Ep 2 - Evolution of Wealth Management: From Customer’s Man to Behavioral Counselor With Harvey Radler

Welcome to the Crazy Wealthy Podcast, hosted by Jonathan Blau, CEO of Fusion Family Wealth. In this episode, Jonathan welcomes his first official guest, Harvey Radler, a close friend for over three decades and a seasoned investment and wealth management expert for over five decades. Together, they dive into Harvey's extensive background, the impact of early commission-based sales tactics, and the challenges of the industry’s shift to fee-based, client-centered models. From the infamous Bernie Madoff story to insights on market uncertainty, Harvey provides knowledge on navigating the complexities of today’s financial markets and the importance of staying the course.

IN THIS EPISODE:

• [5:34] Harvey Radler shares his background and history of selling stock
• [11:34] The Bernie Madoff story
• [15:36] Converting to commission-based fees
• [19:57] Buying investments to lose money
• [23:44] Certainty is not available in financial markets 
• [31:10] Sticking to your plan

KEY TAKEAWAYS:

• Aggressive sales tactics in early stock trading spurred the creation of mutual funds for centralized management, benefiting tax-deferred pensions but causing tax issues for individual investors, leading to the development of SMAs and tax-efficient index funds like the S&P 500. Despite these advancements, investors remain susceptible to emotional biases like fear and greed, often leading to poor decisions.
• The shift from commission-based to fee-based and discretionary accounts marked a major change in the investment industry, aligning advisors' interests with their client's interests by charging a percentage fee based on assets rather than individual trades. This model encouraged advisors to prioritize clients' long-term success as fees increased with portfolio growth. 
• Certainty in financial markets is an illusion driven by claims of predictive expertise through forecasts, stock analysis, and fund managers. Despite assurances, consistent outperformance and market timing remain elusive, often causing investors to overreact instead of gaining clarity.

GUEST BIOGRAPHY: 

Harvey, Managing Director of Fusion Family Wealth, brings over 60 years of investment expertise to the firm, where he also serves as vice-chair of the investment committee. He and Jonathan Blau co-founded the Blau Radler Group in 2000. Harvey’s career includes roles at Wertheim & Co./Schroders, Prudential Securities, Sanford Bernstein, and Morgan Stanley, and he served on the NYSE disciplinary panel for 25 years. A Wharton School graduate, Harvey’s deep industry experience continues to benefit Fusion’s clients.

ABOUT THE HOST: Jonathan is the President and CEO of Fusion Family Wealth, founded in 2013 to focus on behavioral finance and guide clients toward rational financial decisions. A sought-after speaker in wealth management, Jonathan previously held senior roles in tax and estate planning at Arthur Andersen. He has a BS in Finance, an MS in Taxation, and an MBA in Accounting. Based on Long Island, Jonathan is active in the local business community, supports causes like the Middle Market Alliance and Sunrise Day Camp, and enjoys boating with his family.

RESOURCE LINKS 

Fusion Family Wealth - Website

Jonathan Blau - LinkedIn