Trailhead Wealth Management, LLC

Video: Tips for the Trail – Preparing Heirs for their Inheritance

(cheerful music)
On-screen text: Tips for the Trail, Bryan Pieper & Greg Stringari from Trailhead Wealth Management,
LLC.

On-screen images: A photo of Bryan and Greg appears alongside this text.

On-screen text: Tips for the Trail logo, Ryan Ruff, Host
On-screen video: Ryan Ruff

Ryan Ruff VO: Hello, and welcome back. Good to see you again. We thank you for joining us for our second episode of Tips for the Trail. I’m your host Ryan Ruff, and in a few minutes, I’ll be joined by really the stars of our show, and that’s the co-founders of Trailhead Wealth Management, Pipes and String, or Bryan Pieper and Greg Stringari.

Ryan Ruff VO: Again, hey, we thank you for joining us. You know, in our last episode our inaugural episode at that, Pipes, String, and I sat down to identify, you know, what makes a good wealth manager, a great wealth manager? In today’s climate, you know, there are so many financial advisors or wealth managers out there with all the financial acumen you could ask for, but really it comes down to a little bit of a hidden element that should be really finding its way into a lot of the conversations with clients. Pipes and String shed some light on that for us, and it really, it’s the human element that comes into play. So if that’s a topic that interests you, and maybe you didn’t have a chance to catch us on the first episode, feel free. Go on back and watch us, listen to it on whatever platform you can find us on. And it’d be great to have you aboard.

Ryan Ruff VO: So, but hey, for this episode, we’ve got a little bit of a different topic for you today. And I think I’m gonna lead off with this topic by starting with a question. Are you and your heirs ready for that level of inheritance to come through? Are they ready to handle that level of wealth coming through? You know, we find in some instances they’re not, and this situation can lend itself to some hazardous conditions for the wealth itself, but also the heir’s health. This can sometimes be a sticky situation and a tough one to navigate. So luckily we’ve got Pipes and String to lean on for some guidance in this case. So let’s bring them aboard.

On-screen video: Bryan Pieper and Greg Stringari both appear on screen next to Ryan Ruff from their own video streams. In order from left to right, Ryan, Bryan, and Greg. Both Bryan and Greg are smiling. On-screen text: Ryan Ruff, Host; Bryan Pieper, Partner, Trailhead Wealth Management; Greg Stringari, Partner, Trailhead Wealth Management

Ryan Ruff VO: Pipes, String, great to see you guys, great to have you aboard, welcome back to the show.

Greg Stringari VO: Oh, thanks Ryan, thanks for having us. It’s always a fun time.

Bryan Pieper VO: Great to be back, thanks, Ryan.

Greg nods as Ryan introduces the topic
Ryan Ruff VO: Our topic today is one that I think most people are familiar with, and that’s the idea of an inheritance. Maybe you’ve been a beneficiary of it, maybe you haven’t, but either way it can lend itself to some interesting variables.

Both Bryan and Greg nod emphatically with raise eyebrows

Ryan Ruff VO: So first and foremost is, you know, inheritances are big deals for people. You know, this can be a lot of money in some of these instances, a lot of assets that can be life-changing for an individual or several individuals, overnight, just like that. But the process of inheritances can be a little bit of a double-edged sword.

Bryan nods multiple times and appears eager to begin his response Ryan Ruff VO: So can you guys kind of start today’s episode off by talking about why this can be a little bit of that double-edged sword for us?

On-screen video: Ryan Ruff alone

Greg Stringari VO: Oh, for sure, Ryan. You know, inheriting money comes with plenty of benefits

On-screen video: Greg Stringari sitting alone with a bookcase behind him

Greg Stringari VO: and drawbacks for sure. And you know, one of the examples that we’re gonna talk about today is grandma and grandpa decide they want to leave a nest egg for either their kids or their grandkids. And they want to help them, maybe help them get through college, maybe give them college tuition that’ll help them get off to the right start, or maybe a down payment to it to a new home that will help them do that. And if that’s communicated properly, that’s great.

Greg shrugs as he shares this insight
Greg Stringari VO: But you know, and 95% of the time, that may work. But there’s always that time where that nice chunk of inheritance comes down and it ends up going into a red Ferrari that grandma or grandpa had no intention of getting for, but it actually happened that way. Or they take a trip around the world. So that communication is extremely important.

Greg uses his hands to gesture receiving by bringing his hands into his chest
Greg Stringari VO: And on the other side, inheriting the money, being the person that is getting the money, it’s not a worry-free life from there on out.

On-screen video: Bryan Pieper (on the left) and Greg Stringari (on the right)
Bryan nods multiple times in agreement with Greg’s statement
Greg Stringari VO: There are still all kinds of both internal and external challenges that they’re going to face.

On-screen video: Ryan Ruff (left), Bryan Pieper (middle), and Greg Stringari (right).
Ryan Ruff VO: Right, so when it comes to these challenges, guys, what exactly are we talking about?

Bryan nodding
Ryan Ruff VO: Because there can be a lot of them, I would imagine. So could you dive into a little bit of this?

On-screen video: Bryan Pieper
Bryan Pieper VO: Yeah, I’ll take this one, Ryan. Greg mentioned it, the internal versus the external. I’m fond of so many different expressions that are guiding lights in our life, if you will. And gift is a four letter word. Debt is a four letter word. And it would seem that these two don’t go hand in hand, but emotionally they very commonly do. The person who receives that very generous gift can feel indebted, they can feel undeserving, unworthy, and frankly they can struggle with how are they perceived now by those around them that know of this gift? So that would be an example of the external piece. Internally adjusting to a completely different lifestyle, depending on the size of the wealth, it takes quite a bit of an adjustment period

On-screen video: Ryan Ruff (left), Bryan Pieper (middle), and Greg Stringari (right).
Ryan Ruff VO: Ryan: All right, guys. So in these instances, you know, what are you seeing the extremely successful families doing or sometimes maybe even not doing, in cases like these when it comes to passing on their level of wealth?

On-screen video: Greg Stringari

Greg Stringari VO: Well, we’re fortunate enough to be able to see a lot of these things work. And so we have clients that are constantly, you know, passing down money to the second generation. So we see the good side of that and we see what works, and we try to use that as kind of a roadmap to mimic so we know what looks successful. A lot of people sit back and say, you know, the financial matters of inheritance is important, which is, number one, “I want to try to get my estate down. I don’t want to have to pay estate taxes. So I’m gonna do some gifting for that purpose.” And that’s extremely important, setting up trusts, setting up estate planning goals for you. The key thing here is the communication between the the grandma and grandpa or the mom and dad that’s going to pass the money down to communicate to them that this is coming versus the shock that all of a sudden, “Mom and dad had just given me an inheritance of X dollars amount,” and they don’t know what to do with that. So the communication, as you can see, is going to be extremely important in answering that.

On-screen video: Ryan Ruff
Ryan Ruff VO: Sure, so let me ask you this, guys. Where do you begin? You know, if you were the parent looking at your kids, knowing that you’re gonna pass wealth down to them, where do you begin with trying to foster financial intelligence among those heirs that one day will inherit this level of wealth? Where do you begin with that?

On-screen video: Bryan Pieper
Bryan Pieper VO: Yeah, great question, Ryan. So another guiding principle for us is no one plans to fail. They fail to plan. So just as we do from a wealth management perspective, we like to bring that concept to the families, and the most successful situations we can think of from our actual experiences, we’ve had several sessions where we bring in the matriarch and patriarch and then generation two and generation three, and we sit around the table.

Bryan smiles
Bryan Pieper VO: Sometimes, we’ll facilitate that with some good food and drink and make it more of a conversation than a business-like meeting. But you do want to have those conversations. You do want to get together so that we can at least start preparing, letting the matriarch and patriarch talk about the values, what’s important to them, what has served them well through the years, and at least start the path for how this is going to go.

On-screen video: Ryan Ruff (left) and Bryan Pieper (right)

Ryan Ruff VO: Right, it sounds like communication plays a massive role in this, guys. You know, just starting that dialogue, making sure everybody’s on a level playing field in terms of the understanding that needs to be had among everyone at play. So let me ask you this then.

On-screen video: Ryan Ruff (left), Bryan Pieper (middle), and Greg Stringari (right).
On-screen text: Ryan Ruff, Host; Bryan Pieper, Partner, Trailhead Wealth Management; Greg Stringari, Partner, Trailhead Wealth Management

Ryan Ruff VO: When you’re going through this process and you’re beginning these conversations, you know, I feel like a good place to start is getting a good idea of your heirs’ current views on wealth as a whole, and then their current abilities for dealing with wealth of their own.

Bryan and Greg nod periodically in agreement with Ryan’s discourse
Ryan Ruff VO: Maybe they’ve got a part-time job. Maybe they are working full time. You know, just getting a sense of how they manage money and then maybe utilizing that information and leveraging that into the steps and the conversations to educate them about what is coming on the heir side. And am I right in saying that, you know, one informs the other of that conversation?

On-screen video: Bryan Pieper
Bryan Pieper VO: Yeah, absolutely. I think we, we like to start by reminding everyone that money is simply a tool. It is neither good, nor bad. Yet we all have experiences and a belief system that has been informed by our generations before us. And so we like to start there, and at least dive into and examine, “What is your experience with money? What has it meant to you? What good experiences have you had? What bad experiences have you had?” You know, unfortunately today, a lot of popular media has frankly villainized wealth.

Bryan smiles as he continues this statement
Bryan Pieper VO: And so the emotional baggage that comes along with that needs to be examined, dissected, educated, informed, all of those things. I think that’s the most shocking piece around this when we step back and just put that question on the table with all generations, “What is your experience with money?”

On-screen video: Bryan Pieper (left) and Greg Stringari (right), briefly before adding Ryan Ruff back to the video; Ryan Ruff (left), Bryan Pieper (middle), and Greg Stringari (right).

Ryan Ruff VO: Sure, you know, I can imagine, it’s like we had mentioned at the top of the call, it’s a lifechanging moment that happens and there’s so much realization that comes into play that you’ve got to just come to grips with, how your life’s gonna change and how this is gonna benefit or take away from certain avenues of your life. There’s just so much to consider. Obviously a daunting conversation to have, but one that’s got to start somewhere. You know, you’ve got to be able to get your mind wrapped around about all the things that are going to change with this. So let me ask you this, guys. Once you’re going through this process, is there an approach to educating heirs on the idea of inheritance that might be more appealing and will resonate better with them ultimately, you know, with those potential inheritors?

On-screen video: Greg Stringari

Greg Stringari VO: Yeah, great. You know, I think, again, fortunate enough to go through this process. We think, we start with the big picture for most people, and especially at the beginning, because sometimes, you know, they’re young kids, they’re still in high school or they might be in college. And so it’s a process. And getting to know them and understanding that once this relationship starts to build and we start gaining each other’s trust, then we would surround them with what we call a virtual family office, maybe some CPAs, some attorneys that can help them and guide them down that right path. And obviously us as wealth managers will help them invest their money and use it wisely. I would say, I’m gonna use, John and Susie get an inheritance, for example. What happens a lot of times, especially to the younger generation, is that 95% of the time this money comes in and somebody knows about it somewhat. And so their buddy says, “Oh, hey Johnny, I hear you got this inheritance. Here’s what we should do with this money. We need to go open up this business. We need to invest in this and we need to invest in that.”

Greg extends his arm out as if he is blocking something, similar to the well-known Heisman pose On-screen video: Ryan Ruff (left) and Greg Stringari (right)
Greg Stringari VO: So our job is to kind of Heisman, if you will, the pretenders or the people that think they know what they’re doing, and that’s what we try to do with all of our inheritors, for sure.

On-screen video: Bryan Pieper (left), Ryan Ruff (middle), and Greg Stringari (right) Bryan is nodding with raise eyebrows; Greg is smiling with raise eyebrows

Ryan Ruff VO: Yeah, I can imagine, you know, the people are coming out of the woodwork now that now that you know Sally and John have access to the money. So that can always be an interesting variable at play as well that I’m sure you guys have seen in your your instances of working with a variety of clients on this matter. But, you know, in terms of this idea of preparing your heirs for inheritance, is there anything else that family matriarchs or patriarchs should be thinking about when it comes to preparing them?

On-screen video: Bryan Pieper (left) and Greg Stringari (right)

On-screen text: Bryan Pieper, Partner, Trailhead Wealth Management; Greg Stringari, Partner, Trailhead Wealth Management

Bryan Pieper VO: You know, I think that the best experiences we’ve seen have all started during lifetime. Greg’s mentioned this a couple of time. You may or may not be surprised by how many people inherit money that had no idea it was coming. So we really do believe in starting now. It can be an awkward conversation, no doubt. I think that’s one of the things we pride ourselves on is we don’t view it that way. We view it as a great opportunity to pass on values and share experiences and make it an unbelievable event of significance instead of some sort of new debt or new burden. So yeah, I know I’m repeating myself, but starting sooner rather than later. Another really unique thing we’ve seen happen is with philanthropy.

On-screen video: Bryan Pieper

Bryan Pieper VO: So a lot of matriarchs and patriarchs will set up things like a donor-advised fund, for instance. And with that, they’re able to bring in the next generations, plural, to start talking about what’s important to the matriarch and patriarch, giving back to their community. The causes really aren’t that important necessarily, but what’s really been some of the coolest things we’ve ever seen is when grandma and grandpa, I’m sorry to stereotype here, but grandma and grandpa will give the grandchildren a certain allowance or budget, if you will, of, “Hey, here’s 5000, 10,000,” whatever the number is, “Why don’t you come back to us and present your business case for why we should either endow this organization or give a gift?” That little life lesson is really powerful when it’s done intergenerationally.

Bryan smiles with pride as he reminisces about past clients

Bryan Pieper VO: I’m getting goosebumps thinking about an actual family that’s done this. It really leaves a long lasting impression on everyone. And again, it takes that burden of money and puts it into a positive light.

On-screen video: Ryan Ruff (left) and Bryan Pieper (right)

Ryan Ruff VO: Sure Pipes, you hit the nail on the head. It’s a life lesson, and that’s really an opportunity to teach a younger generation a great deal about one avenue, if you will, of managing this wealth. And then it gets them thinking down the road in terms of the inheritance and what could be coming. It is a great learning opportunity for anyone sitting around listening, watching this right now. You know, that’s a little nugget of information you can certainly take away from today’s talk. And let’s be clear guys, I know we’re talking about the super affluent or super wealthy families in the majority of our conversations here on Tips for the Trail.

On-screen video: Ryan Ruff (left), Bryan Pieper (middle), and Greg Stringari (right) Bryan and Greg nodding emphatically

Ryan Ruff VO: But in this instance, when it comes to inheritance, you know, it doesn’t have to be inheriting enormous sums for these types of educational efforts to be important and helpful for your children, right? Like there are still opportunities to be educational regardless of the number or the amount of zeros on the end of the check, right?

Bryan nods as Greg begins providing a response. On-screen video: Bryan Pieper (left) and Greg Stringari (right)

Greg Stringari VO: 100%, and thank you so much for saying that because a lot of people viewing this think, “Oh, I don’t have a enough wealth to inherit or to give to people.” And that is not the case, 100%. We have people that sit downand they bring in their grandchildren or their children, and it’s as little as $1,000, starts with $1,000 and 2,000 and 5,000 and 10,000. And these dollars are so important to those people that are passing that down to their second or third generation. And that feeling when we sit there in that room and listen to grandma and grandpa tell them that they’re gonna give them $5,000, and even the grandchildren might get emotional about this. I just, we love that part of it. And it’s not about the dollar amount and the amount that’s being given.

Bryan nods

Greg Stringari VO: It’s the heart, it’s coming from their heart. And it’s the warmth, and it’s just building a value and a culture system in those kids. When we see that, it’s heartwarming to watch that. So whether you’re giving $1,000, or a 100,000 or a million dollars, we treat them all the same, and we truly, truly thank and appreciate everybody that does that.

Bryan Pieper VO: Yeah, it’s hard for a couple of middle-aged guys to be warm and fuzzy about this, but we’ve had the privilege, the benefit, of watching clients do this. And it really, I mean, it motivates us and inspires us too to have these same conversations with our own family, our team here. So it’s one of those ripple in a pond effect, you know? You throw that little pebble and it keeps going.

On-screen video: Ryan Ruff (left), Bryan Pieper (middle), and Greg Stringari (right)

On-screen text: Ryan Ruff, Host; Bryan Pieper, Partner, Trailhead Wealth Management; Greg Stringari, Partner, Trailhead Wealth Management

Ryan Ruff VO: Hey guys, you’re right. This really is a loaded conversation. There’s a lot to unpack within this. So to tie a bow, really, at the end of our conversation for the day surrounding inheritances, who should families turn to to look for help when it comes to educating their heirs and really preparing them for that level of wealth that might be coming one day?

Bryan nods emphatically

Ryan Ruff VO: Who do they turn to?

On-screen video: Bryan Pieper (left) and Greg Stringari (right)

Bryan Pieper VO: Yeah, that’s a good question. I think we tell everyone we talk to about this, start with who you already know. Talk to your wealth advisor, talk to your accountant, your attorney. If you’re not feeling that level of confidence in how that conversation is going, then yeah, obviously seek out others. But it all starts with one simple-I shouldn’t say that, it’s not a simple conversation. It’s an important one. But start there. And look for someone, you know, I think one of the things we have the privilege and benefit, we have experienced 3 plus years each doing this, and what that has translated into is really a courage

Greg nods

Bryan Pieper VO: We have a lot of courage to lovingly nudge our clients into these conversations and really turn their goals into action.

On-screen video: Bryan Pieper

Bryan Pieper VO: You want somebody who is not afraid to be direct, and that’s what we take great pride in.

On-screen video: Bryan Pieper (left) and Greg Stringari (right)

Ryan Ruff VO: String, anything to add to that?

Greg Stringari VO: Yeah, I’ll add onto that. And if there’s one thing that anybody takes away from this, and we’ve said it over and over and over again, it’s the communication. And people think that, “You know, I’ve got this money sitting in this account or I have this house,” and something happens, they pass away and this is gonna roll downstream to their kids or their grandkids, but they didn’t ever have that conversation. And that is a hard conversation to have, but you need to do it. You know, talk to them about what we have, and here’s why we want to give it to you. So that communication, I will say is so important. And if there’s one thing, you know, communicate. And again, communication is great, relationships in wealth, everything. Use it, do it, and-

On-screen video: Ryan Ruff (left), Bryan Pieper (middle), and Greg Stringari (right)

Ryan Ruff VO: Sure, and it makes total sense. No, no, no, feel free to share your thought. I was just gonna say, it makes total sense. You can’t over-communicate when it comes to an issue that is as black and white as the dollar and cents in your account.

Greg Stringari VO: 100%, yeah.

Bryan Pieper VO: Yeah.

Both Bryan and Greg nod.

Ryan Ruff VO: Well guys, thank you so much for kind of diving in to this topic with me today. I know it’s kind of a loaded topic in that, and I’m sure if there are other questions that exist for our audience out there, they can always reach out to you guys in your office. You know, schedule a consultation to talk through some of these questions that they might have, whether it is on the inheritance topic or on our first episode, you know, what makes a good wealth manager or a great one?

Both Bryan and Greg nod emphatically

Ryan Ruff VO: We’re gonna have some more episodes obviously coming for our audience in the future addressing new topics each time. But no, hey guys, thanks again for joining me today. This was a great one.

Greg Stringari VO: Yeah, thank you. And again, Pipes and I always appreciate, and thanks everybody, and we’re always gonna say this. We say this at every meeting, you’ll always hear us say this. You’ve made your wealth, now you have two jobs.

Bryan smiles and nods

On-screen text: Wells Fargo Advisors Financial Network did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The opinions expressed in this report are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request. Wells Fargo Advisors Financial Network & Trailhead Welath management are not a legal or tax advisors. Any estate plan should be reviewed by an attorney who specializes in estate planning and is licensed to practice law in your state. Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Trailhead Wealth Management, LLC is a separate entity from WFAFN.

Greg Stringari VO: One job is to stay healthy, and the next one, make memories.

Ryan Ruff VO: There you go.
Bryan Pieper VO: Thanks everybody.

On-screen video: Ryan Ruff
Ryan Ruff VO: There you go, couldn’t have said it better myself. And we thank you, our audience, for joining us for our second installment of Tips for the Trail. You know, again, if you’d like to benefit from any of the information that you’ve heard in today’s episode, just head on over to Trailhead Wealth Management’s website, Facebook page, you name it, and you’ll be able to find the resources that you’re looking for. So for Pipes and String, I’m Ryan Ruff saying so long, and we thank you again for joining us on today’s edition of Tips for the Trail.
(cheerful music)
On-screen text: Tips for the Trail, Bryan Pieper & Greg Stringari from Trailhead Wealth Management, LLC.
On-screen images: A photo of Bryan and Greg appears alongside this text.

Video: Tips for the Trail – What Makes Good Wealth Managers Great

(cheerful music)

On-screen text: Tips for the Trail, Bryan Pieper & Greg Stringari from Trailhead Wealth Management, LLC.

On-screen images: A photo of Bryan and Greg appears alongside this text.

On-screen video: Ryan Ruff (left), Bryan Pieper (middle), and Greg Stringari (right)
On-screen text: Ryan Ruff, Host; Bryan Pieper, Partner, Trailhead Wealth Management; Greg Stringari, Partner, Trailhead Wealth Management

Ryan Ruff VO: Hello, and welcome to “Tips For The Trail. I’m your host, Ryan Ruff and I’m joined by the stars of our show, “Pipes And String.” That’s Bryan Pieper and Greg Stringari, partners of Trailhead Wealth Management.

Bryan waves hello. Both Bryan and Greg are smiling.

Ryan Ruff VO: Guys, this has been a long time coming. We’re excited to launch this show. Great to have you here. Great to be here. I’m excited to launch it into our inaugural episode of “Tips For The Trail.

Greg Stringari VO: Ryan, thanks for having us. We’re excited to get to start it and we appreciate the time.
Bryan Pieper VO: Yea, thanks bud. Appreciate it.

Ryan Ruff VO: Yeah, yeah. So just to give a little bit of a background for our audience and our listeners, you know, financial topics, man, they can be complex sometimes. And people don’t wanna be bogged down by the financial jargon and the literacy. They want results. They wanna talk to somebody who already knows that stuff. They wanna get the insight from you guys and they wanna make their decision with a nice, clear, conscious moving forward. And that’s really what the show is gonna be about, each month, Pipes, String and I are gonna dive into complex financial topics. And we’re gonna get down into the weeds of them but we’re not gonna bore you with some of that literacy. We’re gonna talk about what you need to know, you know really, the nuts and bolts of the decision-making, and those decisions that will position you, your estate, your family, your business in the right direction, moving forward. So guys, I think we’ve got a great topic here to really bat-lead off with our show today. And that’s really what makes a wealth advisor a good one. What makes them great? So obviously, take a step back here, affluent families and individuals, they obviously want to be working with the top financial advisors they can get their hands on. What do those guys look like? What do those girls look like? Usually they have a resume that leaps off the page. They’ve got degrees out the wazoo, they’ve got the experience, decades worth of working in the industry. And that’s great. You wanna see that, if you’re an affluent homeowner, business owner and looking towards somebody for financial advice. But there’s this other element, there are some other things that people should be focused on when looking towards who to utilize as a financial advisor. So guys, could you explain to me why individuals, why these affluent families, homeowners, business owners? why they should be demanding even more than that top tier resume from the financial advisors they work with today?

Greg Stringari VO: Great question, Ryan. You know, the affluent, very often, have complex goals and needs. They just need a higher level of experience that they need to address.

On-screen video: Bryan Pieper (left), and Greg Stringari (right)
On-screen text: Bryan Pieper, Partner, Trailhead Wealth Management; Greg Stringari, Partner, Trailhead Wealth Management

Greg Stringari VO: And a lot of these people feel like there’s something missing. There’s that puzzle piece missing between, maybe that brilliant or that premier advisor that they have. And maybe the current advisors that they currently are using. Some piece is missing and we’re not diminishing any advisor. It’s really about the experience and, you know, Pipes and I’ve been at this for 25 plus years. And I think experience is key to that, key to that ingredient.

Bryan nods before adding his insight.

Bryan Pieper VO: Yeah, Ryan, I’ll just add to that, that you mentioned the resumes that leap off the page and technical brilliance. I’m fond of an expression that I overuse but it’s one that kind of guides Trailhead and just, I think, the best advisors out there. And that is that, nobody cares what you know, until they know that you care. And, we’ve been at this, as String said, for 25, 30 years, and we’ve run across all types of advisors and technical experts. And there are a lot of brilliant people in the world but making it translatable and transferable to your family is what we think is the most important.

On-screen video: Ryan Ruff
Ryan Ruff VO: Sure, I love that line that you mentioned there, Pipes

On-screen video: Ryan Ruff (left), Bryan Pieper (middle), Greg Stringari (right)

Ryan Ruff VO: and it seems like some of these top financial advisors, they might be, there’s some sort of something missing in some of these instances. In your guys’ opinion, you know, what seems to be some of the missing links? Or what is that one missing link, maybe that you’re seeing in the majority of some of these instances. Where you’ve got an advisor who has that resume, that leaps off the page, but they seem to be having that missing link. What is that link?

Bryan Pieper VO: Yeah, pretty simply. It’s the human element.

On-screen video: Bryan Pieper (left), Greg Stringari (right)

Bryan Pieper VO: I think we’ve heard that term in various commercials and throughout all walks of life, but back to that same message, nobody knows or cares what you know. Be human, life is messy. Life is hard. And if your advisory team, first and foremost, acknowledges what we do and don’t know and what we’re great at and where we need help, that’s the most important thing for every family out there. Is to work with somebody that can call in other experts when they need really complicated help walking along the trail.

Greg Stringari VO: Yeah. I hearkened back to my college days, which is just a few years ago.

Laughing

Greg Stringari VO: But I remember going into economics class and my professor would stand up at the board and she’d draw charts of supply and demand. And there was zero human element in those conversations. And you always remember back in college when you’d sit back there and you look around the room and everybody was either sleeping, there was no engagement. And I kind of, the human element, it just wasn’t there. And I feel like that’s what we’re looking for when we’re talking to our clients. Is you you’ve gotta care and you’ve gotta be present in those meetings for you to truly show that you care for the client.

On-screen video: Ryan Ruff (left), Bryan Pieper (middle), and Greg Stringari (right)

Ryan Ruff VO: So guys, when we’re talking about the human element, let’s dive into the weeds a little bit of it. What exactly are we talking about here? Take me through what that human element entails for you guys. What does it mean to you guys?

On-screen video: Bryan Pieper (left), Greg Stringari (right)

Greg Stringari VO: I think it means, it’s that personal and emotional component of wealth management. Truly understanding the client’s goals and their values, and everyone in their circle that helps them make those decisions. I think that’s so important and it’s very important for advisors to understand that.

Bryan Pieper VO: No doubt, yeah. String nailed it. The people in your life, the goals, the values. What’s your relationship with money? How did you grow up? We would say with over 80% accuracy, when we sit down with husband and wife, they grew up with different conditions in the household. So those are the types of things we like to really understand, from a human element standpoint.

On-screen video: Ryan Ruff

Ryan Ruff VO: Right, and the human element’s an interesting conversation.

On-screen video: Ryan Ruff (left), Bryan Pieper (middle), and Greg Stringari (right)

Ryan Ruff VO: ‘Cause it can be applied to so many different businesses in so many different formats, you know? So when it comes to the realm of wealth management, specifically, you know, why is it that you believe that having that human element aspect in wealth management, is so important, specifically?

Bryan Pieper VO: I find that referencing back to our belief system, our value system around money and how we grew up with it, it’s such an emotionally charged topic. And unless or until we take the time to examine our values and our belief system around money, we’re gonna keep repeating the same mistakes we’ve made and have a harder time pushing through and making advancements toward our goals. So we really like to get under the hood, and frankly, a lot of times that looks like giving clients permission. As strange as that might sound, permission to to dream big, permission to spend more, permission to realize that they grew up with a condition of frugality or excess, whatever it might be. Just to start examining those topics alone is enormously powerful.

Ryan Ruff VO: Sure. So, when you’re you’re diving into this process, a new client comes in guys, and they sit down at the desk with you and they’re ready to start this process to pick your brains, get your advice on what their next steps may be. Well, anybody that knows anything about wealth management, and usually this whole process is gonna begin with something called a stress test. It’s that overview of an individual or a business’s finances to get that 10,000 foot view, if you will, of their whole portfolio. So let’s talk about this stress test process. When somebody comes in and you guys are going through this process with somebody, how does the stress testing process play an important role in the human element side of wealth management? So how are you guys baking in that human element conversation, into kind of a nuts and bolts conversation in stress testing?

On-screen video: Bryan Pieper (left), Greg Stringari (right)

Bryan Pieper VO: It starts with us getting really stressed.

Laughing

On-screen text: Bryan Pieper, Partner, Trailhead Wealth Management; Greg Stringari, Partner, Trailhead Wealth Management

Bryan Pieper VO: No, we try and demystify, and get everything right on the table, from the get-go. Facts and figures are certainly part of the formula, if you will. We need to know all of the numbers and the calculus, but as I was referencing previously, we wanna know what’s most important. If you just wanna grow your wealth to a big number and leave it to future generations. Okay, well, that’s one completely different set of facts and circumstances than a lot of others we work with. String, you wanna jump in there?

Greg Stringari VO: Yeah, yeah. I think, you know, one thing that I think we find a lot of us is, people we ask these tough questions. A lot of the time, the question is, when do you think you might wanna shut her down? When do you wanna retire? And people just randomly throw out a number based on what mom and dad did. Okay? So, well, I think my mom and dad retired when they were 65, so I think 65 is a good number for me. When actuality, they wanna maybe retire at 50 and start a band. Or maybe they wanna retire at 55 and become a fly fishing guide and they wanna be on the river for the rest of life. Or maybe, at age 60, they wanna retire and go put their toes in the sand and serve drinks on a Hawaiian beach, the sun going down and the music in the back. Oh, wait, wait, wait, that’s actually my goal.

Ryan and Bryan laugh

Greg Stringari VO: That’s what I wanna do, but you understand where I’m going. People, they don’t know what they want. And so to ask that, get the human element involved and talk through those kinds of things. And what makes you happy. And, you know, I think you find out a lot about our clients.

On-screen video: Ryan Ruff

Ryan Ruff VO: Sure, and that makes total sense.

On-screen video: Ryan Ruff (left), Bryan Pieper (middle), and Greg Stringari (right)

Ryan Ruff VO: I mean, how else are you gonna be able to give somebody advice, to position them financially to achieve a goal if you don’t know what that end goal for them is. And it’s like it makes too much sense but sometimes it is that missing link that we see sometimes, with some of those top financial advisors. So guys, let me ask you this. When it comes to this stress testing process, obviously it’s pretty thorough. It is that nuts and bolts conversation. Let’s look at the hard numbers, let’s figure out what those dates look like, for like a retirement. What, you know. It is a nuts and bolts conversation. So when you have these conversations do you ever find with some clients that, stress testing reveals no problems at all?

On-screen video: Bryan Pieper (left) and Greg Stringari (right)

Bryan Pieper VO: Yeah, the hardest thing as a human being is to convince ourselves that everything is fine and we need to do nothing, but Ryan, you nailed it. I would say, I don’t wanna quantify it, but more often than not, absolutely everything looks great when we do these stress tests. Usually, we can find two or three areas to improve without batting an eye. But the hardest part is getting the client to commit to that plan. And that’s where we’re confident, in that our human element, getting to know them. We can kind of remind them of what they’ve told us, are the most important driving elements in their life.

Greg Stringari VO: And I think that question we ask, you know that client is nervous. They’re like, wait a minute. I know this is crazy guys, but I wanna buy a second home or I do wanna retire earlier. I wanna spend more. And I just feel real uncomfortable saying that to you, but this is my goal. And it’s amazing how many times we run up through this, the stress test, and it actually works. And the relief, and, “Oh, okay, this actually does work.” And so, you know, what we try and tell, there is no wrong or right answer when we’re talking to our clients, we just want the truth. It’s garbage in, garbage out. We wanna know exactly what you wanna do and then we’ll stress test it to see if it works for you, and a lot of times it works.

On-screen video: Ryan Ruff (left), Bryan Pieper (middle), and Greg Stringari (right)

Ryan Ruff VO: Well, I mean, it makes total sense and it’s obviously, or it sounds like it’s probably, yes, a huge sigh of relief in some instances. When somebody sits down with you guys and you vet everything thoroughly, and everything checks out. If anything, it’s a sense of insurance, really. But it kick-starts the process, you know? So let’s put you guys in a different seat here. You know, obviously I’m seeing why that element or a human element, rather, is such an important aspect of wealth management. But you know, if you’re. Let’s pretend I’m looking for a wealth advisor, I can do a Google. I can pretty quickly figure out who’s qualified, who’s not. And based on those qualifications, I can usually make a decision. You know, it’s usually, but it’s a little harder to size somebody up on their ability to factor in the human element. So how do you guys assess whether a wealth manager is caring about that human element or for him or her or her clients?

Bryan Pieper VO: String, you wanna take that one?

On-screen video: Bryan Pieper (left) and Greg Stringari (right)

Greg Stringari VO: Yeah. I think the best way obviously, is to have that conversation with the advisor. And if you feel the advisor is present and they’re not focused on product or focused on you. And the first questions out of their mouth is, you know what’s your net worth or how much money do you make? Those are the things that would really kind of push me aside and say, No. You know, stocks, bonds, mutual funds, ETFs, they’re all commodities out there. I mean, you can get those anywhere. I mean, actually, you can get them anywhere, including Robin hood. They’re everywhere. And we wanna look for advisors that ask the right questions, go through the right discovery process, understanding the client’s goals and needs. And that’s what I would be looking for in an advisor. Somebody that’s present and that’s asking really good questions.

Bryan Pieper VO: Yep, perfect. And the only thing I’d add to that, String did a really great job on that. A process. Do they have a formal process that clearly, they’ve repeated? Is this their first rodeo? You know, you wanna see it and they’re walking the walk. Are they putting their money where their mouth is? Do they believe in the solutions that they’re providing and do they invest the same way for you? You know, as you, I should say. So, yeah, that defined, thorough process is really important to be looking for.

On-screen video: Ryan Ruff

On-screen video: Greg Stringari

Greg Stringari VO: I’m gonna give you one example, if it’s okay, Ryan?

Ryan Ruff VO: Yeah, absolutely.

Greg Stringari VO: Ryan, there’s a lot of times that it’s just so funny. We sit down with the prospect, and you know, we’re getting to know each other and we’re doing this thing. And the first question that comes out of the prospect’s mouth, a lot of time is, “So what are your fees?” I mean, and when we hear that question come out of the client’s mouth immediately or the prospect’s amalgamated, we’re like, “Boy, this is not going well already.” So, you know, those are the kinds of things that kind of turn us off, from an advisor aspect, is, exactly what are your fees today? And so, I look from on both sides of that one, I’m on the other side. I look for, you know, looking forward to the right questions.

On-screen video: Ryan Ruff (left), Bryan Pieper (middle), and Greg Stringari (right)
On-screen text: Ryan Ruff, Host; Bryan Pieper, Partner, Trailhead Wealth Management; Greg Stringari, Partner, Trailhead Wealth Management

Ryan Ruff VO: Well, String, you bring up an interesting thing with putting yourself on the other side of the table. Let’s do that right now. Let’s say you, both of you guys are clients. What do you wanna see in an advisor? If you’re looking at your options, you’re trying to pick somebody, some company, to represent you, your estate, your wealth. What would give you guys the confidence that an advisor is considering, that you would consider to work with an advisor that does have that human element nailed down?

Bryan Pieper VO: Yeah –

Greg Stringari VO: Well, go ahead, Pipes.

Bryan Pieper VO: Oh, sorry. I’m gonna jump off of what you said there, String that we’re all consumers, every single day. And what we always look for when you’re putting us on the other side of the table, Ryan, we go to a restaurant or a hotel, back before COVID. And you can have a great meal and crummy service, and you’d have a bad overall experience. And you walk away from that restaurant with, not a great feeling. So we are enormously confident in providing value and the old adage of, under-promise, over-deliver. Greg mentioned that, the markets are somewhat commoditized and there’s plenty of financial products out there, but you want, you know, we came up with Trailhead, being here in Colorado. It’s great to have somebody who’s been on the hike before and can kind of point out the pitfalls and the, get you over the spots of danger. That’s kinda what we look for when we are on the other side of the table. If I’m gonna buy a car or whatever, daily life throws at us, we’ve been through that. And we’re very excited and fortunate to help our clients through that.

Greg Stringari VO: And I think too, you know, we sit down as a team, our whole Trailhead wealth management team and we talk about these in meetings. And I want everybody to understand that when you go out, like Bryan said, to dinner or to a hotel, or wherever you go, whether it’s a car dealership.
Notice the service, notice what’s going on because you know, we’ve all been, maybe, we’ve all been to like a Ritz Carlton, where it is impeccable, right? You get the service that you’re looking for and you get the advisor that you want there. And they ask all the right questions and you feel wanted, and you feel like, “Wow, this is a great experience.” That’s what we need to deliver on the advisor side. And not only is it the advisor, it’s the operations manager, it’s the marketing manager, it’s the interns in our team.
And so we teach that to everyone. Everybody needs to understand that piece of the pie.

Ryan Ruff VO: So guys, let’s play a little game, of hypotheticals here. Let’s say I was to come into your office today, and what would a good and thorough discovery process, for me involve? Especially from that human element perspective that we’ve been chatting about, what would that experience look like for me if I was to come in and sit down with you guys today?

On-screen video: Bryan Pieper (left) and Greg Stringari (right)

Bryan Pieper VO: I love stealing Strings line, of garbage in, garbage out.

Greg laughs

Bryan Pieper VO: So we tell, sometimes we say it after the client walks out and we say, “Hey, it’s fine if you lie to me, “just don’t lie to yourself.”

Greg and Bryan laughing

Bryan Pieper VO: So, you know, we say that in an affectionate way, but we tell people to expect a 60 to 90 minute discovery process meeting. Where we ask a series of questions that get to your values, your interests, your goals, the relationships in your life, we’re the most important people. And if we can get a good understanding of all of those pieces to the pie, we can give great. We can give great analysis, we can give great recommendations and then prioritize what should we work on first, to get the client to be collaborative partner in that process. That’s what we’re hoping to accomplish.

Greg Stringari VO: Yeah, and I agree. And I think the getting to know the family, whether that’s the important people in their lives or their family, and understanding each one of them and how it works. Their mom, their dad, their in-laws, their son, their daughter, their grand, their friends, and understanding that whole, we ask questions. And I can see, sometimes we ask questions and I can see the client’s scratch and go, “Why do you need to know that?” But it’s all a learning process for Bryan and
I. And why do you need to know what my ideal weekend looks like? Or why do you need to know what books I’m reading? Or why do you need to know, if we go on a vacation, what would be the best vacation you’ve ever been on? And those are the things that people scratch their head but it’s very important for us to understand the answers to that, because it helps us build that value around that client. What they’re looking for and what their goals are.

On-screen video: Ryan Ruff

Ryan Ruff VO: Right, I mean, you just hit my question out of the park there, both of you.

On-screen video: Ryan Ruff (left), Bryan Pieper (middle), and Greg Stringari (right)

Ryan Ruff VO: So, I mean, I’ll ask you to dip your toe back in that human element water, just one more time here. So, just to kind of final thoughts on the human element, guys, are there any other really important aspects, when it comes to delivering on that promise of the human element?

On-screen video: Bryan Pieper (left) and Greg Stringari (right)

Bryan Pieper VO: String, I want you to hit your tagline because I think it’s the best. It kind of, it inspires me. I mean, you came up with it, so you take it.

Greg Stringari VO: Okay. Well, I think you’re thinking of, that my tagline is, you know, we have clients. And most of the clients that we deal with over time, have amassed a good net worth, or a good sizeable asset base. And so, we say to the client, “You’ve made it, and now, you have two jobs.” Now, your job is to stay healthy. And health is extremely important, we all know that. So stay healthy and then, let’s make memories. Let’s make memories. And go out there and take your kids or your grandkids on that vacation that you’ve always wanted to do. Travel the world, travel United States. Do things that you will never forget and I promise you, nor will your kids and your grandkids. You remember those times more than anything. When I was a grandkid and my grandma took me on a plane, I thought I was in heaven, and you never forget those things. And so that’s what we always preach to our clients, is make memories. Make memories.

On-screen video: Ryan Ruff (left), Bryan Pieper (middle), and Greg Stringari (right)

Bryan Pieper VO: That’s it. I mean, that’s period. End of story. Nothing more important in life than honoring and value those around us, and making those memories.

Ryan Ruff VO: Yeah, absolutely guys. Well, hey, look, I really appreciate our conversation today. It sounds like, yes, this, you know. What an experience looks like, of coming in the door of Trailhead Wealth Management is a thorough experience. I’m sitting down with you guys, we’re going through a stress testing process, but it’s more than just the nuts and bolts, like we talked about, those numbers on the spreadsheet. It’s about my goals, my desires, my aspirations, what I like to do on the weekend. You guys are factoring in a lot of those human element perspectives, to really generate a full solution, a full idea, and a full promise on what you are gonna provide, moving forward, to put me as the client in the best position. So guys, I appreciate you shedding some light on this. Any final thoughts? Any final words before we say goodbye?

Bryan Pieper VO: No, just saying-

Greg Stringari VO: I’m just saying, thank you.

Bryan Pieper VO: Yeah, thank you for the inaugural “Tips From The trail,” and we look forward to next month.

Ryan Ruff VO: Awesome, yeah-

Greg Stringari VO: Stay healthy and make memories, guys.

Ryan Ruff VO: There you go.

On-screen text: Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Trailhead Wealth Management, LLC is a separate entity from WFAFN. Wells Fargo Advisors Financial Network did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The opinions expressed in this report are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request.

Ryan Ruff VO: We’ll be diving into a new, complex financial topic next month. A topic to be decided just now, but be sure to tune in, stay posted on the Trailhead Wealth Management page. But until then, for Pipes and String, I’m Ryan Ruff saying so long and we’ll see you on the next edition, “of Tips For The Trail.”

(upbeat music)
On-screen text: Tips for the Trail, Bryan Pieper & Greg Stringari from Trailhead Wealth Management, LLC.
On-screen images: A photo of Bryan and Greg appears alongside this text.