John Inhouse With Merrill

Intro: Broadcasting live from the Business RadioX studio in Atlanta, Georgia. It’s time for Atlanta Business Radio. Brought to you by Kennesaw State University’s Executive MBA program, the accelerated degree program for working professionals looking to advance their career and enhance their leadership skills. And now, here’s your host.

Lee Kantor: Lee Kantor here, another episode of Atlanta Business Radio. And this is going to be a good one. But before we get started, it’s important to recognize our sponsor, CSU’s executive MBA program. Without them, we wouldn’t be sharing these important stories. Today on Atlanta Business Radio, we have John Inhouse, who is the managing director senior Market executive with Merrill. Welcome.

John Inhouse: Thanks so much for having me. It’s a privilege and an honor.

Lee Kantor: Well, I’m excited to get caught up with what’s happening at Merrill. Why don’t you tell the listeners a little bit about your role there?

John Inhouse: Certainly. So I’m a managing director and the senior market executive for Merrill Lynch in Atlanta, which means that I partner with several hundred professionals that help people realize their financial goals and dreams on a daily basis. And we work really hard to do it. And I’m really proud of what I do and what the team does, and I’m passionate about it. I love what I do.

Lee Kantor: So what’s your backstory? How’d you get involved in this line of work?

John Inhouse: So I’ve always been drawn to people, always been drawn to relationships and problem solving and really helping people make thoughtful decisions along the way. And my father had an incredible impact on me. My father always taught me that, you know, people were important and keeping promises and going above and beyond and giving together and doing the right thing and not just saying the words, but actually living. It was a great way to help people and to be a business person. And so I learned a lot from him growing up and of course, all my life. But that coupled with the fact that, you know, I really was interested in Merrill Lynch, I my high school, you know, sort of intern day was with an advisor and it checked all the boxes of helping people and, you know, helping people make thoughtful decisions and having relationships. And, you know, I realized that wealth management wasn’t just about markets. I had a great mentor at Merrill Lynch. It wasn’t about markets. It wasn’t about portfolios. That wasn’t the only thing. It was also just really about guiding people through life’s most meaningful transitions, whether it’s kids, you know, buying a home, kids going to private school or college, and then, of course, retiring and having an impact and helping them realize their their once in a lifetime dreams and goals. I got pretty addicted to that and still am.

Lee Kantor: So now how for people who are not in the wealth management business, but maybe they’ve accumulated some wealth. How do you kind of persuade them to go with somebody like you or somebody on your team, as opposed to just kind of go at it alone, or use one of these kind of robo advisors, or just be more proactive themselves because it seems, you know, you know, over the last 2 or 3 years, the market has been doing pretty well. You know, just by accident, you’d probably be ahead.

John Inhouse: Yeah. Well, the markets, you know, they go up, they go down, and then they always go up higher. At least that’s how history has been. What I’d share with you, Lee, is that having a financial plan. Right. Not an asset allocation plan. Not like okay, put this much in stocks and this much in bonds, but actually having a financial plan that says, you know, John, you can spend this much per month once you retire without running out of money or you know, John, you need to save this much more if you want to send your children to the college. There are so many people that don’t have that plan. The last thing that you should be worried about is what to purchase. The first thing you should be worried about is having a plan, because that plan is the foundation for what’s the most appropriate investment to have. It’s, you know, the best way to explain it. Lee. Um, and, you know, I have a a next door neighbor that’s a medical professional, and he and I have great talks about our business and his business. But the bottom line is, you wouldn’t just prescribe your favorite medication as a physician to every patient you had. That would be malpractice. So the basis is, you know, just like an MRI or a physical, you want to take the time to get a detailed financial plan that gives you a network statement, tells you you know, what your goals are when you want to achieve them, and how to achieve them, and use that as the foundation. That’s why people need someone that help them guide them along the way, because they work so hard all their lives to make their financial dreams and goals come true, and they need a professional to help them. And that’s what we do.

Lee Kantor: Now what about and let’s play along with your, uh, kind of analogy that, you know, medical, uh, using a medical doctor as kind of the parallel here. Uh, when the medical person is working with me, I’m not, um, paying them a percentage of my health as the fee every single year. If a plan is really the most valuable thing an advisor can give me. Can’t I just go somewhere that just, you know, every year checks in with me, and I just purchase a plan?

John Inhouse: Well, you certainly could. Um, and by the way, Merrill absorbs the cost of the financial plan for all of our clients and friends and family. We we do not charge for the financial plan. It’s the most important thing. And we think every family and every client deserves one. So in terms of having your money managed, there will be fees associated with that, whether you do it alone or you do it with a partner. Um, and I, you know, I’ve made a career out of believing and helping people realize their dreams and goals. And I think you’ll you’ll you’ll do much better with an unemotional, you know, professional. I don’t manage my own money. Right. So. And I’ve been in the business 35 years. So how would we expect someone to manage their own money or back to the medical situation? It’s why physicians aren’t allowed to do medical procedures on loved ones. Yeah, it’s hard not to be unemotional. You make you make wrong decisions when you do that.

Lee Kantor: So when you’re working with your clients, and I would imagine most of your clients already have a financial advisor from somewhere else and they’re moving to you. What is kind of the trigger that gets them to say, you know what? Either I’m not going to do this myself anymore, or the person I’m with currently is not kind of making the grade.

John Inhouse: You asked. You asked the best questions, and I mean that. Thank you. Um, the reason why people move from another advisor to us is. John. I haven’t heard from my advisor, John. I’ve never seen a financial plan that puts everything together for me and tells me what type of shape we’re in. We always ask people questions like, what’s the primary intent for your wealth? Most people, the answer is family. We always ask clients and prospects on the first meeting. Do you feel like you have just enough, not enough, or more than enough to reach your goals? 90% of the people say, I don’t know. Or I did a plan ten years ago and it’s not up to date. Um, and then we asked them if they’ve ever talked to anyone about it and they say, yeah, you know, their partner, they’ve talked to their partner or wife or husband or spouse. And then we ask them, have you ever talked to their financial professional about it? And they’re like, not really. You know, I talk to my CPA and that is our opening, because if the person that’s helping you manage your wealth has not delivered a detailed financial plan that covers every part of your, you know, your financial life and what your goals and dreams are. How could they possibly be giving you great advice? And that’s where we come in with financial planning.

Lee Kantor: So let’s talk about that plan. What are some of the elements in that plan?

John Inhouse: Well, first of all we use Monte Carlo. So Monte Carlo gives thousands and thousands of simulations of what could happen, you know, based on capital markets and returns. So you have X amount saved, you make Y, you save Z. On a monthly basis what you put in your 401 K. If you’re doing college savings or, you know, private school savings with something like a 5 to 9, it puts all of that together in one, one plan to show you what percentage chance you have of realizing your goal. So in other words, a client might say, John, I would like x thousand dollars per month to spend when I retire at age 65. Most people have no idea what that number is. We tell them what that number is. And then we update the plan every year or more than more than every year. So they know what type of shape there. And when the market’s up they get closer. They’re able to make educated sound decisions. And the other thing is, Lee, most people don’t know why they own what they own as an investment because they’ve never had a financial plan. The financial plan makes that very clear.

Lee Kantor: Now, as part of the financial plan, is it more holistic than just the money element? Is there kind of an insurance element? Is there other kind of components to it other than just here’s the big pile of money you’ve accumulated?

John Inhouse: Uh, so so another great question. We of course, we would, you know, look at life insurance especially, you know, for, for, you know, a couple or an investor that might have, you know, children that they need to take care of, that life insurance needs to replace their income should they become, you know, disabled or if they pass away early, that’s part of it. Um, of course, estate tax strategies are very important, uh, to a client. Um, college education is important to a client, whether they’re going to, you know, are they going to stay in their same home or are they going to move to another home, or are they going to downsize? Do they do they want to? Do they want a house on the lake? Um, their health is a big consideration. What? You know, what’s health like in their family? Um, you know, we talk about issues and, you know, the percentage of of people that end up in some sort of, you know, long term care, whether it’s, you know, having a hip replaced or, or memory care, all of those things are part of a detailed financial plan, which we call the personal wealth analysis.

Lee Kantor: And then you’re going over that annually. What’s the rhythm of kind of revisiting that?

John Inhouse: You know, I suggest at least annually, I think you should have your plan. I mean, things change year to year. As you know. Lee. Um, I would suggest updating your plan at least once a year. I mean, you know, ideally every six months.

Lee Kantor: Now, when you’re working with maybe young people that are just getting into the industry, um, are you noticing a different type of person, Or is this a profession that is on the upswing? Are people, like hungry to get involved in this line of work?

John Inhouse: So when you think about being a financial advisor, you’ve got to, you know, have the knowledge to to understand people and what’s important to them and then leverage the incredible solutions we have at Merrill Lynch and Bank of America to make those dreams come true. So it is a relationship based business. You know, people want to talk to their financial advisor. They want their financial advisor to know everything about them. So, you know, that’s not something I think you could text about, right? I think that’s something that you want to sit at somebody’s kitchen table or sit in a coffee shop, you know, in a private area and say, what’s most important to you? You know, we talk about seven life priorities with with our clients, right? Like, like family is typically number one unless there’s, you know, there are no errors. And then of course health and, you know, work and all those other, um, leisure what retirement looks like. So I think you’ve got to be able to have a very productive conversation to learn about someone, uh, to learn about a client or family and then help put a plan together that makes those dreams a reality.

Lee Kantor: Now, do you find that is it easy to get, uh, kind of a new batch of, um, advisors, or is this something that’s difficult?

John Inhouse: Um, I think we’re all looking for great people that want to help others and then want to deliver. I, you know, we’re not struggling to hire, uh, new financial advisors. I think people are interested in this business. There’s a little mystery to this business. Um, um, you know, what’s it like? What? You know what you know. Many people don’t really fully understand. Um, wealth management. And so when they do, um, it becomes, at least for me, right? It becomes incredibly addictive and inspiring to help others get a plan and help their dreams come true. Because not having a plan is just not the answer.

Lee Kantor: So who is kind of the ideal Meryl client? Is it an executive? Is it an entrepreneur that has built a company? Is it a professional athlete? Like, what does your ideal client look like?

John Inhouse: At Merrill. And Bank of America we have Merrill Edge to Merrill Lynch. So it’s anyone that wants to put money aside to help their dreams and goals. You know, come together. Whether you’re a brand new investor, you’re a you know, you’re a high school kid with a part time job, or you’re a senior citizen that has a bunch of CDs that’s never done a financial plan. Um, it doesn’t matter if you have, you know, a few dollars or millions of dollars. We can help you and we can make a difference. That’s the beauty of Merrill Lynch, bank of America.

Lee Kantor: Now, you mentioned something earlier that you said that a plan is included for all the the entire household. It’s not just for the your your specific client.

John Inhouse: That’s correct. Sir. The personal wealth analysis. We absorb the cost and time of that plan.

Lee Kantor: Because I’ve talked to a lot of financial planners and wealth advisors, and they tend to focus only on the kind of the breadwinner, and they don’t really try to win over maybe the child or the breadwinner as a client. But that’s different. At Merrill.

John Inhouse: It’s absolutely different. We want to have a relationship, you know, with with their children and grandchildren. The earlier you start investing, the earlier you get your financial plan and understand and start saving money, especially, you know, if it’s a Roth IRA or some sort of individual retirement account, the better the better chance you are of have of realizing your dreams and goals. So, um, you know, we call them the next generation of investors. Uh, and we absolutely want to help them as well.

Lee Kantor: And then do your clients typically stay with that individual as their advisor or do they get handed off?

John Inhouse: Um, they typically stay with the advisory team. Um, and, you know, unless it’s a brand new start up client and that would be that’s what Merrill Edge is for.

Lee Kantor: So they get kind of placed into a team. And then there’s a team of people that they can call on if they have a question or, or need some advice.

John Inhouse: Absolutely, absolutely. But but next generation is is very is very common. Uh, in the industry is certainly at Merrill Lynch where, you know, if you’ve got children, we want, you know, if I’m your advisor, if I’m your primary advisor, Lee, and you’ve got children, I want to be their advisor too. So I will absolutely work with them because they’re an extension of you.

Lee Kantor: Well, at least the ones that I’ve talked to, they tend to be the same age as their clients so that as the client is retiring, so is the advisor.

John Inhouse: And that’s why there’s a need and a desire and a focus on teaming. Um, you know, many of our financial advisors are on teams and they’re generational. Right. That’s, you know, senior advisor. He or she may have a junior advisor because, you know, clients want continuity, they want a succession plan. And that’s what we deliver around timing.

Lee Kantor: So any advice for that young advisor out there? How to pick the right firm to partner with and how to kind of attack the work and build your own book of business?

John Inhouse: Well, that’s that’s a question. It’s going to be hard for me to be objective on, given I spent three and a half years or three and a half decades of my life with Merrill. I think you should come to Merrill because we offer every solution possible, and we do it by putting the client first and by offering a a financial plan to begin with. And I think that’s what’s important. As a new advisor at Merrill Lynch back in 1990, I had an incredible mentor and my mentor said, John, um, you will not, you know, do business with anyone unless you do a financial plan. In 1990. That was unheard of. He gave me incredible career advice that that is that has served me well and more importantly, serve the families that I was a financial advisor for. Even better.

Lee Kantor: So that’s the advice you would give a young person at Merrill starting out?

John Inhouse: Absolutely. Go with a reputable firm that offers financial planning and solutions that can deliver for a client’s dreams and goals, and use the appropriate ones.

Lee Kantor: So what’s on the roadmap for Merrill moving through this year and into next? What. What kind of things are you seeing out there?

John Inhouse: You know, we’re seeing clients that obviously, you know, all that’s going on with interest rates, geopolitical events. Et cetera. We’re seeing clients that that want and desire an update on their financial plan. They want to know that it’s going to be okay. They want financial modeling. They want to stress test. You know, again, if the market did pull back 20%, would you still be able to realize their goals and dreams? That’s what our clients are, are concerned about or thinking about. And our challenge is to be proactive and deliver those plans to them so that that they can sleep well at night and not and not worry and have some peace of mind that if there is a correction, they’re still going to be fine. That’s what we focus on now.

Lee Kantor: How do you help them through the ones that say, yeah, I’d be okay with that. But then the market drops a thousand. Um, and they’re not so sure anymore.

John Inhouse: Uh, I think that’s why you you have a plan in place, right? And the plan can model that out. Right? So if you you could actually say, look, you know, it’s down a thousand points. If it goes down another thousand points, let’s model what that looks like. Look, you’re still, you know, 90% of goal. But clients that we can educate and that understand that, you know, market timing doesn’t work. It’s really time in the market and having a financial plan and a well-diversified portfolio that makes sense for your dreams and goals. Those people don’t panic as much as someone that put money into something they didn’t understand without a plan. And now all of a sudden, the market’s pulled back. Those are the ones that panic, uh, and they don’t make, you know, educated decisions.

Lee Kantor: Yeah. I think that it’s easy to say, oh, well, I’m going to pull all my money out or I’m going to make some drastic move, but they don’t ring a bell when it hits a high or it hits a low. So when are you going to get back in? If you pull all your money out then.

John Inhouse: Exactly. And that’s why market timing simply does not work. It’s time in the market.

Lee Kantor: Yeah. It just I mean, a lot of people say they’re they can handle the risk. But when it actually happens, you know it’s like Mike Tyson say everybody has a plan until you get punched in the face.

John Inhouse: That’s right Lee. And and that’s the importance of educating a family or a client on the financial plans that you could model that out and that we, you know, part of the financial plan is, is understanding asset allocation, understanding your risk tolerance, you know, will you be as happy if your investments up 20% as you would be sad if it was down? Those are questions during the preliminary meetings Things that are so important and so critical to long term financial success.

Lee Kantor: So if somebody wants to learn more, get a hold of somebody on your team. What is the best way to connect?

John Inhouse: Uh, Merrill. Com uh, it’s a great way to connect. And, you know, you can say you’re from Atlanta or the metropolitan area and, um, you know, hopefully they’ll get in touch with one of us and we’ll be able to help them with a financial plan so that they could sleep better at night and have the best probability of success with their financial goals and dreams. I’ve spent three and a half decades of that, and I love it, and I plan to spend a lot more time.

Lee Kantor: All right, John, well, thank you so much for sharing your story. You’re doing important work and we appreciate you.

John Inhouse: Lee, it’s my pleasure and thanks for all the work you do and for for helping people learn. And it’s a privilege and honor to be on your show.

Lee Kantor: All right. This is Lee Kantor. We’ll see you all next time on Atlanta Business Radio.