YouSaid · the spoken record

Peter Mallouk

lines on the record: 173
first: 2019-12-13
most recent: 2019-12-13
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Well, that is important. You really can't overstate how important it is on the positive and negative side of this business. On the randomness, I don't think it's random. I think...”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“And I really looking for somebody and going if this doesn't work out a year from now, why is that? What is it about this person I'm interviewing that's not going to feel that could be the reason for that? I got to look at investments the same way. I'm looking at a new investment. I'm saying if this blows up in my face, right, I've got to explain this to clients a year from now or 10 years from now, what was the scenario that made that happen? And so I'm trying to think my way through those sorts of things. Sometimes the person's a wonderful person, but I don't think they're going to be satisfied in that role. They're taking, they're switching under the wrong circumstances. There was one person that interviewed with us from another firm, and he just was so treated badly at the other firm. And I really am not want to hire somebody as leaving something when I hire somebody that's coming to something. We ought to be hiring them a couple years later. But I'm looking at more of those things than I am all the things that have already been figured.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“It's just for I have a view of the firm as a whole. And I have a, you know, sometimes if you've got a head of department, they really have a need. You have this, you want to fill it, right? So you're interviewing somebody and you're looking for reasons to hire them.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, that's a better way to put it. I mean, I'm not running before they're getting to me, they've been through a background check, a compliance check. They've interviewed with Italian acquisition team, the head of their department, usually somebody else, then they're coming to me. But I would say... One and three is not getting past me even after all of that. Wow.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“Our lawyers equally, but this industry really views people as equal, and I never have. I mean, from the very, very first hire, I knew the importance of people. And I've personally witnessed and received the consequences of mostly wonderful hiring and a couple of really bad hires. And if you, I attribute almost a huge percentage of the success to getting the right type of people and really the biggest grief I've had in my career to one or two people I hired that were mistakes.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“At low rates, they're not going to make as much money holding money. So, what do they do? A lot of them aren't firing their bottom performers. They're firing their highest compensated people, which presumably are their highest compensated people because they rose to levels. And they go in and go, oh, we're going to fire all those people, which obviously the assumption is that other people will just naturally make that work out. I don't hold that view at all. I think that, you know, when I... Have I looking for healthcare for someone in the family or myself?”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I think you have to have a couple different things. So, I think that one, you have to have a sound investment philosophy that's kind of worked out for people, right? You're not going to get through all of those things and have your clients referring other clients and aggregating their assets with you unless you deliver on your promises. So one, you have to have an investment approach that works. I think second, you have to have more than that. And so we have more than that. We have planning and legal and tax and trust services and institutional services and all of those things. Third, you have to have the people. And I think this industry, and I've spoken about this a couple times before with you, the people in this industry are tremendously underrated. And I think they're viewed as interchangeable. And if you watch the behavior of a lot of financial services firms, they view the people as interchangeable. You look at some of these firms now, there's a lot of press around them preparing for the next recession.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“They want to feel like okay, I'm at a place that's pretty safe. Okay, this place has lots of clients, big clients, pretty sophisticated, probably did a lot of due diligence. I feel safe there. I'm probably going to do all right. I'm probably not going to have a really bad outcome. So I think as you as we're sitting in this world today, people have been at 9-11, the tech bubble, 0809, Birdie Madoff, just there is so much crap happening, right? If you're an investor, you're really looking at this landscape and going, you know what, the guy with 200 million dollars makes me a little nervous. And now not everybody thinks that. There's a path for the guy with 200 million dollars. But there are going to be some people that person encounters that goes, you know, when you're bigger. They might not use those words, but that's what they're thinking. I had a lot of people that didn't sign up with me in the first few years that signed on years later, like say my mom and dad.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, I mean, if you're looking at hiring an advisor, It's sort of like a restaurant. We're here in New York City. The way I picked where I was eating last night is I went to TripAdvisor tell me where to eat last night. So part of it is probably going to go to a pretty good place. And the other part is I'm probably not going to throw up, right? It's probably not going to be horrible. And I think people look at advisors the same way.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“And then we were doing the legal and tax and all of that in one place. The way we delivered it was very efficient and we were doing including the planning without a separate feedback then. If you're reading all the financial stuff, it said this is stupid. No one will value it if you do it for free. And you always have to charge. And so there were just maybe six or seven things we were doing that no one else was doing that today a lot of people are doing. But the difference is today that's not enough. Today you have to be more specialized. You have to be faster. You have to cost less. You have to have much, much more credential people. It's gotten way more competitive. You know, if I had started this today, it wouldn't have worked, right? I think that back then it was very unique. It was very on the front end of things. And it allowed us to build a lot of momentum. And you have a colleague that sent me a wonderful article about cumulative advantage, which is you start to, one of the things that people want in this business is they want to feel safe.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, it was really instant in terms of percentage growth. I mean, every year it seemed it was 30 to 50 percent or 30 to 100 percent growth and it's never really stopped. I mean, there have been a couple a little more than that in a couple years, a little below that. I mean, the numbers change. Obviously, three years ago, we're at $18 billion and now we're at almost $45. That seems crazy, but it might even be a slower growth rate than when we went from 100 to 500. I think what we were doing in the beginning was very innovative. And it doesn't sound like it today to have a firm that was dropping its dual registration was totally independent. We were using ETFs. I remember hearing from our Vanguard rep that we had larger holding of indexes than any independent RAA. I remember hearing that in 09. Wow. I remember having to explain what an ETF was to clients, what passive investing was.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“No, no, I mean, basically made monthly payments for a few years and it was over. It was not, we're talking about a few dozen clients. And so what was really the advantage for me was I didn't have to go create. An RA from scratch. There was one there. I already knew those clients. And so I could skip this like six month period of figuring all that out and get on with it.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“And so you go in, you do the legal, and then that advisor might do things that aren't ideal. So I wanted a firm that was independent, didn't sell its own products, was able to combine all those things in one place. And most importantly, could take each client and change the portfolio per their situation. And so I went to all my clients, including creative planning, and said, you know, this is what I want to do. And the owner of Creative Planning was basically like, he had had those two former partners. One had died very young, one became disabled very young. And he said, you know what? I've had enough of this. If you want to buy, if you want to take over creative planning, go ahead.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly right. I mean, it was innovative to even be an RA at all at that point. And I was very uncomfortable as an attorney, build maybe a complex estate plan with charitable trust, irrevocable trust, and then find out. Annuity was in there that wasn't the right kind or shouldn't be there at all. But they have a giant.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“Right. I mean, I'd come right into the industry. Basically, when I was running creative plannings, a few dozen clients during that period, you had the tech bubble and you had 9-11. So the markets were just, you know, a disaster during that period. And the light bulb going off, if you really think about it, here I am for six years. I'm doing financial planning and investments for some people. And I'm doing estate and tax advice for other people. And you would think the light bulb would have gone off.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“What I take on that department. I looked at it and thought, you know, I can do this in two days a week. It was pretty straightforward. So I was doing that from 1998 to 04. And at the same time, I was taking care of maybe 100 other advisors, clients doing estate planning.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“That's right. So, never been in a courtroom for anything ever with the practice of law, but I enjoyed helping people. Hey, you've got this problem. You want to fix it. You probably hate dealing with lawyers. I'm going to make this easy. It's going to take a few days. It's going to be a flat fee. I'm going to explain it in English. And that really took off a lot of advisors started to use me. I really learned a lot from a lot of those advisors. A lot of them were amazing. A lot of them were terrible. A lot of them were brilliant, but did the wrong thing, and a lot of them always did the right thing. And then creative planning at the same time, their financial planning team had left to start their own firm. They asked me to come.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I mean, technology literally lets you scale in a way you never could before in every business, but just being born in now, you can do all these things that you could have never done a long time ago, no matter how brilliant you were. And I had worked for somebody for two years just advising this physician and his practice. And at the same time, a couple years after that, I started working with advisors doing wills and trusts and that sort of advice for them.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“Right, it had been started by three guys in the insurance business and they had an insurance arm and they mainly did disability insurance for physicians and one of them was really into investing like all the way back in the early 80s you know when I was in grade school and he so he started creative planning as a sister company and had you know maybe a few dozen clients basically using American funds mutual funds and doing planning with By hand, you know, I remember I took over looking at the plans. I mean, there was no internet back then and great technology.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“I'm in Kansas, so spread out suburban neighborhood one house to another, you'd get worn out sometimes. I just set out the back of a station wagon and throw the newspapers. Then I had a lawn mowing business, and then I had a DJ business. I loved music. But the music stores was probably the thing that was the biggest manifestation of what I really enjoyed and having a business. And I started that while I was in college and it had, you know, but pretty much gone bankrupt by the time I got out.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“So, you know, I don't know where this entrepreneurial thing came from. I know my mom really encouraged it when I was younger. And I remember always having a paper route, which meant I couldn't drive a car when I had it. I was 12. So my dad, you know, drove the paper out and I threw the news. Oh, you weren't on the back of a...”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“When I was doing an undergrad, I just took business because I thought I liked business. And I added other majors that were interesting to me. And then I got an MBA because I wasn't sure what I wanted to do. And the same thing with the law degree. There was a joint program at University of Kansas where I went. And so I did both. So I came out of college with a bunch of degrees. But I still even leaving campus and heading back home, I had no idea what I was going to do”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source
“So, I didn't have any career plans. A lot of people look at my college education history and think there was some master plan or I think I'm perceived as a strategic planner when it comes to business. And the amount of just good fortune and luck along the way is tremendously underestimated. For sure.”
2019-12-13 · Masters in Business · Peter Mallouk on Building a Powerhouse RIA · IDENTIFIED FROM THE TRANSCRIPT · source