John Nelson has a mantra: “Know what you own. Know why you own it. And know what you’re paying for it.”
Sounds simple. But even in a financially savvy town like Westport, there are plenty of people who may not have clear insights into their portfolios.
Many are women, in the baby boom generation. Which is why Nelson and his financial services partner, Stacy Thomson, work closely with that cohort at their E3 Wealth Advisory Group, in the Wright Street building overlooking downtown.
Those 3 E’s stand for “Engage, Educate, Empower.” It’s telling that the pair — who are affiliated with Stifel, a 135-year-old St. Louis-based firm — did not name their company the traditional wealth management way: after themselves.
“Every firm uses last names. But that means nothing,” Nelson explains.
“They’re middle-aged white men in suits who say, ‘Trust us. We’ll take care of it.'”
Stacy Thomson
“That’s so old-school,” Thomson adds. Clients need “empathy, education, the ability to understand their finances. That has nothing to do with a man behind a curtain.”
They lack that “trust us, we know what’s right for you” mentality, because wealth advisory is not their first careers.
Nelson spent 20 years as a pilot and intelligence officer in the Marine Corps, and 10 more as a United Airlines 767 pilot.
Thomson had a 20-year career in marketing and advertising agencies, with clients like Nestle and Unilever. She joined Nelson — a long-time friend — with the intention of “fixing the (financial services) brand.” As an outsider — and a woman — she wanted to “break the mold” of what clients expect.
The advisors say that the much-ballyhooed “great wealth transfer” from boomers to the next generation is not what it seems.
In fact, Nelson notes, the first transfer is often from a man to his wife, since women generally outlive their husbands. Boomer women are expected to receive $30 trillion in assets by 2030.
“They have sophisticated needs: attorneys, CPAs, caregivers,” Nelson says. “The first thing we try to do is educate them. We don’t sell products.”
One client — a 65-year-old artist, whose husband had dementia — felt stressed, because their advisor had never talked to her. She had no idea how to locate any documents.
John Nelson
Nelson worked with her to find an appropriate assisted iving facility, where her husband could receive the care he needed. Nelson helped her negotiate the rates, and executed her long-term care policy.
Another group targeted by Nelson and Thomson is 40- to 65-year-olds. They may have a parent to take care of, along with their own children. That “sandwich generation” includes younger boomers, GenXers and millennials.
“They’re paying bills for their parents, who forget passwords, can’t find their wills. have 5 different bank, with safe deposit boxes,” Thomson says.
“Meanwhile, they’re looking at college tuitions for their kids — and maybe even still paying off their own student loans. There’s a lot going on.”
One other reason for stress: People in this area spend a lot of time making a lot of money. But they may not have a lot of time to take care of it.
So John Nelson and Stacy Thomson engage. They empower. They educate.
And they help clients understand what they own, why they own it, and what they’re paying for it.
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