02/02/2024 - Alex Borgardts was interviewed by FeeOnlyNetwork.

What makes you or your firm particularly qualified to serve pre-retirees, first-generational wealth, divorcees, and high-income women?

We are qualified to serve clients in these specific planning areas because of our unique approach to financial planning. Our PlanFirst approach is designed to put your planning needs and objectives first above all else. With a client-first mindset, we build a tailored financial plan that tackles the specific planning objectives common among pre-retirees, first-generational wealth, divorcees, and high-income women. Our plans serve as a guide map for future investment decisions, tax strategies, and estate planning. 

How do you hope the industry will evolve, and how are you contributing towards that change?

As new and emerging FinTech continues to change our industry, I hope the natural evolution is towards fiduciary comprehensive financial planning. Other brokerage firms, banks/credit unions, and insurance salespeople use FinTech as an efficient way to access and serve more customers, with volume as a business model. I am here to change this for the small list of clients who chose to work with us. We use FinTech to know and monitor every client’s financial plan and deliver value through comprehensive planning to include: tax planning, estate planning, risk management, investment planning, and retirement income planning.

A stranger at a party asked you what you do. How do you answer?

I help clients build and grow their wealth by making sure you have a decision support system as you navigate investment management, risk management, taxation, estate planning and retirement income planning. I am here to help you reach your goals and develop optionality via our comprehensive financial planning process. I want to make sure my clients feel supported in doing what they want to do and getting what they want out of life. 

What steps do you take so that clients are assured that your fees are transparent?

We have two common types of fees: financial planning and investment management. For financial planning fees, we clearly lay out the dollar amount and timing of fees in our advisory agreement before our clients sign the agreement. For investment management fees, you’ll see all the account level fees on the proposal, as well as blended internal expense ratios. We often compare a client’s current fee structure to ours and explain the various ways fees are hidden in our industry. Our desire is to have clients see exactly what they’re paying. 

What do you wish more people knew about the process of creating a financial plan?

Financial planning is not synonymous with Investment Management. If you ask most Americans ‘do you pay too much in taxes?’, I think 90% of the time you will get a ‘yes’ response. Likewise, if you ask investors working with a financial advisor ‘do you have a financial plan,’ most will say ‘yes’. In our experience, most investors who are assisted by an advisor have a plan for their investments, but most do not have a comprehensive written financial plan. Our goal is to go beyond planning your investment management to planning for taxation of your investment strategies, protection of your wealth, and estate planning for both unexpected and anticipated future transitions. Our plans cover a large scope, so clients should expect to work with us to develop the plan over the first year of our relationship. 

What is the biggest misconception about your job?

Some investors think that financial planning is only for the ultra-wealthy. In reality, most of our clients have accumulated their wealth over the course of their working careers. Many of our clients are W2 employees, often blue collar, who have saved well and lived within their means. The financial planner-client relationship is like any other relationship; once we mutually agree to work together, we are committed to you both now and in the future. Don’t worry about what wealth other people have. If we agree to work together, we are committed to you and your goals and plans. 

What has been your "aha-moment" during your financial services career?

My ‘aha-moment’ was realizing that no matter how great your employer’s technology is, no advisor can serve 600+ clients and deliver true comprehensive financial planning. After working for a credit union focused on volume clients, I realized that I was at a proverbial fork in the road. I could stay the course and continue to manage an excessive list of clients, or I could shift to a boutique firm focused on a small list of relationships allowing for comprehensive financial planning. I value strong relationships and want to be there for each and every client that I commit to working with. 

What advice would you give a college student wanting to enter the industry?

This industry is full of barriers to entry, which means the first opportunities may come from the least desirable long-term employers. Skip the ‘easy to get’ jobs at insurance firms, bank channels, and retail brokerage shops. Likewise, although they have strong brand names, be cautious of opportunities with large wirehouses. Go find a small registered investment advisory firm in the location you want to live post-college and reach out to the partners. Seek out both mentorship and job opportunities.

How has your family background influenced your personal financial mindset today?

I’ve seen firsthand how saving and making informed decisions can result in class transcending wealth. In the information age (especially with emerging AI), there is no excuse for not educating yourself on the financial world. It doesn’t matter where you came from or what your background is. If you’re committed to seeking out information, and lifelong learning and you’re open to taking advice from those who have come before you, you’ll be on track to have options in your future.

 What do you think is the biggest mistake people make with their money?

Not investing early and often, and forgetting to ‘pay yourself first.’ 

How has the shift to serving clients virtually impacted your business?

Our business was started post-pandemic and I think it has had a positive impact. We currently serve clients in 8 states from different corners of the country. Some of our clients plan to become ex-pats at retirement, others plan to relocate to warmer weather in the USA. Technology allows for us to serve our clients across time zones, anywhere in the world and still do it face to face. 

Our business was started post-pandemic and I think it has had a positive impact. We currently serve clients in 8 states from different corners of the country. Some of our clients plan to become ex-pats at retirement, others plan to relocate to warmer weather in the USA. Technology allows for us to serve our clients across time zones, anywhere in the world and still do it face to face. 

Is there a particular book that has had a positive influence on your personal or professional life? 

Pay yourself first by investing in your 401k, Roth IRA etc. before paying your other bills etc. Get used to living on the amount coming in the door after your investment accounts have already been funded. 

Have you had any interesting jobs prior to becoming a financial advisor?

As a high school student, I worked as a lifeguard and did several retail jobs, two of which are now out of business (Circuit City & Toys“R”Us). After college, I joined the Army Reserve which has taken me to Germany, England, Afghanistan, Iraq, and Kuwait.

What is the least understood aspect of your job?

Taxes. Even some of the best financial advisors fail to understand the intricacies of taxation. Financial planning decisions often have multiple impacts beyond the immediate income tax implications. Financial planners must understand taxes and know the impact the various components of a financial plan. 

How do you keep track of all the things you have to do?

We have a CRM and compliance tools that provide task-based reminders with firm-level visibility, allowing a common operating picture among all members of Next Bloom Wealth’s team.