Wealth Actually

The Wealth Management Industry is in the midst of massive demographic change. Business models are evolving, old entrants are retiring or merging, technology is leveling the playing field. As a result, clients are demanding more value and the industry is coping with a rapidly shifting landscape. As “Wealth Management” clamors for direction, new expertise to manage this change is emerging. With us today is MATTHIAS KUHLMEY, Chief Development Officer at Hightower Advisors and the developer of the “Disruption in Wealth Management” Module for Columbia University’s Wealth Management program. Matthias Kuhlmey began his professional journey as a trained musician, landing somewhat fortuitously in the field of global finance where he has been active as an advisor, capital market expert, and corporate executive for the past 20+ years. Whereas the origins of his two worlds cannot be more different. Matthias has been passionately exploring parallels, especially in observing how technology has been disrupting both industries. Lowering the barrier of entry, preparing the path for a creative (r)evolution. Matthias is a thought-leading critic of socioeconomic affairs, C-Suite executive of one of the leading firms in the independent space for financial advice, and lecturer at Columbia School of Professional Studies in New York City. Background Overview 1. “Disruptive Trends in WM” 2. Big opportunity to define disruption in the context of WM (Music Industry as an example) 3. Ttrust and lack of trust in the system; emerging stores of value 4. The firm of the future; what to consider, trends to build on, etc. Independent Movement Around the Registered Investment Advisor Space             -“Wire House” to Independence             -Regulatory and definition Clarity             -Transparency             -Client -centric Digitization             -Movement away from vertical integration             -Firms now have access to best in breed technology through 3rd party sources             -Vendor selection and maintenance             -Tech as differentiator is now tech as equalizer Product to Service Shift in Industry             -Move away from commoditized offerings             -Relationship oriented advice             -Shifting consumption models- the move to digital             -the importance of Shared mission The Impact of Political Risk              -Mitigating Store of Value Risk             -The Erosion of Trust of “free markets”             -The emergence if digital assets Growth – Organic             -No one solution- but it must be process driven             -Value proposition must be overwhelmingly obvious             -Relationships must be monetizable             -Accountability driven Growth – Inorganic             -Deal Activity has exploded             -Risks- integration             -Emphasis on culture and operations vs transaction             -Organizations must be prepared via network and hierarchy models Future of Wealth             -Access to clients based on value proposition – necessitates specialization             -Talent pool incomplete- not diverse enough, not digital enough, not empathetic enough             -Women- a huge driver of change both as clients and industry leaders             -Meaning of money broader- aspirational sustainable, impact             -Corporate leadership needs new skills to lead the new type of worker and service client             -Economic incentive of workplace culture important but psychological safety is key How Do We Stay In Touch? https://www.linkedin.com/in/matthiaskuhlmey/ https://sps.columbia.edu/faculty/matthias-paul-kuhlmey Recent publications: o Succession: A Relevance Crisiso The Money (R)evolutiono The Values Dimension Resources Columbia SPS:Master of Professional Studies In Wealth Management https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

SHELTON WILDER will be the first to tell you that the Los Angeles Residential Real Estate Market is no joke.  Building a successful practice in the space is hyper-competitive. The glitz and glamour portrayed on Bravo don’t tell the story of struggle and heartbreak that exists in this world. We’re going to cover the complexities of LA market and Shelton’s marketing acumen- including the increased speed and professionalism required for modern high end real estate., However, the real story is Shelton’s persistence and ability to overcome adversity. We’ll talk about her coming back from her difficult experience on Shark Tank. That experience and struggles with other businesses inform her success today.  Finally, we are going to detail her ability to use persistence, family and the power of sobriety to enhance decision-making. The Los Angeles Residential Real Estate Market https://www.sothebysrealty.com/eng/los-angeles-real-estate/magazines/market How you do you break it down? What has been COVID’s effect? What is hot? What is not? Background Shelton’s Journey from financial problems to success Sobriety’s role in your success Finding your niche Media- Shark Tank “Failure to Success” https://www.youtube.com/watch?v=AuQZvVSBpOg Development of the Real Estate business Use of media to promote your services . . . IG is vital and much faster than typical glossies HOW DO WE STAY IN TOUCH? SHELTON WILDER‘S WEBSITE SHELTON WILDER”S INSTAGRAM SHELTON WILDER’S YOUTUBE https://twitter.com/SheltonWilder https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

Few investors become so well known that they earn a nickname. BILL GROSS was known as the “Bond King.”. A natural polymath, Bill ascended to the throne with his novel total-return approach to managing bonds and his outsized personality.  He built the PIMCO empire through hard work, ingenuity and cult of personality.  Some say he lost the throne through a mixture of hubris, distraction and bad calls. A new book by former Bloomberg reporter, MARY CHILDS, describes it all. Now the reporter and host of NPR’s PLANET MONEY, Mary has written the book: “The Bond King: How One Man Made a Market, Built an Empire, and Lost it All.”  It’s out now via Flatiron Books. https://www.amazon.com/Bond-King-Market-Built-Empire/dp/1250120845 Mary’s Background Where did the impetus to write the book come from? Access to Bill Gross What is he like? “Making” the Bond Market- Take us through his background Duke, Navy, Card Counter, Stamp collector, Golfer, Provoker of neighbors What was the sandbox he played in? Not just using bonds, but options, futures and derivatives Buy and Hold vs Total Return What was going on around him?  (Milken- HY Bonds; Icahn and corporate raiders) How did he use technology to amplify his edge? Building the Empire How did he hit scale? How did his Macro bets work? The 2008 bet Pet theory was that his interest rate calls were inside information- Once he had scale- how did he help bend the markets to his whim. Losing it all What happened? 2014 interaction with Mohamed El-Erian 80s bro culture catching up with him? East Coast / West Coast? Distractions?  Bad Habits? In your final analysis , what do you think of him- How do we keep track of Mary? NPR PLANET MONEY LINKEDIN https://twitter.com/mdc https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

“JUST KEEP BUYING” by Nick Maggiulli https://youtu.be/wjPxxUk8D_Y?si=lqJTkK2LrvnRoLsW https://youtu.be/pFmWTHlPTUY?si=GcQqujewbCPqTxSK Generationally low interest rates, inflation, unthinkable geopolitical risks, the speed of information and the prevalence of noise challenge our long-held conventional wisdoms. Many investors are at a loss as to how to save and invest to meet their goals. https://www.amazon.com/Just-Keep-Buying-Proven-Wealth/dp/0857199250/ Against that fearsome backdrop, Nick Maggiulli, joins us to talk about his book “Just Keep Buying” due out in April on Harriman House Publishing. Nick is the creator of the successful OF DOLLARS AND DATA blog and is the Chief Operating Officer at RITHOLTZ WEALTH MANAGEMENT.   His book challenges many widely-held investment beliefs, and recasts them with a data driven analysis for a modern investor. Background- The sequence that: Got Nick to Stanford Led to the development of the blog / Nick’s role at RWM What problem did Nick want to solve with book? Good slot to talk about your powerful introduction Comfort with data to analyze “rules of thumb” and other bromides The Decision to Analyze Saving vs Investing The problems with saving advice What did the data uncover? How does this relate to spending? The problems with investing advice What is one of the typical sayings that the data doesn’t support “Just keep buying” How should investors reach “escape velocity” past their liabilities? The importance of time horizons and liquidity cushions Cash Flow vs Asset Growth (strong personal balance sheet) How do you think about investing to maximize one’s income vs the growth of the balance sheet? How do you get people’s brains/emotions out of the way of data driven choices? How do you think about guardrails or insurance around 1% events either in the market or personally?  Function of cash?  Allocation vs barbell approach? We’re in the midst of a big market test right now . . . what Nick’s advice for: Current Investors New Investors / When should parents get their kids involved? https://www.youtube.com/watch?v=wjPxxUk8D_Y&t=4s How do we buy the book?  How do we stay in touch? BLOG: OF DOLLARS AND DATA HARRIMAN HOUSE PUBLISHING https://twitter.com/dollarsanddata https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

PERTH TOLLE: An Emerging Market Portfolio Manager with a unique methodology- INTRODUCTION Perth Tolle is the founder of the Life and Liberty Indexes and portfolio manager for the emerging market ETF with the ticker: FRDM Perth was born in Beijing and moved to the United States at age 9. After college, she lived in Hong Kong for a year and significant experience in China PERTH’S FREEDOM FACTOR PROCESS As opposed to the blunt market cap approach to getting emerging market exposure, Perth built an index that sought leading indicators in countries that valued freedom and non-autocratic features. Perth scores every country in the Emerging Market space across 79 categories. Of the 26 emerging-market countries, 11 make it onto Tolle’s index, including Taiwan, South Korea and Poland.  Her exclusion of China and Russia in the portfolio have been huge calls. We talk about her process and how she thinks about countries like Taiwan that score well but have invasion risk from less friendly neighbors. Finally, we talk about the business of setting up a fund and competing against “the big boys.” Disclaimer:  This is not investment advice – this is an interview with a  portfolio manager with a new way of thinking. OUTLINE -Emerging Markets- what is the scope of that world?-How does your fund differ from the others?-What are some of the freedom criteria? -Not having China and Russia must have been a boon recently-What happens if you are “right” about Taiwan, but its bigger neighbor does something that craters values?  Was Ukraine an example? The business of a fund . . . where are you now and what have been the highs and lows? ESG IMPLICATIONS HOW DO WE STAY IN TOUCH? https://www.lifeandlibertyindexes.com/ https://freedometfs.com/ https://twitter.com/Perth_Tolle https://www.linkedin.com/in/perth-tolle-7757b745/ https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

Conservation Easements with MICHAEL ENGELHART With Joe Biden’s recent initiative to conserve nearly a third of US land by 2030, conservations easements have come back into the headlines. According to the NCED Database, a conservation easement is a voluntary, legal agreement that permanently limits uses of the land in order to protect its conservation values. Also known as a conservation restriction or conservation agreement, a conservation easement is one option to protect a property for future generations. The government has supported the logic that donating productive land for environmental purposes is a worthy cause.  As a result, many taxable benefits can accrue to the donor. However, the conservation easement is also rooted in controversy (and deep IRS scrutiny). Unscrupulous promoters have focused on the conservation easement and used unrealistic and unsupported valuations to sell these transactions tax breaks to high earners who are usually unrelated to the actual land.  But has this IRS scrutiny killed the conservation easement? Is there room for a transaction with such a beneficial purpose? To help us understand the current state of conservation easements, I spoke with MICHAEL ENGELHART.  Based in Stamford, CT, Michael’s practice, works with high net worth clients and family office in the areas of in the areas of tax mitigation and insurance planning. His practice has been involved in many client land situations and he is an expert in the space.   Outline Definition of Conservation Easement Why are they useful? Where is it pointed in the law? What makes it controversial? Why is it a listed transaction? Role of valuations Role of formalities What’s the difference between a syndicated vs a direct easement? Solar vs Mineral vs Golf Course/Real Estate Development /others? Who is the ideal “client”? How do they reach you to find out more? Resources MICHAEL ENGELHART LINKEDIN HUMAN CAPITAL RISK MANAGEMENT ADVISORS JOE BIDEN’S PUSH TO CONSERVE NEARLY 1/3 OF US LAND BY 2030 NATIONAL CONSERVATION EASEMENT DATABASE https://www.conservationeasement.us/about/ https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

International and Cross-Border Planning have been a major issues for high net worth clients for as long as there have been borders.  It’s an enormous topic. Jobs, new family situations and geopolitics often send people to different countries for different opportunities.  All of this can have tax implications around an estate plan . . . Add in the complications of new asset classes and confusion around citizenship, residence and tax obligations. There is a lot to consider- especially for U.S. citizens with connectivity abroad. Here to help us think about that is BRENT NELSON . . . Brent is a Partner at the RIMON LAW FIRM in Tuscon, AZ and represents a variety of cross-border clients.  He hosts the popular Wealth and Law Podcast, and co-edits the Arizona Estate Planning and Probate Handbook (Thomson Reuters), He has been elected to or served as: Fellow, The American College of Trust and Estate Counsel Chair of the Probate and Trust Section of the State Bar of Arizona OUTLINE -What constitutes cross-border planning? -Common inbound issues? -Common outbound issues? -Use of trusts or other entities? -Opportunities for advisers- helping advisors develop an ecosystem around complicated topics. How Do We Stay in Touch With Brent? BRENT NELSON WEALTH AND LAW PODCAST BRENT NELSON TWITTER Here’s a link to my appearance on Brent’s podcast: https://wealthandlaw.com/2022/02/16/preserving-generational-wealth/ https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

https://www.youtube.com/watch?v=ViEKPjkjEWI JOHN FICHTHORN, now a two-time “Wealth Actually” interviewee, joins the podcast to discuss his new documentary, “Gaming Wall Street”. Directed by Tobias Deml, the two-part documentary debuts on March 3rd on HBOMax. Gaming Wall Street chronicles the 2021 GameStop short squeeze that drew in the retail investor community and galvanized a movement against the traditional financial services industrial complex. It also underscores the complicated and often unfair nature of Wall Street. To add to the intrigue and character of the documentary, Succession star, Kieran Culkin, narrates the story. Outline You were last on when BETTING ON ZERO came out- your documentary on the Herbalife trade. Now you have the new documentary- what got you focused on Gamestop? -Take us through what happened here             -Who were the players?                         -EP1 Wall Street Bets – Gabe Plotkin/Melvin -Robin Hood                         -EP2 Payment for order flow Citadel – Robin Hood                         – How can you have more short interest than outstanding shares?                         – Another Long Term Capital Management?             -Who got outfoxed?             -Gamestop and AMC and others?             -Who made out like bandits and who got destoryed -Why was this different?  -The middle finger to Wall Street? -What happened to “the market can remain rational longer than you can remain liquid?” -Pulling the plug on Robin Hood -The Effect of Margin -Bitcoin analogy -What are the lessons learned from Gamestop? -What is the fallout? -What is the media’s obligation here?  The SEC? -What’s next? Any more documentaries? Where to find “Gaming Wall Street” https://collider.com/gaming-wall-street-trailer-kieran-culkin-documentary-hbo-max/ HBOMax https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

Occasionally we get a court case that has ripple effects across the fiduciary, asset management and investment management industries. In this episode, we’re going to look at the Potentially massive implications of the recent Supreme Court case, Hughes vs Northwestern The original issue before the Court was whether or not the 403(B) plan participants had properly plead their case in their complaint. The lower courts had dismissed the case, relying on a concept known as the “menu of options” defense. The basic argument of the “menu of options” defense has been that plans satisfy their fiduciary duties under ERISA as long they offered a mixture of investment options– even if some of those investment options would be considered imprudent under applicable legal standards. In a unanimous 8-0 vote, the Court rejected the “menu of options” defense. The implications of this case could be far-reaching and include investment fiduciaries of all stripes including trustees and potentially RIA’s and other wealth management firms. To help us understand the case and its impact on ERISA matters and the fiduciary landscape in general, I’m going to speak to JAMES WATKINS. Jim provides all manner of fiduciary counsel- He is a Certified Financial Planner® professional, owns the Watkins Law Firm out of Georgia, and has been an attorney since 1981. His career also includes serving as a compliance officer with several national brokerage firms and as the director of financial planning quality assurance for the advisory division of an international insurance corporation. Finally, he is the creator of the Active Management Value Ratio™, a metric that allows investors, investment fiduciaries and attorneys to quickly and easi!y calculate the prudence of actively-managed mutual funds. OUTLINE What are the fiduciary responsibilities of the providers of a fiduciary plan? This falls within ERISA . . . help us understand that Codification of Restatement of Trusts What was at issue in Hughes vs. Northwestern? What happens going forward in this case? With this ruling, there will be a big increase in scrutiny in the stewardship of these plans- what does this look like? Increase in cases (401K and 403B)- against 401K and 403B and BY plans vs advisers. (404A each investment must be prudent) Increase in discovery (and other issues like kickbacks?) Increase in costs for plans?  Fewer providers? E&O Coverage +++ Reduce cost of plan Reduce options Monitor plan A change in the way investments and stewardship are analyzed and deemed appropriate? Menu doesn’t work anymore Proof of a manager selection process? A new Cost/benefit analysis? (Actively Managed Value Ratio) Who could be liable?  Plan Trustees? Investment Consultants? others? How could this spill over into other areas? Restatement 3rd  Sec. 90 Prudent Investor Rule Diversification Cost-Efficiency Case Law (Tibble et al . . . ) Other trustees / fiduciaries? Personal trusts Investment fiduciaries Foundations Active vs Passive (Proliferation of cost benefit analysis- AMVR?) Investment consultants giving opinion letters? Private Investments? Intersection with SEC, FINRA other regulatory bodies?  Prudent Investor Rule? LINKS: Hughes vs. Northwestern (https://www.supremecourt.gov/opinions/21pdf/19-1401_m6io.pdf) Faegre Drinker Summary https://www.faegredrinker.com/en/insights/publications/2022/1/supreme-court-decides-hughes-v-northwestern-university Jim Watkins on Rick Ferri’s Podcast https://www.podbean.com/ew/pb-k2fbd-1169847 How do we keep in touch? investsense.com. https://iainsight.wordpress.com/ Twitter: @investsense https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

The world of property and casualty insurance is undergoing a significant business model change- Emerging risks to HNW clients include the impacts of COVID and climate change to their businesses and assets. Additionally, there are two relatively new frontiers of risk: cybersecurity and social media. These lightly understood risks can pose a threat to clients’ assets, businesses and reputations. Helping us learn about the shifting landscape of personal risk is AHMET BIDAV- Ahmet is an insurance executive specializing in the high net worth space. His company, LUX-STR, specializes in insuring the personal and commercial assets of successful families & individuals across the USA Bio Background A little bit on your acting career! A general understanding Risk for the HNW person The State of the Property and Casualty Market Trends Role of the Broker Cybersecurity Social Media Exposure Good practices in dealing with big tech Your experience in developing your business and brand How do we stay in touch? LUX-STR LINKEDIN: AHMET BIDEV YAHOO ARTICLE: SOLVING MEANINGFUL PROBLEMS IN HOME INSURANCE https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/