Sunday, January 22, 2017 – Wealth Strategy with Bryan Rigg Radio Show – Every Sunday 1-2:00 on KLIF
As a person who did a little stint in the Israeli military, as well as I was a Marine Corps officer, risk is something that we look at all the time and ascertain what the risk is going to be before we do something.
Also, as a financial advisor, that is something that we look at all the time as well with portfolios. One thing that I am always struck is a lot of people don’t understand risk and reward scenario.
A lot of people would prefer to have FDIC insurance on all their accounts and make sure it grows at a steady seven to eight percent with no fluctuation in their portfolios. Those goals are obviously unrealistic. The best approach one can take is to ensure you have proper diversification, and your risk appetite is as such that you understand the potential volatility in the market. You can be prepared to potentially achieve a lot of the goals that you would like to see done with your portfolio. You have to be patient in doing this.
The best approach one can take is to ensure you have proper diversification, and your risk appetite is as such that you understand the potential volatility in the market. You can be prepared to potentially achieve a lot of the goals that you would like to see done with your portfolio. You have to be patient in doing this.
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RIGG Wealth Management offers securities to Broker Dealer Financial Services, Member SIPC and advisory services through Investment Advisors Corp and SCC registered investment advisor. RIGG Wealth Management is not a subsidy area of Broker Dealer Financial Services. Neither RIGG Wealth Management nor Broker Dealer Financial Services offer legal advice. Clients should consult their attorney of choice on all legal matters.
Welcome to “Wealth Strategy” with Bryan Rigg for every Sunday at one o’clock on KLIF. Bryan is a celebrated Yale graduate, adding a PhD from Cambridge, a former officer in the Marine Corps, a man of profound integrity and honor, and your wealth professor. Please, welcome your host for the next hour, Mr. Bryan Rigg.
Bryan Rigg: Good afternoon, ladies and gentlemen. This is Bryan Rigg with Rigg Wealth Management. Thank you for tuning into the show again.
We’ve had a lot going on this last week, inauguration of Trump, and a lot of new beginnings for many areas of the society and the economy. One thing that I keep on exploring with clients is risk and volatility. A lot of times, people have a hard time looking at risk, especially with their financial portfolios and so on and volatility.
As a person who did a little stint in the Israeli military, as well as I was a Marine Corps officer, risk is something that we look at all the time and ascertain what the risk is going to be before we do something. Also, as a financial advisor, that is something that we look at all the time as well with portfolios. One thing that I am always struck is a lot of people don’t understand risk and reward scenario. A lot of people would prefer to have FDIC insurance on all their accounts and make sure it grows at a steady seven to eight percent with no fluctuation in their portfolios. Those goals are obviously unrealistic. The best approach one can take is to ensure you have proper diversification, and your risk appetite is as such that you understand the potential volatility in the market. You can be prepared to potentially achieve a lot of the goals that you would like to see done with your portfolio. You have to be patient in doing this.
Looking at risk, a lot of times, people come to me and when they look at the market, they see a lot of stuff that’s been going on the last couple of months even. Before the election results came in, a lot of people were selling all their assets and going to cash because they were worried about “Armageddon” happening. I quite often try to remind people that if their portfolios were to do what, sometimes you’re fearful of, literally, go to zero, and that Armageddon would really happen, the last thing they would be probably worrying about is their portfolios. A more realistic scenario is a serious downturn in the market. We continuously remind our clients that the market is consistently moving up and down. In my opinion, a downturn in the market is only serious for those clients ready to tap into their retirement funds immediately.
With that being said, if you have proper diversification and proper risk expectations, that’s where a financial adviser comes into play, and he can help a lot of people understand those concepts and those terms, and how that will play out in their portfolios. I talk about risk and volatility. A lot of times, I don’t really like to use risk in my conversations with people, because that denotes something very negative. I like to mention volatility. The market will go up and down. Accounts will go up and down. That’s volatility. Ultimately, when you look at the history of the stock market, it has traditionally moved upwards with periods of both negative and positive movements over a long period of time. That’s something that is indicative of what we see with America throughout time.
We have a good democracy, which we have for the last couple hundred of years, it’s been functioning well. We have checks and balances. We have regulators to provide guidelines to reduce the instances of a legal and/or unethical activity. We have rewards out there for people who work hard and are productive. That’s what we’re tapping into. We’re tapping into something that historically has shown us that with diversification, we can be better positioned to take part in a positive market experience and reach our objectives and our goals. Anybody who comes to you and says that they can average 40, 50, 60 percent per year and guarantee you no loss at all, you have to raise a skeptical eyebrow when you hear those type of things. Those claims are totally unrealistic and are misleading in the most serious way. If you look at realistic goals and help people understand what it takes to reach those goals, then you can really manage people’s expectations, and talk more about the volatility that you’re going to have in the portfolio.
This gets back to one of the core concepts of what we like to focus on here at Rigg Wealth Management, and that is active management. Usually, what I like to do with my clients is have a portfolio between 15 to 25 different ETFs. That’s exchange-traded funds or index funds. That’s a fancy way of saying it’s similar to a broad, diversified fund that has thousands or hundreds of holdings in it. By way of illustration of what an index fund is, instead of going out and buying all 500 stocks of companies in the S&P 500 for example, you can buy one index share that seeks to track all 500 of those companies, averaging all 500 of those companies together.
An index fund will focus on a certain index, like the S&P 500, and you can buy a share for $30 or $40 that averages all those companies within that share of index, instead of having to go out here again and buy all 500 companies and stocks in those companies. Indexing helps you be very efficient to diversify your portfolio. It gives you broad exposure to the market. I like to spread that over many sectors. Large-cap a lot of times, people place large-cap companies that are earning 35 billion and up per year. That’s the benchmark for them. You have mid-cap, and that’s from 5 billion to 35 billion per year revenue. You have small-cap, under five billion revenue per year.
You have utilities. You have commodities. You have international funds. You can diversify a portfolio over a lot of these market sectors. Then, you watch it. The active management, the benefit here is you seek to buy value positions, those investments which are considered undervalued and are low at discount, and eventually, sell them at a higher price. Every quarter, every half year, every year, you watch it. If some sectors get really out of whack and you have great profit, you sell off some of those profits, and then you look at sectors that are lower, and you buy into those sectors.
If you continually do this rebalancing over the years, you can get very good performance. I’ve seen a normal portfolio that’s just buy and hold, and you don’t get any active management on it. You get around five percent. You’re going to potentially get around six, six-and-a-half percent by doing active management on the long run on this prior type of portfolios. That’s where a lot of people on our market talks about getting alpha, getting a little bit better than market performance. The active management of doing this is very critical. I like to go for those of you who like to educate yourselves and read.
I like to go to the book by Burton Malkiel. Many people call him the father of indexing. He wrote a book called “A Random Walk Down Wall Street.” I like to have a lot of my clients read this book to educate themselves about the strategy that I like to do with them, because this is a core component of most of my portfolios. I have found, with over a decade of experience on Wall Street, this is one of the best ways to take care of clients with active management. Also, one could say, the best way to manage volatility and to manage risk. Within these different portfolios, you can tweak it to be conservative, to be moderate, to be aggressive, to be focused more on income, to be focused a little bit more on international. There’s different ways of tweaking it to meet the goals of people depending on what their age is, how much they have under management, and then ultimately what they want to have at the end of the day when they retire. I can’t emphasize enough for those of you who are looking for a financial advisor to be looking at what volatility is all about, risk is about, what type of risk you’re willing to take, and also be thinking about, when we talk about risk, you take risk every day.
Whether you get into the car, you’re depending on another person for support, you’re in a business relationship with somebody, everybody is taking risk all during the day. A lot of people don’t understand about that risk when it comes to financial management. That’s where we at Rigg Wealth Management can help you do a better job of understanding that from your portfolio point of view, and then translate that into your financial goals. If you want to know more about us, please feel free to visit our web page at riggwealthmanagement.com, that’s Rigg with two Gs. Please feel free to call us at 972-383-1210 and set up an appointment if you’d like to come and talk to us. We are on every Sunday from 1: 00 to 2:00 on KLIF. Please stay tuned. We’re going to be talking about further concepts about risk and management in the next segment. I’ll be having my partner, Gary Bilyeu, on to join me to discuss these issues. Thank you so much for your time.
Bryan Rigg: Welcome back, ladies and gentlemen. You’re with Bryan Rigg, with Rigg Wealth Management. In our earlier segment, we talked about risk and volatility. I know most of our listeners come from a Judaic-Christian background, and I like to quite often talk about the parable of the talents, when Jesus talks about three slaves. One was given one talent, one was given five, and one was given 10, by their masters. He told them to take care of it and grow it. The man with the one talent buried his. The man with the 5 talents grew it to 10. The man with the 10 talents grew it to 20. When the king, the owner, came back and confronted the three men with what they had done, he heard about the man who grew it from 10 to 20. He said, “Good job, my faithful servant.” The guy who grew it from 5 to 10, he said the same thing. Then, we find out that the one who had one talent and just buried it, he was extremely displeased with this servant. Using the Judeo-Christian example, one thing that’s important to take away from that story is that many times, doing nothing is not a good decision. Taking your money and just leaving it in a bank account and not investing it quite often is not the best decision for managing your portfolio.
I’m going to have my partner, Gary Bilyeu on the line here soon. He’s a Marine Corps officer just like me. One thing that we were always taught that one of the worst decisions you can make in combat is doing nothing, making no decision. An important thing about risk is, doing nothing, you’re actually incurring a lot more risk than by putting in a plan, devising a strategy, and trying to grow your money. That’s very important to look at as you go forward with your portfolios, looking at risk and volatility of the importance to get your money deployed, and get your money invested for potential growth, or as I like to say, working for you. That’s the only thing that’s going to really keep you on the offensive against inflation, which is also a risk out there that you’ve got to take into consideration and to work towards making sure that you are getting enough money to put back into your portfolios, to keep it growing and keeping the purchasing power up with inflation.
Without further ado, I have my partner Gary Bilyeu. He’s been in the insurance world for over a decade. He’s a reserve officer in the Marine Corps, combat veteran, and he’s been working with me for a few years. What’s your take on risk and volatility, Gary?
Gary Bilyeu: Thanks for having me back, Bryan. As you know, as a Marine officer, the military is inherently dangerous. What we do is dangerous, so risk is a part of your everyday action. It’s a part of your everyday plan, every day that you get up. Really, there’s a few things we try to do as infantry officers. Generally speaking, we try to make sound decisions in a timely manner. We understand the risk, constantly evaluating the risk.
How do we mitigate that? Really, we’re dealing with uncertainty in the military. Sure, we know how to train our troops. We know how to take care of all the people that we have that we can get our arms around, but what about the bad guys, what about the enemy, the things that we don’t know? So we deal with uncertainty. I use that example because we don’t know what the future holds. Time is either our friend or our enemy. If you’re young, just starting in the workforce, then time is your friend. It’s not about how much money you have. You could put a very small amount of money away now, and over time, continue to reinvest the capital gain and dividends. Historically, the market has produced a positive return over time. That’s when I say time is your friend. Once you get towards the end of your career, you’re working, and you’re ready to stop working, that’s not the time to start planning for your retirement. The intent is that you work and put money away, so when you stop working, your money starts working for you — very simple concept. We try to keep things simple like that, very simple concepts at Rigg Wealth Management, just to talk to people. Give them real-world examples. We deal from brand-new couples starting out, knowing that retirement is important, but they don’t even know where to get started. I find, with most of my clients, getting started is the hardest part.
Bryan: Yeah, stepping off the line and getting a plan together is something that a lot of people say they’re going to just do it tomorrow, do it the next day. One thing I encourage all the listeners now, with the new year and all these new beginnings, one thing that you can do to service yourself in a major way is to come up with a plan, get it implemented, start working with somebody. I think you’re right Gary. A lot of times people, they always put this off and say, “I’ll do it tomorrow and I’ll have a better mindset later on,” or, “I’ll have some more cash to deploy,” but there is never an opportune time to start. You need to just start now.
Gary: I think you’re absolutely right. You’ve talked about that in the past, about clients. Some of my best clients were the ones that said, “I don’t know anything about money or finance, but there’s something inside me saying that I really should start planning for retirement.” Those are our best clients. They’re open-minded. They absorb the education that we provide. We have a lot of good clients, and we have some more sophisticated clients. That’s fine, as well. I think we can tailor not only the plan, but the education, based on where you are in your financial education.
Bryan: Absolutely. The first thing is you start to get your financial home in order. One thing to do, if this radio program prompts you to go meet somebody you know, somebody who’s been referred to you, or come meet us at Rigg Wealth Management, is get all your paperwork together. Get your bank accounts, get your insurance policies together, get your portfolios together, your 401k.
Then start getting a 10,000-foot view of all your assets and were you’re at. Then start explaining what some of your goals are for retirement, for your kids, for yourself. Then you can start translating that into a different strategy with your portfolios. That’s all about managing risk, is getting a handle of what tools you have, in order to build your financial house.
Gary: Bryan, I say it a different way to a lot of my clients or potential clients. I ask them, “Can you take a piece of paper right now and write down what your goals are for retirement?” You’d be surprised how many people shy away, because they don’t want to see that they have a blank piece of paper. I would say that if you cannot write your goals down right now, what you want out of retirement — as of today, what your goals are — you need some help. Whether you contact us, I would recommend you get in touch with a financial advisor. We know goals change, and that’s what sets us apart. We can help you establish your starting point, and we’ll call that point A. We’ll help you find out where point B is. Then, it’s our job to connect the dots, or build a bridge from point A to point B. That’s our job. I encourage people. Go see financial advisers. Then, give us an opportunity, as well. You will see a difference, not only in our approach, but in your retirement outlook as a whole.
Bryan: I agree with Gary. I would encourage many of you to go talk to several people. Keep something in the back of your head. Make sure that people are not selling you product, but they’re listening to your goals. Be very skeptical of somebody who immediately comes in with product pamphlets, and has not gone over goals that you want. Once the goals are understood, then products are presented to see if they meet up with the goals. I think that’s very important to look at, because a lot of Wall Street firms, and I was part of one for a while — it’s no longer in the private wealth management space anymore — quite often push a lot of products. I saw that from the other side and I did not like it. At Rigg Wealth Management and other firms out there that are independent, I think a lot of people will benefit from that. That’s one thing I think people need to have in mind. You want to make sure people are listening to your goals, then offering suggestions, and not just bringing products. We are going to be taking a break here soon. Please feel free to visit us on our webpage,
At Rigg Wealth Management and other firms out there that are independent, I think a lot of people will benefit from that. That’s one thing I think people need to have in mind. You want to make sure people are listening to your goals, then offering suggestions, and not just bringing products. We are going to be taking a break here soon. Please feel free to visit us on our webpage, riggwealthmanagement.comthat’s Rigg with two Gs, riggwealthmanagement.com. If you’re interested in coming and speaking to either Gary or I, or both of us, please call us at 972-383-1210. We’d love to meet with you. In the next segment, we’re going to be talking more about financial planning, different goals that people need to be thinking about in order to reach their retirement goals for their lives. We look forward to having you back here in the next segment. Thank you so much.
Bryan Rigg: Welcome back to Rigg Wealth Management. You’re with Bryan Rigg and Gary Bilyeu at Rigg Wealth Management. We’ve been talking a lot about risk and volatility. I wanted to give one anecdote that I thought was very important. Gary has some other interesting stories to share, as well. There was a lady who came to me and she was well into her retirement years. She had been put into an insurance product, an annuity, that was simply not suitable for her, and she didn’t know what to do. Actually, with Gary’s help and advice, we were able to help her out. Gary has many years of experience, nearly 15 years in the insurance world. We were able to get her out of this annuity that we considered very risky and get her into a very well-diversified, traditional ETF portfolio that better fit her needs. We started managing her assets according to her risk appetite and also according to her age. Doing this risk analysis and looking at the volatility of your portfolio and making sure that things are appropriate are very important. That’s something at Rigg Wealth Management that we do a good job at, sitting down with people and helping them out, with a case just being stated. Gary, you’ve brought up some interesting things that you were doing with your own personal life, as well as with some other clients that I found was interesting, if you could share with us.
Gary Bilyeu: Bryan, thanks for having me back for another segment. You just said something interesting. You said, “Risky.” I want to make sure, because I get this a lot from my clients. Risk doesn’t equal bad. It’s just that risk level may not be appropriate for you. Based on the information you’ve told me, that’s not the right product. Because something is risky or more risky doesn’t make it bad. That’s a very good starting point with so many of our clients, especially getting started.
Bryan: Absolutely. On that note — and Gary’s brought up examples of this, and I’ve thought of it as well — when people look at risk, you need to think about how you engage in risk every day. Here again, whether you’re driving on the road, whether you’re engaged in business operations with somebody, whether you go into subway or another fast food restaurant and buy food and hope that it doesn’t have any bacteria or anything of that sort in it. We’re engaged in risk all the time. People have a hard time, a lot of times, translating the risks that they are engaging in every day that is very similar to what we see in the financial market, but they seem to always be scared of that type of risk versus the other type of risk that they take all the time.
Gary: You’re absolutely right. Every time you say risk in those terms, “We take a risk every day.” I have two small boys and they get on their bike, they skin their knee, and my wife is not too pleased about that. I find ways to mitigate that risk. I do not go buy all the bubble wrap and Charmin and wrap them and send them back outside. There’s another risk that we’ll talk about. They may get beat up.
Bryan: They will be programmed in such a way of not going out there and taking the necessary risks later on to have success.
Gary: Right, even if they fail. Bryan, I’ve learned so much more from my failures. There were so many times when I would do something and internally wasn’t quite sure and made my way through it and at the end was praised. I didn’t learn that much from that. When I failed, I knew exactly what I did wrong. I tried not to repeat that. I tried to learn from those failures. We have a lot of clients, very successful clients, businessmen, that they are successful not because they were successful the first time out of the blocks. There are many more failures that they learned from and built on.
When I got started in investing, brand new Marine officer, young, I took $50 to get started. $50, and it was in a mutual fund. Did a lot of reading about different mutual funds, and I found one and said, “I just have to get started.” My plan — and this is for me, this is what worked for me — I built it, I was comfortable with it, and that’s what we help our clients do, build their own plan. For me, I took that $50 every month, and as I got a raise, I made the decision to take half of that raise, put it towards the investment, increase my investment, and I would spend the other half. I did that, and within four short years I had $400 a month going away every month. I never missed it. I’m sure many people have heard, “Pay yourself first.” There’s a lot of great advice out there, but people don’t know how to take that and put it into action. Sounds great. Pay yourself first. How do I do it? I took it at $50. I work with a lot of teachers. I tell them 25 bucks, whatever they’re comfortable with, but I manage the expectations along the way.
Bryan: There are two things you bring out that are very important. One is you’re saying, “Get a plan.” This is one thing we encourage our clients. Get a plan going. Stick to the plan. One of the best plans is to start putting away. Take some of your salary, your disposable income and get it working for you. The other great takeaway that I got from you, Gary, as far as with failures, a lot of times people learn from their failures because they continue on. They strive for success, and they build upon those failures. A lot of times what we find with our clients is that if there’s ever some volatility and risk, and the portfolio goes down or it doesn’t perform exactly how they want, a lot of times their initial knee-jerk reaction with that “failure” is to pull out and give up or to go to somebody else very quickly.
The one thing active management does here is that when we have volatility in the market, we look for opportunities. We look for the contrarian view. A lot of times, if everybody’s running out the door because they’re all scared, we look at the market conditions, as well as the client’s personal situation, and and determine whether or not it is an opportunity to buy, or sell.
Some things are going to go down, and a lot of people will avoid wanting to buy those sectors in the market. A lot of times, after you look at market and economic fundamentals, that is where you want to consider buying. That’s something else, managing failures, if you will, that is beneficial sometimes. Managing the volatility, managing the risk is important, and not giving up on it. If we gave up after our first failure, most of us would not accomplish anything. A lot of times in the financial wealth management sector, I find that when people have a little bit of a taste of what we call failure, or volatility, or different results than what their goals were, a lot of times, that is when they pull out instead of just re-diversifying, re-looking at the situation, and developing a new plan.
Gary: You’re absolutely right, Bryan. An example I like give is say you’re in the market for a big screen TV, and a large retail store had that TV for, I don’t know, say $1000, but a discount store had the same TV for $750. Which one of those are you going to buy? Mostly like the discount. You can buy it from either one, but most people would say, “Oh, I want the one that’s less expensive.” To get our clients to understand and start thinking that way, you mentioned in your previous show that we talked about quite a bit our public education system. Personal Finances is not one of the course subjects. We do a poor job of understanding basic finances. Growing up in a blue collar home, we didn’t talk about money over the dinner table. We just didn’t. You didn’t do that. That’s something I do differently. That’s my job. That’s an opportunity. That’s the one meal that we sit down and there are no phones, no cell phones, and we talk about different things. It’s hard to get my young boys to understand what I do. That’s my litmus test. If I can get 10 and 12-year-old boys to understand concepts, then I can take that and go from the simplest of audience to the most sophisticated.
Bryan: In dealing with a lot of our clients, Gary and I have found this out numerous times, is the lack of understanding and education that a lot of clients, even extremely sophisticated ones, bring to the table. That’s not necessarily a count on them. As a former academic myself, two things in general in society that we don’t do a lot of focus on and study on in high school and in college are two things that are most germane to our lives, and that is usually how we take of our financial home and then also how we take care of relationships.
People who study finance and who study psychology might have an advantage over us, but that’s a minority. One way of managing the risk is really trying to understand the concepts, get educated, just like what Gary was talking about with his two boys. He’s getting across to them what he does. They’re starting to understand it. He’s starting to understand a good way to approach how to present certain concepts and so on to his clients, because quite often we’re starting from the ground floor with people. That’s one thing I want to encourage a lot of the listeners right now is that if one thing that is preventing you from going and exploring with a financial advisor, your goals is so on because you feel like you’re inadequate or feel like you’re not educated. I would say that you are the vast majority of the population. You shouldn’t feel bad about that. That is more of a commentary on our educational system than it is, really, on you.
That’s one thing as a financial advisor we do a very good job at Rigg Wealth Management of helping people get educated, feeling more comfortable with these concepts and understanding what it is all about. That leads me to the failure aspect, again, that Gary was bringing up. It’s important that a lot of times when people are feeling that way and they don’t go ask because they feel like they’re uneducated, that’s a failure to really take control of your finances, take control of your life, and really start getting a good game plan. You don’t want to do that. You don’t want to have that failure on your resume. A lot of people do. Gary and I’ve mentioned in this program before, 50 percent of all people who retire today have 50 percent less than what they need, and not than what they want.
Gary: I tend to break things down even simpler. None of us were born with a high financial IQ. We weren’t. You and I have chosen to develop that financial IQ and to help others. I don’t fault anyone not knowing as much as we do about it or not wanting to. Some people simply, they don’t want to do that. There are times when people want to ask me what time it is. They don’t want me to build them a clock, they just want to know what time it is.
Bryan: On that note, there’s nothing wrong with that, as well. I do find that even though I’m really focusing a lot on education, and wanting people to ask the questions, and think about them, I do get it that sometimes they don’t want to be as involved as we would like to see them. Most people come to us because we’re the ones with experience. They don’t want to think about how they should organize their portfolio. They want guidance. They want us to take care of that. We do provide that support and that service to them. We don’t push people into education by any stretch of the imagination. We would like that, but we understand that most people have enough pressures in life that they just want us to take care of it. We do a good job of doing that.
If you are interested in knowing more about Gary and I, please visit our web page at riggwealthmanagement.com. That’s Rigg with two Gs. Also, feel free to call us at 972-383-1210. That’s again 972-383-1210.
We’d love to hear from you and set up an appointment. Sit down and see where you are with your portfolio, and see if we can provide services to help you work toward achieving your goals. We are thankful that you have tuned in for this segment. We’ve got one more. Please stay on the air with us. We will back to you shortly to go over more concepts about financial management. Our show is on every Sunday from 1:00 to 2:00 on KLIF. We hope that you continue to join us each week.
Bryan Rigg: Welcome back, ladies and gentlemen. This is Bryan Rigg. I’m here with my partner, Gary Bilyeu. A lot of people have asked us about how is our office set up? What do we look like? Well, there’s three of us — Gary Bilyeu, myself, Bryan Rigg, and my brother, David Rigg. We all three are Marine Corps officers. All have served our country. My brother has had a distinguished career in commercial flying. He has been with me for the last couple of years. Gary’s been in the insurance world for a decade and a half. He’s been working with me for the last couple of years. I’ve been on Wall Street for over 11 years. That’s basically the core group for the office.
The one thing I want people to know about Rigg Wealth Management is that we have an army of hundreds, if not thousands, of people who can go and help support us. We process business through our broker dealer, an investment advisory firm, and clearing firms. We have a team over here in West Lake of over 40 people who help us with documents and answering questions about how to set up certain different accounts, legal questions, and so on. We deal with retirement questions, how to set up simple IRAs, how to take care of people’s IRA rollovers. We have a whole team to support us in whatever we need to do for our clients in accomplishing their goals and helping them with their portfolios. Then, we have a lot of third-party providers of money managers, and there could be anywhere between 40, 50 to well over several hundred that help us with any particular type of investment strategy. When we go out to the insurance world, we can go out to several different companies, and there will be whole groups that will help us with each agency that we work with. To make a long story short, we are basically the conduit for you to have very good financial solutions for your portfolio.
We have an army of several people that can come and help us with several different aspects of your portfolio. Even though we are a small company here in the Dallas/Fort Worth area and very personable, you can come to our office any time and meet with us, we have resources that are just as high as most of the private banks that are out there that we can bring to bear. We can help extremely sophisticated clients that are business men and women who have millions of dollars under management to somebody who’s just starting out that has 20, 30, 40, 50 thousand dollars. I’ve always found that relationships are most important.
At the private bank that I was at before, they were always pushing me to only deal with clients that were five million and up. I always thought that was very disingenuous that you sit with somebody, you get their trust, and then, all of a sudden, they say, “OK, Bryan, I’m willing to work with you. Here’s half a million or here’s a million dollars.” If I were to have responded with, “You know what? When you get five million, come back and talk to me.” That relationship is dead because I don’t value the human being. I’m valuing what worth he can bring to the portfolio that I’m going to manage. That’s one thing I’ve learned that there’s something that we can do for everybody. If we like working with you and see that we can have a good beneficial relationship with one another, I’m willing to take anybody at any level and help them out.
That’s like, Gary and I, we took an oath to protect the Constitution and serve this nation. We took that to protect everybody. We’re doing the same thing here with our financial wealth management is that, when somebody comes in, and they’re a good person, they’re well meaning, and they need help, we’re going to help them no matter what level they’re at. That’s something that’s, I would hope, in some respects, is very unique to Rigg Wealth Management. Wouldn’t you agree, Gary?
Gary Bilyeu: Absolutely, Bryan. That’s interesting. I’ve gotten that question so many times about, “Well, how much do I need? It says ‘Wealth Management’?” Wealth management because we service the full spectrum, a great deal or several high net worth clients, and we have strategies for them. Also, the person getting started, more times than not, it’s not about the dollar amount. It’s about the situation. I got started helping people that changed jobs. Something as simple as that. I’m sure many of our people out there in our listening audience has changed jobs. Well, they most likely had an employer retirement plan or 401(k). They left that employer, maybe not on such good terms, and thought they had to call their employer to get that moved. Many of them probably didn’t even know what they had in there.
That’s what we do. We help them. We advise them. There are many options available to them. We’re able to manage the process. If moving the funds is in their best interest, then we do the paperwork. If it’s not done properly, then there are some tax consequences, and that’s really the value we bring. I found after doing that, they change jobs two or three times. They actually had two or three 401ks to consider moving. That’s just an example of how we can help people.
Bryan: That example is very important. I find quite often, a lot of people come to me and they have 7, 8, 9, 10 accounts spread out all over the place, with multiple institutions. A lot of times, that’s one thing to start with that a lot of people don’t do is to figure out what they actually have. Once you find out what they have, you start trying to get some clarity of how you organize all those different accounts and consolidate them to really get a vision for the portfolio and bring all the assets under one umbrella.
Gary: Absolutely. Absolutely. Like we’ve talked about, and we talk about every day, helping people to understand where they are right now. We get them thinking about writing down their goals, and we’re trying to figure out where point B is. Well, we need to know where point A is, and that’s where we are right now.
I tell people, “Just bring your documents. Put them in a shoe box if you need to, but we need to look at those. It’s not about the dollar amount. It’s about the type of accounts and what we can and can’t do and understand the tax consequences, if there are some.” For us to actually advise, we have to know the starting point, and there has to be honesty. Are we dealing with just one little sliver of the bigger pie, or is this all you have? Big difference, a big difference.
Bryan: Absolutely. Here, again, to reiterate, one thing that Rigg Wealth Management does a good job is putting people at ease. When you come to our office, you’ll get a good sense of who we are and how we take care of people. We have resources that are incredible for anybody at any level financially, but that we are not blinded by a certain amount that you must have, or we don’t feel like we want to service you or that you’re worthy of our time because everybody has something to bring to the table. If that’s just only 20 or 30 or 40,000, a lot of times, people, that stops them from wanting to get invested. I don’t think that is wise for those of you who are in that area. Getting started yesterday is when you should have gotten started. Waiting until you have 100,000 or waiting till you have 200,000, when you think that somebody like I can help you, is not really a good time to start. Starting now is critical in getting that plan implemented.
Gary: You said plan, Bryan. Most people want the perfect plan. They don’t want to lose money. They don’t want to make decisions that may not be right so they do nothing. No, no, no, let’s take a good plan today and execute it well versus waiting until tomorrow for the perfect plan because that’ll never come.
Bryan: In the Marine Corps, we often say, “An imperfect plan today is a heck of a lot better than a perfect plan tomorrow because tomorrow you’re dead.” Getting something on the books and getting started now is the best plan of action to take. If you want to know about Gary, I, or our other partner, David Rigg, please visit our web page, riggwealthmanagement.com. That’s Rigg with two Gs. Also feel free to call us at 972-383-1210. We’d love to hear from you and, hopefully, have a meeting with you. Gary, thanks so much for being on the program today.
Gary: Sure, Bryan. Thanks for having me.
Bryan: Hey, no problem. Please tune in next week from 1:00 to 2:00 on Sundays at KOIF, and hear our next show. The quote I want to leave with you, again, is what we just said. We said in the Marine Corps, “An imperfect plan implemented today is a heck of a lot better than a perfect plan tomorrow.” Think about what your goals are, where you want to be when you retire, and then start thinking about the plan that’s going to get you there. We can do a very good job of helping you in that pursuit.
Thank you so much for listening. I hope to hear from you here soon. Have a wonderful day