The Right Thing
I have a belief – a belief in doing things the right way and being rewarded for choosing the “right way”. When I got into this business, it was very difficult initially. Probably part of that difficulty was that I was very successful at my first job out of college. It was a great sales job, but it was not a long-term career and I knew that. When I first got started in financial services, my brother-in-law, Tim, whom many of you know, told me to always do the right thing and it would work out long term. I always remembered and adhered to that advice. David and I have always operated by the fiduciary standard because it is the ONLY way to do business – to make decisions that one believes are in the best interest of the client.
In writing my monthly blogs and previously going through CWM CARES, we have worked our way through every letter with the exception of the ‘S’. The ‘S’ represents our sincerity in everything we do. I could probably have gone without explaining ‘s’ because I think this is a given! I think everyone knows we are a big family and we are going to take care of our family members – no matter what it takes….and no matter what life throws us. Life does what it does and life will happen. I just hope we are all prepared…as best we can be when it occurs.
I met with a gentleman recently who is a good friend a client. I actually played golf with him several years ago but one of our recent financial presentations prompted him to come in for a financial second opinion (did I mention we love doing these?). One of the reasons we enjoy these so much is that we meet so many nice folks and get to hear their story. On this particular day, this gentleman was driving the church van of his church. I saw the van and assumed it was him, which opened up a conversation. My client later told me that this friend helps out and preaches sometimes.
As we began our conversation, it took a direction I was not expecting. This is a very happy, outgoing man but he has had life happen to his family in a big way. Several years ago, his youngest child was involved in a terrible car wreck that left him paralyzed from the waist down. He confessed this accident was the first truly difficult life challenge he has ever faced. He said if not for his faith, he is not sure how he would have coped with it. His son is doing well. He is currently living on his own and he works for the state. Not the path any would have chosen, but making the very best of the cards they were dealt.
Some of you may be asking yourself if this man has always done the right thing, why did this happen to his son? I do not have an answer. So often I (and my wife) have struggled with what we may have done that caused our daughter to have severe scoliosis, endure 14 back surgeries and still continue to endure the after-effects of these surgeries. I do not think we did anything to cause this, rather it was just something that happened to us. I am very thankful for the blessings we do have, especially after witnessing so many heart breaking cases on our trips to Texas for her surgeries. I also believe the gentleman is happy that his son is alive, as the doctors thought he would not make it.
So, does doing the right thing mean everything in our lives will always be perfect? Never! Doing the right thing means you will always be able to look in the mirror and be proud of the person you see. It means that you don’t become consumed by the here and now but somehow have a bigger, more long-term focus on your actions. I did not get in this business to see how much money I could make in a short period of time. Let me stop here. The fact that I am in the financial services business is the hand of God.
When I was looking for my third sales job, (I have been recruited out of the first and after 3 months at the second, the company started going out of business) I could never seem to find “the right job”. I had been very successful and in my mind, I should have been landing a medical sales job or something similar but it was not happening. I had an offer for a chemical sales job but my heart was not in it. I had interviewed with the owner who was a very nice man but I could not take the job and do him a disservice if I was not 100% committed.
In an effort to go to work doing something after interviewing for a couple of months, I took my buddy’s advice and started doing group retirement work with NY life. To this day, I still love and admire that company. But, after getting involved with helping folks plan their retirement, I knew I had to make a change to something less insurance focused. The rest is history. Since May of 1997, I have been with the same company. Though the name has changed a few times after buyouts and divestitures, it’s the same company none the less. Another important footnote. I got into the business in December of 1993 and met Tracques in March of 1994. My marriage and my career are kind of synonymous with one another. At one point after we were married and I was facing the difficulties that one faces whenever they start a new business venture, I considered going back into sales. My first job selling copiers had been very lucrative (at least compared to financial services) and I felt like I could be a better provider by returning to a job where I had been successful. She told me no, I should not do that. She said you love your job, you are honest and everything will eventually work out. It wasn’t long after that Brownie and Nancy Sides recruited me to join them and teach retirement planning classes through USC and Midlands Tech. I love them and see them often, but I am not sure I have truly thanked them for what their opportunity has meant to my life. I would not be where I am and probably not with David if not for their belief in me. Thank you Brownie and Nancy!
It should also be very obvious that David and I would not be where we are without the trust and confidence of you – our friends and clients. I try to say this often and give gratitude where gratitude is due. We know our clients have a choice of where you go for their financial needs. We are very thankful that you chose us and we will continue to do everything in our power to earn your continued trust and confidence. With all the talk over the last several years about the fiduciary standard, please know that every decision David and I make in regard to our clients are the decisions we believe to be in your best interest. Do they always work out exactly how we would have hoped? Absolutely not. But this is the risk that we deal with on a daily basis. Please know that David and I monitor this daily to make sure we are doing everything to manage your overall risk and give you the highest probably of enjoying your money, not worrying about it….for the rest of your life! God Bless!
Fair Weather Fan
It’s Good Friday and the markets are closed. It’s a rainy afternoon and we are having some family time. By the time you read this, David and I will be fully immersed in the Scottish culture. We will be on our annual Voya trip which, this year, is in Scotland. It should be a week full of fun, fellowship and of course, golf!
Since my last blog, it seems like so much has happened that has caught my attention. More details have emerged about the 2ndBoeing 737 Max crash, the Virginia Cavaliers won the Men’s NCAA national championship (more on this), Tiger returned to the big stage with his 15thmajor win and a fire ravaged the Notre Dame cathedral in Paris.
While my wife and I were watching the news of the cathedral burning and asking ourselves where in the heck the fire trucks were, we learned all the relics had been safely removed and that was good news. As we feared the cathedral would be completely destroyed (it was not), my wife looked at me and said, “It’s just a building. It’s all about the Savior not a structure.”
This is probably the same response you would get from Tony Bennett, the newly crowned national championship coach of Virginia. I love it when the good guys win and I do not think this is an exception. He is a man of strong faith; not afraid to talk about it and apparently lives his life as an example of his faith.
Now, should Virginia have won? Was it luck, was it fate…or was it faith? So much crazy stuff had to happen for Virginia to win and it did, and they won! The way they won the overtime game against Purdue to advance to the final four was crazy. Then, there was the matter of the controversy of the Auburn game. That debate will be long lasting, with an apparent double dribble not being called, then the foul called on the 3-point shot that resulted in Kyle Guy draining all three foul shots for the win. The next game was little easier as they defeated Texas Tech to win the national championship.
I love basketball but I rarely watch until March Madness. It is so exciting! When I was growing up, all I wanted to do was play ball. This desire finally subsided after I turned 40. I think most of you know that I have an Accounting degree from Clemson but I started out in Engineering. Even though I did well and thought I could have been a great engineer, I joke and say that majoring in Engineering did not go well with my desire to play basketball everyday for 2-3 hours!
Even though I did not get a degree in Engineering, I still have a mechanical mind, thus my extreme interest in what went wrong with the Boeing 737 Max. One of my long-held beliefs is that American engineers are second to none. This is an area where the rest of the world can not compete. When engineering goes awry, it is disturbing to me.
Boeing has a duopoly with Airbus. They are each going to sell a lot of jets regardless. The Boeing 737 has been a global workhorse. It first flew in the 60s and Boeing was about to do a complete redesign until Airbus announced they were not going to redesign their competing jets. Airbus decided they were simply going to install new fuel efficient engines on the existing design. Boeing decided to follow suit.
There was one big problem for Boeing. These new, fuel efficient engines were larger. Boeing would need to change the position of the jets on the wings of the 737 Max. This changed the aerodynamics of the plane which had the potential to cause the plane to go into a high-speed stale on takeoff. To counter this, Boeing designed a software system to drive the nose down, should the plane start to stall. The software did not work properly and this is believed to be the cause of two brand new 737 Max crashes. It is sad that American engineering failed. It is much sadder that over 346 people lost their lives due to this.
Now back to Tony Bennett. When Virginia won the final game and he was being interviewed after the game, he gave credit to his dad, the players for always believing and to the Lord. He has a strong faith and I am sure his faith held the team together after the team’s first round loss the year before in the NCAA tournament. In 2018, Virginia was the overall number 1 seed in the tournament. All they did was become the first team ever to lose their opening game as the top seed. They were embarrassed and humiliated. They could have quit, but they didn’t. They believed and they came back. They overcame a crazy turn of events to take home the trophy.
And now for the mother of all comebacks – Tiger. Tiger has been through so much, both obvious self-inflicted wounds as well as other injuries. Tiger has had four knee surgeries and four back surgeries. It was debated if he would ever play again after over two years off, much less win again; another major at that! Tiger was on pace to blow past Jack Nicklass, but life got in the way. How often does life get in the way of us achieving all we can?
After winning the Masters, Tiger seems back on track to potentially chase Jack’s record 18 major wins. If nothing else, he has revitalized the game just with his competitive presence.
I believe Tiger has a chance to win 19 major golf tournaments. I believe he can do it because I know HE believes he can do it. Some of you may have seen the clip of toddler Tiger when he proclaimed he was going to beat Jack. This has been his compass for all the years he has been playing golf. He believes he can do so. He may just do it.
Belief is the one thing that separates those that reach their goals and those that do not. Tony Bennett believed he could win it all. Dabo believed he could win it all and he believes he can continue to win. I am sorry Gamecock fans but I do not believe Dabo is done! I did not know until a client told me what Dabo had done for Coach Bennett. Out of nowhere, per Coach Bennett, he received a text from Dabo that said, “let the light that shines in you be brighter than the light that shines on you”. As Holy Week comes to a conclusion, I am going to take Dabo’s words to heart! God Bless!
Is Fair Equal?
It’s very common for those who have something to give to people they love to find themselves struggling with the concept of fairness. I met with a gentleman recently who will soon inherit a large sum of money from his aunt. He is newly divorced and as a result, is living with his sister. I asked him what his sister thought about the inheritance and he informed me that she did not know about it. As it turns out, she isn’t inheriting anything!
I often address this topic in my presentations. I use the analogy of a family with two children who believes fairness means equally dividing their estate between the two. So, they set up all their retirement accounts with the two children as 50/50 contingent beneficiaries. They set up their wills so everything else will be divided 50/50. They pass away and their assets are split up 50/50. Do the children actually get an equal amount of money? From a gross perspective, they do. But anyone that knows us knows we focus on the net. Depending on variables, they may or may actually end up with a large difference in their net estates.
I know, I may be getting a little technical here but consider this one point. In this example, if the two children happened to have very different financial situations, say one is a doctor and the other a missionary, guess what happens to the retirement accounts that are split 50/50? You guessed it, the missionary was able to keep a large amount of the account after taxes while the doctor could wind up sharing half of his or her inheritance with Uncle Sam! This is a topic that I think is very important for you to consider. I am going to be reposting a great article I just read on this subject to both my LinkedIn page and the Carolinas Wealth Facebook page. Please make sure you are connected with us there if you participate in social media.
As I look at this topic and try to apply it to my life/family/friends/business/etc., I always start with fair. I try to live my life based on being fair yet understanding that this does not always translate to equal. I love all my clients and I want to do the very best job I can for each of you but I do not spend equal amounts of time with each client. Life happens, there are times when you will require much more of my time and then there will be times where you are off traveling having fun and will not want to talk to nor see me. The one thing you can always count on from David and myself is our best effort!
David and I had a slogan some years back. It was - Insight, Trust and Commitment. In talking about CWM CARES, the 'commitment' actually stuck as that is what the C represents. I suppose after 25 years and working with lots of you for many years, you came to understand we were committed not only to you, but to our craft as well. We really try to stay on top of your total financial picture. Also, I think trust is a given but this does lead me to the final chapter in CWM CARES – the S which stands for Sincere.
Looking at some definitions of Sincerity here are a couple - Sincerity is the virtue of one who communicates and acts in accordance with their feelings, beliefs, thoughts, and desires -proceeding from genuine feelings.
I often talk about family. I can tell you David and I are not always right, but we make recommendations that are consistent with our beliefs. While every investment we recommend does not always work out as we would have hoped, these investments are the same investments we either personally own or ones our family (blood) owns. I hope it is obvious to you that David and I truly desire to be the best stewards of your resources that we possibly can.
While we will never ‘always be right’, you can count on us to always be in your corner and an advocate for your best interests. You can be sure that will always be ‘fair’ and ‘equally’ committed to each and every one of you!