Our firm is called Accumulation Wealth Partners for a reason: we specialize in serving people in the accumulation phase of their life. Many firms focus on serving individuals and couples within a few years from retirement or in retirement. We believe there’s no such thing as planning too early, in fact smaller, yet efficient decisions made earlier in your financial life, can compound into large meaningful financial assets later in life. We aim to help people at the start and middle of their careers find a stable financial footing with the goal of reaching higher financial confidence and eventually (sooner that most think) financial independence.
Why Do We Work with Accumulators?
Simply put, we believe people in the beginning and middle of their career deserve better financial advice than what they’re currently being offered. Accumulators are an often ignored market segment that are sold expensive products rather than provided advice. The majority of their net worth is considered “unmanageable” by investment management firms because it is either tied up in their 401(k), small business, or equity in the home.
However, accumulators need advice just as much, if not more, than retirees and pre-retirees. Their lives have more milestones than any other period of life, such as marriage, children and business ownership. Additionally, the earlier they get sound financial advice, the better their opportunity to change bad habits and take advantage of compound interest to meet longer-term financial goals. Ultimately, informed investment and financial planning decisions made early have a higher chance to become financially attainable dreams.
We believe that accumulators need not only financial advice, but a specific plan for their unique stage in life, which is why we focus all of our energies on serving this demographic. Also, I happen to be an accumulator myself and have kids, own a small business, have a mortgage, a 401(k) and countless other common financial challenges that most people have during this time of our lives. Despite our specialization, our clients still run the gamut, each facing unique needs and experiencing different circumstances. Over the years of working with a wide array of clients, we find that our clients usually fall into one of four categories.
1. The Stable Professional
Some of the Millennials we work with have been very fortunate in their careers and have experienced success. They may not be rich yet, but they’re on their way, having secured a stable and high-income job.
These clients often come to us because they aren’t sure how to handle their increasing assets. They want to make informed decisions and make their money work for them, be it paying off student debt, investing, or building a reserve fund.
2. The Start-Up/Small Business Owner
Some of our clients are starting a new business or are an owner of one that is really starting to take off. As they have focused all their time and energy on this venture (their “baby” as we often refer to it), they realize they face many critical decisions they aren’t sure how to answer.
These clients come to us for help because they don’t want to worry about 2 financial balance sheets (their business’ and their household’s). We become their household CFO and even advise them on common business-related issues (entity formation, debt financing and retirement plan development). Knowing their household finances are being watched over, they can spend 100% of their time on their “baby” as well as the real family.
3. The Career-Focused
Despite their age, many of our clients are motivated and seek success both in their personal and professional lives. Clients who fall into this category have spent several years in their career and want to take the next step, from climbing the corporate ladder to settling down and starting a family.
At this point in their life, they seek an advisor who can help them balance their debt with their investable assets and start prioritizing their short and long-term goals. We work with them to evaluate how they can steadily pay off debt while maintaining a suitable amount of liquid assets and saving toward their other goals, whether it be it a wedding, a house, or having a child.
4. Real Estate Professionals (Who often hate Financial Advisors)
Lastly, whether you are a real estate broker or investor, property manager or developer, being in San Diego, a large segment and percentage of our economy is devoted to real estate. At my legacy firm, our largest clients were real estate investors who had accumulated the majority of their wealth through buying properties (residential and commercial). Some had a day job, and some were able to quit their day job and do it full time. The common thread always was that they were weary of the stock market and financial advisors who pushed them to invest in stocks (for good reason most of the time). We found success working with these wealthy individuals and families by not trying to change how they accumulate their wealth, but helping them diversify and optimize through cash and liquidity management and tax strategies.
As their financial picture becomes more complex and overwhelming, these clients desire a professional who can help them see the big picture. Even though real estate is a large percentage of their net worth, prudent diversification, liquidity management and proactive tax planning can help optimize their household balance sheet and maybe even help them find their next deal quicker.
How We Can Help
If you've been searching for a financial advisor and feel that most advisory firms are focused on an older demographic, you're right. We are dedicated to providing accumulators a specific plan for their unique stage in life.
If you’ve yet to find a financial advisor you feel can serve your needs, we encourage you to contact us. We’d be happy to talk and see if we may be a good fit for one another. Schedule a free 15-minute introductory phone call, call us at (858) 255-4475, or send an email to email@example.com.
Scott Melbrod is the founder and CEO of Accumulation Wealth Partners, an independent wealth management firm in San Diego, CA. Working with a wide array of clients, from families to young Millennials just starting their careers, his mission is to provide impactful and targeted financial advice at a transparent cost to people in their accumulation phase of their lives. With more than 15 years of industry experience, he uses his knowledge to develop for his clients a structured and tailored plan designed to guide them toward financial freedom. Learn more about Scott by connecting with him on LinkedIn or emailing him at firstname.lastname@example.org.