sayra - winter 2016 publication
TRANSCRIPT
THE VOICE OF FEMALE FINANCIAL ADVISORSSAYRASAYRA
FROMFALL / WINTER 2015 VOL.1 NO.4
6STEPS TO SUCCESS
for Women Advisors > 32
COVER STORY > 4
BREAKING THE
GLASSCEILINGGOING THE EXTRA MILEGOOD FOR CLIENTS & FOR YOUR BUSINESS > 42
IRENE BERGMAN100-YEAR-OLD STOCKBROKER TALKS ABOUT HER LIFE ON WALL STREET > 34
KEN LANGONEEXPLAINS HOW YOUR PHONE IS ACTUALLY A MAGIC WAND > 18
WOMEN &THE COMING
WEALTH WAVE BY HEATHER PELANT > 22
COVER STORY > 4
BREAKING THE
GLASSCEILINGGOING THE EXTRA MILEGOOD FOR CLIENTS & FOR YOUR BUSINESS > 42
IRENE BERGMAN100-YEAR-OLD STOCKBROKER TALKS ABOUT HER LIFE ON WALL STREET > 34
KEN LANGONEEXPLAINS HOW YOUR PHONE IS ACTUALLY A MAGIC WAND > 18
WOMEN &THE COMING
WEALTH WAVE BY HEATHER PELANT > 22
SAYRA LEBENTHAL2 FALL / WINTER 2015
LEBENTHAL TEAM
Alexandra Lebenthal, Co-CEOLebenthal Holdings
Barbara Yastine, Co-CEOLebenthal Holdings
Andy Grillo, PresidentLebenthal Wealth Advisors
James B. Lebenthal, PresidentLebenthal Asset Management
SAYRA STAFF/CONTRIBUTORSEditor: Sydney [email protected]
Associate Editor: Bella [email protected]
Contributors:Eleanor Blayney CFP® Consumer Advocate for CFP BoardAdri Miller-HeckmanHeather PelantBella PatelKim Dignum CFP® ChFCJ.B. BryanElisha Porterfield CFP®
Design: Stark Designstarkdesignny.com
LETTER FROM THE CEOTHE GLASS CEILING
SAYRA is published quarterly by Lebenthal Holdings, LLC. Offices at 230 Park Avenue, Floor 32, New York, N.Y. 10169 Telephone: (877) 425-6006 Visit our Web site at www.lebenthal.com. © Copyright 2015 Lebenthal Holdings LLC. All rights reserved. SAYRA is a registered trademark of Lebenthal Holdings LLC.
Copyright warning and notice: It is a violation of federal copyright law to reproduce or distribute all or part of this publication to anyone (including but not limited to others in the same company or group) by any means, including but not limited to photocopying, printing, faxing, scanning, e-mailing, and Web site posting, without attribution and permission. The Copyright Act imposes liability of up to $150,000 per issue for infringement. Information concerning possible copyright infringement will be gratefully received. Please call Bella Patel at 212-490-4078 for reprint arrangements.Legal disclaimer: This magazine is not designed to and does not provide individualized investment advice, legal advice or regulatory guidance and to the extent it touches upon any such issues it should be used only in conjunction with the advice of your investment, legal and compliance professionals. Further, the opinion expressed in each article is the opinion of its author, interviewer or interviewee (as the case may be), and does not necessarily reflect the opinion of Lebenthal. Therefore, Lebenthal carries no responsibility for the opinion expressed thereon. Further, nothing herein constitutes a testimonial or endorsement of the authors or individuals interviewed herein by any client or Lebenthal.
Welcome to the latest edition
of SAYRA Magazine. It gives me great satisfaction
knowing that we are delivering a tool for the female
financial advisor that is not only useful but that
also reflects who we are as a group. By that I mean
colorful, savvy, hard-working, whip-smart, not stodgy
or beholden to any old-boy-network, client-centric
and empathetic. That is SAYRA, and that is you, the
female financial advisor.
We care about our clients, ourselves and our
communities, but we are also competitive as hell.
High heels, dresses and—for some of us—the
demands of motherhood do not slow us down.
Nevertheless, too often we are reminded about how
difficult it is to compete on a level playing field with
men in the financial services industry. Yes, we have
come a long way in this and other professions, but in
2015 we still are talking about the glass ceiling and
income inequality.
Take one example from this summer’s headlines. The
glorious USA Women’s National Soccer Team won
the World Cup and broke TV ratings records in the
process. The July 5th championship game between
the US and Japan was the most-watched soccer
game in US television history. And yet, while their
$2 million in prize money was twice as large as the
winning team received in the 2011 tournament, it
paled beside the men: In the 2014 men’s World Cup,
the winning German team received $35 million, and
a first-round loser still received $8 million. Egregious,
to say the least, but while professional sports is but a
small, high profile, instance of this problem (women’s
tennis is one of the only professional sports with
equal pay to men—thank you, Billie Jean, Steffi and
Serena!), it is mirrored throughout the American
economy. According to data from the U.S. Bureau of
Labor Statistics, women earn 82.5% of what men do.
However, the pay gap widens as women get older, as
young women aged 16 to 24 earn 92% of men that
age, while women aged 25 to 54 earn just 81% of their
male counterparts. The BLS records data for over
500 occupations, but as of 2014, women in just two
professions earned more than men working
the same job: “stock clerks and order fillers”
and “health practitioner support technologists
and technicians.” A sad state of affairs, to say
the least.
But here is where it hits home for SAYRA
readers: On the list of the jobs with the
largest pay gaps, Personal Financial Advisors
ranks as one of the worst, as the median
weekly earnings of a female advisor are just
61.3% of her male counterpart. (The BLS
defines Personal Financial Advisors as those
who “Advise clients on financial plans using
knowledge of tax and investment strategies,
securities, insurance, pension
plans, and real estate. Duties
include assessing clients'
assets, liabilities, cash flow,
insurance coverage, tax status,
and financial objectives.”)
Financial Managers isn’t much
better, earning 67.4 cents
for every dollar that male
managers earned. (The BLS
defines financial managers
as those who “plan, direct, or
coordinate accounting, investing, banking,
insurance, securities, and other financial
activities of a branch, office, or department of
an establishment.”)
It is unclear what accounts for this disparity—
do female FAs charge lower fees than men?—
but it may have something to do with total
assets under management. According to the
Wall Street Journal, research by Morningstar
shows that as of March 31, 2015, there were
7,410 US open-end mutual funds. 77.9% are
run exclusively by men, whereas 2.5% are
run exclusively by women; by assets, female
managers have exclusive control over less
than 2% of the $12.6 trillion of fund assets.
One reason for this may be that fewer women
seek to earn the credentials desired by a firm:
Just 37% of the M.B.A. degrees earned during
the 2013-14 academic year went to women,
according to the Association to Advance
Collegiate Schools of Business, and the CFA
Institute reports that in 2014 just 16% of its
61,282 U.S. members were women.
Could it also be that women just don’t want
the big jobs? Women comprise half of the
American workforce, but only 23 of the
S&P 500 companies have female CEOs.
Bloomberg reported on new research from
Harvard Business School that shows more
women aren’t in leadership positions because
3
“they just don’t want the jobs as much as
men do.” When asked to rank their current
position, their ideal position, and the highest
position they could realistically attain, women
generally listed lower ideal positions. As the
study explains, women have more negative
associations with power than men do,
including stress and time constraints. “Women
expect more stress, burden, conflicts, and
difficult trade-offs to accompany high-level
positions,” said Alison Wood Brooks, a co-
author of the paper and an assistant professor
at Harvard.
I don’t know about you, but I find that
conclusion hard to believe. I
just think that the systemic
under-valuation of women
in our society is difficult
to overcome. My 19-year
old daughter, Charlotte, a
sophomore in college, got
fired up by this report: “I hate
this. The reason women put a
lower ideal job isn't because
they don't want it, but rather
because they've been told for
so long that they cannot and
will not get that job. Additionally, women
fear any negative outcome from their peers
so they avoid seeking higher jobs. Finally, it's
not that women don't want it, it's just been
indoctrinated into our culture and society that
a woman can't have that job, so why even
imagine it.” We need more of her youthful
indignation and impatience.
Two women who clearly have not been held
back by society or blocked by a glass ceiling
are Mary Ann Deignan and Liz Myers. Mary
Ann and Liz are tops in their field—equity
capital markets—at two of the biggest
financial institutions on earth. My interview
with them (page 4) is illuminating for many
reasons, not least because of the surprising
lack of obstacles in their path to success in a
male-dominated part of our industry.
There’s so much more in this issue that I hope
you enjoy. As always, thank you for your
feedback and ideas, I look forward to staying
in touch.
All the best,
Alexandra
I just think that
the systemic
under-valuation
of women in
our society
is difficult to
overcome.
4 5SAYRA LEBENTHALFALL / WINTER 2015
BY ALEXANDRA LEBENTHAL
WOMENPOWERFUL, RESPECTED
I had the opportunity to sit down with two of the most powerful people in the capital markets—who just happen to be women. MARY ANN DEIGNAN is Co-Head of Global Equity Capital Markets at Bank of America Merrill Lynch and LIZ MYERS is Head of Global Equity Capital Markets at J.P. Morgan. Their stories, different in detail but similar in outline, are instructive on many levels, not the least of which is for advisors to understand a little bit more about two of the professionals who bring new issues and secondary offerings to the markets. We finally got them in a room together last month, so here goes:
6 7FALL / WINTER 2015 SAYRA LEBENTHAL
ALEX: You are two of the most powerful
women in the financial markets. Would you
tell me how you got to where you are today,
and at what point did you know that this was
the business for you?
MARY ANN: Since it took many more decades
for me to get here, I’ll go first and give my
younger comrade in arms, as if it were, the
opportunity to follow. [Laughs] I would say
that it was obvious early on that this was the
business for me because I loved the hunt. I
loved the personal challenge. But there was
always a sense very early on, again, a long
time ago, that I was not going to stay in it.
And it wasn’t because of me, but because
I was a young woman. But I have staying
power in my DNA, and it was noticed every
year that I would still show up or still be in the
seat or get the next promotion. The second
thing that made it clear this was the right
place for me was that I actually met with
very early success, and I found that this is a
fantastic business when you do meet with
the upside of this industry, and for me I was
fortunate to meet that early on. Relishing
the personal challenges quickly intersected
with the professional successes, and so for
me it was kind of a perfect combination early
on which made me stick with it through the
tough times and has actually also been the
thing that makes it easy for me to continue to
recruit women in this industry.
LIZ: I was an economics major in college and
at the same time I was pre-med, so I had this
crossroads moment, “Do I want to become
a doctor or do I want to go into business,
finance, or something else?” My roommate
of four years helped me about halfway
through college when I was struggling with
the decision. She said, “I want you to close
your eyes and picture yourself in five years.
Are you wearing a lab coat or a business
suit?” And I said without pause, a business
suit, and she said, “That’s it, you’re done! No
more organic chemistry!” And so that’s how I
started to steer that way.
I grew up in a family where we didn’t talk
about politics at the dinner table, we talked
about companies, we talked about stocks, and
so that was just something that was sort of in
my blood. When I came to J.P. Morgan they
said, “Okay, we’ll give you a shot.” I did three
years in corporate finance/M&A and went
back to business school.
When I left for business school I wasn’t
sure that I would come back—not because
I didn’t love it, but because I hadn’t tried
anything else. When I started looking around
at these other companies that would visit
campus, it just became clear to me how
privileged I was to have had the experience
at J.P. Morgan. I started listing the things
I loved about my job: diversity of content;
working with smart people; an abundance
of mentors and role models; and being at a
respected institution. When I compared that
experience to the summer I had working at
a consulting firm, I realized that there were
different types of client service. I really missed
the energy, the pace and the deadlines of an
investment banking career. There is a sense
of accomplishment and fulfillment every day
when you’re delivering for the client, things
that are due every day, every hour, that sense
of achievement. It was really unique. That was
why I came back. When I returned I joined
the equity capital markets group which had
much more to do with stocks than my M&A
role, which also got me back to that little part
of my roots of enjoying the stock market. I’ve
been in the group ever since.
ALEX: Capital markets is obviously more of a
male-dominated business. Do you agree? Do
you think that the path was more challenging
because you’re women in capital markets?
MARY ANN: You have to have an opinion in
capital markets. You cannot get away without
having a point of view and at times you really
have to defend your opinion and your point of
view in a market that could prove you wrong
in a matter of minutes. So I think there is a
toughness and a little bit of a thick-skinned
quality that favors men, and men who are
not afraid to voice their opinion, to take the
microphone and really persevere over the
course of a transaction or a pitch or a career.
I do think there is a scarcity of women in
capital markets, maybe in part because of
that, but I also think that it’s a place where
a really thoughtful answer or a thoughtful
approach to something is differentiating
and accepted. It has allowed me—who is
maybe not the loudest person in the room, or
banging the table the most with respect to
my opinion—to prevail by expressing what I
think is the best thing for a particular client to
do. So I agree with you [that it is challenging],
but my experience has shown that there
are lots of ways to win and finding out what
works for you is really important—whatever
part of this business you’re in.
LIZ: My response is definitely shaped by my
experience in capital markets at J.P. Morgan,
which happens to be one of our most diverse
areas within investment banking. That’s
always been the hallmark of our group. I’m
really giving credit to my former bosses for
engendering that type of inclusiveness, which
is why I think women have always felt very
comfortable in our group. It’s an area that
values analytic rigor in the thought process
and, as Mary Ann said, values insight. Being
a subject matter expert comes from being
diligent, thorough and insightful. If you can
find a role for yourself that values those types
of criteria, it works well for men and women,
black, white, etcetera.
ALEX: Are there more women in capital
markets today than when you both started?
MARY ANN: I think it’s about the same. In
any given year, I’ll observe, “Gee, it feels like
I GREW UP IN A FAMILY WHERE WE DIDN’T TALK ABOUT POLITICS AT THE DINNER TABLE, WE TALKED ABOUT COMPANIES, WE TALKED ABOUT STOCKS, AND SO THAT WAS JUST SOMETHING THAT WAS SORT OF IN MY BLOOD. — LIZ MYERS
CANDID CONVERSATIONS WITHPOWERFUL, RESPECTED WOMEN
8 9FALL / WINTER 2015 SAYRA LEBENTHAL
things have really come more into balance,”
when there’s either a big class of new recruits
or we’ve had a banner year of lateral hires.
And then another year, I’ll think, “Oh, we’re
slipping, what’s going on?” But as I look back,
on balance, I would say it’s pretty steady.
LIZ: I did notice that when we were
introducing our summer intern class this year,
I think we had nine interns and six of them
were women, which is very interesting and
encouraging.
ALEX: Do you make it a point to try and
mentor women that are in your group?
MARY ANN: I do, all in the spirit of being fair.
You know I have to be careful, and I’m sure
Liz does as well, in the roles that we have. We
have a big team everywhere in the world and
it’s important that everyone feels like they
have access to me, and no one has a special
place or special set of opportunities. But that
said, I recognize what many of these young
women don’t even recognize themselves yet.
They’re looking around and not really seeing
a lot of people who are just like them and
having to deal with being a young woman on
a desk, or in a seat, or in a group where there
just aren’t as many. I am always thinking, “If
you want someone to talk to or you want to
ask someone how to handle a situation, you
should just know I’m always here.” And it
extends actually beyond my team. I also do a
lot of that mentoring and coaching formally
and informally more broadly around the bank.
LIZ: What I’ve noticed is that the youngest
women in our group feel very comfortable
asking to meet with me. I do notice there
are two types of those meetings though: It’s
either, “I really love this business and I just
want you to know, and I’m eager,” which I love,
and then there are the opposite ones, where
they say, “I’m leaving.” I always feel like it’s
such a bummer because they’re making and
forming this deeper relationship with me on
their way out and I think that if they had just
come in for the first type of meeting, maybe
we wouldn’t be at this second one. There
was this one woman who worked in business
management in another part of the firm and
she said, “I’m leaving for this job in investment
banking at another firm.” I said, “Why aren’t
you staying with us?” and she said, “Well, this
job came up and it’s kind of what I wanted,
and it didn’t seem that easy to get it here.” I
thought: ‘if you would have just told me this
before we could have worked this all out’.
ALEX: How important have mentors been for
you and your careers?
MARY ANN: Extremely important. I’ve never
been one to have formal mentors; in fact, I’ve
always found that whenever there was an
intentional match, it never really worked. It
always felt a little bit artificial. But I think there
are a few people who come to mind today
who were influential in my career. I’m not
sorry to say they were all men but I actually
tell young women all the time, “Don’t think
you’re just going to learn how to be successful
in your career from another woman,” because
there are lots of ways to be successful and,
well, men are still more prevalent in senior
positions and are very often in the seat that
hands out the opportunity or the next big
role or their promotion. I think there were
two or three senior men who, at different
points in my career, took me under their wing.
My mentors were incredibly influential with
either how I carry myself in a good situation
or bad situation or how to become a better
manager, or how I learned to hire people
better or whatever it was. So it’s important to
have mentors and it’s important to be open-
minded about who that mentor is.
LIZ: I’ve definitely had a number of mentors,
in different phases of my career. Actually a lot
of them have been men, and some have been
women. I think of Jimmy Lee, of course, being
my most significant mentor, so his death was
a great loss for me, but I also think it gives
me a call to action, which is: how can I pay
that back to others? I think about not just the
mentorship, because you can get mentorship
from a lot of people, but the sponsorship, and
the advocacy that he had for me externally
with clients. If he was sending an email to
the client just reminding him or her why we
wanted a piece of business, he would often
insert my name and say, “You will get Liz
Myers, who is the best around.” Internally he
would highlight my capabilities, especially
with people who may have moved into a
seat that could be influential for succession
planning. And if that person didn’t know
me that well, he would work a little bit on
them and also work on me to make sure
that visibility was happening. Even at his
funeral reception, so many people said to
me, “He always told me what he thought
you should do next, and you know all these
things.” It was just very nice to hear that,
and it really struck me that it’s so important
not just to mentor someone but to advocate
for them, particularly for women, who won’t
always be the ones raising their hands the
highest for that available position or might
have moments of doubt. And I certainly had
moments of that myself….
ALEX: So, you guys are competitors – what’s
that like and have you ever been mistaken
for one another?
MARY ANN: I’ve told Alexandra the story
before, and I don’t think you ever heard it from
me, Liz, but I have definitely been in meetings
before where it’s clear we are following J.P.
Morgan by a day or a week or even your
timeslot on a given day and I know you were
CANDID CONVERSATIONS WITHPOWERFUL, RESPECTED WOMEN
10 11FALL / WINTER 2015 SAYRA LEBENTHAL
just here. I have heard a client saying, “There
was this other very strong woman!” And I
always say, “I know who that is!!”
LIZ: We definitely stand out. The power
of two. It’s nice to have two of us in these
roles though, it really is. I think it sends a big
message to the world about the opportunities
that exist for women in business. It’s really
tremendous.
MARY ANN: I agree. We do compete, of course;
we both have that DNA or we would never
have gotten to these roles, but I think it’s very
important and I am particularly conscious of
this when I’m working with Liz. I don’t get to
work with her as much as I would like to, but
I want my team to see us get along. Some
people think the competition ends when the
deal prices, but I think the competition ends
when you get your role and when you’re
both working for the client. When you’re
working with the client, the best way to do
this is to get along. I really like my team to
see that the women who are at the forefront
are really changing the way Wall Street firms
work together and we’re going to collaborate.
There’s time for competing and there’s a time
for collaboration, and it’s better for clients
if we collaborate so it’s a pleasure always to
work with her.
LIZ: I remember there was this one IPO that
both our firms were working on together
and the client was being particularly difficult
about accepting the group’s recommendation.
I just remember Mary Ann speaking out,
and I was just thinking, “That was such an
amazing point!” I was just so glad that she had
articulated it so well and that it resonated with
the client. If it’s some other competitor, you
always want your team to sound better and
crisper and more impactful, so I thought how
interesting that I was silently cheering her on.
ALEX: That’s terrific. What’s the best deal
you’ve ever worked on?
MARY ANN: You know, I have a very hard
time picking one but there are two sorts of
categories that come to mind: One is I really
like working with entrepreneurs. I think the
firms I have always worked for are big global
companies and we don’t necessarily march
to the same drumbeat that an entrepreneur
marches to, so I’m always fascinated by them,
and I’m in awe of what…If they’re going public,
what they’ve been able to accomplish and
what capital we raise for them will enable
them to do in the future.
LIZ: I love the pricing calls. Someone’s often
crying, because they’re so happy.
MARY ANN: Right….I feel just slightly more
passionate about getting it done the right
way for them because everything they do
is wrapped up in the brands that they built
and you don’t want to disappoint any client
ever, but I really don’t want to disappoint
those clients. The second category that I
really love—and there have only been a few
transactions—are the women CEOs. They get
A-Game every single time, I am not going to
let you down…it’s just a very, very small club
and I feel obligated to really go to the mat for
women CEOs.
LIZ: I think my favorite one, at least in the
equities business, was the Alibaba deal,
which was just so unique from so many
perspectives. It was a great injection of
culture, learning, developing an understanding
of how Chinese clients operate—what their
personal motivations are and in what context
they culturally operate—which you don’t
always deal with. In the US business, you
deal with different personas and different
motivations that drive us, but in the US,
you’re not thinking that there are important
numbers or metaphors that relate to animals,
the symbolism in saving face and don’t point
at someone with your index finger. That was a
really fun deal.
ALEX: That was certainly an exciting deal.
Last question: SAYRA is a magazine for
female financial advisors, the so-called retail
market, and you are creating the products
that they sell—hopefully getting some help
on allocations—do you ever get to interact
with any female financial advisors? And do
you have any advice for them?
LIZ: I have interaction with Mary Erdoes
who oversees our private bank as part of
the asset management area, but I would
love the opportunity to get to know more
of the inner workings of the typical female
financial advisor’s brain, and if she interacts
with her client base in a different way than a
man. Is there a different approach in terms
of how she sells a particular security or deal
opportunity to women versus men? I would
love to have that conversation.
MARY ANN: Same here. I don’t get to interact
with them as much as I would like to, mostly
because of opportunity as opposed to
anything else, but I think I understand the core
nature of what they do. They give individuals
advice, they give their best advice, and I would
say that having been through decades now in
this industry and seen the ups and the downs
and how great it can be when you give a client
great advice and it works out really well for
them, and how bad it can be when some bad
actors in our industry broadly and collectively
have done bad things. We all carry baggage
around now because of that. Advice I would
give to them? I suspect most of them know
this already, but always be true to your client
because that’s what this business is about,
that’s what your business is about. Whether
it’s an individual client or corporate client, that
true North is never going to change and when
you veer too far from that, bad things happen.
ALEX: Great. Thank you both for your time and
for giving us this peek into your world. nS
MY MENTORS WERE INCREDIBLY INFLUENTIAL WITH EITHER HOW I CARRY MYSELF IN A GOOD SITUATION OR BAD SITUATION OR HOW TO BECOME A BETTER MANAGER, OR HOW I LEARNED TO HIRE PEOPLE BETTER OR WHATEVER IT WAS. — MARY ANN DEIGNAN
CANDID CONVERSATIONS WITHPOWERFUL, RESPECTED WOMEN
12 FALL / WINTER 2015
A lthough women have made a lot of
headway as successful entrepreneurs
and the statistics are promising, we still
have work to do. Women are starting
businesses at twice the rate that men
are. More than 30% of privately-held
businesses in America are run by women, and in the last 10
years the number of all women-owned firms has grown by
28.6%—compared to a 24.4% increase for all U.S. businesses.*
Women have been leaving the corporate life behind for more
than a decade, due to challenges like career-personal life
balance, fewer opportunities to climb the corporate ladder and
break through the glass ceiling, and gender discrimination.
Many of us said goodbye to our cubicles and said hello to
our own offices, creating environments with the kind of
values and life balance we couldn’t find in corporate America.
But according to the statistics, even though 30% of small
businesses are owned by women, a very small number of them
are making what the business world considers “real money.”
For example, of the businesses that generate more than $1M
in revenues, only 1.8% are women owned. Why is that number
so small? In part because women have less access to capital to
grow their businesses. We need to help change that.
We continue to hear and read about amazing women in
our industry as well as in other industries who are inventing
products or establishing services that you may find useful
in your busy life. SAYRA editors talked briefly to two such
women who used their skill, ingenuity, passion, and drive to
become successful entrepreneurs. We were impressed; we
think you will be, too.
We asked both Nikki Kaufman at Normal and Carly Zakin and
Danielle Weisberg at theSkimm why they decided to become
entrepreneurs and start their own firms, what were their
challenges, and the advice they would offer to our readership.
I believe you will enjoy their insight and inspiration.
ENTREPRENEURS
LOVEWE
By SAYRA editors
* From Growing Under the Radar: An Exploration of the Achievements of Million-Dollar Women-Owned Firms
13SAYRA LEBENTHAL
Nikki Kaufman
14 15FALL / WINTER 2015 SAYRA LEBENTHAL
A lot of women are afraid to step out on their
own and start a company; they’re afraid to be
entrepreneurial. It can be very difficult and scary,
and it is a challenge, too. So those fears are real.
I would say that the highs are really high and
the lows are really low and that’s to be expected
in the beginning. The fun part is you have the
ability to create something. Every day we might
see a problem with what we’re building here,
but it’s fun to solve the problems, it’s fun to
create. I’m really enjoying the fact that there
are so many things that come together for us:
retail, factory, a lot of unique challenges that I’m
learning about. As I mentioned, each day may
present new challenges, but as long as you’re
passionate about what you’re building, then
I’d say you’re in the right place!
Nikki Kaufman, Normal CEO and Founderhttps://nrml.com/
“I had the problem of ill-fitting earphones
my entire life. As an athlete, I was a swimmer
in college and I also did a lot of running
for cross-training, but I never had earplugs
that fit. They would fall out. I didn’t think
much of it then because I never thought I
could fix the problem. I looked into getting
a custom pair and realized that the process
was incredibly cumbersome. It’s a $2,000
price tag. You go to an audiologist and
they pour silicone in your ears and it’s
very uncomfortable and cumbersome and
unacceptable. But after working at other
firms and exposed to production and
manufacturing techniques, I realized there
was a better way to make better fitting
earphones. As the co-founder of Quirky,
a consumer products company, I was
exposed to leading advances in 3D printing,
production and manufacturing. I soon
realized how quickly I could go from a photo
to a custom-fitting product so that’s when
we started Normal which is headquartered in
Chelsea, New York.
I have experienced many challenges. It’s not
just a company, it’s a brand, it’s a factory,
it’s a store, it’s also two apps. An iPhone
app and an android app. A lot of pieces
had to come together. And Normal is the
only company that uses 3-D printing to
mass-produce a consumer product. The
parts that were the hardest, for example,
the supply chain and making a customized
product at scale, and able to go in under
three hours, we’ve actually really dialed that
in, proving to be very successful at that. The
biggest challenge so far has been spreading
the word, and marketing. Very few people
know about it yet so that’s something we’re
striving to achieve—to spread the awareness
this holiday season.
Normal headphones (left). Interior of the Normal store (above) an exterior shot of the flagship store in Chelsea (right).
I HAD THE PROBLEM OF ILL-FITTING EARPHONES MY ENTIRE LIFE.
— NIKKI KAUFMAN
16 17FALL / WINTER 2015 SAYRA LEBENTHAL
things can change in an instant. That also
keeps every day interesting. The greatest joy
for us in creating theSkimm is the feedback
we get from people saying they love
theSkimm and have connected with news in
a different way because of it.
Our advice to entrepreneurs would be the
types of things we did in the beginning—
forming the network of advisors to ask for
help and advice. Think about creating an
advisory board—that’s basically a group of
people you have a relationship with where
you turn to them for their insight. It’s a great
way to help build connections when you’re
first starting and get practical advice as
issues arise in your company.
One of our investors told us a helpful hint
in deciding whether we wanted to make
someone an official advisor in our network—
there are friends of the company and then
there are advisors. Someone can be helpful
at different points in your company’s lifecycle
and that’s great. An advisor is someone you
have a relationship with meaning they have
equity in your company that vests over a
period of years, so you better want them to
be around for the long term. And know that
they will roll up their sleeves and help—or not,
if that’s what you need. Good luck! nS
WE STARTED theSKIMM FROM OUR LIVING ROOM COUCH IN JULY 2012.
— DANIELLE WEISBERG & CARLY ZAKIN
Danielle Weisberg and Carly Zakin, Co-Founders, theSkimmhttp://www.theskimm.com/
We produce a daily email newsletter
that breaks down what’s going on in the
world so you can start your day off right.
theSkimm makes it easier to be smarter. We
read. You Skimm.
We started theSkimm from our living room
couch in July 2012. We are former NBC News
producers who loved storytelling. We saw
that our friends who are smart and on the go
didn’t have a news source that fit into their
routine or that they really enjoyed coming
back to each day. So we started one. We
were first-time entrepreneurs so everything
was new to us—from hiring to finding an
office space to fundraising.
From the beginning, we reached to anyone
we knew who had started something
before. We were lucky enough to have
people generous enough to meet us for
coffee and give us advice. Forming a
network of people we could go to for help
with even basic questions was the best
thing we did in the beginning.
The toughest challenge is that no day is the
same. You never know what to expect and
Founders Danielle Weisberg and Carly Zakin (above) and the homepage of theSkimm’s website (left).
18 19FALL / WINTER 2015 SAYRA LEBENTHAL
ALEXANDRA LEBENTHAL INTERVIEWS CO-
FOUNDER KEN LANGONE
YOURPHONE
IS A MAGIC WAND
BILLIONAIRE BUSINESSMAN,
PHILANTHROPIST AND CO-FOUNDER
OF HOME DEPOT, KEN LANGONE,
SHARES HIS LIFE EXPERIENCES, HIS
SECRETS OF SUCCESS, HIS WALL
STREET BEGINNINGS, AND WHO
HELPED HIM ALONG THE WAY. HIS
ADVICE IS TRULY INSPIRATIONAL.
ALEXANDRA: Ken, thanks for taking
the time to join me. To begin, please
tell me about how you started. How did
you grow up and get to where you are
today?
KEN: I grew up in a very modest family,
financially, on Long Island. As far back
as I can remember I was always an
entrepreneur. For example, I sold wreaths
at Christmas, I worked in a post office, in
a supermarket, at a gas station and on
construction on one of the buildings on
the Long Island Expressway, all before
I was 18. Then I went off to college and
was a cigarette representative for RJ
Reynolds on campus, I sold stationery to
incoming freshmen for LG Balfour and I
bought an old refrigerator in a thrift shop
and sold beer to kids on credit. I was
always inclined to figure out a way to
make a buck.
I started out as a so-so student at
high school, but I woke up in college
academically at Bucknell and did better.
I went to NYU at night and got my MBA,
and then worked for the next five years
at Equitable Life in their investment
department – they called it an Analyst,
but all you were was a punk.
I had obligations, so for those five years
I was in the Army reserves until the end
of the obligation, but then I got called
back into the Army because Russia had
built a wall around Berlin, and Kennedy
activated 100,000 reservists, and I was
one of them. I thought I was unlucky, but
it turned out it was a big break because
while I was in the Army, back in May of
1962, the market crashed – the biggest
crash since 1929 – I remember being at
Fort Bragg and saying “Holy Christ, this
is an opportunity of a lifetime!” I had one
view and the world had another.
I must have had 40 interviews with
every imaginable firm – Clark Dodge,
White Weld, Goldman Sachs, Merrill
Lynch, Kidder Peabody, Lee Higgins,
and I couldn’t get a job because
everyone was offloading people. It was
a bad time. Then I met a guy from a
little firm called R.W. Pressprich – he
was a partner – and he said to me,
“You know, kid, I would love to hire
you – I think you’re on fire – but we
can’t afford it.” So I left his office and I
walked downstairs. But I really was hell-
bent – I wanted to work on Wall Street,
I had my MBA and I understood things
pretty well. I’m thinking that when I
started at Equitable I was making $82
a week and when I left to go back into
the Army in September of 1961 I was
making about $8000 a year. I had had
two or three nice pay increases. So, I
was in Pressprich’s lobby at 80 Pine
Street, and turned around and went
back up and asked the receptionist, “Is
Mr. Cullen there?” and she said, “Yes,
he’s here.” He comes out and said, “Did
you forget something?” and I said, “Let
me ask you a question: How much do
you pay a secretary?” I had one child
and second one on the way – he was
born in September of 1962 – he said to
me, “$150 a week.” I said, “You pay me
$150 a week and I’ll take the job. I’ll go
sell for you.”
Within two years, I was making more
money than any partner in the firm by
a huge margin.… I went out and met
[Ross] Perot, and I signed him up and I
got the [Electronic Data Systems IPO] –
it was a homerun – and we incorporated
the firm from a partnership and I
became Executive Vice President, that
was in the Spring of 1968. In 1969, the
guy that was President did a very bad
thing, and I found out about it. What
happened was, I got a huge order for
stock, and he wanted me to wait to put
the order in, so he can buy stock for
himself first. He came to me and said,
“Do me a favor and don’t put the order
in for an hour, because I want to buy
some stock.” I said, “That’s not right, is
it?” And he said, “Oh no, no, no don’t
worry about it.” That’s when I got up
from my desk and went to the old man
and I said, “I’m out of here, because
that’s going to get somebody in trouble
some day and it ain’t going to be me.”
So they fire the guy. The next day….
in fact it was September 2, 1969, I was
made President. And then, I kept doing
deals. I took over the company and ran
it for 5 years. Within those 5 years, I met
Bernie [Marcus] and I liked him.
And that was my career…and till this
day – I’m 80 years old and I’m doing the
same thing. I’m probably looking at 5 or
10 deals right now.
ALEXANDRA: When you’re looking
at deals, what makes the difference
between you deciding to make an
investment and not?
KEN: Only one thing. People. And
nothing more. Just the people. You
win with good people, you lose with
bad people. Now, that’s easier said
than done, because a lot of that is
judgmental, and that’s a tough thing.
How many times do you get fooled
by people? I have, you have, right until
about a month and half ago, I was
fooled by somebody. But that was
always the walk-on point for me – can I
trust them? And were they reasonably
bright enough that they have a plan?
ALEXANDRA: One of the things I’ve
seen about you—which unfortunately
is unusual among people with a certain
level of wealth—is that you treat people
the same regardless of their station in
life. Tell me about that.
KEN: I don’t mean this pejoratively, but
I know all about the little people. I was
a little person. My father was a plumber,
my mother worked in a school cafeteria.
One of the things I did as a kid to make
money was caddy. I submit to you
and I mean this…but some of my skills
in judging people came from being a
caddy. It reached a point where after 2
or 3 years of caddying, I could listen to
a guy on the first hole and tell if he was
going to bitch [about a bad shot] or
blame it on me or take the rap himself. I
could tell whether he was nice, or when
we stopped at the half way house if he
was going to say, “Get yourself a Coke,
kid”, or “Get yourself a sandwich and
a Coke, kid.” Now, don’t ask me where
those antennas came from. I think you
have to work at it.
ALEXANDRA LEBENTHAL INTERVIEWS HOME DEPOT CO-FOUNDER KEN LANGONE
20 21FALL / WINTER 2015 SAYRA LEBENTHAL
I think frequently, Alexandra, that I
would’ve been one of those little people
if not for my good fortune. It costs you
nothing to say thank you; it costs you
nothing. But the little people make the
difference in our lives. Like my mother
and father did. These people make your
life easier, and I just think it’s the right
thing to do. And don’t fake it. Let me
show you something: This is a picture
of my grandfather and my grandmother
– he lived in the hills east of Naples, he
left school when he was 6 years old – by
the way, that was their 50th wedding
anniversary and she never dyed her
hair – old Italian ladies didn’t dye their
hair. Look at his hand – until the day
he had a stroke at 72, he had a shovel
in his hands. I have no trouble relating
to the elevator guy or the waiter at the
Regency [Hotel]; it’s what I was and
what I am. At the end of the day, you are
who you were.
ALEXANDRA: Couple more questions:
Tell me how you think this business has
changed today versus when you were at
Pressprich?
KEN: I think it got better. It’s gotten away
from the “man of born knowledge.” I
think it’s easier for a kid to break in if he’s
got what it takes….particularly on Wall
Street. I think it’s more of a meritocracy. I
also think—and I really believe this—that if
we have a chance of keeping capitalism,
the best chance we have is for poor kids
to succeed and say, “It worked for me.” I
can say that! My old man went to the 8th
grade, my mother went to the 7th grade,
he was a plumber, she worked in the
cafeteria…look at me! It wouldn’t happen
in Italy. I asked my grandfather during
World War II, “Grandpa, you’re not going
back to Italy?” And he said, “No, there
was nothing there for me and that’s why
I came here.”
I wish I was 21, because the oppor-
tunities today are better than when I was
21. I think we’re learning a lot of lessons
– good lessons – about accounting
gimmick and tricks, businesses are more
solid, I think when you look at businesses
like Google and Yahoo and Microsoft,
you realize that they’re inhabited by tons
of kids, kids with no pedigree at all but
smart as a son-of-a-bitch. When you
look at what Perot did with EDS, and
look at what we did with Home Depot….I
had a kid call about a year and half
ago, his name was Mark Esposito and
he started out pushing shopping carts
in the parking lot in the East Meadow
Home Depot store 26 years ago. He
comes in, and I say, “What’s up?” He says,
“I want to tell you something. Last year,
I paid my parents’ mortgage off – this
was in April – and in December I paid my
mortgage off and I got a call yesterday
from my broker that my Home Depot
stock is now worth a million dollars, so
I’m a millionaire, and I want you to be
the first to know.” He started out for
$9.50 an hour, pushing carts and helping
people load their cars up, now he makes
about $350,000 a year, he gets stock
options. We have 3,000 kids today that
started at the lowest level possible who
are now multi-millionaires. 3,000!
ALEXANDRA: That’s fantastic and
I loved that answer, because there’s
so much pessimism right now about
America and I think for our readers who
are financial advisors who want to be
bullish about the investments they’re
putting their clients into, they’re going
to read your answer and they’re going to
love that.
KEN: Don’t sell America short. I’m going
to share a story [shows picture]….this is
a kid…you see this Marine? That’s his wife
and that’s his baby. He was a corporal
when he got out of the Marine Corps…
her family lived near Camp Pendleton in
California. So, they went to live with her
family for a couple of weeks until they
could get going. One morning, he comes
down for breakfast and this ad is ripped
out and it’s in his cereal bowl. That’s
the actual ad….his mother-in-law was
saying get off your ass and get out and
get a job…so he goes down to get a job,
and he gets a job at the Mission Viejo
store. He just retired as President of the
Northern Division, he ran 700 stores.
Previously he ran the West Division
where he ran 600 stores. He and his wife
said they wanted to give back, so here’s
what they’re doing – they live in Atlanta
– he’s buying old houses, fixing them
up and renting them out at discounts
to school teachers, rabbis, preachers,
priests….you tell me why America is not
great, okay?
ALEXANDRA: That’s great.
KEN: Alexandra –I think the oppor-
tunities in this country are the best
they have ever been. Look at Uber…who
would’ve thought? And there’s going
to be 50 Ubers in the next 10 years. But
not just technology….look at the stores.
Under Armour, Nike. Nike didn’t exist
and all you had were Keds and now
they’re all gone! Home Depot was three
guys—Bernie, Arthur and me—they
had no money whatsoever. They were
broke, had just been fired and 37 years
later we have 360,000 associates. And
80,000 more in the Spring and the Fall
for the seasonals, so we have almost half
a million people working for us in the
summer, the spring and the fall.
ALEXANDRA: That’s amazing. So great.
I want to ask you two questions about
women. Talk to me about where women
fit professionally in your book.
KEN: By the way, you know the guy, Joe
McFarland that just stepped down [from
Home Depot]? A woman is taking that
job – Carol Tome. The woman who runs
the Southern Division. A black woman
who started as a part-time cashier.
Where do they fit in my book? If they
can move freight, they got it. When I
stepped down as leader, I gave the job
to Bonnie Hill. Do you know Bonnie Hill?
ALEXANDRA: I have not met her.
KEN: So I gave her the job and I said, “I
want to tell you the sad thing about this:
People are going to look at you and say,
‘She got this because she’s black and
she’s a woman.’ Isn’t that sad, because
the truth is you got it because out of all
those [people] in the room, you’re the
one.” She had the job for 8 years and she
did a spectacular job. Where do they fit?
Where does she fit? If they make money,
if they can get the job done, I could give
a rat’s ass if they’re polka dot-skinned,
or if they’re half boy and half girl, ok?
Or if they’re 3 feet tall or 9 feet tall. You
gotta look at getting your best people
on the field. We live in an
extremely competitive
world – we don’t have
the luxury of doing
anything just for diversity
purposes, and people
have to stop running
to a lawyer and saying
“I was disadvantaged.”
Hopefully over time, we’re
going to be agnostic
regarding everything
except results. It’s all
good to acknowledge
that women have been
disadvantaged, which I
can see, that blacks have
been disadvantaged – we
have to put it in place. But
I say to kids in my charter
schools in Harlem, “I don’t
want one day for any one
of you to be hired because
of affirmative action. I
want you all to be hired because the guy
says I need that guy or need that gal
and they’re going to help me succeed if I
have them on my team.” That’s the best
outcome for everybody.
ALEXANDRA: Last question: Our
readers are female financial advisors.
Whether they’re dealing with somebody
who’s just starting out with a nest egg,
or with ultra-high net worth clients, any
advice for them?
KEN: Number one rule: Know your
client. Not just the numbers, but
psychologically. What are they like?
What is their propensity for risk? This
is text book stuff. Number two: Admit
when you’re wrong. It’s amazing in our
business the number of people who
stop calling the customer when the
customer gets banged up. That’s when
you want to call them and you want to
be honest: “I blew it, it didn’t work out
the way I thought it would, but stay with
me, I’ll try to fix it. I blew it.” So, honesty,
knowing not only what the client needs,
but what the client should have. Number
three: Be well informed. I learned this
trick from Jack Cullen, the guy who
hired me [at Pressprich]: When you’re
going to pitch an idea to somebody,
tell them all the negatives first. The
person is going to say, “What are you
telling me this for? Why are you telling
me I shouldn’t buy it?” “No, no…I want
you to know these are all the negatives
and now I’m going to tell you why you
should buy it, which should outweigh
the negatives.” Because the client is
going to say, “Holy smokes, I thought I
knew everything.”
And for Christ’s sake, keep making calls!
When I go to the trading room, I say to
the kids: “Do you know what this is?”
They say, “It’s a phone.” I respond: “Oh
no, no, no…this is a magic wand. It’s
amazing because when you pick up the
phone and you call somebody, you talk
to them.”
ALEXANDRA: That is the best piece of
advice I’ve ever heard!!
KEN: Stay on the phone and keep talking
to a client. Particularly today, phone calls
are so cheap! You can make calls for
practically nothing. When you have bad
news, call them….be the first one to tell
them. Don’t wait for them to call you,
because by that time it’s too late.
ALEXANDRA: Perfect! Perfect!
Thank you. nS
NUMBERONE RULE:KNOWYOURCLIENT”
“
23SAYRA LEBENTHAL22
IT’S NOT NEWS THAT EVEN THE MOST
powerful women can find it challenging to
embrace and grow their wealth. Despite the
best intentions, factors ranging from a lack
of confidence to lower paychecks to family
responsibilities can all get in the way of
successfully pursuing an investment plan.
As a result, women generally are under-
prepared for retirement and other major
financial goals. The numbers are pretty
stark. According to BlackRock’s 2014 Global
Investor Pulse Survey, American women have
accumulated only half the retirement savings
of men: $34,900 vs. $76,800. Women also
keep more money in cash, which holds them
back even further.
The savings gap is particularly troubling
given that women live longer than men—the
average 65-year-old-woman today can expect
to live 88.8 years compared with 84.6 for
men. That’s more time with less money.
But women don’t just need to create a shift in
their investment attitudes and actions; they
need to take the reins both for themselves
and their families—to set concrete investment
BY HEATHER PELANT
WOMEN ANDTHE COMING
WEALTH WAVE
Cre
dit
: Sim
on
Sees
24 25SAYRA LEBENTHALFALL / WINTER 2015
children, which eats directly into our bottom line: we still earn
78 cents for every dollar earned by men. And divorce will
usually hit a woman’s finances disproportionately hard.
Scaling these financial challenges isn’t easy, but it reinforces
the need for women to embrace the idea of building wealth
as a way to support all their competing priorities. Women
shouldn’t feel like they have to do this solo—advisors who
understand and put all of these priorities into focus add
immeasurable value.
TAKE DOWN THAT WALLThe third mindset shift—dismantling women’s own inner
barriers—may feel like the most difficult but it’s the one they
have the most control over. Within our research, women
express more concern than male counterparts about their
ability to balance the needs of today with the needs of
tomorrow. This concern would, understandably, lead women to
mentally distance investing and wealth creation as something
separate from the rest of their lives. It is often reported that
while women are capable investors, they aren’t confident.
So how can we help women silence the internal obstacles
that interfere with smart investment decision-making? The
first step is for them to recognize their tendencies and bring
them into the open by talking about them. They’ll find out that
they’re not alone, which can make them more open to advice.
And when I meet women who are weighed down by a lack of
confidence or worry, which can result in inertia, I counsel them
to take the intelligence, ambition and risks that they’ve built
through their other life achievements and port it to building
their wealth. Confidence is a transferable asset.
Ultimately, we can help women ride the wealth wave by
making investing a cradle-to-grave, always-on activity. It’s not
only part of their reality—it’s what makes that reality better. nS
goals, develop a smart strategy, and follow through.
The reason is simple: in coming years, women will control
two-thirds of the wealth in the U.S., or $25 trillion by 2020,
according to wealthmanagement.com. They’ll do this by
earning it themselves and inheriting it (from parents and
spouses).
A female wealth wave is coming, and navigating it will require
major mindset shifts—within the financial industry, from
society at large and among women themselves. Trusted
advisors have a critical role to play in helping women and their
families prepare for this shift.
A FINANCIAL SERVICES WAKE-UP CALLIn the years ahead, more women are going to be the primary
financial decision-makers. Yet, our industry can do more to
speak in a way that women can hear and want to engage
more fully in their financial lives. Three-quarters of women
under 40 report not getting financial advice, according to
CTI, the Centre for Talent Innovation. Research shows that
successful investors seek out advice, so this gap is troubling.
So how can we better engage women? There are two main
ways. One is to pay attention to how we communicate. Most
investors don’t like financial jargon like “alpha,” “alternatives,"
“passive investing” and so on. And we need to bear in mind
that women tend to be goal-focused rather than performance-
focused. Women tell us, “I want to send my children to college,”
and we respond by telling them to be more diversified. This
is a conversation in two different languages.
The second type of engagement will take a broader, more
concerted effort. It’s to more fully open the window and
develop a value proposition that resonates with women. The
more women feel welcomed and served, the more likely they
will become long-standing successful investors.
SOCIETAL REALITY CHECKI was speaking recently with a newly married couple about
their retirement plan, this was particularly clear. The wife was
an accountant and tax attorney, clearly good with numbers,
yet there was this tacit expectation that the husband would
handle the investments and finances. That’s the power of
gendered roles. Even as women are fiercely driven to succeed
professionally, they take a step back when it comes to wealth.
A simple step toward a more inclusive approach is to bring
both spouses into financial planning discussions. Asking open-
ended questions in a collaborative manner makes an advisor
approachable, and creates an environment most likely to lead
to open, trusting client relationships. Once trust is established,
women are loyal clients and more likely to refer their friends
and families.
At the same time, many women have a profoundly different
social reality from men. Many juggle multiple workloads of
home, career, and community involvement. More are likely
to on-ramp and off-ramp from the workforce to raise our
http://www.talentinnovation.org/Research-and-Insights/index.cfm?sorter=Finance#list
THAT’S THE POWER OF GENDERED ROLES. EVEN AS WOMEN ARE FIERCELY DRIVEN TO SUCCEED PROFESSIONALLY, THEY TAKE A STEP BACK WHEN IT COMES TO WEALTH.
Heather Pelant is a managing director
and head of personal investing
for BlackRock’s U.S. Wealth Advisory
group. Since joining the firm in 2003, she
also has served as the head of retail and
private bank distribution for Hong Kong,
Singapore and Southeast Asia, and head of iShares Canada.
Heather’s extensive industry experience includes representing Morgan Stanley Asset Management and the Morgan Stanley Consulting Services Group in
Honolulu, Seattle and San Francisco.
She earned an M.B.A. from the Kellogg
School of Management, an M.A. in Asian
Studies from the University of Hawaii and
a B.A. in Asian studies from the University
of Victoria.
24 25
26 27FALL / WINTER 2015 SAYRA LEBENTHAL
Author’s Note: In this article,
I will discuss two of the most
fundamental and widespread
problems keeping women from
becoming financial planners.
In later SAYRA issues, I will
discuss the less clear-cut, more
problematic issues that may
be getting in women’s ways,
such as industry gender bias
or women’s own reluctance to
take professional risk. I will also
offer my own opinions as to
what may be needed to achieve gender parity in my field. Will it
be a natural process of evolution that will bring its own solutions
in time, or must something more disruptive and radical be done
to put women in the driver’s seat?
“Are we there yet?”
It’s the inevitable cranky backseat question, familiar to anyone
who has taken the kids on a long road trip. But it’s a question
that many women in the financial planning industry are also
asking themselves. Have we yet arrived in our profession, in
numbers sufficient to garner us the attention, respect and
equal pay we deserve?
Unfortunately, the answer is “no.”
It’s been said that a minority is not truly heard until it
represents at least 30 percent of a given group. At the end
of 2014, only 23 percent of all 71,000 CERTIFIED FINANCIAL
PLANNER™ professionals were women—just seven percentage
points short of having this voice. So close, but still so far away,
given that there has been no momentum behind the numbers.
Women have stalled at 23 percent of all CFP® professionals
for more than a decade now, even as the financial planning
profession has doubled in size and the CFP® certification is
now well-recognized by the public. We are still riding in the
backseat and, occasionally, we get cranky, too.
In 2012 Nancy Kistner, CFP®, Managing Director at US Trust,
Bank of America Private Wealth Management, wanted some
explanations for this “feminine famine” in financial planning.
She had just become Chair of the Certified Financial Planner
Board of Standards (CFP Board), the non-profit organization
that now certifies more than 72,000 individuals across the U.S.
One of her first official acts was to assemble an informal Kitchen
Cabinet of the women she considered pioneers in the profession.
“How,” she asked her Cabinet, “did you find your way into
financial planning?” Even more importantly, “Why?” There was no
single or conventional path, according to these women. Two had
been math teachers. Another earned her MBA and after a first
job as a financial consultant to the federal government, got tired
of dealing with faceless agencies. She wanted a job where she
could make eye contact with “real clients.”
Alexandra Armstrong, CFP®—profiled in the fall 2014 issue
of SAYRA as a nationally-recognized woman pioneer in
Eleanor Blayney, CFP®, Consumer Advocate for CFP Board
The Feminine Famine in Financial
Planning
the world of finance—recounted how she had started as a
secretary to Julia Walsh, the first female to acquire a seat on
the American Stock Exchange. At Alex’s mention of the word
“secretary,” a few of the women in the Kitchen Cabinet nodded,
remembering how their own entry jobs had been titled.
But on one point all of these women were in agreement.
Becoming a CFP® professional was the best and most
satisfying business decision they had ever made.
To Kistner, the dearth of women in financial planning thus
became even more perplexing. Her Kitchen Cabinet was
telling her that financial planning could be a great place for
women to grow and thrive professionally, but the data were
suggesting that the profession was not particularly attractive
to women. To explain the disconnect, research was clearly
called for, and the inquiry needed to be bold, ground-breaking
and comprehensive, surveying a wide array of populations of
interest inside and outside the financial planning industry.
Under Kistner’s leadership, CFP Board created the Women’s
Initiative (WIN) and in 2013 launched a year-long exploration
of the issues. Researchers first met with firm executives,
educators and financial professionals both with and without
CFP® certification to gather qualitative data on the gender
issue in financial planning. A quantitative study followed,
soliciting information from approximately 1,800 respondents
drawn from the major segments of the financial services
industry. The study’s findings were memorialized in a white
paper, “Making More Room for Women in the Financial
Planning Profession,” released by CFP Board at a public event
held in New York City in April 2014.
What we found out was eye-opening. What must be done
to get more women in the profession poses some clear, but
difficult, challenges.
YOU CANNOT BE WHAT YOU DO NOT SEE The financial planning profession is the new kid on the financial
services block, having been around for only 40 years or
so. As an emerging practice, it brought together pieces of
related, much older financial fields— insurance, accounting,
brokerage, investment advisory and estate planning—into a
comprehensive approach to helping individuals and families
set and reach their financial goals.
Not until the formation of CFP Board in 1985 did the profession
truly begin to step out from the shadows of its professional
28 29FALL / WINTER 2015 SAYRA LEBENTHAL
progenitors. Through CFP Board’s establishment of rigorously
defined certification requirements in terms of education,
examination, experience and ethics, the practice of financial
planning has become a distinct professional discipline.
The public’s recognition of financial planning as something
different from “just investing” or “just selling insurance” has
been later in coming, and the confusion still persists to a
certain degree. Furthermore, it appears that this confusion is
not evenly distributed between genders. Women significantly
trail men in their understanding of what financial planning and
the CFP® certification is all about.
In CFP Board’s 2013 study, men and women financial
professionals who did not consider themselves to be financial
planners were asked to rate the degree of their familiarity
with what a financial planner does. Male respondents were
more than two times as likely to put themselves in the “very
familiar” category compared to the women (53 percent for
men, versus 22 percent for women). At the other extreme—
“not very or not at all familiar”—the numbers reversed: women
were more than two times as likely as men to put their
knowledge of financial planning in this category (11 percent
for men, 25 percent for women).
It’s hardly surprising that a lack of awareness of a particular
profession would be a major impediment to choosing that
profession as a career. But what is surprising is what happens
when this awareness deficiency is eliminated. Here again the
responses of men and women were significantly different.
A majority (58 percent) of women who were “very familiar”
with financial planning were interested in pursuing the career,
compared with a minority (44 percent) of men. These numbers
suggest that once a full and accurate description of the role
of a financial planner is given, the message resonates more
powerfully for women than for men. Back to what Kistner’s
Kitchen Cabinet were getting at: it’s a great career for women.
FINANCIAL PLANNING: THE INSIDER VS. THE OUTSIDE VIEWBeyond the gender gap in terms of awareness of the financial
planning profession, there is also a perception gap between
women financial professionals without their certification and
women CFP® professionals. In short, an outsider’s view of the
profession bears little resemblance to what an insider sees
and experiences.
In focus groups held with the insiders—including students
working toward their CFP® certification or women CFP®
professionals themselves—a financial planning career was often
described in terms of “helping” or “making a difference in the
lives of individuals or families.” Insiders saw the career fostering
creative problem-solving rather than rote number-crunching.
According to one CFP® professional: “The work is never boring.”
Students also liked the idea that a discipline so immediately
practical and relevant to their own lives was something they
could teach to, and share with, others. Younger women CFP®
professionals particularly emphasized that the certification
gave them the credibility and confidence they needed
to advance in a profession where clients are apt to be
significantly older than themselves.
The quantitative survey reinforced this insider view of financial
planning, but also defined a significant contrast between
this view and that held by women financial professionals
who did not have their CFP® certification. The two groups
were provided with a number of statements about the
profession and asked to indicate if they “strongly agreed”
with the statement. Here are the percentages of each group
committing to the following statements: (see chart.)
Women who don’t hold the CFP® certification were also
approximately two times more likely to assert that financial
planning requires strong sales skills, and nine times more
likely to agree that planning entails picking the right stock
and bond investments for clients, than were the women CFP®
professionals in the survey.
So here again appears the reductionist view that holds that
financial planning is “just investing.”
Fortunately, there are relatively obvious solutions to address
the lack of understanding and misperceptions about financial
planning among women. More must be done to increase
awareness particularly among girls and young women about
the CFP® certification and the process of financial planning,
and more insiders need to be talking to the outsiders to get
the story of financial planning straight. CFP Board recently
created a WIN Advocate program which equips CFP®
professionals with materials and messaging to go out in their
communities and speak to female audiences about their
experiences as financial planners and the ways in which their
relationship skills and communication strengths as women are
ideally suited to a career in financial planning.
But messaging, while necessary, is not sufficient to bring more
women in. It is critical that as more women are attracted to the
profession, they are also welcomed and supported once they
get there. This is the harder challenge, as it involves changing
attitudes and practices that may have worked to build the
profession 40 years ago, but are now threatening its growth as
well as its relevance in a world where financial decision-making
is no longer the province of men. nS
Strongly Agree that Financial Planning:CFP®
Professional women
Non-CFP®
Professional women
Requires strong communication skills 93% 61%
Requires strong listening skills 94% 58%
Looks at client’s situation holistically 91% 51%
Is primarily about building relationships 80% 49%
Requires a strong understanding of financial markets 40% 62%
Is a highly ethical profession 56% 35%
WOMEN’S PERCEPTIONS OF THE FINANCIAL PLANNING PROFESSION
Eleanor Blayney, CFP® is the Consumer Advocate for the Certified Financial Planner Board of Standards, reaching out to consumers to help them understand how financial planning and CFP® professionals can improve their lives. The author of "Women’s Worth", a book about how women can make the most of their financial lives, Eleanor worked with individual clients for more than twenty years to help them articulate and plan for their financial goals. As the only woman partner in a four-partner firm, Eleanor drew upon her female intuition, communication strengths, and facility for sustaining relationships to help build a wealth management firm that has served hundreds of clients in the Washington, D.C.
metro area and around the country. Passionate about finding ways to foster gender parity in the financial planning profession, Eleanor helped to spearhead CFP Board’s Women’s Initiative (WIN) to address the industry’s “feminine famine.” On behalf of the WIN Advisory Panel—comprising leaders in the area of women in financial services—Eleanor authored Making More Room for Women in the Financial Planning Profession, a 2014 white paper which presents the findings of a comprehensive research study on why there aren’t more women CFP® professionals and offers the WIN Advisory Panel’s recommendations to help attract more women to the profession.
Eleanor holds a number of degrees and designations. She earned an MA in English Literature from the University of Cambridge UK and an MBA from the University of Chicago. She is a CERTIFIED FINANCIAL PLANNER™ professional. Well-known as a conference speaker and frequently quoted in the news media, Eleanor has played a pioneering role in building and shaping the financial planning profession. She has taught for the College of Financial Planning, and has helped to develop practice standards and ethical requirements for CFP® professionals in the U.S. Visit Eleanor on CFP Board’s website at http://www.cfp.net/learn/advocate.asp or follow her on Twitter at @EleanorBlayney.
INSIDERS SAW THE CAREER FOSTERING CREATIVE PROBLEM-SOLVING RATHER THAN ROTE NUMBER-CRUNCHING. ACCORDING TO ONE CFP® PROFESSIONAL: “THE WORK IS NEVER BORING.”
SAYRA LEBENTHAL 3130 FALL / WINTER 2015
By Adri Miller-Heckman
The Six Steps
Female Advisors Find New Path to Success
As a woman you bring amazing strengths and talents to an industry mired in egos and less-than-ethical behavior. You have succeeded by adapting to the more traditional business model even when the process and methods felt totally
unnatural to you as a woman.
For some, you were destined for the role as a financial advisor from an early age. Supported by parents and others who encouraged your independence and fed your confidence, NO wasn’t an option. For others you simply fell into the business, sometimes by default. It was a job, income and an opportunity, but then you saw the impact you could have on the lives of others and a fire was lit in your soul. You knew this was where you wanted to be, doing what you wanted to do.
Regardless of your scenario, the road was never easy as you traversed the industry road blocks, gender biases, and even self-imposed limitations. You have spent years juggling the demands of family and the unspoken pressure from an industry that struggled to accept your value and ability. But you were committed to your purpose even when your energy waned and your optimism was shattered by compliance and challenging markets. At times, you were driven only by your sense of loyalty to your clients; it was their appreciation of your work that kept you afloat.
Let’s face it— for most women, your business has been fueled solely by discipline, hard work and your sheer determination to succeed, yet underneath it all you knew there had to be a better, more effective way to succeed. You knew it didn’t have to be so challenging, so painful, but straying from the traditional methods often attracted unwanted attention and less than positive feedback. In most cases, it was safer to stay under the radar rather than to stir
up attention with new and creative ideas.
But times have changed; women have proven their worth in the financial services industry. Firms are scrambling to hire more female advisors, not because they are filling court-mandated quotas, but because they recognize the value (and revenues) female advisors can bring to the business.
As women, we must recognize this shift and use this new position in order to make positive changes, not just simply to enhance our path to success, but to transform a stodgy industry stuck in the mud. We must stop trying to prove our worth (been there, done that) and begin rebuilding using our unique strengths as women to re-design how business is done on Wall Street.
I have spent more than 10 years coaching female advisors and, to me, the path to success for women is quite simple. When you build your business, process, and marketing strategy around your strengths as a woman, amazing things happen. Your passion and enthusiasm for what you do is immediately rekindled. You will begin to see that what you thought was possible, what you dreamed you could accomplish is right there at your fingertips. This shift will not only transform your business and life but will also re-inspire your clients, engage and empower more women, and help you connect with the generations that follow simply by providing a new, more personal and authentic approach to doing business your way.
I realize not every female advisor has the time or resources to get the personal coaching they need to transform their business, but you can begin the process by following the 6 Steps to Success below. These 6 Steps have been extremely instrumental in helping many women advisors rediscover their true value as an advisor, recognize their ability as a woman in business, and provide a new path to success for women in finance.
33SAYRA LEBENTHAL
Steps to Success for Women Advisors
6
FALL / WINTER 201532
Let’s face it— for most women, your business has been fueled solely by discipline, hard work and your sheer determination to succeed...
Adri is President of
www.AdriMillerHeckman.com,
home of Keys to the Ladies Room,
the marketing to women resource for
financial professionals. She is an expert at
helping financial professionals market to
and engage women more effectively. Adri
is a highly passionate and motivational
coach and speaker who fully engages her
audience and inspires advisors to market
to the affluent woman. Adri’s coaching
career was preceded by an extensive and
successful career in the field. As a financial
advisor, she learned first-hand what it
takes to build a thriving and sustainable
practice targeting the women’s market.
Adri’s more authentic approach and
business building strategies coined her
as one of the pioneers in the women’s market. As a result of her success, she went on to become a national trainer for Smith Barney, and then Director of National Sales for Women and Co., a division of Citigroup.
Please visit Adri’s website at: www.AdriMillerHeckman.com and see her book, "The Keys to the Ladies Room".
Make sure every
aspect of your
marketing is
focused on what
your tribal market
needs and wants and let the message continually
reflect you, your new message, and new focus. Make
your marketing personal, warm, friendly and nurturing.
Try to avoid any financial language, and speak from
your heart focusing on WHY you need to know this,
WHY I care about you. Share your beliefs, desires and
mission as a financial advisor, but let it reflect you, your
life and your personality.
Redesign your marketing strategy
This message should reflect
your purpose, your tribal
market, the impact you want
to make on the lives of others.
Your compelling message
should be more about whom
you help rather what you do.
Don’t get caught up in the typical approach focused on
how smart and talented you are. Remember, they don’t
care what you know until they know that you care.
(Read about the complete process in my book, The
Keys to the Lady’s Room.)
Develop your unique message
Embrace who you are destined to help
Understand who your
tribal market is (not
target market). Your
tribal market is all
about the character of
the client. List the personality characteristics
of your favorite clients, understand who
they are i.e., goal- oriented, philanthropic,
determined, great savers, driven by faith,
nothing is off limits. Now make a list of your
own characteristics, what makes you who
you are, how others close to you would
describe you. Chances are in many ways
you are your tribal market. The size of assets
should only be a factor when recognizing
the value of your time, talents and energy.
Get to knowyourself again.
Examine the real you—
highlighting your talents, desires,
fears and flaws, leave nothing
on the table. Uncover what truly
inspires and motivates you, as
well as discovering the aspects
of the business that fill your soul. Identify your natural
strengths. List your unique strengths as a woman
without thinking as a financial advisor. Recognize
what makes you successful in other aspects of your
life, write them down, and own them. Now take each
of your strengths and recognize how that strength
makes you good at what you do as a financial advisor,
how it adds to your clients’ wealth management and
business growth.
You knew it at one point, but it
may have gotten buried in the
process of doing business. Why
did you get into this business
in the first place? What is it you really love
about what you do? Dig deep and go beyond
“helping people.” Helping whom? Helping how?
Peel the layers of the onion on yourself.
I encourage you to trust your instincts,
shed the traditional
industry protocol
and to re-launch your
message, brand and
focus with fresh conviction fueled
by your passion and purpose. This
is when the real magic happens.
Resurrect your true purpose.
34 35FALL / WINTER 2015 SAYRA LEBENTHAL
A CENTURY OFWISDOM, HONOR… AND
STORIES.100-YEAR-OLD IRENE BERGMAN SHARES A FEW OF HER LIFE EXPERIENCES BEFORE AND DURING HER 75 YEARS ON WALL STREET
By Alexandra Lebenthal
Irene Bergman, a 100-year
old stockbroker who has been
in the business for nearly
75 years, is an overnight
sensation. Last summer,
Bloomberg ran an article
about Irene, still actively
serving clients at New York-
based Stralem & Co., and it
quickly went viral. For weeks
thereafter, it seemed as if
everyone was asking me
if I had ever heard of Irene
Bergman! Unfortunately, our
paths had never crossed, but
I had to meet her and find
out her story. In particular,
I wondered if she knew my
grandmother, Sayra Fischer
Lebenthal. Sayra , who passed
away in 1994, was 17 years
older than Irene so they were
active at the same time.
I reached out to Irene and,
happily, she not only called
back but invited me to
lunch at her Upper East
Side apartment. Lovely and
trim, with the energy of a
woman half her age, Irene
was a marvelous host at her
proper dining table. While we
dined on smoked salmon and
pumpernickel bread, she told
me the story of her life. As it
turns out, her career on Wall
Street is the least of it.
Irene was born in Germany
in 1915 into a prosperous
family headed by her father,
a successful businessman. In
1934 when the Nazis came
into power, things began
changing for the worse for
Irene and her family. They
left in 1936, as she put it,
“Just before things really
got terrible.” They would
have left earlier, but Irene’s
father wanted to be sure
that he could help all of his
employees get jobs.
The family’s departure from
Germany began an odyssey
to escape the Nazis that
stretched across Europe and
ultimately led to the United
States. Settling first in Holland
and then Austria, the family
then took a run-down bus
through unoccupied France
and a train to Barcelona and
finally to Lisbon. Irene told
me that wartime Lisbon was
a haven for Jews on the run.
“Lisbon was full of refugees
from everywhere. You would
say ‘I wonder what happened
to so and so,’ and then you
would run into them on the
street.”
The ultimate goal was to
try and get out of Europe.
The family managed to
book passage on a boat
for Bermuda; there were
two Englishmen onboard—
who seemed out of place
to Irene—who ended up
capturing three German
spies trying to sneak into the
United States. Irene’s family
ultimately made it to New
York where some cousins
lived. Their long journey had
come to an end. Irene’s father
was one of the few Jews who
had managed to protect his
fortune, or so he thought:
Once they were settled in
the United States, he set up
instructions for his money to
be wired to him. But because
the funds were in enemy
territory, the funds transfer
was denied. Their family lost
everything.
Irene had always wanted to
be in the investment world.
In fact, as a young woman
she had wanted to be the
first woman to have a seat on
the Berlin stock exchange. In
1942 she started working at
Hallgarten & Company as a
secretary, and in 1957 she was
finally allowed to start dealing
with investments herself.
What was it like starting out?
“As a woman in 1957 I was
an oddity, but I loved the
challenge.”
Irene was crushed when
a young David “Sandy”
Gottesman and Arthur
Zankel, with whom she was
close, left Hallgarten in 1964
to start First Manhattan
and didn’t ask her to join.
Chalking it up to a founding
partner who didn’t like her,
Irene focused on her job, but
wasn’t happy. She moved
on to Loeb Rhoades for six
years, but a chance encounter
on the street with a former
colleague led her to Stralem,
where she has toiled happily
since 1975.
Irene said she had never met
my grandmother but knew all
about her and my family. It’s
too bad, because I think they
would have enjoyed each
other’s company. They share
a certain feistiness.
Irene looks back fondly on the
old days of Wall Street, when
firms were small partnerships,
not large, public companies.
In those days, partners had
to make decisions using their
own capital, not large balance
sheets.
Nowadays, Irene works from
her home, but she is still
active in dealing with her
clients. However, she is wary
of the markets. “I'm very
bearish now,” she said. “Even
the stocks I like, I wouldn’t
touch.”
I asked her if she had any
advice to women in the
business today. “Women have
to tough it out and find their
place in the business world.
Wall Street is no exception.”
In August, after the
Bloomberg story came out,
Irene was asked to ring the
bell at the New York Stock
Exchange to celebrate her
100th birthday. We join
in saluting her. Irene is a
testament to the struggles
and successes of those early
female pioneers in financial
services, and the embodiment
of all we revere at SAYRA. nS
Left to right, Irene Bergman, then and now, competing as a young equestrienne in 1938 and with Alexandra Lebenthal, New York City, 2015.
37SAYRA LEBENTHAL
There is no
in Team.
THE VIEW FROM FINANCIAL ADVISOR SUPPORT STAFF By Bella Patel,
Associate Editor
39SAYRA LEBENTHAL38 FALL / WINTER 2015
MICHELLE BRILLHART Lebenthal Wealth Advisors
How did you get into the business?
I started as temporary help with
Shearson Lehman Hutton in 1988. I
expressed my desire to learn as much
as possible about the business and the
branch manager’s assistant gave me a
comic book to read that was designed
to explain the stock market to kids. It
seems pretty funny now but we all have
to start somewhere! I became a Sales
Assistant at the branch and a few years
later, I joined the Managed Accounts
Product Division where I went on to
become a Regional and then Divisional
Analyst working with Financial Advisors
across the country on developing asset
allocation, money manager selection
and performance measurement for their
institutional and high net worth clients.
In my current position I get to do a little
bit of almost everything from my past;
it’s like I have been preparing for this my
whole career!
What do you like most about being in
the financial services business?
I like working with people, problem
solving and project management—
all things that come in handy in this
business. Also, the financial services
industry is very dynamic. There’s always
something new to learn. Working in
a smaller office as I do, I get to wear a
lot of hats; I never have to worry about
getting bored doing the same thing all
the time because every day presents
new challenges and opportunities.
What is your major contribution to your
team or your advisor?
To date, my biggest contribution has
been assisting the Financial Advisor I
work with in transitioning his book of
business over from his prior firm. Now
our focus is client service as well as
growing the business.
What one piece of advice would you
give to an advisor to improve his/her
business?
Manage client expectations. The more
you educate the client on what to
expect from their investments, the more
likely they are to stay the course over
the long term.
SUZANNE FLINN Sales Assistant, Hanson Financial Group, LLC
How did you get into the business?
Initially, I had been Heidi Hanson’s client
and had taken early retirement from
my previous job in high tech. Although
Heidi assured me I could retire, I think
I’m like a lot of single women, and
suffered from the “bag lady syndrome”
(worried I’d run out of money if I
retired). This position opened up and
Heidi asked if I’d be interested in talking
with her. Having been an executive
assistant and having a keen interest in
finance and investments, it seemed like
a good fit. Knowing Heidi from working
with her as a client made it a no-brainer
for me to want to investigate further.
The rest is history and I love being able
to bring a client’s perspective to my job.
I treat each one of our clients as I would
like to be treated.
What do you like most about being in
the financial services business?
I love the variety of working to each
client’s specific needs and playing a
part in their comfort level with us as
their financial advisor, no matter the size
of their net worth. The majority of our
clients are women—many of whom are
divorced or widowed (going through a
difficult time in their lives)—and greatly
need our expertise and advice. The work
that I do and the service I provide makes
a difference in our client’s lives and that
is a wonderful feeling.
What is your major contribution to your
team or your advisor?
The more I can offload from my advisor,
the more it frees her up to concentrate
on what she needs to do for our
clients, building relationships and
tending to our business. I feel my major
contributions are my organizational
skills, building strong rapport with our
clients, excellent client service and
timely account follow-up.
What one piece of advice would you
give to an advisor to improve his/her
business?
Take the time to take care of and nurture
yourself in order to be your best to serve
your clients.
JA’NET ROYAEL Lebenthal Asset Management
How did you get into the business?
I started out as administrative support
for an asset management firm. During
my daily routine I began learning about
finances/investing and found it very
interesting – this is when I knew I really
wanted to be involved in financial
services.
What do you like most about being in
the financial services business?
every financial advisor knows that
competent support staff is an indispensable
element of a successful business. Wealth
management is constantly changing and
evolving—everything from best practices in
client service to compliance requirements
to technology—and in this environment an
advisor is only as good as her staff. They
are the conduit between management,
operations, clients and other departments,
the first line of defense in fielding inquiries,
and often have the closest day-to-day
relationship with clients.
“Our client associates are also relationship managers and are a crucial part of the business,” said
Carrie S Gallaway, CFP®, co-head of the Gallaway Stern Group at Lebenthal Wealth Advisors. Speaking
for FAs everywhere, she went on to say, “They are our partners and the backbone of the success of any
financial advisor or wealth manager. Behind every great advisor is a superb support team.”
I know this because I began my career as a sales assistant at a wirehouse in 1992, and now I hear
it from the FA teams I encounter on a daily basis. The good support teams work with efficiency,
pride and devotion; the great ones can help improve client retention and enable the business to
grow. These proud professionals are not only do-ers, they are thinkers. SAYRA talked with several
of these very busy professionals and asked them to share their stories and their perspective on
the business. We think you will agree that their advice is spot-on.
40 41FALL / WINTER 2015 SAYRA LEBENTHAL
I am a “people person”. I enjoy the
day-to-day contact with our clients.
Clients like to have a relationship with
the people handling their money—you
develop a bond and build trust and
become an extended family—I like that.
What is your major contribution to
your team or your advisor?
Being the knowledgeable and trusted
member that allows our portfolio
manager the freedom to think about
investments and do research for our
client portfolios.
What one piece of advice would
you give to an advisor to improve his/
her business?
Always be honest and compassionate—
it doesn’t cost a thing!
DEBBIE MANLEY Sr. Client Associate, Smith Moore
How did you get into the business?
I took a temporary summer job while
in high school working for an investment
banking and brokerage firm. I worked
in the wire room transmitting orders
and payments to home office and I was
eventually hired full time.
What do you like most about being
in the financial services business?
The Challenge. There is always
something new to learn as well as the
opportunity to share your knowledge.
What is your major contribution to
your team or your advisor?
It would be my 40+ years of experience
and knowledge, ability to navigate
the rules and requirements, and
organizational expertise.
What one piece of advice would
you give to an advisor to improve his/
her business?
Don’t give up. When a door closes,
don’t stop. There is always a way to
solve the problem and achieve your
goals! Be persistent.
KITTY MARTIN Lebenthal Asset Management
How did you get into the business?
I started off as the administrative
assistant to the Chief Investment
Officer of US equity investments at
the firm formerly known as Bankers
Trust. I enjoyed the financial markets
so much that I have spent my entire
career in this field.
What do you like most about being
in the financial services business?
For almost my entire career, I have
worked on the buy side on U.S. small
cap growth investments. It has been
fascinating to see companies that
started out as IPOs become large cap
stocks during my career. On the flip
side, I have also seen IPOs crash and
burn, never to be heard from again.
Over the two decades that I have been
in the business, I have seen the impact
of globalization on the stock market.
It is amazing to see how the investment
business has changed as businesses
and economies have become more
intertwined globally.
What is your major contribution to your
team or your advisor?
My biggest contribution to the team
is to make sure that the business is
running smoothly so that the portfolio
manager and analysts can focus on the
most important aspect of the job—which
is stock-picking.
What one piece of advice would you
give to an advisor to improve his/her
business?
Your business is as good as the staff
that help you manage and run it. Make
sure you hire good people and then
make sure they stay.
ALEX TUASON Lebenthal Wealth Advisors
How did you get into the business?
I was working at the Bank of New
York when a client asked me if I ever
thought about branching out into asset
management. She worked at Smith
Barney and thought I would be a perfect
match for an open position at the
firm. After several weeks of interviews,
I joined the International Money
Management team within Citigroup
Asset Management.
What do you like most about being in
the financial services business?
The most gratifying aspect of working
in the financial service business is
the opportunity to cultivate client
relationships. Throughout my career,
I have been able to develop trusting
relationships with our clients. At times,
I have been able to establish multi-
generational relationships within one
family. I have been invited to baptisms,
bar mitzvahs, birthdays, graduations,
retirement parties and, unfortunately,
attended some funerals. I take pride
knowing that when it’s time for a client
to make a life event decision, my name
is near the top of the list of the trusted
inner circle.
What is your major contribution to your
team or your advisor?
My primary responsibility is to oversee
client relationship management which
includes personal banking and cash
management. I’m constantly reviewing
accounts, checking for irregular activity
or low balances. If a client is in need
of cash, I ensure they receive it in a
timely manner.
What one piece of advice would you
give to an advisor to improve his/her
business?
A consistent client contact schedule
has been successful for our team. While
email is the popular communication
of choice, I find a phone call is a more
effective way of communicating. Clients
like to hear sincere reactions to the
concerns or events going on in their
lives. An email response is subjective,
whereas voice communication appeals
to one of the five senses. It makes it
more personal. nS
When a door closes, don’t stop. There is always a way to solve the problem and achieve your goals!
— Debbie Manley
43SAYRA LEBENTHAL
I HAD A BEAUTIFUL CLIENT NAMED
Elizabeth who was very sick with cancer.
She was so brave and I wanted to do
everything I could to help her through
her struggles.
During one of our meetings she told me
that she really needed a car that was
easier to drive because her lymph nodes
had been removed and she had a hard
time steering her car. So we discussed
her need for a new car, and about the
same time she told me her employer had
offered her a pension lump sum. So I
suggested I take a look at the figures to
determine if she could afford the car and
also if the amount was enough income
needed for her current lifestyle and
medical needs.
I had worked with other clients with
the same income and same age and
their lump sum numbers were quite
larger than the offer Elizabeth received;
it was important to call the benefits
department and ask for Elizabeth’s offer
to be recalculated. Soon after I noticed
my client’s numbers were wrong, the
company sent a letter out to everyone
saying they were recalculating everyone
who received an offer.
They went back and re-figured her
numbers and they were off by $100,000.
GOING THE “EXTRA MILE” IS A WAY
of life for Dignum Financial Partners.
We strive to demonstrate to our clients
that we are listening when they speak
and we care about their situations.
This is evident in many ways. Last year,
one of our clients, a single parent, had
accomplished her goal of saving for her
son’s college education. She worked
diligently at this goal knowing that she
would not receive any support from her
son’s father. She was ecstatic when her
son was accepted at Dartmouth College.
She decided to reward herself by
planning a short vacation while
accompanying him to school. During
our appointment, she elaborated on the
bed and breakfast inn she had found
close to Dartmouth and how excited
she was about her upcoming trip. We
immediately called the bed and breakfast
inn and, to surprise her, arranged to have
a gift basket with local “treats” waiting
for her arrival to further her celebration.
On another occasion, we were assisting
one of our clients who had recently
lost her husband of 57 years. She is a
brilliant woman in her own right — an
42 FALL / WINTER 2015
GOING THE
EXTRA MILE
200 Pies, Bed & Breakfast, and
Budgeting for Clients
E. Kim Dignum is a CERTIFIED FINANCIAL PLANNER™ professional, Chartered Financial Consultant and a General Securities Principal and Investment Adviser Representative through Commonwealth Financial Network. Kim provides comprehensive financial planning and investment management services. She is frequently quoted by national magazines and newspapers and has appeared on national television (Peter Jennings, World News Tonight) and radio (NPR) in addition to providing financial speeches to local organizations and corporations. Her outstanding reputation and commitment to the community is evidenced by the many boards and organizations
in which she participates. Her honors include being selected
by the U.S. Department of Labor as a mentor to their Wi$e Up
Program, selected as “Woman of the Month” by the National
Center for Policy Analysis, Women in the Economy, “Outstanding
Women in the Workplace” by the city of Fort Worth, and
“Women of Distinction” by Altrusa International, Inc. Kim is proud
to have been recognized as a Leaders Level advisor for 2012—a
distinction attained that year by just 7 percent of advisors
affiliated with Commonwealth Financial Network.
GOING THE “EXTRA MILE” IS AN EFFECTIVE
WAY WE DEMONSTRATE HOW MUCH WE
CARE ABOUT OUR CLIENTS AND WELCOME
BEING A PART OF THEIR JOURNEY.
author, an artist and a poet — however,
she was totally unaware of her finances.
Not only was she mourning the loss of
her husband, but she was now facing
the fear of this unfamiliar territory. We
spent numerous hours with her educating
her about budgeting, writing checks,
establishing systematic payments as
well as evaluating her various insurance
policies. She was so thankful—stating that
“we were household words” to everyone
with whom she came into contact.
On a larger scale, we are sensitive to the
demands of the holidays. Many of our
clients are elderly and accomplishing
all the holiday planning can sometimes
become quite a challenge. Last year,
By Kim Dignum CFP®, ChFC
we ordered 200 pies from the #1 voted
bakery in our city. We sent an email to
our clients inviting them to select their
favorite pie (apple was the number
one choice), to be picked up from our
offices two days before Christmas. This
saved them quite a bit of time and it
was very much appreciated.
Unfortunately, many clients today have
come to expect poor customer service.
We strive to prove quite the opposite.
Going the “extra mile” is an effective
way we demonstrate how much we care
about our clients and welcome being a
part of their journey.
Jazz Concerts
and Donations
By J.B. Bryan
Jennifer “J.B.” Bryan is a pioneer, having launched the first Black-owned Registered
Investment Advisory firm in the Richmond, Virginia area in March of 1995 and serving
investors for more than 20 years. J.B. Bryan Financial Group, Inc. is an independent
RIA. J.B. earned her Bachelor of Science degree from the University of Virginia, and
received her Master of Science degree from Virginia Commonwealth University.
44 45FALL / WINTER 2015 SAYRA LEBENTHAL
After a few weeks, they sent back new
numbers showing more money. It was
more than enough to buy the car and
create the income she needed to live on.
She was very happy that I was able to help
and she retired very quickly after that.
A lump sum may be good for some
clients and for others it might not be the
best thing. As advisors, we should make
sure that we’re working as fiduciaries and
not encouraging them to do something
that’s not going to be good for them in
the long run, especially after retirement.
FundraiserWhen Elizabeth was diagnosed
initially with breast cancer she
developed a really good relationship
with the people in the local cancer
center where they distribute the wigs
and other things for cancer survivors.
She approached me and asked if
I could do something for them. At
this point she was going through
chemotherapy for the third time. She
had taught me so much while she was
going through her health challenges.
I was planning on giving a client
appreciation party and decided to
turn it into a formal live jazz event
and fundraiser for the American
Cancer Society for her. It was fabulous
and everyone had a wonderful time.
Elizabeth was so grateful. Sadly, she
has since passed away.
I had no idea about organizing a
jazz event, but I knew I had to help. I
didn’t do it for media coverage, and
it seems like a lot of people do things
like that just for the PR. I just wanted
to make a difference. It gave her the
opportunity to really give back to the
organization that had done so much
for her. She had a ball! She was so
dressed up in her formal clothes and
had a really good time.
I also have a client who is a retired
teacher and doing work for the
domestic violence center in town. She
sent me an email telling me the center
needed $1,000 for supplies and a few
other things. I decided to forward her
email to all of my clients and I asked
them if they could help the center and
send any donations directly to them. The
donations exceeded their expectations.
It’s great to be able to help your clients,
and it just makes you feel so good. It’s
very rewarding and meaningful.
Disclosure: Not all firms allow for the
solicitation of clients for the advisor’s
charity of choice. Check with your firm’s
policies and/or code of ethics .
I WAS PLANNING ON GIVING A CLIENT
APPRECIATION PARTY AND DECIDED
TO TURN IT INTO A FORMAL LIVE JAZZ
EVENT AND FUNDRAISER FOR THE
AMERICAN CANCER SOCIETY FOR HER.
We Have to
Protect Our ClientsBy Elisha Porterfield, CFP® The Minas Sabau Porterfield Group of City Securities Corporation
Elisha Davis Porterfield, CERTIFIED FINANCIAL PLANNER™, is a Financial Advisor with the Minas Sabau Porterfield Group of City Securities Corporation. Elisha has over 12 years of experience in the financial services industry, specializing in retirement & financial planning. In addition to being a CERTIFIED FINANCIAL PLANNER™ professional, Elisha holds FINRA Series 7, 63, 66, and 24 securities licenses, as well as her Indiana Life & Health Insurance license with a Long Term Care addition.
Elisha graduated from Culver Academies and went on to earn
a Bachelor of Science degree in Finance from Butler University
in Indianapolis, Indiana. She is a resident of Valparaiso, Indiana,
where she lives with her husband and serves on the Finance
Committee for the Valparaiso First United Methodist Church
and as the President of the Valparaiso chapter of Lions Clubs
International.
IN THIS DAY AND AGE, WE HAVE TO
protect our clients now more than ever.
We need to protect them from others.
Sometimes, we even have to protect
them from themselves. And we have
to protect their families and the next
generation. I truly enjoy what I do and
am very passionate about being an
advisor. However, what being an advisor
entails today has changed greatly in my
twelve years in this industry, let alone
the 58+ combined years of my partners.
One duty has evolved dramatically
during that time is this idea of serving
and protecting clients. It is a lesson
I learned early on: without authentic
passion about helping people and
protecting clients, an advisor will likely
not be in this industry very long. This is
not an industry where you can ‘fake it
until you make it’ as they say.
Protecting Our Clients From ThemselvesWe have to protect our clients from
themselves—and yes, I think sometimes
our days end with a feeling like we
have been more of a therapist than an
advisor to our clients. I sense our role
is really evolving to the place where we
serve more as “financial life managers”
than “investment advisors.” We protect
our clients from themselves in many
respects—one of which is probably
the worst kind of inflation - what I’ve
come to call lifestyle inflation—that
phenomenon where we have to have the
latest gadget or technology; before you
know it, there is a new tech toy that they
feel they cannot live without –with an
upgrade around every corner.
We have to talk to them periodically—to
ensure that their retirement spending
is not getting out of hand. We must
periodically remind them that they
should call us first if they are considering
a large financial decision. Together, we
can make sure that they do not fall into
an unexpected financial pitfall.
Another way we have to protect
our clients from themselves is from
procrastination - procrastination in
getting to that attorney’s office to
complete those estate documents, or
that trust amendment, or to put that
business succession plan into place.
Procrastination can happen following
the death of a loved one, neglecting
to update beneficiaries; or perhaps in
the business of divorce proceedings,
the 401(k) beneficiary has not been
amended. One of the more profound
reasons I’m in this industry in the first
place is because of procrastination. At
a young age, I saw what procrastination
did to a family who did not periodically
review their estate documents. We see
that happen all too often.
We also have to protect our clients from
themselves by observing them to find
ways we can help. We have probably all
had a client for whom we know more
about their net worth and estate plans
than their children do. Recently, I had
an elderly client come into my office. I
noticed that this thin man had lost a lot
of weight. When I probed a bit to find
out what was going on, he mentioned
his wife was starting to drift mentally
and hadn’t really been remembering to
make dinner. He needed help because
he didn’t know what to do, and he was
also really worried about leaving her
alone. He did not want to ask his son
for help because his son did not know
about his finances. So I made a couple
calls and visited a few memory care
units. Eventually, I was able to help him
find a place where his wife would be
well cared for. Soon after, his health had
also recovered. He felt like things were
under control. Recently, for the first time
in 82 years, he took the first vacation of
his life—fishing in Alaska. He asked me
what he could get me as a thank you
for my help and I asked him to bring me
home a rock. And now that rock proudly
sits on my computer monitor—to help
remind me every day of why I love what
I do so much.
Protecting Our Clients From OthersIt goes without saying that we have to
protect our clients from others. I recently
had a call from a newer client, a widow
who lives on a fixed income. She asked
for a distribution from her IRA that was
almost half of what we’d planned to
take for an entire year. I politely probed
to find out why. She said there was a
terrible problem with the plumbing in
her home, and she had received a quote
from a company she trusted to fix the
problem. I asked if she would mind
terribly if I made a call to get a second
estimate. One phone call later she had a
quote to do the job for 10% of what the
“trusted” company had quoted.
To protect our clients, we have to be
connectors. One way that this industry
has changed is that we used to just
call our clients when there was one
particular stock or bond they should
purchase. Then we embraced asset
allocation and diversification and the
47SAYRA LEBENTHAL
education that comes with that. Today,
we have to be prepared to assist our
clients in the six main areas where they
can invest in themselves and by being
invested in our clients, we have to be
prepared to help them invest in ALL of
these areas—stocks, bonds, real estate,
commodities, education, and their own
businesses. For instance, I recently read
a quote that “60% of U.S. businesses
who are hacked are small to mid-sized,
and of those, as many as 80% never
open their doors again.” If I share that
information with my clients and they
are able to protect themselves and their
business because of that information,
then I am protecting their investment
in their business. Even though it wasn’t
investment advice - I just showed that I
care about them and their business too.
Protecting Our Clients’ FamiliesWe also have to protect our client’s
families and the next generations as
well. To accomplish this, we also have
to protect our clients from our own
procrastination—or we may be doing
them the biggest disservice of all. What
if we go through all of this planning with
them and help them avoid all kinds of
pitfalls and then suddenly we get into a
car accident? Who will help our clients
and their families start their plan over
again or help their daughter find out
how to maneuver as executrix or trustee
of their estate? As advisors, attending to
our own succession plan is yet another
proactive way to care for the needs of
our clients. To that end, developing a
relationship with that grandchild or son-
in-law is equally important. Connecting
relationally is the only real way to know
that you are one of the first phone calls
they should make when someone passes
away, or when they decide to start a
business but are not quite sure how to
begin. Our team hosted its first Annual
Family Picnic this year because we value
these relationships with our clients and
their families. At that picnic, we had no
agenda, nothing to sell them. We just
wanted to get to know that grandchild
for whom we’ve just setup a 529 plan.
And we want their families to know that
we are not intimidating stockbrokers
who talk over their head or talk down
to them. We want them to know we
are first there to help them, almost as
an extension of their family. After all, if
we are not invested in them and their
success, then for what reason are we
really in this industry?
As advisors, we have to find a way to
become more integrated so we can see
the red flags that our clients can’t—we
owe it to them. We owe it to them to be
invested in them and their goals. We owe
it to them to help them with their entire
portfolio—not only with their 401(k)s
and their asset allocations, but also with
their education planning and business
planning. That is why we have to work
on teams and with strategic partners—
so we can truly serve our clients to the
absolute best of our ability. We owe it
to them to do our very best to protect
them. We owe it to our clients to invest
ourselves in them. nS
GOING THE
EXTRA MILE
WE HAVE TO PROTECT OUR CLIENTS FROM
THEMSELVES—AND YES, I THINK SOMETIMES
OUR DAYS END WITH A FEELING LIKE
WE HAVE BEEN MORE OF A THERAPIST
THAN AN ADVISOR TO OUR CLIENTS.
49FALL / WINTER 201548 SAYRA LEBENTHAL
Kara talks about the journey from her position as an AOL executive to launching a successful major beverage company.
—With Alexandra Lebenthal
ALEXANDRA: Tell me about how you
started the company and why?
KARA: Over 10 years ago now, I had left
AOL and just had my third child, and was
probably 45 pounds overweight, working
out every day, drinking Diet Coke, eating
chicken and fish, and doing everything
that I read and heard I was supposed to
do. I also had really bad adult acne and
I was basically exhausted by 3 o’clock
in the afternoon every day and thought
there’s just something not right with me.
I went to a number of different doctors
who all told me that because I was
eating chicken and drinking Diet Coke,
it had to be that I wasn’t actually doing
the exercise I said I was doing and I said,
“Well, I really am.”
So the doctors said, “Well, sometimes
people are just super hormonal and they
have a bunch of babies close to one
another and we think that’s probably
what is going on, and here are some
injections and pills.” I thought whoa…hold
on a minute. Am I diabetic? What is going
on? And they said, “No, we’re just trying
to reset what’s going on in your system.”
Prior to filling the prescription, I thought
I would actually look at what I’m eating
and drinking, and really pay close
attention to ingredients. First of all, this
Diet Coke thing seems to be continually
part of my day and when I turned the can
around and read the label, I was shocked
by all these ingredients that I didn’t
understand that were in the product. So I
decided to move from Diet Coke to water
and see if I can make that little shift. Then
gradually I said I’m going to make sure
that I understand the hormones in my
chicken, and I live in the Bay Area, so I
can do that around my eggs, milk and all
the rest of that stuff, too, but I really really
wanted to get religion around ingredients
in food and drink, and just be more real.
So next, I told my husband to get rid of
the juice. Not that juice was any major
thing for me at that point, but for my
kids it was, and let’s just really pay
attention to not just the ingredients,
but also the sweeteners; at that time it
was NutraSweet. I just had a feeling that
this was what’s really going on in my
body, because no, I don’t think it was the
number of calories every day, but it’s the
other stuff that is causing the problems.
So three weeks of living this way, where
I had moved from Diet Coke to water,
I was definitely noticing a change. You
know, not just my weight but also the
way I felt and my skin, and when I finally
got on the scale I saw that in three
weeks I had lost 27 pounds—which is
crazy—and I didn’t have acne anymore
and my energy level was way up. I wasn’t
running marathons either; I was just
working out half an hour to 45 minutes…
I went back to a couple of those doctors
and I said, “Listen, I’m losing a lot of
weight just by being more conscious
about what I’m putting inside my body.”
None of the doctors actually wanted to
listen to what I had to say and I realized
that doctors are not in the business of
looking at your food and beverages,
they’re really in the business of
prescribing things. Three months later of
living this way, I had lost 40 pounds.
ALEXANDRA: So how did this
transformation lead to Hint Water?
KARA: I was so bored drinking plain
water, so I took some of my fruit one
day and started slicing up limes and
raspberries and just throwing it in the
water pitcher, and then I’d fill up my
sip bottle and take it with me. I really
wasn’t into the flavored waters, but I
started learning. For example, ten years
ago Vitamin Water had more calories
in it than a can of Coke, and yet it was
calling itself water, which I thought was
totally crazy. Then I started looking at
some of the things that were made with
diet sweeteners—really low calorie and
perceived to be healthier—but looking
at the ingredients in those bottles and
going back to the start of my initial
findings around diet soda that there was
lots of stuff that the average consumer
had no idea what it was…. I looked at
the actual flavor that was in the bottles
taking the
A CONVERSATION WITH KARA GOLDIN, CEO of HINT WATER
hint
51SAYRA LEBENTHAL50 FALL / WINTER 2015
and found out that if something said
Dragon Fruit, for example, they weren’t
necessarily using Dragon Fruit, and in
many cases they were using things like
bone marrow or had coloring in it, or
were using cockroach wings; all were
considered natural, but it wasn’t really
what I thought I was eating or drinking.
So one day after I cooked, making this
at home, I was trying to figure out how
to make it so that it doesn’t actually get
growth in the refrigerator overnight. I
started boiling down fruit on the stove,
lighting fires on it and really boiling the
water out of the fruit. I would create the
gummy substance and take a couple of
drops from there and put it in the water
bottle. It gave me the same flavoring
that I needed in order to really get me
to want to drink the water and make it
more interesting.
I took this idea to Whole Foods in San
Francisco and I said, “I really want to
do this and how do I get a product on
the shelf?” The gentleman at the local
Whole Foods said, “Well, you know we
have a little bit of wiggle room to bring
in local products. If you develop this
product, make sure it has some shelf
life, and a name of course, then bring
it in.” I don’t think he ever thought I
was going to do that and he probably
thought I was just some crazy lady that
was just bothering him.
So I came in a couple days before I was
actually having my fourth child and
said, “You told me that you would put
it on the shelf and here are couple of
cases”—actually it was 10 cases—“if it
doesn’t work, I will pick them back up no
problem.” He put it on the shelf and then
he called me while I was in the hospital,
a day after delivering my fourth child,
and said that the cases are gone, and
there’s nothing left.
At that point we went into Whole Foods
in San Francisco and then quickly went
into Whole Foods in some other parts
of the country, and have continued to
grow that channel. Even six months
after we launched the company, I said
this was really, really hard and I don’t
really have the experience and was kind
of doubting myself frankly, to be able to
build a beverage company and I really
wasn’t sure if I had the expertise in order
to do this.
A friend arranged for me to have a call
with somebody senior at Coke and I told
him, “Look, I got it in about 10 stores in
San Francisco and it’s doing really well,
but I’m an e-commerce executive, not
a beverage industry expert, and I’d be
super interested in having you take the
company, like you can have it.”
He said, “Oh no, we’re really not
interested in your company. At the end
of the day, sweetie, Americans love
sweets.”
I was like, “Did he just call me sweetie?”
I was sitting there on the phone, stunned
that he had just called me that. I don’t
think anybody has ever called me
sweetie. I said, “Listen, I really appreciate
the call, but you know, I’m not just
hanging out in San Francisco alone,
there are actually people who buy the
product and are really excited about it.”
He said, “Yeah, we’re really about giving
consumers what they want, which is
sweet.”
ALEXANDRA: How much over the last
10 years has the company grown? How
big are you today?
KARA: We continue to grow the
company off-line and in grocery. That’s
been the strategy since day one. A
couple of years into it, we got a phone
call from Google…Google wanted to
offer free massages, blood tests, food,
beverages, whatever to their employees
as an incentive for them to not only
want to work there but also to make
sure that they’re healthier. Although you
probably don’t hear Google necessarily
talking about this, but they really wanted
to make sure that their employees are
healthier because it’s cheaper for them
to have healthy employees than sick
employees. We became one of their
initial beverages and today we’re the
leading beverage inside Google. In fact,
we own all of the refrigerators in all 12
lobbies in Mountain View and we’re an
exclusive partner. Google is hands-down
our main customer. They go through ten
times more Hints than they do any other
beverage company.
We’ve worked really hard to really
support Hint and support Google. But
they buy it—we don’t give it away—so
that business has continued not only to
grow within Google but then also when
people left Google over the years and
gone on to places like Facebook, Airbnb
and Uber, [we go, too]. We’re now the
largest beverage in Silicon Valley. Finally,
a couple of years ago when Amazon
was launching a thing called Grocery
they asked us to be one of the first
companies that were selling direct-to-
consumer. That was going super well
but we learned that a lot of the data that
Amazon holds for themselves they were
not going to give to us. So we decided
to launch our own direct-to-consumer
initiative a year ago, and that business is
now almost 25% of our overall business
in one year.
ALEXANDRA: That’s great. I’m going to
describe you as an Aqua-tech company.
KARA: Well, I think it’s more like a
Health-Tech company. The other piece
of what we’re doing is that while we’re
a beverage company we’re really about
helping people get healthier. Through
our online initiative we’re actually able
to capture that consumers are also
acting on [other health issues]. If we
can actually do something that helps
the world better understand who the
consumers are and what their needs
are, it’s actually helping them lead this
healthier lifestyle. We really believe that
many consumers can do that by just
changing what they’re eating or drinking.
They may end up being on medication as
well but I think a lot of people recognize
that that’s not the ideal.
ALEXANDRA: As entrepreneurs we
never like to think “I’ve made it,”
because we still have to work on our
successes every day, but did you have
an “I’ve made it” moment?
KARA: I think for us, we’re actually on
track to be profitable in the first quarter,
which is incredibly awesome. So it’s a
real business that is not only helping
people but is also able to get some return
without potentially selling the company,
which is super nice. Also, we hear from
consumers over and over again how
much we’re helping them, which is super
powerful. I personally never wrote to
a company to say thank you so much
for creating a product that helps me be
better and I get those every single day
from people all over the country.
ALEXANDRA: It’s easy to write a
complaint letter, but I’m always amazed
by people who take the time to write
something nice. When somebody does
that, it really just blows me away.
KARA: A majority of people write to
us and let us know that they’re sick,
and many people are quietly sick. At
the Fortune Conference I had said that
we view health and technology a little
bit differently. Our view of health and
technology was really to see exactly
what the consumers are saying and
feed it back to consumers to make
people feel like they’re not alone with
those issues. One of the things I said
was that according to the Center for
Disease Control, 40% of people today
that are getting diagnosed with Type II
Diabetes are not fat. Yet we’re allowing
the messaging out there mostly from the
food and soda companies to say if you’re
obese, you better watch out because
you’re going to get diabetes. Yes, people
who are obese are very likely to get
diabetes, but not all diabetics are obese.
The consumers are not hearing that
messaging, and obesity is a genetic issue
and not a learned behavior from food
and beverages. So I’m doing a lot of that
kind of messaging.
ALEXANDRA: That’s interesting. Last
question: Our readers are financial
advisors dealing with individual
investors and hopefully many female
entrepreneurs. Do you have any advice
on how a financial advisor can be
helpful to an entrepreneur as she’s
growing her business?
KARA: I think first and foremost, you
never know how fast you’re going to
be growing—you don’t have a crystal
ball—but you can definitely make
predictions. Thank God we made
the right predictions as we grew this
business. When we needed to raise
capital or we needed to do some
inventory financing or whatever, thank
God we had our books lined up all in a
row. They’ve been squeaky clean. We
made sure to do small audits along the
way. It’s important that we did that work
along the way. You don’t necessarily
need to have Deloitte or Ernst & Young
or whatever doing it, but you need to
have somebody doing it that’s fairly
reputable even in a local kind of way.
ALEXANDRA: You and your company
and your water is amazing. Just the
thought of drinking eight glasses of
water a day….Ugh. Make sure you keep
us in mind when you go public! nS
I WAS LIKE, “DID HE JUST CALL ME SWEETIE?”
53SAYRA LEBENTHAL
COMING UP:
SAYRA
> NEXT ISSUE > INTERVIEW WITH STEPHANIE RUHLE ANCHOR of Bloomberg’s New Morning Show, Bloomberg <GO>
> HARNESS THE POWER OF THE PURSE Winning Women Investors
> 10 QUESTIONS TO ASK YOUR CLIENTS About Charitable Giving
> CLOSING THE GENDER GAP IN FINANCIAL Planning as a Viable Career Option
FROM OUR FAMILY
TO YOURS, HAPPY &
HEALTHY HOLIDAYS!
BEST WISHES
FOR A PROSPEROUS
NEW YEAR!—THE SAYRA TEAM
54SAYRA LEBENTHAL
230 Park Ave, 32nd Floor
New York, NY, 10169
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877-425-6006