In a new episode of the Financial Planning Podcast, Ken Van Leeuwen talks about that special mix of helping others and achieving success in business that keeps him loving his job after four decades.
Van Leeuwen, who founded
His firm's clients include families with special needs individuals and young corporate executives, two groups he feels are often overlooked in terms of getting sound financial guidance.
Young corporate executives typically don’t have substantial assets to manage as they are just starting to build their wealth, but Van Leeuwen sees it as a client base worth investing in for the long term. Not just because of their earning potential, but because seeing them knock major life goals off of their to-do lists always puts a smile on his face.
Even closer to Van Leeuwen’s heart is his mission of assisting families caring for loved ones with special needs. Less than two years removed from founding Van Leeuwen & Company, he learned that his 2-year-old son was autistic. As a result, the longtime planner dedicated himself to helping others navigate the complex financial and emotional situations such a diagnosis can create.
During his conversation with FP Podcast host and lead editorial producer
Listen to the new episode — as well as all future and past episodes — by subscribing to the FP Podcast on
Transcription:
Justin L. Mack: (
Good morning. Good afternoon. And good evening. Welcome to the financial planning podcast. I'm your host, Justin L. Mack reporter with financial planning. And it's my absolute pleasure to introduce today's guest Ken Van Leeuwen, founder of Van Leeuwen and company. Ken. Thanks so much for stopping by and joining us on the podcast.
Ken Van Leeuwen: (
Well, thank you, Justin, and thank you for the opportunity on this beautiful Monday.
Justin L. Mack: (
Absolutely. And a beautiful Monday, so hard to come by and so glad that we have wanted to share with you today. Whenever you guys get around to check it out. Our conversation with Ken who founded his company in 1997, he's the firm's managing director, uh, managing director responsible for the overall strategic direction of the company and the care of his clients, which include corporate execs, nonprofit organizations, and people who have chosen to make the United States their home. But even before starting his business, he stacked up 18 years of experience in the industry, working for firms like Merrill Lynch and Morgan Stanley and serving as vice president and financial advisor for integrated financial services. Now Ken's business is all about financial planning for the overlooked and underappreciated. Other clients of his include families with special needs and corporate executives, two groups that he feels are often overlooked for very different reasons.
Justin L. Mack: (
We're gonna get into all of that and more as well as talk about what's gets him excited on a Monday like today and finding, fulfill in your job. So Ken, some of the things we would love to cover with you and especially right now, like you mentioned a beautiful Monday, and I always like to kick off things by talking about what gets you excited about work when you wake up and check your emails and hopefully there's a ton of them. What are the ones that are top of mind for you as far as top trends or, or matters of importance for your business? You, your clients right now?
Ken Van Leeuwen: (
Well, Justin, I think that's pretty, um, easy, uh, from that perspective. And thanks again. Um, the perspective is really what we see right now. Of course, what gets me excited, um, is what's going on in the financial markets? Of course we know that 20, 22 has not been kind for the most part to, uh, financial returns for our clients. Um, and then the second area really, um, is inflation. Um, because it's the first time in a long time. Well, last year was where we've seen some really heightened inflation, um, that is concerning. And the big concern is of course, how do we, we work our way around it, how do we protect our, our clients? Um, so that's what does get me excited because I think while, uh, it's stressful at the time, uh, this time, I think it's a big challenge for all of us in the financial profession right now is how, how do we help our clients deal with the, these inflationary times?
Justin L. Mack: (
Definitely. And, and one question I have, and I know it's something that a lot of planners and advisors and CFPs are wondering about too, is they have these conversations with their clients is how are the attitudes? Because I know in the industry, we care a whole lot, and we're a lot, uh, more worried about inflation because you have to keep a closer eye on it, how savvy are clients. And what's the attitude that you're seeing among clients as far as awareness of the uncertainty and how tuned in they are, because we know that right now, there's a heightened, you know, desire for financial planner. With the past couple years, people are taking it upon themselves to seek sound financial advice more than ever before. We've got the data to back it up. So with a group that's more tuned in are the conversations between clients and advisors, uh, around conversations like inflation easier or harder. Are, are clients a little more knowledgeable now?
Ken Van Leeuwen: (
Um, well it's interest because I think they are a more knowledgeable, right? I think also what happens is right. People live in this inflation world, Justin every day, right? Whether they go to the gross, uh, the grocery store, um, they're paying more for everything. They go to the gas pump to fill up. They're paying more for that. So it's in their face every day for lack of a better words. Wow. Some clients, of course, you know, we think all of our clients focus on all these financial affairs every day. Like what is the S and P doing or how's apple today, or things of that nature while we, the financial professionals out there that that's not the case, but people really are concerned about inflation because they're paying increased prices and they're seeing how much money they're spending on these items and how tighter their budgets got just over the last six, a eight months. So they're living it, which is super important, you know, that they're seeing it.
Justin L. Mack: (
Absolutely. And, and again, it's almost like being desensitized to it because you see it everywhere. Like you said, grocery store gas pump in your portfolio, you're seeing the change. So I imagine when having these conversations, our, our clients more receptive to idea is, and, and ready to kind of roll with whatever, or you having really deep conversations about it. It's again, something that's always interesting when we see it everywhere and we know people are concerned, but at least people are getting some help. That's better than nothing, I guess.
Ken Van Leeuwen: (
Well, and I think one of the things that we've seen of course, right, is that I think that people are definitely concerned and I think they are turned more to now financial advisors, financial planners, CFPs, insurance agents for help in that area. Um, so I actually think it's a really good thing that people not a good thing, of course, that we're in these inflationary times, but that people are concerned about it and what should they do? Right. Um, because again, you know, people are inflation. We always used to say, Justin was like the silent killer, right. Because PE you never knew it really existed. Um, but now we're totally seeing it. And now clients are saying, how do we plan for it? How do I allocate my assets for it? You know, because that is the one thing to do. I don't wanna necessarily have to cut back my lifestyle because of, of inflation because put it this way, a gallon of milk or a gallon of gas.
Ken Van Leeuwen: (
Right. And just paying more, that's not a fun expense, right? That's not like going on a vacation. No, um, right. It's, it's a necessary item. So again, people are looking at that and saying, Hey, help me, help me. How do we figure this out? Cuz I still want to go on vacation. I wanna do fun things with my family. Um, you know, again, uh, Justin, we were just talking, right. People wanna break out, they're tired of living in this COVID world. A lot of people have put a lot of things on hold for over two years. Um, so, and how do we as advisors help them live the life they want.
Justin L. Mack: (
Absolutely. And yeah, we to climb out of this and that desire to kind of get back to family or friends or something normal and, and not make those compromises, there's a strong desire for that. So being able to have that conversation as a planner is I imagine extremely important right now. So moving away from something as negative as inflation because no, one's too excited about that. No. Uh, let's talk a little bit, uh, something about, uh, I really, really would love to connect with you about is your business and finding fulfillment in your business. Cause again, as we mentioned, you're focused on helping folks who are overlooked and underappreciated and two very different groups that I wanna kind of cover with you today in regards to your client base. The first is young corporate executives, uh, a group that some people who aren't familiar with the ins and outs of the industry might see as underappreciated or, or in need of help in any way. But you count them among those groups who might be underappreciated. Why is that? What about the young corporate exec in 2022 is so overlooked?
Ken Van Leeuwen: (
Well, one of the things is, remember if you're a young corporate executive and usually it often is a husband and wife team, right? I, um, basically they're they're right now in the savings mode and they're in the career building mode. So one of the things is, you know, in many cases they, they get paid a nice salary. Um, they usually in many cases get a bonus every year, but a big part of their compensation that they receive in many cases is what we call equity compensation. Justin equity compensation could be in the form of many things. It could be where they get to participate in their stock purchase plan at their company. Okay. Um, it could be that they get what they call a restricted stock grant or they get performance units in their company. So again, it's basically just a, um, a way that they get paid and then how do they handle it? Because there's technically nothing for most advisors, right. To make money on because frankly, if they're young, they're saving or they're spending, they're looking to buy their first home, they're looking to have a family. So there's really not a lot of disposable income to invest like in the tra for, let's say a retiree or someone like that nature. But these people are the ones that really need your advice now more than ever.
Justin L. Mack: (
Yeah. I was gonna, uh, wonder if, does that make every decision a little bit bigger because there are more stakes, like you said, for someone who's not a retiree or even at a different its stage of stability in their career for the young exec, there is still a lot that's up for question who knows what might happen, but they're also, like you said, wanna say for, uh, building a family and, and getting a home and maybe starting another business of their own in the future. There's a lot of risk involved with every decision. If you are really tuned into that, does that make some of these conversations a little for and with so much on the line?
Ken Van Leeuwen: (
Well, I wouldn't say it makes 'em tougher, but I would just tell you what it does do is that you have to create the, the opportunity for them to teach them how they can benefit for example. Right. Um, because there's tr there's a lot of ways if done properly using this stock compensation that these executives can benefit. But again, you have to remember also there's some really unique tax pitfalls. Also like here we are, I think taxes are due, uh, you know, a week from today. Um, but the perspective of it is they have some really unique, um, tax implications of this type of compensation also. So again, you know, like it, doesn't take a rocket scientist to realize that if, Hey, if you worked for Amazon or Tesla, for example, and you kept all the stock that you were ever granted, you'd be a very wealthy person today. So again, end, they, they, they look at that and they say, how can I do that too? Now of course, most of the people we work with don't work for companies like that. Um, you know, they work for banks, they work for retailers, but again, still the, the potential for long term growth is still there. And for wealth accumulation.
Justin L. Mack: (
Absolutely. All right. And I want to thank everyone. You are listening to the financial planning podcast. We are here with today's guest, Ken van Lewin, founder, and leader of van Luen and company. We're gonna take a quick break, enjoy a word from our sponsors. And we are back. You are listening to the financial planning podcast. I am your host, Justin and we are chatting today with Ken van Lu and founder of van Luin and company talking about his business. What's gets him excited in the world of wealth management right now. And next gonna talk about some of the things that keep him going and, and loving this job after so many years in the industry and, and the different experiences he's had now, as we mentioned before, the break planning for the overlooked and underappreciated, a focus of your business, another client base of yours is families with, with children or other loved ones who are dealing with special needs. Um, tell me about that mission for you, how that started and why that for you has been something very tied to fulfillment in this industry.
Ken Van Leeuwen: (
Well, I think, uh, Justin of course, um, I live it every day. Um, I am a dad with two children, um, a 31 year old daughter, you know, who's married and gonna be expecting her first baby in July. So we're super excited about that. But then I also have a son again with special needs. He's autistic and he's 25 years old. So the world of special needs is very personal to me. Um, cuz although why he lives in a group home right now, cuz of his age, it's something you have to live with every day and make sure you have planned accordingly, um, to make sure their life can have the fulfillment that you would want for anybody's life. So that's a challenge and it's an everyday challenge. Justin and families as families know who have special need, um, with children with special needs or adults with special needs, it's an everyday responsibility. It doesn't stop. It doesn't stop when they graduate from their educational program or whatnot, right? Like many of us who have kids who go off to college and graduate, this is something that you have, um, a responsibility to them, uh, for the rest of their lives or the rest of your life. Because the likelihood that they will outlive you, Justin is very high.
Justin L. Mack: (
Absolutely. And why did you decide to actually incorporate that into your work? Because I imagine you were dealing with your own family's finances when you get that news and your family is, uh, adjusting to that new reality, but why incorporate that into your business? Was it something that, uh, you experienced when you were doing your own finances and cuz I know there's obviously some people who wouldn't incorporate everything into their work, that's their personal, um, but you wanted to marry the two. Why was that important for you?
Ken Van Leeuwen: (
Because I think what it is is with a knowledgeable professional and a knowledgeable professional team, you can really make a difference in someone's life that you can see, right? When a person or a family rather gets a diagnosis that their loved one has special needs. Of course there's a little bit of state of shock. There's disbelief. Um, you know, it's like, you know, your son's not gonna kiss the cheerleader and he's not gonna throw the touchdown pass and your daughter's not gonna become the most famous physician of all time. You have to, you have to deal with that reality that these people are now different. And I think that's a big challenge, right? So how do you look at that is really, and you know, again, it's disbelief in the beginning and it's usually scrambling for resources and how, you know, and everybody hopes there's a cure.
Ken Van Leeuwen: (
Um, you know, and they try to look for support and they looked at, um, for, you know, uh, help and um, therapies and things of that nature. And that's where a lot of their, their interest and money goes, cuz everybody of course wants to help. Right. They, I mean they want to do the best. They want to cure this thing. Like, and so people really spend a lot of time in the beginning, just focused on those issues, um, while they should be also looking at the big picture and they should be looking at well, what happens if these therapies don't work? What is, what are the challenges gonna be for this individual? And in many times, Justin, this is the interesting to dynamic. Um, and this is why I focus on it, right? Um, there's not a whole lot of money to be made by the financial professional, working with these types of individuals and these families, right? Mm-hmm , they are really that their money is being spent on trying to, you know, find therapies and, and quote unquote cures and things of that nature. So that's why, um, you really have to look at that and say, Hey, this is a labor of love. And again, because they really, these families need your help in many cases.
Justin L. Mack: (
Absolutely. And something else that I know you could probably give a lot of other advice or planners, uh, some advice and some guidance on having the experience is, uh, when you're kind of balancing that personal desire along with your business desires and, and making those things work because we're seeing now, uh, thankfully a heightened awareness between both planners and clients about wanting to do good through their work, whether it be serving groups that are very central to them and their mission and who they are as individuals and investors, clients who want to invest in ways that are beneficial to either of the year environment or certain communities, which I think is great, that so many people now are like, Hey, we can do a lot of good just by being financial planners. Um, so we're seeing more people wanting to do that. Do you have any advice for people who are taking really central and, and deeply rooted personal, you know, passions into their work, anything to watch out for?
Ken Van Leeuwen: (
Well, you know, what's really important, Justin. And just to add this a little bit too, mm-hmm um, advisors, we have to ask good questions. You know, we have ask questions of like, if we're working with a retiree, for example, right. We have to ask them, you know, Hey, are there anybody in your family that you'd like to provide for, you know, do you, at some point in time, are you gonna, do you wanna offer support to any of your children or your grandchildren or great-grandchildren right. Um, because that's where you can pick up clues by asking the questions, right? Because for example, Justin, if you're working, let's say with a retiree and you're talking to them about their estate planning, you have to ask the question because one of the things that you don't wanna do is people should not be leaving money to their child or their grandchild with special needs directly.
Ken Van Leeuwen: (
They should be doing it in a certain type of trusted by so you actually harm them by willing them, you know, making a provision for them in your estate plan. It does not help them. It actually hurts them. It can, it help them, uh, hurt them from collecting benefits. So again, remember it's all in the questions you ask and our, our mission as advisors should be to really start to probe, ask those questions and remember sometimes, and Justin, you said something just now what's really important is that now in 2022, we live in a world where people communicate more, I think is compared to when I started in the business, 25 years ago, people are more willing to share family and I'm not calling it a secret, but an issue that a lot of people didn't really want to talk about 25 or 20 years ago.
Ken Van Leeuwen: (
Right? Mm-hmm because, because, Hey, you know, their grandson wasn't this perfect character or neither was their, their granddaughter or their daughter. You know, I think that people now are coming to that and they're willing to share because they know hopefully through their advisors and all the advisors listening on this podcast, right, who are good advisors, of course, is that, Hey, ask good questions. You'll be there to help them. And I think that's a really important thing, but again, we can't do our job without knowledge, but sometimes we have to ask the questions in many cases, now people are much more willing to share that's for sure.
Justin L. Mack: (
Absolutely. And sticking in that realm or that lane of advice for the next generation, cuz we are always thinking about, you know, the, the next generation of the industry, whether it be, uh, new people coming in who are fresh and fresh outta school or folks who are coming into this industry from other industries. We see a lot of that as well. And know that that's a, a, a focus for folks who are coming out and maybe getting their CFPs or wondering what they might be able to do because they want to help people. Um, you've seen a lot both before and after starting your own business. Something we kind I talked about before is that it's not always easy. There's a lot of, uh, who knows what's gonna happen tomorrow. Heck I think we can look at, you know, our own headlines on financial planning.com cheap plug to, uh, really take a look at how crazy it's been, but you've been through a lot and you still have a deep passion for this business. How do you keep going? And what keeps you coming back? Even though everything is so crazy.
Ken Van Leeuwen: (
Well, you know what it's, you can really make an impact. Justin, on people's lives doing what we do, right? Um, from the good perspective, right? You, you can help clients send their kids to college that maybe they never had a formal education before you can help them retire comfortably. You can help them. Like we talked about before the corporate executive maximize the benefits that they receive, maybe you can help 'em by their first home. Um, these are all so money, wonderful things, right? Cuz you're really making an impact in people's lives. It's not just, oh, I have a portfolio was up 16%. It was down 10%. I mean you can really translate into people hitting their goals or in our practice, what we say their life is. And really that's what we've always been about at van Lewin and company is getting you to your goals, right?
Ken Van Leeuwen: (
Sure. We all want to have S and P beating portfolio returns. All of us on this podcast know how hard that can be. Um, but when you help people reach their goals, there's nothing better. And when they say thank you to you for helping them, and of course you got paid along the way. So that's a thank you in itself. Mm-hmm but the point is, Hey, I did a good job for these people. And that's what make, that's what turns me on every day, right? Is that I'm really making an impact or I try to make an impact Justin. We know, know that some days it's a little harder than others. Yeah. So, but you know, we do try to make a difference.
Justin L. Mack: (
All right. Well, I can't think of a higher note to go out on than a little bit of encouragement on a Monday or whenever you listen to it, if you're listening to it on Friday afternoon or, or a Wednesday, you're probably need that extra boost to keep going. So hopefully Ken was able to, uh, give you a little bit of that on this edition of the Financial Planning podcast. And I want to thank everybody for tuning into this week's episode. This episode was produced by Arizent with audio production, by Wen-Wyst Jeanmary. Special thanks again to our guest, Ken Van Leeuwen. Rate us, review us and subscribe to our content at financial-planning.com/subscribe. From Financial Planning, I'm your host, Justin L. Mack. Thank you for listening.