Why Independent Financial Advisors Choose Income Over Index Performance for Retirement Portfolios

Building a Financial Advisory Firm That Puts Clients First: An Inside Look at the Process

 

Meta Description: Discover why Tom Dupree founded Dupree Financial Group in Lexington, Kentucky—focusing on personalized investment management, team accountability, and retirement planning for local clients.

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For pre-retirees and retirees in Kentucky searching for personalized investment management, understanding the “why” behind your financial advisor matters just as much as the “how.” In this special episode of The Financial Hour of The Tom Dupree Show, Tom Dupree Jr. and Mike Johnson share the founding story of Dupree Financial Group—a journey that began with a simple walk in the woods near Natural Bridge in Kentucky in February 2002 and evolved into a comprehensive wealth management approach designed specifically for Lexington-area retirement investors.

The Origin Story: From Brokerage Dissatisfaction to Independent Registered Investment Advisor

Tom Dupree recalls the pivotal moment that sparked the creation of Dupree Financial Group. Walking through the woods with his young son James on his shoulders, he realized the traditional brokerage firm model wasn’t aligned with the future he envisioned for his family and clients.

“I got this joy, this excitement in my heart thinking about doing this,” Tom explains. “I was in no position to do it at all. I didn’t have any money. Strangely, my banker approved me for a loan to actually go get the office space and get it fitted up. And that fit-up is still the same fit-up we’re using. We have not changed it.”

The firm officially opened in 2003, but Tom identifies 2010 as the true beginning of Dupree Financial Group as it exists today. That’s when the firm disassociated from an outside brokerage and became an independent Registered Investment Advisor (RIA).

“In 2010, we disassociated ourselves with an outside brokerage firm and became what’s called an RIA, a Registered Investment Advisor, which meant that now we’re not paying 25% of our revenues to an outside firm,” Tom shares. “That enabled us to do a lot more internally, and it really was the beginning of the firm that we know today.”

Key Takeaways: Why Dupree Financial Group Started

• Client-focused mission: Created to serve average retirement investors who wouldn’t necessarily get attention from major brokerage firms
• Cost structure advantage: Lower overhead means smaller accounts receive meaningful attention and personalized service
• Local accountability: Designed specifically to respond to clients in Lexington, Kentucky, and the surrounding region
• Team approach: Built from the ground up to provide collaborative service rather than single-broker relationships
• Independence: Becoming an RIA in 2010 eliminated the pressure to use proprietary products and allowed true fiduciary responsibility

Personalized Investment Management vs. Mass-Market Approaches

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