Closing the Advice Gap

Episode Transcript

Speaker 1 (00:03):
Thirteen ten, do Wiba and ask the experts, Joined this
morning by the team from Wisconsin Capital Management, Tom Plumb
and Nathan Plumb. Of course they do come to us
from Wisconsin Capital Management. If you haven't had a chance
to check out the website, I definitely urge you to
head on over there whizcap dot com. That's wis cap.
That's wis Cap whizcap dot com. There you can learn

(00:27):
more about Wisconsin Capital Management. You can schedule an appointments.
You can also get to know Tom, Nathan and the
whole team there. Again, that all available to you at
Wisconsincapitolmanagement dot com. Be talking this week, primarily with Nathan.
We're going to get into the advice gap, what that means,
all the different aspects of it, and of course get
into the missing middle as part of that conversation. Before
we get to that point, though, Tom, real quick, one

(00:49):
of the things I've loved doing with you the past
few weeks is kind of getting a review of our
previous programs. We've been at this a little bit over
about a month or two. It's been so informative and
so great. We've covered lot of ground, haven't we.

Speaker 2 (01:00):
Tom?

Speaker 3 (01:01):
Oh sure, I have Sean now. We talked about how
individual investments should be tailored for personal cash needs, long
term planning. We talked about the purchasing power of compounding
and protecting against inflation. We've talked about some of the
myths of portfolio construction that we felt we wanted to

(01:25):
address and make sure that people understood. And we talked
about stocks, bonds, real estate insurance products. We've also even
last week, we talked a little bit about the economic
environment and how the new tax laws will affect us.
But we've covered a lot of ground, Sean.

Speaker 1 (01:42):
That is for sure. And one of the great things
about doing the show each and every week not only
get you get to learn more, but you can also
listen back to the program if you head on over
to wiz cap dot com. That's wiscap dot com. You
listen to the podcast there, also at WIBA dot com
all the popular podcast platforms as well. I'm pretty sure
you can even ask your smart speaker to play Ask

(02:03):
the experts with Wisconsin Capital Management should play that there
as well. Again, a lot of great information on all
the programs here and ask the experts with Wisconsin Capital
Management and Tom. One of the things that's really cool
is getting a chance to learn about you and some
of the great things that you've done, not only what
you're doing right now, but also some of the really
cool things you've been able to accomplish. And one of
the areas that I know you work really hard at

(02:25):
and have worked very hard at, is working with high
net individuals and those portfolios. People think, well, there's a
lot of money, there must be really simple. Those things
can get quite complex, can't they, tom.

Speaker 3 (02:37):
Oh, they certainly can. Sean and twenty five years ago
I founded the third state charted trust company in the
state of Wisconsin that was devoted to primarily working with individuals, families, foundations,
and going through generations of some of the most complex

(02:59):
financial plan that you could have. And of course that
type of product is appropriate when people have significant assets
and are looking at generational wealth and how to protect
it and how to keep their families from fighting and
other issues that might come up, and as well as

(03:19):
reducing what the text laws will take from your family
as you pass generational wealth from one group to the next.
But you know, those are our areas that we've got
a significant understanding and worked with some of the best
financial planners and financial advisors, attorneys and accountants here in

(03:41):
the Midwest, but that is not always applicable for everybody's
personal situation.

Speaker 1 (03:48):
You know, it's interesting when Tom, when you talk about,
you know, some of the kind of preventing some of
the debate and discussion. I think, you know a lot
of times think, well, we're all family. Everything should be good,
Everything should should be real simple to to kind of
figure this stuff all out. Anyone that's ever taken mom
or dad, or mom and dad out for dinner, maybe
for an anniversary or a birthday can see how a
siblings you tend to squabble about who's ultimately going to

(04:10):
get the bill. Now imagine that times millions. I mean,
we're suddenly at that point saying listen, it can happen
to anyone. Everybody has best intentions, but importance of having
a really good plan in place can really avoid that,
can't it.

Speaker 3 (04:23):
And Sean, you know, it's not just your net worth
that it determines that some of the problems that we've
a dressed through complex financial plans maybe can be addressed
with less complex plans. But individuals and families all have
similar goals and it's just really what vehicles and how
you can help them in meeting their financial goals.

Speaker 1 (04:45):
Talking this morning with Tom Plump, certified financial analyst with
Wisconsin Capital Management Nathan Plumb along as well. This morning,
this is asked the experts with Wisconsin Capital Management online
wiz cap dot com. That's wiscap dot com and Nathan.
I learned a new new term this morning, the advice gap.
What is this? This is something that you're really passionate

(05:07):
about and and something you really want to bring to
the forefront today, isn't it.

Speaker 2 (05:11):
Yeah, it's kind of a segue that we went to
with our last about how financial advisors get paid. So again,
just to sum that up, you if they roughly charge
one percent of what they have per year, that would
be what you're paying the financial advisor. So just laying
that out an example, So, if you have a million
dollars in your portfolio, the financial advisor in the back

(05:33):
of his mind's hoping to get roughly ten thousand dollars, right,
But what if you only have one thousand dollars right?
So that means the financial advisor gets one dollar a year.
And often if you go to a financial advisor, they
have investment minimums, and I've seen these, you know, range
all across the board. So half a million dollars eight

(05:54):
hundred thousand, a million dollars minimum just to come in
the door, just to talk to a finance advisor. And
so a lot of people don't have that money right
now or don't have it yet. And this is what
I call the advice gap. And I think this is
a hole in the market that I would like to
address with you today.

Speaker 1 (06:14):
We're going to get into the advice gap, which is
a really important area and really great that Tom's Nathan,
excuse me, pardon me, Nathan bringing to light this morning.
So when you talk about that stuff, it's one of
those areas, you know, and human nature is human nature oftentimes,
which is Listen, if if I've got one person that
I'm going to get the potential to make a dollar
off of, or I've got another person that I've got

(06:35):
a potential to make a million dollars off, you know,
I consider myself to be a fantastic person. The reality
is probably gonna gonna focus more on the one million
dollar than the one dollar person. So what exactly when
it comes to that stuff, what is kind of the
way to level that playing field or help close that gap.

Speaker 2 (06:55):
Yeah, so the cap is so again, if you don't
have a lot of money, that's great, and then they
kind of reject you. Also, there's a lot of like
you know, technologies try to address this gap, and they
have a lot of like robo apps and do it
yourself type stuff out there. But you know that's good
if you're really starting and you know, just just get

(07:15):
your foot in the door. And so they all have
their place, but there's a lot of people in between.
So you know, families, you've worked hard, you manage to
save you know, five ten thousand, fifty thousand dollars, you're
looking for some guidance and yeah, you're off and told
you don't meet our minimums, and then they just it
kind of freezes you. You're kind of embarrassed. You're like, well,

(07:37):
I can't ask another and financial they might the same thing.
So you just kind of get rejected. And these are
the people that often need the most help because they're
in an inflection point where, you know where you could
really make a difference if you got the right advice.

Speaker 1 (07:51):
And I know you you use the term the missing middle,
and let's kind of get a little bit more into that.
As you've been touching on on there in the past,
there are these people that are that are kind of overlooked. Again,
high earners, as we've talked about obviously are going to
get a lot of attention. Those folks who just simply
aren't there yet, they're not necessarily a need of the attention.
What about that missing middle and let's talk about how

(08:11):
those folks should be addressed and a little bit of
understanding of how they're able to be helped and kind
of progress along.

Speaker 2 (08:20):
Yeah. So what we're especially with Wisconsin Capital Management, is
that we have almost a dual mandate, so we can
handle people with high network people. We can give you
white club service like all the big players do, but
we have something very unique. We also have proprietary mutual funds.
And that means that if for a thousand dollars minimum

(08:42):
that we can give you advice and we can place you,
We can work with you that way and just give
you the right direction and right start, and you still
have access to us and our investment expertise through our
proprietary mutual funds. And it is a way too. It

(09:03):
makes a huge difference for those people. So you don't
want to. You just cannot be left behind. So you
just getting enough advice just to gid in the right
direction and hopefully improve your net worth. So that is
the gap, and that's the you know, that's why we
we do what we do. We want to help as
many as people as we can.

Speaker 1 (09:22):
Talking this morning with Nathan Plumb and Tom Plumb of
Wisconsin Capital Management, this is was I asked the experts
with Wisconsin Capital Management right here on thirteen ten Wi
b A. Hope we get a chance to check out
the website whizcap dot com. That's wis cap dot com.
Great website resource to learn about Nathan, Tom and the
whole team at Wisconsin Capital Management. Even better, great opportunity

(09:44):
there to make an appointment to get to know the
folks at Wisconsin Capital Management again. Their website whiz cap
dot com. That's wis cap dot com. You heard Nathan
mention a one thout mentioned a one thousand dollars minimum.
I want to get into that a little bit, get
some of the details from Nathan and Tom. We will
do that. Has asked the experts with Wisconsin Capital Management.
Continues right here on thirteen ten Wi b A. Thirteen

(10:14):
ten Wi b A and ask the experts with Wisconsin
Capital Management. The website whizcap dot com. That's wiscap dot com.
Heading into the office this morning, I urge you when
you get there, log onto the computer, go to wizcap
dot com. Of course you've got a smartphone as well,
you can access the website anytime. That's wiscap dot com.
Don't forget. Also, if you miss any part today's show,

(10:36):
I know we started off the program this week reviewing
some of the previous programs as well. There's always a
lot of great information. It's definitely worth your time to
head on over to wizcap dot com. Also, while you're
there and get to know Nathan and Tom and the
whole team at Wisconsin Capital Management and set up an
appointment right online. Again the website whizcap dot com. That's
wis cap dot com. Talking that last see with a

(10:57):
little bit about for folks in the missing middle and
some of those proprietary funds with Wisconsin Capital Management and Nathan,
one of the things I love is analogies, and you
did a really nice job, and we've got to bring
it here to everybody because we're talking during the break
about it really nice job of kind of comparing it
to flying. Let's talk a little bit about that analogy, Nathan.

Speaker 2 (11:18):
Yeah, a nice analogy is thinking of flying on airline, right,
So obviously the first class gets a champagne and the
best service, and everyone you know aspires to be there.
The budget economy, you know, is fine if you're just
taking a short trip. But again, you know, even if
you're sixty years old, you still got hopefully another thirty

(11:40):
years in front of you. So my retirement is the
long game, right, So taking a short trip on these
budget apps is you know, maybe a little bit uncomfortable,
a little bit of a mismatch, right, But the majority
of people want something in between, right, a safe seat,
a clear path, and just someone guiding them along the way.
So that's why I like the airline analogy. And so

(12:05):
you know, for this missing metal, but we do, especially
at Wisconsin Kepitel Management, is that we have proprietary I
mean you show funds that are no load again that
means no commission or no sales charge attached to them.
And then also they also had the same stocks and
same bonds as they do for our high net worth.
So again you're getting access to us for a a

(12:30):
you know, at a you know, at a decent entry point,
and you can still get service that's almost as great
as the first class.

Speaker 1 (12:37):
That is really amazing. As we talked this morning with
Nathan Plumb and Tom Plum with Wisconsin Capital Management Online
wiz cap dot com. That's Wi s c ap dot
com and it's really it's it's a well illustrated that
advice gap there. And and Nathan, you had mentioned the
one thousand dollars minimum. Let's talk about that. Why the
one thousand dollars minimum? And did I hear you right

(12:58):
when you were talking about that in the last segment.

Speaker 2 (13:01):
Yeah, So yeah, it's not a million, it's not one
hundred thousand, and it's not even ten thousand. So our
reprim mutual funds are minimums one thousand dollars. And so
with that minimum, we feel we can work with mostly everybody.
You get access to real advice and not an app.
And you know, we have access to us. I say,

(13:23):
you can't get the white clothes service says you know,
so the high networth, but maybe you don't need all
the belts and whistles like that, and you can be
very well serviced through us.

Speaker 1 (13:32):
You know, Nathan, one of the things I think of is,
you know, we talk about about just a one thousand
dollars minimum, we're talking about the kind of money you know,
for a lot of folks that a little bit more
just kind of sitting and savings, savings oftentimes not really
doing a whole heck of a lot. What a great,
great opportunity for folks to kind of get on that
entry away for folks that also may feel like like

(13:53):
some of this stuff is passing them by, why not
start that relationship. It's it's a really really you know,
we talk about the the bar for entry. That's a
that's a really easy hurdle to cover, isn't it.

Speaker 2 (14:06):
Yeah, it's also a cover of psychological If you could
save one thousand, you're proving that to us that you actually,
you know, you're disciplined and if you're not nowhere to start,
but it's about where you're being headed.

Speaker 3 (14:17):
Right.

Speaker 2 (14:18):
So again with the power compoundings, my dad said, hopefully
we'll double that money every hopefully every seven point two years.
So and then you know a lot of people had
these you know, have money sitting old for one ks
and you know they're below people's minimums, and we're very
happy to help you roll over and you know, do
the same thing for you. So it just doesn't have

(14:39):
to be you know, money that you have just sitting
in your savings.

Speaker 1 (14:42):
I was gonna ask you anything we mentioned about this
old four h one k is that you know? I
think of the first job I ever had just out
of high school, between high school and college, took a
summer job. It was full time, it offered a four
oh one K and out of the blue, I remember
getting a piece of mail, like a big thick it
almost looked like a phone book size thing, and said,
where is from someone? Some financial management? What is this stuff?

(15:05):
And it turned out I had had an old four
oh one K and they I don't know if they
obligated you probably know this stuff, obligated to send that
stuff to me ever so often. But I'm like, wow,
that's amazing. Do you come across a lot of people
that are like, got a few thousand here, a couple
thousand there that are just sitting in old four h
one k's that they just kind of recently discover.

Speaker 2 (15:22):
Yeah, that is not an unusual story at all. So
you know a lot of people have moved jobs, especially
when they're younger in life and they just kind of
forgot about them. Right you started, and you only maybe
work for all in the company for a short time,
but you know, those assets are still very, very bad valuable.
So you're like, oh, it's not enough money to deal with,

(15:45):
or's temendmous in your mind, Like to us, that's a
lot of money. That's money that could be really part
of your retirement future. So you know, it's still something
that you kind of look at. I mean, it doesn't
doesn't bender where you begin the journey when you're talking financially,
it just depends where you end. So, yeah, helping with
those little old four one k's that you don't know

(16:07):
what to do with, Yeah, we can definitely help you
and give you advice.

Speaker 1 (16:10):
And Nathan, as we kind of take it down the
home stretch, let's talk a little bit about kind of
put a nice bow on all of this and talk
about about Wisconsin Capital Management and really and really what
it is that you're hoping to see for folks.

Speaker 2 (16:24):
Yeah, just to kind of summarize what I'm saying, So
you know, Wall Street don't let Wall Street minimums kind
of keep you on the sidelines like you are important.
Your finances are important. You kind of know that they are,
but you just really don't know what to do. So
there's a different kind of inertia calling you back. You know,
we in Wisconsin Capital we exist to serve you know,

(16:47):
you know, people in the middle and with high net
worth and when you get the same vertically integrated so
you know, if you're working and saving and want to
build a future, we'd be very happy to work with you.

Speaker 1 (16:58):
It's a great day to start that conversation. I mentioned
the website wizcap dot com. That's wys cap dot com.
Back in the old days, everyone say what's your number.
One of the great things about websites is they're memorable,
phone numbers, contact information, everything. It's a great resource. Wizcap
dot com. That's wi scap dot com. Again, that's whiz
cap dot com. It's no Tom Nathan, the whole crew

(17:20):
at Wisconsin Capital Management also learn more about them. And
before we wrap, Tom, real quick, I started off this
week's conversation talking a little bit about some of the
folks you've worked with, and real quick, just a little
bit about for folks that don't know about Wisconsin Capital Management.
A little bit about your history, and it's it's a
fantastic story of what caused you sit to say, you

(17:41):
know what, I'm gonna do something, just do something. I'm
gonna use, you know, kind of this powerful experience I
have to really help regular folks. And it's it's a
really great story as to how you started Wisconsin Capital Management.

Speaker 3 (17:53):
We started thanks Sean when we started wiscons Capital Management
over forty years ago, and the intent was to be
able to independently provide the types of services that we
wish that other people who are dear to us were
available and available to themselves. So we started that company.

(18:15):
We started the mutual Fund Families, our first one in
nineteen eighty seven, and the intent there was to be
able to provide the same type of investment management service
for people of all different walks of life, no matter
how much money that they had. We started a trust
company twenty five years ago primarily to help people with

(18:38):
generational wealth transfer to work through people who had different problems.
Maybe they had children that needed special attention. There's a
lot of different ways that we felt that we could
apply our investment analysis and portfolio management to help people

(18:59):
in this community. So We're very proud of the fact
that we've been doing it for a long time, and
we believe that we've done it by being fiduciaries and
putting our clients first.

Speaker 1 (19:10):
Great data close that gap, a great data, get going.
Great day to start that conversation with Tom and Nathan
at Wisconsin Capital Management Again. It all starts to stop
at the website whizcap dot com. That's wiscap dot com.
Get set up an appointment right there online again you
can get to know Tom, Nathan and everyone at Wisconsin
Capital Management all on the website whizcap dot com. That's

(19:31):
wiscap dot com. Nathan, Tom, it's great chatting with both
of you, guys. Enjoy this beautiful day and we'll talk
real soon. News comes your way next right here on
thirteen ten wib A