Blue Ocean Global Technology Interviews John F. Thompson | CIMA®, CPWA®

• John Thompson followed his passion for understanding people and their stories which naturally grew into a passion and skill for financial planning and asset management after college.
• He is excited about the emerging trends of artificial intelligence, the rise of private markets, and the expiration of tax laws that will shape the investment landscape.
• John believes their comprehensive approach and risk mitigation management approach set them apart in the industry

Blue Ocean: Tell us about your path to becoming a private wealth advisor at Congruent Wealth. What initially drew you to the financial industry?

John Thompson: I began my journey in college focusing on the stories of people. I wanted to hear about their family and history to understand more about who they are. I was fascinated by the art of storytelling and the diverse narratives that shape our world. Yet, as I delved deeper into the mechanics of journalistic reporting, I found that it was too formulaic. I wanted more challenge and diversity in what I would do for the rest of my life. I shifted my major to advertising even though that wasn’t quite right either. After graduation, I explored various avenues that would align with my values and goals, including potentially working in the non-profit sector. Ultimately, I settled on financial services after interviewing at Merril Lynch.

Joining Merrill Lynch’s training program was a turning point in my career. Cold calling was challenging, but immediately, I found that it all just fit and I was comfortable with financial planning and asset management.. Although the firm provided a respected name and some training, I realized that success hinged on individual initiative. This reality instilled a sense of entrepreneurial spirit in me.

Despite some successful years at Merril Lynch, I found that I wasn’t quite where I wanted to be with my values and how I ran my business. After talking with some friends and colleagues, I moved my business to a firm that eventually became Wells Fargo. My two decades at Wells Fargo and its predecessors further honed my skills. I pursued the Certified Investment Management Analyst (CIMA) designation offered at Wharton School of Business. This equipped me with institutional-level insights that enabled me to transition my clients to a fee-based, planning-centric approach to investment management.

As my career evolved, I gravitated towards working with high-net-worth business owners. I recognized the need for experience in complex wealth management. I also understood the challenges they faced with balancing values, family, and business success. So, I obtained the Certified Private Wealth Advisor (CPWA) designation in 2013.

Today, I leverage my experience and knowledge at Congruent Wealth to work closely with business owners to coordinate their consultants and professionals in their network. Ultimately, we have evolved into a team approach with those professionals to provide wealthy business owner families with comprehensive solutions and advice.

Blue Ocean: Can you describe your typical day as a private wealth advisor? What are the key responsibilities and tasks involved? Are there any common challenges you encounter? If so, how do you typically address them?

John Thompson: As a private wealth advisor, my days are structured to maximize efficiency and address the needs of our clients. We have established segmented client meeting blocks throughout the week to have ample follow-up and administrative tasks in between.
I usually begin my morning analyzing market trends and relevant research, news, and developments to stay informed on potential impacts for our clients. While the whole team starts much earlier, our work as a team begins at our 9:30 briefing. We discuss ongoing projects, address queries, and delegate tasks.

Meetings typically commence around 10 a.m., varying from client consultations to discussions with attorneys and accountants regarding the need for that day. Many meetings involve lunch to build rapport and meaningful relationships with clients and their advisors.

Administrative days are dedicated to research, due diligence on investment opportunities, and refining our operational processes. We are also investing in marketing efforts to expand our reach and highlight our comprehensive approach to wealth management.

Traditionally we have relied on word-of-mouth referrals. To address this limitation, we are now implementing a marketing strategy to grow our brand and reach more clients who would benefit from our holistic approach and not fall into the trap of the “ping-pong model.”

Blue Ocean: As a seasoned professional in the financial services sector, what’s a recent development or emerging trend in the industry that you find particularly exciting?

John Thompson: I am always excited about learning. Those who know me know that I am always reading about something. One recent trend that captivates me is the convergence of multiple forces reshaping our markets and investment strategies. We are witnessing significant shifts, such as the impact of rising interest rates and the rapid advancement of artificial intelligence. Discussions surrounding AI’s potential to revolutionize various sectors are intriguing.

Along with this, markets are becoming more volatile. It prompts us to reassess our traditional investment strategies. We’re discerning a divergence between well-managed companies and those grappling with excessive debts. Simultaneously, from a planning perspective, we are attuned to the impending changes in tax laws set to take effect in 2025. Its expiration can potentially impact estate tax exemptions and tax brackets; that is why we are proactively working with tax planning partners and attorney partners to identify opportunities for our clients.

Blue Ocean: How has your experience shaped your leadership style and approach, and how they have contributed to your professional development?

John Thompson: The wealth management industry lacks formal leadership training. It leads to a diverse range of leadership styles. This creates challenges within teams, especially when personalities clash. In my previous role with business partners, we faced limitations due to these factors.

Now, leading my own company, I actively address these issues. We incorporate coaches and consultants to improve leadership skills, decision-making, and team culture. Strong leadership skills are often a hallmark of top advisors. So, leadership development is crucial.

Another industry challenge is team culture. Wealth management teams often have high turnover, particularly at the staff level. Additionally, there’s a trend of top advisors leaving large organizations to become independent advisors. This suggests a potential lack of effective leadership in these large firms.

I believe this stems from, perhaps, a focus on the bottom line at the expense of values and client outcomes. Independent firms like ours, led by individuals with relevant experiences, offer an opportunity to make a greater difference.

Our company, Congruent Wealth, reflects this philosophy. The name itself signifies alignment between thoughts, feelings, actions, and values. We have experienced the negative effects of misalignment in the past. So, building a team that lives and breathes our values is paramount. It’s really important for a team to hold each other accountable for those values. That includes having hard conversations and compromise. It involves extreme reliability and mutual regard.

The challenges I have faced in my previous role taught me valuable lessons—what not to do. These experiences, combined with our commitment to strong leadership principles, have shaped my approach and fueled my professional growth.

Blue Ocean: What is something different that you offer to your clients?

John Thompson: What truly sets us apart is our comprehensive approach to wealth management. We go beyond just investing and act as a coordinator for all the professionals in a client’s life. For example, we recently took on a new client, a business owner in New York City. While they initially came to us for investment advice, our discovery process revealed a need for an estate plan, business exit and succession plans, and risk management strategies.  We collaborated with their existing CPA for tax planning and brought in an insurance specialist to create a comprehensive asset protection plan.

The way we think about working with entrepreneurs is to first ensure that all their risks are covered. That’s done in legal structure, insurance, and then creating cash cushions for the business and personally. This focus on a strong cash cushion for both personal and business needs comes before delving into investments. This buffer provides financial confidence during challenging times, like the recent pandemic, where unforeseen events can disrupt business operations. Once financial independence is established, investments become a tool to work towards building wealth and liquidity outside the business. This allows entrepreneurs to pursue opportunities with confidence because they know that they can effectively manage risk if they encounter setbacks.

Ultimately, our goal is to help clients achieve financial independence and ensure a smooth wealth transfer to future generations.

Blue Ocean: What advice would you give to your younger self?

John Thompson: I would tell my younger self to prioritize patience and understand your values. Understanding your core values and making decisions through those values is crucial because the people you choose in life significantly impacts your outcomes. Most progress happens incrementally, like healthy habits leading to gradual improvement. However, some decisions have an exponential effect, like who you marry, work with, and befriend. Be thoughtful about who you let into your life and set high standards for character and integrity.

Remember, Warren Buffett valued competence, energy, and character, but character is the cornerstone. Choose your associates wisely. If you have a driven organization with weak values, it can be a disaster. Alternatively, if you have a high-integrity company with less energy, it may take a long time to fullfill the vision. Without competence, you can’t do much good for anyone. The same goes for relationships. Ultimately, the people you surround yourself with will shape your success, health, happiness, and reputation.

Blue Ocean: What is something you are grateful for that you’re willing to share with us?

John Thompson: I am very grateful for my family’s health. My wife and I cherish evenings together discussing the day’s highlights. We have a gratitude exercise at family dinners where we discuss the best parts of each person’s day.  WHen it is someone’s birthday, we all share our favorite parts of that person. When the kids are out of school, we prioritize adventures and trips to create lasting memories and build their independence. Our goal is to raise kind, respectful, and reliable children who we’d want as friends someday. This translates into our approach—treating them with the same respect and reliability we hope they’ll show us in the future. Shared values have fostered a deep sense of connection within our family. It makes us truly grateful for each other’s company.

Blue Ocean: What are your sources of happiness and inspiration?

John Thompson: Beyond the importance of family and strong relationships, my source of happiness and inspiration stems from a lifelong commitment to learning. I wouldn’t say I’m the smartest person out there, but I am constantly driven to educate myself. I constantly collect and read books on new topics, ask questions to knowledgeable people, and actively seek ways to expand my knowledge base.

This growth mindset fuels my happiness—recognizing there’s always more to learn and appreciate. Surrounding myself with people who are also passionate about learning creates a positive and mutually inspiring environment. As you grow, your “light” seems brighter. It attracts others who share that enthusiasm. This constant pursuit of knowledge keeps me motivated, and happy and enriches all aspects of my life.

Blue Ocean: Outside of work, what passions and interests do you usually pursue?

John Thompson: While staying active has become more challenging due to knee issues, I still find enjoyment in spending time outdoors. Boating trips, mountain getaways, and walks with my wife in our rural feeling neighborhood are all ways we connect with nature. Reading extensively is another cherished pastime to keep my mind sharp as I age. 

Looking at my clients who have aged well, I see the importance of staying intellectually and socially engaged. This includes creating a network of mentors who continue to guide you, peers who share your journey of growth, and mentees whom you can inspire. I have been fortunate to have these relationships in my life. Finally, as a parent and someone who interacts with young professionals, I strive to be a good mentor through constant learning how to best guide and teach others.

Blue Ocean: What is your favorite quote?

John Thompson: The pandemic inspired me to be active on social media/ online to share my collection/gathered wisdom from philosophy, psychology, and business. This is a legacy I want to leave for my children. It’s a treasure trove of quotes from great minds that can guide and inspire them throughout their lives. These thoughtful and insightful messages offer valuable lessons that resonate with me. I hope they will resonate with my children as well. In essence, it’s a way to share the wisdom I find most helpful and ensure it’s always accessible to them, no matter what the future holds.

Conclusion:

John Thompson’s journey highlights how professional success and personal fulfillment both come about through taking incremental steps. Doing the little things the right way and then making critical decisions will help you work towards achieving big gains. He believes embodying strong leadership skills built on values and a comprehensive approach to wealth management fuels career growth and a fulfilling life.