When two advisors are better than one

For the most part, individual investors and consumers have been encouraged to choose a single advisor to handle their finances. “While this is certainly a good idea, some clients have taken this a step further by using more than one advisor to manage their money,” noted a recent article in Investopedia.

And what if the two advisors were at the same practice? Consider the case of San Francisco-based Twin Peaks Wealth Advisors—a practice founded and run by two partners who happen to be twin brothers:
Tushar Kumar ChFC®, CLU®, and Vishal Kumar.

“One personalized thing about our firm is that one client can have two advisors serving them, that can make for more productive meetings, faster response times, and more insight,” Vishal told Advisors Magazine in a recent interview. In addition to the brothers Kumar, Twin Peaks counts six other team members.

Vishal describes the current practice as one where clients can have a constant, ongoing dialogue with their qualified financial professionals in an easy-to-engage manner.

“We predominantly work with young families and pre-retirees, helping them with everything from outlining their household’s cash flow to developing their investment and tax strategy,” he said. “An area of specialty for us is tax-conscious wealth-building strategies. Our client service philosophy is to over promise and over deliver!” Vishal added. “We believe that in an industry that is constantly raising the bar, the old method of under promise and over deliver is a way of the past.”

The Past Shapes the Future

The brothers’ own backstory is what motivates them. In fact, it was a traumatic family event that opened their eyes to the need for financial planning. They were only 14 years old when they discovered what a financial planner does.

“Our father, who was the primary breadwinner and financial decision maker of our household, was diagnosed with stage four cancer and only had six months to live,” Tushar recalled. “Prior to his passing, he hired a financial planner to help my mom with this aspect of her life.”

The brothers and their mom, when they first started working with the advisor, were very anxious about their financial future. They all had many questions, hoping to get answers and reassurances about what was uncertain at the time.

Among the unknowns, according to Tushar: “Would we be able to live in the same house? Would we be able to go to college without needing student loans? Could my mom retire in the Bay Area with her existing assets and the life insurance proceeds she would receive?”

Their work with the planner allowed them to put a structure and process around the family’s finances with key action steps that had to be taken along the way. By evaluating and modifying the strategy and investments regularly, the family was able to address their mother’s financial goals. The financial planner’s advice moved the family to action with clarity and confidence, Tushar explained.

“Our own story is what drives us,” he emphasized. “We’ve seen, firsthand, the benefits of working with a planner and we want to bring that same confidence and clarity to the clients we serve.”

Education x Strategy = Clarity

In order to provide such clarity, Vishal says each client is educated in a tailored manner.

“In 2019, we implemented an ongoing educational aspect to all of our financial planning engagements,” he noted. “After we’ve addressed someone’s initial concerns and goals, we pivot ongoing meetings to a hybrid of ‘maintenance’ and education.”

Twin Peaks will develop a customized education plan for each client, according to Vishal.

“This is where we teach them about financial concepts/strategies that may one day be relevant to them, even if they aren’t needed at that very moment,” he explained. “This has been met with tremendous appreciation, as clients feel better equipped with knowledge and tools for their evolving financial situation.”

The firm’s approach to retirement planning is simple.

“First, we make sure our clients’ fixed expenses in retirement are covered by their fixed incomes,” Tushar said. “Next, we set up ‘buckets’ for different ages/goals that our clients will utilize in their retirement. And last, we help them identify what their legacy plan looks like and how they can optimize this.”

With Americans enjoying increased longevity, Twin Peaks employs several strategies that help to build savings and aim to last longer.

“One thing we’re using is income-generating investments that offer appreciation potential,” Vishal said. “Examples of such investments include real estate income trusts, annuities, and dividend-paying stocks. Because interest rates were low for so long, investors have gone up the risk spectrum looking for more yield.”

As far as risk management strategies, Vishal said the approach has been the same as before the pandemic. “The strategies have been the same pre- and post-pandemic, but we’ve just been putting more into risk-managed strategies over the last two years,” he noted. “Risk-managed strategies include: life insurance, annuities, bonds, and CDs. People are more receptive to managing risk now that liquidity markets are tighter.”

At a macro level, the biggest risk is a possible recession.

“The clients I’m actually most concerned about are those age 37 and under, because they haven’t been through a recession before while having a substantial investment portfolio,” Tushar said. “Investors older than 37 have seen at least one recession in which they had some money to lose — so to me, I feel that they are better prepared both mentally and financially for an economic recession.”

Nonetheless, Twin Peaks is taking action to help protect all clients in an inflationary environment and against the backdrop of a possible recession. Among the measures, according to Vishal: “Ensuring our clients have an emergency fund; making sure our clients have diversified assets that are lower risk (bonds, CDs, fixed annuities, life insurance), and setting up passive income streams (REITs, etc.).”

The brothers are also planning to take Twin Peaks to the next level by improving client deliverables and visuals even further while building its community.

“We’ve been polling our clients and they want even more insight at their fingertips,” Vishal said. “We’re evaluating more software providers that can provide detailed insight on their situation and how it can be improved.”

Vishal summarized: “Clients have told us they want the ability to tap into our networks and meet our other clients and professional relationships. We’re building community through events, social media, email marketing, and introductions to qualified professionals.”

For more information, visit: twinpwa.com

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. No strategy assures success or protects against loss. Investing in Real Estate Investment Trusts (REITs) involves special risks such as potential illiquidity and may not be suitable for all investors. There is no assurance that the investment objectives of this program will be attained. Dividend payments are not guaranteed and may be reduced or eliminated at any time by the company. Tushar Kumar is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC