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The Wealthy Are Worried It's 2008 Redux

By Crucial Clips     February 3, 2016
The following text is a transcript of a portion of a speaker's presentation made at an industry conference or during an interview. This transcript solely represents the view of the individual who spoke, and not the view of Financial Advisor IQ or any other group.
Source: FA-IQ, Jan. 25, 2016 

MURRAY COLEMAN, REPORTER, FINANCIAL ADVISOR IQ: Hi. This is Murray Coleman with FA-IQ. I’m here today with Marty Leclerc, founder of Barrack Yard Advisors in Washington, DC. And Marty, you’re using different types of niche specialties to improve your client base, correct?


MURRAY COLEMAN: OK. And what kind of clients are you going after?

MARTIN LECLERC: Well our practice is, I would say, at the upper end of the mass affluent. So our typical client has between $3 and $10 million of financial assets. And they look to us for all things financial with respect to their lives.

MURRAY COLEMAN: OK. And since you’re moving upstream into the ultra high net worth market, what kind of specific questions do you see them having heading into a new year?

MARTIN LECLERC: Well, is this bad times in the markets going to continue? Everyone is concerned that this could be 19-- I’m sorry, 2008, 2009 redux. And so I think that’s on everyone’s mind.

I think also what the press has been telling people about China being an issue, that perhaps the price of oil dropping 75% in 18 months signals something. Oftentimes, what the press is out there talking about can be noise, but in this case is actually fairly legitimate. So there’s a lot of fear out there, and as well there’s lots of anxiety because I think the last great recession is still in everyone’s mind.

MURRAY COLEMAN: Is the upcoming presidential elections also on ultra high net worth investors’ minds?

MARTIN LECLERC: Well I think to the extent like any other Americans. And I’ve read stuff in some of your competing magazines and newspapers about how there’s a new element of political risk because on both the Republican side and the Democratic side, we have economic populists. So if they-- if Trump gets traction and also Bernie Sanders, and if they both become nominees, then that probably will add an element of political risk that we don’t normally associate with this stage of the business cycle.

MURRAY COLEMAN: What about state taxes? Those are going up. Is that a big issue on some of your investors’ minds?

MARTIN LECLERC: Well taxes is always on people’s minds, I think. But there’s-- what can you do about it? So the four pillars of wealth management-- the thing that I’m passionate about is taking care of the investment piece, but the three other pieces-- one is cash flow management, another piece is legacy planning, and the final piece is that tax piece. And that’s something that we have no control over, but we can control how we position the investment piece and other behaviors to pay as little as we are legally obliged to.

MURRAY COLEMAN: OK. Thank you very much.

MARTIN LECLERC: My pleasure.