFG Private Wealth. Joining me on the program is Nick McDevitt, as well as John Teixeira. Guys, welcome in. How are you?

John Teixeira: Good. How you doing?

Marc Killian: I’m doing very well. Hope that you guys are doing pretty good. Anything interesting going on since the last time we did our initial podcast? Anything exciting or new to talk about?

John Teixeira: Nick, you got anything going on?

Nick McDevitt: No, just getting ready for the summer.

Marc Killian: Well John, are you sleeping? Because, I mean the last time Nick made some comments about you trying to get some sleep with the little one.

John Teixeira: I’m … I’m not sleeping. Last night was pretty rough, so for an interesting day. But yeah, no sleep last night, but I’m up and running.

Marc Killian: Yeah, there you go. Well they’re good for that when they’re little, but they’re also got a lot of little fun things happening there too. So, it’s interesting being new parents, that’s for sure. But listen, guys I want to talk over the next couple of podcasts. We kind of kicked off our first one just to get to know you guys a little bit and get to know the corporation, the company a little bit, PFG Private Wealth a little bit. You guys are an independent RIA. You are serving the folks here in the Tampa Bay area. And I wanted to talk a little bit on this podcast just kind of about the industry, a few things. Kind of an overview if you will. And just get your thoughts on some of these things.

Marc Killian: And of course, folks, if you want to subscribe to the podcast, check us out, moving forward we’re going to be doing more of these. Go to pfgprivatewealth.com. That’s pfgprivatewealth.com, and of course as always, you can always call them if you have some questions or concerns. Before you take any action, always talk with a qualified professional like John and Nick, 813-286-7776. That’s 813-286-7776.

Marc Killian: So guys, let’s talk a little industry overview here. Just in the past decade, how’s it changed?

Nick McDevitt: Well, so typically we work with people that are 50 and up, where things are kind of starting to get a little bit more serious as they approach retirement. And one of the common things that we’ve seen is they come in, whether it’s to one of our classes, or they come in for a consultation, is that they’ve had multiple people in their life that have helped them with maybe specific financial decisions. They’ve had a person that they’ve bought life insurance from. They might have a mutual fund account somewhere else. They may have bought a few stocks from a different broker, something like that. And what they haven’t done is sat down with somebody that can help them look at it strategically and look at it from a broad base viewpoint.

Nick McDevitt: And so, that’s been the biggest change where things have become more planning focused versus maybe just focused on the stock market or returns in the market, that sort of thing. And as part of that, there’s really been a huge shift in how the industry… And there’s a lot more room left for the industry to grow that way. But the sort of transparency that the industry has from the standpoint of what our client’s actually paying for.

Marc Killian: Got you.

Nick McDevitt: From a fee standpoint, really how are the advisors compensated, that sort of thing. And there’s been a big shift where more and more advisors are breaking off from your Morgan Stanley, Merrill Lynch, wirehouse sort of structure, to an independent sort of structure. So, those have been some of the big changes for people.

Marc Killian: Okay. And I want to talk a little bit more about that in just a second. But I wanted to ask John a question to kind of chime in here. What about fiduciary versus suitability? Now, for some of our listeners John, they may have heard these terms before, they may not. So real quick, tell us what they are and then give us a little bit of a difference on these.

John Teixeira: Yeah, so this is … goes in line with what we were talking about, the industry changing. And the industry’s really going more towards a fiduciary basis versus suitability for clients. So, just to define those for people that don’t know what it is, a fiduciary has to do what’s in a client’s best interest and has to put their own interest aside. I mean, it’s funny to kind of say that, but [crosstalk 00:03:47] fiduciary has to do what’s in the client’s best interest, compare all options, disclose any conflict of interests that may happen in the result of planning. Someone that’s working on a suitability capacity basically has to recommend to a client what is suitable. So it might not be the best thing for them. So example, if you work for a particular company, and they had very good products and investments, and you said, “Well this is suitable for this individual, but there are some other ones that are better, would better serve them. But I’m recommending what’s suitable, so this will be just fine.”

Marc Killian: Got you. Okay. And so as you guys, as fiduciaries, you obviously are doing what’s in the client’s best interest. And so is that just something that … I mean again, it does sound weird to say, right? But you would think that just should be the norm. So I guess it is good that the industry’s moving more that way. And is there any kind of particular reason behind that? Or just something I think they feel that they should do?

John Teixeira: I think it’s a lot of transparency, and something that really … Dealing with people’s retirement’s very serious. You want to make sure that people are doing the best thing for their retirement, getting the best advice. And kind of going into what Nick was saying, a lot of people are leaving the Merrill Lynch’s and stuff like that and Morgan Stanley’s and going more independent. Being independent really allows you to be a fiduciary, where there’s no proprietary products that you have to sell. There’s no quotas to hit. There’s no one kind of looking over your shoulder and saying, “Hey, what are you doing for us today? Did you sell this particular product? Or did you push this investment?” Things like that, so-

Marc Killian: Got you.

John Teixeira: All that … Being in an independent space allows us to be a fiduciary and do what’s best for the client.

Nick McDevitt: And another maybe simplified example of that is … Let’s say we kind of go through and we develop a plan for somebody and based upon their plan, the client has decided that they would really like to have some sort of guaranteed income. And so they say, “Which ways can I get guaranteed income?” And we go through the options with them, and they decide, “Okay, well we’re interested in some sort of annuity” and so, maybe somebody that’s working in a suitability…from the suitability stand point, they have a broker dealer in a company that they work for that says “Okay, you’re allowed to show your client these three options for them to purchase that annuity but, we’ve restricted you to these three options” versus somebody that’s in a fiduciary capacity they could go out into the market place and look at everything in the marketplace and maybe there’s ten options and that really allows them to come up with the best option for the client. So, that’s kind of a basic example that might help add some clarity.

Marc Killian: So, you’ve got a little bit more of a smorgasbord there going on, things you can kind of look through. I always kind of make the analogy when I talk to people across the country and host different shows that in a lot of ways with some of these big boxes, if you will, it’s almost like sweaters. For example, when seasonal stuff changes they start pushing the stuff they want to get rid of, right? So, they can clear it out for the next thing to come in and so sometimes you might see that in some of these bigger box chains where they’re saying “Hey, we really want to push this particular product versus that,” even if it’s not always the best fit. We might refer to that as the cookie cutter plans, right? Where it’s just kind of a one size fits all and is that what you were talking about, Nick? When you were mentioning that independent versus the wirehouse?

Nick McDevitt: Yeah, so, a good way to…some good examples of that, and this changed even more as we went through the recession…’08, ’09, and there was a lot of consolidation. So, let’s say for example somebody walks in to a Bank of America and they want to open up an account, like an investment account at Bank of America. Bank of America purchased Merrill Lynch so Merrill Lynch is owned by Bank of America, and they will have an office inside of the bank that’s just supposed to be for Merrill Lynch and the rest of the bank is supposed to be for Bank of America. And so, at the same time, those Merrill Lynch advisors that are in that bank may have certain quotas to hit. So, for example, if somebody is going to open an account with them they may also have quotas from the standpoint of saying “Well, what are you doing with a line of credit, do you have a line of credit on your house, do you need one? What about a credit card?”

Nick McDevitt: And so, [crosstalk 00:08:03] it gives to all these other lines of business that in our mind from an independent stand point create conflicts of interest for the client and puts them in a position that may not be best for them. So, as an independent, when there’s not proprietary products and you’re able to act as a fiduciary and you know that you don’t have any quotas to hit at the end of the year. The matter if you are ethically a, an extremely ethical person and you really do try to put the client forward, there are just conflicts that are out of your control, no matter as an advisor if you’re trying to do the best that you can, eventually you’re going to be put in a position that may make it difficult for you to do that. And so, that’s really where that difference [crosstalk 00:08:45] comes to play.

Marc Killian: That makes a lot of sense and I think that kind of helps things. That’s why we’re kind of talking and named the show here Retirement Planning Redefined, that’s what you’re listening to. The podcast with John and Nick, financial advisors at PFG Private Wealth and of course check us out online at pfgprivatewealth.com and I guess I’ll ask one kind of final question here to kind of wrap up our podcast here around the industry overview. Hopefully, you’ve found a useful nugget or two of information in there, and that’s around fee structures. So, if things have changed a lot over the last decade, and we talked about some of these things, how has that changed, what are you talking about when it comes to fee structures?

Nick McDevitt: Yeah so, again going a part of the change, I’d say when I first started back in 2006 and the investment world was really geared toward commissions. For example, you would sell “Hey, Marc, you want to buy some Bank of America stock?” I’d trade it and then make commission off of that.

Marc Killian: Right. Okay.

Nick McDevitt: Where now it’s going more towards just a flat fee. So, if I’m managing a client’s portfolio, let’s just say it’s half a million dollars, I may charge X amount and it’s that for the year. So, it’s just much cleaner versus the commission focus. We found a lot of clients that have come to us we’re leaving their advisors because they were only hearing from their advisor when there was a stock trade. And it’s like “Hey, this is the new buy, let’s go ahead and buy this.” They generate a commission, wouldn’t hear from the person until they was ready for another commission that was coming their way.

Marc Killian: Right.

John Teixeira: Where the fee based it’s really just ongoing advice on the assets so it’s just much cleaner and in reality when you’re charging a fee to manage someone’s portfolio, you really want a long term relationship with the client. It’s not a one and done. So, you, let’s say, you work a little bit harder to make sure that the client is going to stay with you. And that’s just kind of on the stock basis but, the same thing goes for mutual funds where, especially, when I first started in ’06 it was all these A shares where basically someone would buy into a mutual fund family, let’s just say American funds and there was almost a five percent sales charge in to it and the person would stay within that fund family. Negative to that was, American funds is good at certain thing but they’re not the best at everything. So, some of these people were kind of stuck within that fund family where a fee basis you can kind of use all the best funds available to manage someones portfolio.

Marc Killian: Okay. I got it. It makes sense. And, a lot of times we do hear those kinds of questions from folks, they feel like…and that sometimes maybe the difference between just having a broker and an advisor is you only kind of hear from that person when they’re trying to move you in and out of a different product whereas an advisor, a financial advisor, one that you’re building a long term relationship with, you can kind of turn to that person and say “Hey, here’s what I’m thinking about for the future, here’s what I want to plan for, here’s this, that, and the other” and you kind of pull all those facets together, is that kind of how I’m reading that?

John Teixeira: Yeah, and I would say as well that a couple of the buzz terms on that are that, so, when things were, when trades were commission based or almost load based, what would happen is that the conversations would be “Hey, it’s time to make a change to your portfolio” and because those changes would often incur expenses, clients started to kind of get a little bit reticent to, like….is this actually good for me? And so, that communication made it harder for the advisor to do their job, and then for the client to trust that they were doing their job. So, with the fee based management where the advisors team typically operates on what’s called a discretionary basis, so in other words, if things are happening and changes need to be made, that agreement has been made up front. And, because there aren’t additional competition towards the advisor incurred on those changed, the client, typically from the feedback that we’ve had, they feel more comfortable that those changes are being made proactively because they’re not a cost being generated to them. So, it increases the communication which ultimately ends up with their being a better relationship between the advisor and the client.

Nick McDevitt: To jump in on that, we find a lot of clients actually like the fact that there’s invested interest in their account going up. So, they say, we hear things like, “Oh, so, when my account goes up you make more and if my account goes down you make less” So, we find that’s [inaudible 00:12:53] hear that quite a bit.

Marc Killian: And we’re going to touch on that a little bit more on our next podcast episode, we’re going to talk about how the things have changed over the last decade from the advisor role. We kind of talked about the industry overview here a little bit today on this podcast with Nick and John and so we’re going to touch on that the next time. So, make sure you tune in, make sure you subscribe to us and go to pfgprivatewealth.com again while you’re there you’ll be able to… we’ll have this coming here pretty soon, you’ll be able to click on podcast and subscribe to us on iTunes, Google Play, Stitcher, various different outlets, whatever one is the one of your choice. And as always, reach out to the team if you have questions or concerns about anything before you take any action give them a jingle at 813-286-7776, again 813-286-7776 to talk with John Teixeira and Nick McDevitt at PFG Private Wealth, an independent RIA, serving you in the Tampa Bay area. And guys, thanks for your time, I look forward to talking to you in a couple of weeks when we talk about advisor roles and how they’ve changed over the last decade. Thanks for your time guys.

John Teixeira: Thanks, Marc.

Nick McDevitt: Thanks.

Marc Killian: We’ll talk to you next time here on Retirement Planning Redefined.

Ep 1: Getting To Know Your Hosts – John Teixeira and Nick McDevitt

On This Episode

On this inaugural episode of the Retirement Planning Redefined podcast, we’ll get to know your hosts a bit better. We’ll find out how they got involved in the industry, how their partnership formed, and what experiences have shaped their financial and investment philosophies.

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PFG Private Wealth Management, LLC is an SEC Registered Investment Advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. The topics and information discussed during this podcast are not intended to provide tax or legal advice. Investments involve risk, and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed on this podcast. Past performance is not indicative of future performance. Insurance products and services are offered and sold through individually licensed and appointed insurance agents.

Here is a transcript of today’s episode:

Marc Killian:                        The rules of retirement have changed. No longer can most of us rely on social security, or a single pension to fund our futures. We’re living longer in retirement, doesn’t just last a handful of years anymore. Instead, you might stay retired for 20 or 30 years and maybe even more. We need to look at retirement through a new lens, with fresh eyes, with a new approach and plan of attack. Here to answer the call are our financial advisers, John Teixeira and Nick McDevitt of PFG Private Wealth Management serving youth throughout the Tampa Bay area. This podcast is retirement planning redefined and it starts right now.

Marc Killian:                        Hello and welcome into retirement planning redefined. Thank you for tuning into our podcast with financial advisers from PFG Private Wealth, an independent IRA. Joining us here is Nick McDevitt as well as John Teixeira. We’re going to be talking about the role of investing, finance and retirement, and they’re serving you here in the Tampa Bay area. Make sure you go to the website pfgprivatewealth.com, that’s pfgprivatewealth.com. John, Nick, guys, welcome into the kickoff podcast. How are you?

John Teixeira:                    I’m good. How are you doing?

Marc Killian:                        I’m doing very well and Nick, how are you?

Nick McDevitt:                  Doing well also.

Marc Killian:                        Very good. How’s the weather going in Tampa right now?

John Teixeira:                    It’s raining quite a bit, more than usual, we usually get about 10 minutes, 15 minutes span. It’s been going all day.

Marc Killian:                        Oh yeah. Well that’s Florida for you, right?

John Teixeira:                    Yes, it’s true.

Marc Killian:                        Now see that through the power of the Internet I don’t have to actually be in Florida to do a show with you guys. I’m actually in North Carolina, we’re usually are kind of the same way. Just wait five minutes and the weather will change if you don’t like it, same kind of thing in Florida. Got a lot of friends and family down there, so I’m used to that as well. But that’s not what we’re going to talk about here today on the podcast is the weather. Just trying to kick things off a little bit. But what I wanted to do on our first episode is just to kind of get to know you guys a little bit and get some information out there. So as we start archiving more and more podcasts and folks are finding us, whether it’s on iTunes, or Google Play, or iHeart, or Stitcher, or whatever your podcasting platform of choices, they can kind of go back and get to know you guys a little bit as well through this.

Marc Killian:                        So I’ve got a couple of basic questions for this initial a show just to kind of get to know you guys and I’m going to toss these out. Just feel free to… whoever wants to tackle this. But first question is, well, how did you get into doing what it is that you do?

Nick McDevitt:                  This is Nick. I’ve been an advisor now since 2007, Fall of 2007, and it was something that I was always interested in kind of in high school and then throughout college, but after moving down to Florida in 2003 and starting off in a different industry and more of a sales capacity, I kind of came full circle and decided to move into the profession.

Marc Killian:                        And what about you John?

John Teixeira:                    Yeah. I moved down to Florida, Tampa area from Boston in 2006. I graduated in 2005 and just really actually wanted to understand how money works. I started reading some books on financing and banking and then just started diving more into the stocks, actually more of a learning thing and then I was wanting to kind of help people, so really as I started learning more about finances, figured this would be a good avenue to kind of do both.

Marc Killian:                        I got to know, you said when you moved down to Florida, where are you from originally?

John Teixeira:                    I’m from Boston, Massachusetts.

Marc Killian:                        Okay, no accent at all, so you’ve definitely long since shed that, so that’s pretty good.

John Teixeira:                    I did.

Marc Killian:                        Yeah.

Nick McDevitt:                  And Nick from Upstate New York-

Marc Killian:                        I was just getting ready to ask because I was going to say, Nick are you a Floridian by default there or no? But I guess not so.

Nick McDevitt:                  No, Rochester, New York moved to Tampa Bay in 2003.

Marc Killian:                        Now did you guys… well, I guess I’ll just move around there and all my list of questions there and I will just kind of keep this little more conversational. How did you guys get to working together then?

John Teixeira:                    A good question. I joined MassMutual in 2006 and then Nick joined in 2007, right Nick?

Nick McDevitt:                  Yeah, the fall of 2007.

John Teixeira:                    From there just kind of in the same training, became friends and just kind of really stayed in touch. I had left MassMutual in 2009, 2010 and Nick was still there and in 2016 we actually teamed up. We’ve been friends for over a decade. It’s been a good friendship and good working relationship as well.

Marc Killian:                        Very cool, well, that always helps. So you guys met through there and decided to kind of branch out. So when you set up this partnership working together, what’s kind of the each other favorite part? Is that the same favorite part? Do you kind of both tend to do different avenues of the Retirement Financial Planning side of things? Or how do you guys go?

Nick McDevitt:                  I think the good part or a strength of ours is that we are both pretty well rounded. I would say John’s a little bit more analytical than I am, but we’re both pretty well rounded so we’re able to pick up the slack for each other if one of us is out of town or John’s having babies like he has been over the last few years or able to kind of pick up the slack and adapt and adjust whenever the other person kind of needs a pickup. It’s not that our duties are totally segmented, where it’s more complimentary and we’re able to work together pretty well, which is what’s made it work for us.

Marc Killian:                        That’s very cool. So John, aside from having babies and Kudos to you for that, what kind of is your favorite part of what you do?

Nick McDevitt:                  Really it’s just working and helping people. We meet a lot of people and I’d say, after we’re done kind of building a plan and putting a strategy in place, people leave with peace of mind of that they’re on the right track and once we hit that goal for each client, it’s fulfilling. I really enjoy, every day’s a little different and we do get to meet a lot of different personalities and the clients end up becoming friends so I enjoy that part.

Marc Killian:                        Yeah. I host a lot of podcasts and radio shows on the topics across the country and a lot of times we do get that response from people is that, it’s definitely different all the time, you see so many… I think we all share commonalities when we’re talking about finances and retirement planning. There’s definitely generalities that go into it, but at the same time everyone is so uniquely different that it winds up branching off pretty quickly and then of course you get the different personality types and all those kinds of things in there. That works out really well to kind of keep your day interesting, I’m sure. Kind of get back into this partnership here a little bit. So you guys org… either one of you guys is numbers junkie because I think for a lot of us that listen to these types of podcasts and types of shows, maybe Math isn’t always our strong suit and so we kind of assume that a financial advisor is really into numbers and so either one of you guys that way or is it really more the love of trying to help people?

Nick McDevitt:                  I think that it’s a little bit of combination of both. This is nick. For me, there’s… I’ve always had a strength in the Maths space but what’s interesting about our field is that from what we have found, and I don’t know if it just happens to be how most of our clients come to us, but our ability to communicate with them and not talk, are not used to much jargon and be able to help them. Yeah, see the big picture and then work with them, you with different tools and with kind of the planning process that we use, to then slowly start to bring it down to a common denominator is what’s made people feel more comfortable. And so that’s part of why we’re looking forward to doing this podcast is to provide them with additional tools to help them to continually learn, almost like a continuing education sort of program for them.

Marc Killian:                        No, I think that’s a good way of looking at it because I… and I think a lot of people, and that’s kind of why I phrased it that way, do tend to… because you guys see the biggest thing that comes with people coming in and talk with a financial advisor’s procrastination, right? A lot of times they’re like, well, I don’t know, I guess I could do it myself, or that’s not my thing, or I don’t like talking about my money, or whatever the case is. And so people tend to get a little hung up there. But I think when you’re working with somebody who can talk to you and make it relatable and make it to where you’re comfortable with it, that goes a long way in helping you feel better and understand your plan and enjoy your plan. Would you agree with that, John?

John Teixeira:                    Yeah. Most people I think just want to know how things work and just want to make sure that you’re really just advising best for them.

Marc Killian:                        Yeah, I would agree. Alright, so let me turn the attention that we kind of talked about you guys and the and the partnership a little bit, how that kind of formed in your own personal things, but let’s talk a little bit about the firm. So what kind of makes PFG Private Wealth a little different than the rest?

Nick McDevitt:                  So we are what’s called a… we’re an independent firm so we’re an SEC registered investment advisor firm. There is a team of about six advisors and then we have some staff members, and the firm itself has been around for… really just the original founder of the firm just hit his 50th year anniversary actually a couple of weeks ago. And so the firm’s really kind of transformed over the years and continually updated and adapted to try to be in the forefront of what’s going on in the industry. And so there’s always been a focus on an advice-driven practice, whether it’s been through strategic business with… there’s a good strength on the insurance side, executive level, sort of insurance planning. Then over the years that transformed into more of the investments as Jeff Perry, who’s the portfolio manager, became more involved in the practice.

Nick McDevitt:                  Over the last probably five or 10 years, it’s really shifted more towards the advice side so the actual fee-based financial planning and independent investment management internally. We’re clearing custody with TD Ameritrade, so everything there is third party. And that’s something that we always try to emphasize with the people that we’re working with or the people that are coming in to talk with us is that from a conflict of interest standpoint and from a fiduciary standpoint, we do believe in having that basis, and that’s really how we’re structured.

John Teixeira:                    Yeah. What the practice… one thing I think that separates our business model here is that we do work as a team. So Nick and I really focus on the planning end of things. If there’s something where we need some assistance, whether it’s asset management, we have specific guys that strictly do asset management, Bob Perry, which is the founder of 50 years focused on the state planning so he’s a great resource and someone to talked to for that. It’s a collaborative effort, we all work well with one another and we enjoy working with each other too, so I think that adds to it. Being independent, which nick mentioned, no proprietary products, which is very important nowadays so there’s no one telling us, hey, this is… you have to use this fund, you have to use this product. It’s really geared towards our client and what’s best for them.

John Teixeira:                    Yeah. I always kind of enjoy talking to the folks that do a lot of the independent advising. Sometimes when you think about the big box thing, I sometimes make the analogy of Walmart and sweaters and it’s like a certain time of the year they get the sweaters out even now you’re thinking, why a sweaters out right now, it’s summertime, right? But they’re trying to push him for the roll up or vice versa when the season’s over, and they’re just trying to get rid of them, and they try to jam everybody, I you should buy one of these, or whatever the case is. Same kind of deal sometimes when you’re working with those big box cookie cutter things where they want to jam everybody into the same whatever vehicle it is because that’s the hot topic that they want to get pushed that month.

John Teixeira:                    A lot of times when you’re working with an independent advisor, you do get, I think a little bit more holistic, if that’s a good word, kind of view of everything. That works pretty well.

Marc Killian:                        Alright. Nick, you kind of touched on this. I’m going to let you… I’m going to ask one more question here and then we’re just to be about out of time for our first podcast but you kind of touched a little bit on the podcast. I was going to say, why are you guys looking at doing a podcast? What’s kind of the overall theme that you’re wanting to carry out through this?

Nick McDevitt:                  Sure. What we found is that because most of our clients come to us through the classes that we teach. The classes are typically over two weeks and it’s two sessions, three hours per session. We cover a broad base of topics and don’t really have a ton of time to get in depth on them and when those people that decide to work with us after the class, they go through our planning process, it is fairly intensive and so we want to help and we want to have this podcast allow them to be able to touch on and remind themselves about certain things.

Nick McDevitt:                  An example of one of the things that we found is, maybe a husband and a wife come to the class, Maybe they’re 60 years old and they come to the class, about to focus on themselves, but during the class we mention a couple of things about experiences that we’ve had working with clients whose parents are becoming ill and starting to go through, and mistakes that they make from the standpoint of what their parents do with their money, and it’s an additional problem, it’s an additional phase that they’re going to enter into, and it would be great for them to be able to listen to things in a convenient manner, be able to increase their level of knowledge a little bit so that then they can come in and sit down with us and chat with us, and they’ll feel more empowered by having a higher degree of knowledge on different topics and subjects. That’s really how we’re… what we’re focusing on is trying to give people an opportunity to increase their level of knowledge and be able to feel more comfortable having those sorts of conversations with us.

Marc Killian:                        I got you. Well, that makes a lot of sense. Actually I guess I do have a quick follow up and then I’ll let you guys get back into your day. So, John, with the class just kind of give us a quick overview. Nick touched on it a little bit of it, but this is something you guys offer a pretty periodically throughout the year and is it pretty easy for folks to get involved if they do want to choose so?

John Teixeira:                    Yeah, so we offer it twice a year, Spring time usually falls right around January to March. Then we offer it in the Fall starting around late September, October. Most people hear about it, read about it through our mailers. And then also we have a lot of clients that will refer colleagues to the class and then also coworkers. Hey, I want… we hear all the time, “Hey, I passed your invitation on along to a couple of friends of mine. Is that okay?” And we always say, yeah, so what we’ll do is we’ll follow up, send them a link so they can register and register for their friends as well.

Marc Killian:                        Okay, well, you can always tell the difference depending on obviously a lot of our listeners are going to wind up being in this area anyway, but I love the fact you’re like springtime January to March, and it’s like, I used to live in Michigan and there is no say I used to live in Boston. There is no spring in January. It’s just known gold. Right?

John Teixeira:                    It is. Yeah. The nice thing about being in Florida, especially in the winter time, it doesn’t get dark at 3:30.

Marc Killian:                        Yeah. Right? Yeah. My first year in North Carolina, when I moved from Michigan, Christmas time, it was 65 degrees on Christmas day and I was playing basketball. I was, yeah, alright, I can deal with this. It was much better shot than my friends back in Michigan. Go ahead now.

Nick McDevitt:                  Now I was just saying that’s similar experience after moving down from Rochester, which is very similar to weather in Michigan. You adjust quickly.

Marc Killian:                        Yeah, you can enjoy that sunshine a little bit more. Well, there you go so that’s our first podcast. Just kind of getting to know the team a little bit @pfgprivatewealth. Well the.com is where you can find them. That’s not the name of the company is PFG Private Wealth, but if you want to check them out online go to pfgprivate wealth.com. They are an independent RIA as nick mentioned, and of course I was talking with John Teixeira and Nick McDevitt and the guys are going to be on with me from time to time. We’re going to talk about various things. We’re going to do a lot of different stuff on the show. We’ll talk about some of the things you might hear in the class. I’ll have some fun, interesting topics, kind of some oddball things all through with the guys from time to time. You can send an email questions that will cover, some news topics, lots of different things as it relates to finance, investing, retirement and all that good stuff.

Marc Killian:                        As always, if you have questions or concerns, make sure that you reach out before you ever take any action. You always want to talk to a professional and John and nick are available if you need to reach out to them at 813-286-7776, that’s 813-286-7776 and just share that with friends or family that you know might have a situation as well. And of course, when you’re on the website, don’t forget to click on the podcast that’ll be coming soon and you’ll be able to click on subscribe, whether it’s iTunes or Google Play or whatever your platform is.

Marc Killian:                        Alright, so we’ll catch you guys next time here on retirement planning redefined with John and Nick, financial advisors at PFG Private wealth. We’ll talk to you next time. Bye.