Education, consistency, and discipline
Helping clients meet financial goals
A robust retirement plan requires more than strong returns. It also requires strong planning to avoid debt, mitigate taxes, and reduce risk.
“I recently had a client who wanted to spend a tremendous amount on a new house. said Adam Lampe, chief executive officer and co-founder of Mint Wealth Management. “‘If you do this,’” he said he told his client, “‘you have to make 5 percent for the rest of your life, and there’s some years in the market where we don’t make 5 percent. Understand that for you to meet your goals, one out of every four years you’re going to be down in the market, and if you’re not comfortable with that then you have to bury your money in the backyard.’”
Mint Wealth Management, based in Houston, provides comprehensive financial management services including estate, tax, and investment planning. The firm does not require a minimum asset level to sign on as a client and serves hundreds of families with an average combined investment account of $1 million with a 98 percent year-over-year client retention rate.
Mint Wealth Management takes clients’ full financial picture into account to develop a holistic plan for them to achieve the retirement they want. Lampe begins with client education, empowering clients—and prospects interested in signing on with the firm—to make the best choices they can for themselves, and to understand how their money works.
“Education is the key, and my goal is to educate you to confirm things you already know or teach you things you don’t know, because what I want to be is a sounding board,” Lampe told Advisors Magazine during a recent interview, adding that he encourages clients to get past their hesitancy in discussing their finances, especially with family members, so that every option can be considered.
Often, investors hesitate to talk to their children about the family finances, but Lampe encourages them to “shatter the money taboos,” he said.
“It’s so critical that people understand all the options out there,” Lampe said. “I tell clients, ‘I want you to use me as a human version of Google, because there’s so much misinformation out there.’ I feel like it’s my duty as a trusted advisor to make sure people get good advice.”
Lampe also illustrates the need for financial discipline using success stories from around the industry. Most successful investors and retirement savers are “allergic to debt,” he said, or at least “bad debt.” Sticking to the plan during rough years also makes a difference, he said.
“There’s a presentation that we go over with our clients about being disciplined. We show them that if you’d been in the stock market for decades, your average return would be 7 or 8 percent per year. But, if you left the market due to a behavior mistake, and let’s say you missed 40 days in 20 years, your return goes from almost 8 percent to -2.4 percent,” he said. “That is so critical that we avoid those kinds of mistakes.”
To learn more about Mint Wealth Management, visit: mintwm.com