What does it take to be a financial advisor?
At the very least, it could take dozens of finance and business courses, a bachelor’s degree and a seemingly endless series of licenses and certifications. Oh, and a little something called the Series 65 exam.
But, what about being one of the best financial advisors? We visited with five of the state’s best to get advice on some of the most prevalent topics in financial planning today.
Sarah Catherine Gutierrez
Sarah Catherine Gutierrez, Aptus Financial
Sarah Catherine Gutierrez is a speaker, writer and owner of Aptus Financial in Little Rock. She started her company with a vision that all people should have access to an advisor on their own terms with no conflicts of interest in their own money. She specializes in — well, almost everything — but especially providing straightforward financial planning advice for more vulnerable clients, such as young professionals, women and medical students.
AMP: One of your unique services is providing financial guidance to physicians and medical students. What are some new financial concerns you’ve noticed among those in the medical field, and how are you able to help?
Gutierrez: One of the most important financial concerns for physicians getting out of training is figuring out a savings rate that will allow them to retire on their own terms, then build a financial plan to help them invest those savings in the most tax-efficient way. Many physicians can find themselves working with advisors who sell financial products that can be in direct conflict with those tax-efficient investment vehicles and/or working with advisors that don’t have the expertise or financial incentive to help them manage their student loans. We are seeing student loan burdens that can get to $1 million or more for married physicians. They need careful planning, especially since these student-loan interest rates are often greater than 6 percent.
AMP: Do you have any advice for ways the younger generation can achieve financial stability in the current market?
Gutierrez: Our advice for the younger generations in our retirement plans is to focus your financial stability on what you can control, aka your savings rate and cash flow management. Tolerate volatility in what you can’t control, aka investing. We believe there are five critical elements of financial stability for young people: 1. “Save 10,” or save 10 percent for retirement, a powerful tool for building long-term wealth. 2. Address your student loan debt. Get a plan for how you will pay your student loans, which will go back into repayment early next year after two years in a COVID forbearance. 3. Never carry credit card debt month to month — instead save ahead for big-ticket purchases. 4. Keep mortgage and rent payments at less than 14 percent of gross monthly pay. 5. Always have three to six months of savings in an emergency fund.
AMP: Has the pandemic affected the way people are planning for retirement? How have your retirement planning strategies had to change to fit their needs?
Gutierrez: The pandemic has absolutely impacted the way people see liquid savings and debt. Before, given low interest rates on savings and such a long period of economic growth, it was hard to convince our retirement plan participants to keep three to six months in a savings account paying very little interest when they could earn so much more in a bull market. Most people nearing retirement now realize how important it is to have a cushion that is fairly liquid.
Also, on a broader scale, we learned from the pandemic that women and older employees are our most vulnerable employees. It’s one thing to be in your 60s wanting to work and another to have to work. Debt, like student loans, credit cards and mortgages, can handcuff older employees to being in the latter, more vulnerable situation. It seems that people are more motivated to get out of debt to prepare for retirement.
I hope this trend continues, and I see the industry becoming more holistically focused on discussions regarding diversity in banking and financial service providers.
AMP: What is the smartest thing someone can do right now to protect their assets, investments, etc., until things calm down?
Gutierrez: The biggest risk to a portfolio in a down market is behavioral. In other words, the only folks who lose in a down market are those who sell, attempting to time the market, rather than stay the course. The best protection is a good financial plan, one that you understand and test mentally against all potential market moves. And remember, we don’t absolutely know that the market will correct in the next six months or year. Gosh, who would have expected in 2020 to get hit by a global pandemic and deep recession, then end the year with the market higher than where we started?
Whether the markets feel calm or volatile, all folks need to have an asset allocation appropriate for the years they have until retirement. If close to retirement, then you would have a lot more bonds in your allocation than those with decades to retirement, which helps to cushion any market correction, large or small. Once you have a plan, then stick with it, through thick or thin. That’s been the best advice through all market cycles. There’s no reason to think the future will be any different. We always tell retirement plan participants to believe in a self-healing economy that will, on average, grow over time. If we don’t fundamentally believe that, then we have much bigger problems than our retirement accounts.
Jay Gadberry
Jay Gadberry, Gadberry Financial Group
Jay Gadberry worked with major financial institutions for decades prior to launching his own firm, Gadberry Financial Group in Little Rock. Although he learned a lot during those years of service, Gadberry also learned that there was a gap to be filled in the wealth advisory sector. He wanted to build a full-service investment firm that was focused completely on the benefit and success of his clients rather than on sales and commissions. He wanted to be able to focus on building long-term relationships with real people in a way that supported the Little Rock community he loved so much.
AMP: One of your specialties is advising corporations and businesses in addition to individuals. How has the pandemic affected retirement planning strategies for both?
Gadberry: The most significant issue was the disruption caused by the pandemic.
The initial market downside in the early days later gave way to one of the strongest markets in recent memory. It underscored the need for patience and a steady and reassuring hand. Adhering to the plan in place to avoid making detrimental, short-term emotional decisions is paramount.
AMP: What effects have COVID restrictions had on the way you and your team typically serve clients and the community?
Gadberry: We don’t see our clients in person as much, and we certainly miss that. However, we have all adapted to the new realities of service in a post-COVID world. We have enjoyed the efficiencies and effectiveness of virtual meetings and other remote services, but we do miss our face-to-face time.
AMP: What are some extra steps that you take to make your clients feel at ease with financial planning and strategies?
Gadberry: It has been important to make certain we are keeping historical perspectives in addition to news in front of our clients as they face market uncertainty. Our regular roundtable discussions and webinars with the industry’s best, along with frequent communication, have helped to keep our clients informed and at ease.
AMP: What is the smartest thing someone can do to protect their assets, investments, etc., right now until things calm down?
Gadberry: Being certain that your goals, objectives and investment horizon are reflected in your portfolio construction. Working with a seasoned investment consultant can keep you from making detrimental short-term decisions.
Lester Matlock
Lester Matlock, Natural State Private Wealth Group
Lester Matlock is a private wealth advisor and CEO of Little Rock’s Natural State Private Wealth Group, a practice of Ameriprise Financial Services. He believes each of his clients are unique, as are their financial goals, and he delivers personalized financial advice to help clients achieve those goals.
AMP: How has the pandemic affected the way your clients are planning for retirement?
Matlock: Quite honestly, for some on the front lines, it’s caused them to think about retiring earlier, which means forecasting how their retirement portfolios may react to drawing funds sooner and for a longer period. For others, I question the impact of the pandemic on our economy, as well as the recent rise in inflation and its impact on client’s retirement incomes over time.
AMP: Do you have any advice for ways the younger generation can achieve financial stability in the current market?
Matlock: If the pandemic has taught us anything financially, it’s that having an emergency fund can be a “saving grace.” In addition, having short- and long-term disability protection can play a vital role in replacing a portion of your income should you fall victim to sickness or injury and find yourself without income for an extended period. If you’re younger and saving for retirement, time can be your ally, and compound interest can work in your favor. Start saving early, remain diversified in your investment portfolio, and stick to your long-term plan.
AMP: Do you prefer to encourage clients to take risks in their financial planning, or play it safe?
Matlock: I encourage clients to understand their risk tolerance. This can be done through education with a financial professional or through completing a risk tolerance exam or questionnaire. Understand that different goals and time horizons may have different investment objectives. Saving for a goal three years out may result in taking less risk than a goal 10 years away.
AMP: What’s the smartest thing someone can do to protect their assets, investments, etc., right now until things calm down?
Matlock: If your goals are long-term, remain invested. If you are systematically saving, continue to do so even during down markets. I’ve always believed the smartest thing a person could ever do is have a plan for what they want to accomplish. Revisit your plan regularly, and track your progress. History is filled with challenging times, but it’s also filled with success in overcoming those challenging times, usually by people who have remained consistent in sticking to their plan.
Joey Small
Joey Small, Small & Associates
Joey Small is a private wealth advisor in Little Rock and president of Small & Associates Financial, a practice of Ameriprise Financial Services. He takes the time to understand what’s truly important to clients — whether it’s saving for college, retiring the right way, making smart investments or anything else.
AMP: How has the pandemic affected the way your clients are planning for retirement?
Small: Comprehensive planning clients are best prepared to adapt and adjust to tougher economic and financial market environments, and that has been no different this time. Comprehensive financial planning helps to ensure clients are on track to meet those financial goals that are important to them. For many, the pandemic has not harmed their finances and may have increased their ability to save, given fewer spending opportunities. For others, retirement plans have been accelerated due to a work environment that might be more challenging than before pandemic, such as changes in how they are allowed to interact with customers or fellow co-workers, managing social distancing in the workplace, or general job duties that have become more difficult due to the pandemic.
AMP: Do you have any advice for ways the younger generation can achieve financial stability in the current market?
Small: First, the sooner one learns the fine art of delaying gratification, the sooner they’ll find it easier to keep their personal finances in order. Also, realizing how important it is to make sure and track that their expenses do not exceed income can lead to being able to save more money over time. In turn, budgeting can help in establishing an emergency fund, which is savings on hand to help stay out of trouble financially, help keep a handle on credit card debt and provide peace of mind. Lastly, begin saving for retirement immediately. Because of the way compound interest works, the sooner one begins saving, the less principal they’ll have to invest to end up with the amount needed to retire. Further, some employers will match the retirement plan contribution of their employees, which is like getting free money towards retirement, so make sure to contribute enough to receive the full matching contribution offered by the employer.
AMP: What are extra steps that you take to make your clients feel at ease with financial planning and strategies?
Small: Our foundational planning, at a minimum, can provide high-level confidence to clients on how they stand in reaching their financial goals. However, comprehensive financial planning is the extra step to ensure one is on track to meet those financial goals that are important to our clients. The people weathering a financial crisis are those with a financial plan. The more time one spends on a quality plan equals less worry and anxiety.
AMP: What is the smartest thing someone can do to protect their assets, investments, etc., right now until things calm down?
Small: Things are relatively calm when examining volatility in the financial markets on a historical basis. Avoid making emotional, short-term decisions regarding long-term goals is the most common advice that can be followed during any downturn in the economic and financial markets. Assess any brief downturn, or periods of heightened volatility, against the context of the long-term financial goals. Additionally, those who can reduce spending and route some of those dollars towards their financial goals can increase confidence that their goals will be reached.
Barry Corkern
Barry Corkern, Barry M. Corkern & Co.
Barry M. Corkern of Little Rock is a registered investment advisor with the Securities and Exchange Commission. For more than 30 years, he has guided individuals, multiple generations of the same family, business owners, endowments, foundations and retirement plans to make a profound impact on their financial decisions and planning. With longer experience in fee-based wealth management than any other Arkansas wealth manager, Corkern provides expert, timely and strategic information to a select group of clients with complex financial needs. His clients reside in Arkansas and seven other states.
AMP: How does the pandemic continue to affect the way you do business? How has it changed your clients’ needs?
Corkern: Because investment advisor regulations require a disaster response plan, we have continually updated our technology to continue business during events such as the pandemic. We were able to use this technology with more clients and found they are comfortable with online meetings, texting and other ways of communicating. I don’t see any difference in the needs of our clients. We keep pouring accurate information to them to manage their concerns and fears. If anything, we saw more clients investing more into the stock market. That made us feel like our message and experience was getting heard.
AMP: What is one investment trend you dislike?
Corkern: Day trading is speculation, not investing. I compare it to a trip to Las Vegas to gamble. That works for some investors, but it’s not a good idea for long-term financial goals.
AMP: What is the smartest thing someone can do to protect their assets, investments, etc., right now until things calm down?
Corkern: I would say that their money is as safe now as it was before the pandemic. Financial institutions are very strong, especially after the financial crisis of 2008-09. Everyone needs an investment policy to which they adhere to — always. A well-designed investment policy based on their risk tolerance anticipates the worst possible events and the best possible events. Too many people fail to have a written long-term investment policy.
AMP: What are some extra steps that you take to make your clients feel at ease with financial planning and strategies?
Corkern: We listen, and we take all the time our client needs to arrive at a common understanding of what they want and need in the future. We educate our clients with facts, truth and information. It is a good environment for decision making for the client.
