Troy Sharpe, CEO of Oak Harvest Financial Group, talks wealth planning and post liquidity event wealth maintenance.
Please excuse any typos in this hasty transcript.
Jay Curry: And we’re back. Hello, Texas. Welcome back to Texas Business Radio. Got a great program going today, and in this segment, we’re going to get into financial planning. But before we get started, let me remind you, texasbusinessradio.com is where to go. It’s all there, all in high definition video, all of our guests, all the hosts, all of our sponsors. It’s all there, texasbusinessradio.com. We also monitor #TBR if you want to send us a tweet. We love it. And, of course, the 24-hour call-in line 844-814-8144. You don’t have to remember that. Just go to texasbusinessradio.com and it’s all there for you. All right?
This is Jay Curry. I’m going to be hosting you for this segment, and we have a very special guest in the studio, Troy Sharpe, who is the founder and CEO of Oak Harvest Financial Group. Troy, thank you for joining us.
Troy Sharpe: Oh, pleasure is mine. Thank you very much, Jay.
Jay Curry: I think the name tells us a little bit, but what’s Oak Harvest all about?
Troy Sharpe: Planning. First and foremost, planning. The individual has a lot of choices of who’s going to manage their stocks, who’s going to help them plan for not running out of money, whether it’s fixed annuities or guaranteed income strategies, but not many people are putting it all together in a plan. If you go to Home Depot and you buy a lot of wood, some nails, and a hammer and a saw and you bring that stuff home, those are tools. And if you just have stocks and bonds inside your portfolio, those are just tools. But if the wood and the saw and the tools are sitting on the floor, if it’s not part of an overall plan, then nothing’s getting built. That’s primarily what we do, is we help, whether it’s stocks … We believe in blue chip, dividend stocks, some low-cost funds, fixed annuities, fixed indexed annuities for safe, guaranteed rates and lifetime income and participating in the market without that downside risk and long-term care planning. Long-term care planning is a tremendously important part of this process because medical costs are going through the roof.
Jay Curry: That’s right.
Troy Sharpe: Had a gentleman, a good client, come in and he was down the other day and I said, “Jeff, what’s going on?” He said, “Well, Troy, my father-in-law passed away.” Said, “Well, I’m sorry to hear that.” He says, “Yeah, we were spending $20,000 a month taking care of him. A nurse was there 24 hours a day at 20 bucks an hour.” We had planned for long-term care for he and his wife, but he was going through it with his father-in-law.
Jay Curry: Wow.
Troy Sharpe: Millions of people in this country are going to run out of money, and many of those people think they’re fine right now. So, whether it’s stocks, bonds, fixed annuities, long-term care stuff, those are all tools. At Oak Harvest, what we do is we take those tools and we coordinate them into an intelligent strategy, a plan that provides income, increasing income, reducing taxes, looking at the whole picture, and making sure that you have enough money to pay for those things later in life. So, planning is really the thing that we do.
Jay Curry: It’s not a one solution for all. It is a solution for each individual and you will mold it. You’ll take the tools, you’ll listen to them, figure out what level of risk they prefer or that they’re comfortable with, and then you’ll mold a planning document around that and then help them implement. Right?
Troy Sharpe: Yeah, exactly. It’s about having a conversation. The first meeting at our firm, we get to know what’s important to you, your family, and we talk about that in objective terms, risk and dollars and cents, but then also subjective terms, what’s important to your family, what’s important to you personally. And Chris Perras, he’s our chief investment officer, he’s a Harvard MBA. He’s managed the number-one fund in the country twice in his career, the number-two fund over three- and five-year periods in its class. We’ll sit down if it’s investments that we’re going to be doing. We’ll put together an investment strategy. We also want to incorporate, though, safer, lower risk strategies in there because we’re not going to be in a bull market forever. Thing doesn’t always go up, the market.
So, we need to incorporate some safer strategies in there. We need some reasonable rates of return by introducing zero downside assets, low volatility assets, and incorporating that, so investments and lower risk, conservative-type strategies, blending that together, taking into account possible long-term care. There’s some really, really cool long-term care strategies out there where you can turn long-term care from an expense, which most people are accustomed to paying $300, $400, $500, a month.
Jay Curry: Yeah, right out of the … Yeah.
Troy Sharpe: It’s an expense. What we want to do is we want to turn that into an asset where you make a deposit, it’s earning interest, it’s accessible to you. Then, if you need long-term care later in life, you have a much larger benefit base, benefit balance to lean on to pay for those medical expenses. But just by making that one change, turning it from an expense into an asset, people are more open to having that long-term care discussion because it’s important.
Jay Curry: Right. Now, Troy, you guys … You mentioned some of the amazing talent that you have in the organization. You expect to go to New York City to get that type of skills. But you’ve got a lot of other things going for you too. Tell us a little bit about that.
Troy Sharpe: Yeah. For us, it’s … We try not to hold Chris’s Harvard MBA against him.
Jay Curry: Yeah, right. In Texas? Good luck with that.
Troy Sharpe: For me, I’m a certified financial planner. Did that up at Rice. We have Luis Leon, who spent years at Wells Fargo as head of international wealth management. On the operational side, James McFarland. He spent 13 years in Japan working on the trading desk, the institutional desk at Morgan Stanley and Tokyo Securities. We’ve amassed a tremendous amount of talent, but all of that to us … We use that to accomplish our goals-
Jay Curry: As more tools.
Troy Sharpe: As more tools. Right.
Jay Curry: Yeah. You have things like independence from brokers and …
Troy Sharpe: Yes. Yeah, that’s a big thing. I was going to say, it’s about relationships. It’s about sitting down and getting to know who it is that we’re working with, you, the client.
Jay Curry: The planning.
Troy Sharpe: It’s a relationship business and we want to get to know who it is that we’re doing this for. It’s why Chris came to work for us, for example. He said, “Troy, I manage billions of dollars at these institutions, but it’s all on spreadsheets and I want to know whose life I’m impacting by managing the money.” So, our business is a relationship business, but we’re independent. No one over my head saying, “Troy, we need to sell this fund. We need to generate this revenue this quarter to meet Wall Street’s guidance or profit targets.” We’re fee-based, so no broker-dealer relationship. We’re not making commissions on investment products. We take pride in that independence, and that allows us the freedom to work these different product strategies together inside a customized plan for the client.
Jay Curry: And to bring a better return, frankly. If you’re not paying those fees, then that money is being invested. And you really are, compared to other organizations that I’ve met with, very low cost for-
Troy Sharpe: Yeah. Well …
Jay Curry: … what you provide.
Troy Sharpe: One of the things that we provide is a hidden-fee analysis on your mutual fund. Had a gentleman recently said, “Troy, I’ve been with my guy for 15 years. I don’t have any hidden fees.” I said, “Well, why don’t you let us run the analysis just so you know for sure.” We ran the analysis, and over 1.5% in hidden fees on top of his expense ratio, on top of the 1% he was paying the advisor. All in, he was paying 3% a year. Had no idea.
Jay Curry: Yep, 3% a year and had no idea.
Troy Sharpe: Yeah. And this is standard. This isn’t-
Jay Curry: Yeah. It’s how they do it.
Troy Sharpe: … unique. This is pretty standard. The hidden fees, 1%, 1.5%, sometimes 2, 2.5. We offer that to everyone who reaches out to us, a hidden-fee analysis of mutual funds.
Jay Curry: Well, I don’t want to get past the fact that you have your own radio program. People can tune in and learn more about what you’re doing and what’s going on in the market and things of that sort.
Troy Sharpe: Yeah.
Jay Curry: Tell us about that.
Troy Sharpe: Our radio show, The Retirement Income Show, comes on 7:40, KTRH here in Houston. Saturdays at 6:00 p.m. You can go to our website, though, oakharvestfg … that stands for financial group … and livestream it, or, excuse me, listen to the last three weeks’ shows right there on our website. Yeah, it’s about getting the message out. It’s about getting out … A lot of people ask me to come and talk to their employees, their events, and their different goings on. We’re trying to get the message out. I truly believe millions of people are going to run out of money, and most of those think that they’re just fine right now. So, getting the message out, helping people understand that what you might be doing isn’t the best for your long-term success in the challenging environment that we’re facing.
Jay Curry: Well, I got to tell you. If you’ve listened to Texas Business Radio at all, you know that Matt and I are big fans of doing what you can do and what you’re best at. It’s your business to drive revenue. And don’t get into the business you’re not good at, like accounting and investments and things of that sort. Everybody, thank God we’re in America and quite a few assets can be built up. People can develop some real wealth, and you need to have a professional that knows the business to help you.
Well, we just listened to one. Troy, this is good stuff. Thank you for coming on. And tell us one more time how to get ahold of you.
Troy Sharpe: Well, sure. You can just visit us on the web, oakharvestfg.com. If you want to send me a personal email, if you’d like me to come talk to your company, just email me at firstname.lastname@example.org. It’s my personal email at work. Feel free to reach out to me there or visit us on the web, oakharvestfg.com.
Jay Curry: And if you didn’t get that down, we’re going to put it on Texas Business Radio. We’ll put a click there for you. You can go there, click on it, take you right to all your information. Thanks so much for joining us. Folks, we’ve got to pay a few bills, but we’re only going to be gone a minute or two, so don’t go anywhere. We’ll be right back.
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Jay W. Curry
Along with hosting “Texas Business Radio”, Jay is a Professional Certified Coach and Master Chair facilitating four Houston-based Vistage peer groups. In addition to being a best selling non-fiction author, the 2015 release of his award winning novel, Nixon and Dovey: the Legend Returns, adds novelist to his title. Jay holds a BS in Mathematics from Oklahoma State and an MS in Computer Science from Kansas State. You can learn more about Jay HERE.