Michael Rudolf, AIF®, Director of Retirement Plans, has more than 20 years of experience in the financial services industry, specializing in employer retirement plans. Mike manages fiduciary liability, investment line-ups, and employee education; he also helps individuals with their investment management. Mike is a valuable asset to our team, and I’m pleased to share his successes and wisdom in this month’s Beautifully Frugal blog!
Michael Rudolf with his wife, Julie, and five children.
What made you decide to become a Financial Advisor?
“I started my college career in accounting, and quickly realized it wasn't for me. I've always been good with numbers because I learned about investing at a young age from my dad. Because of him, I’ve always been interested in investing and from there I took my skill set and went that direction in college.”
What is your own personal financial advice to Investors?
“There’s an old adage to buy-and-hold – which is about starting young and continuing to invest without getting nervous about the market. It's about investing over time. This is something I’m trying to teach my own kids while they’re at a young age. As long as you're making those contributions and taking advantage of company matches, you're going to be in a good place. A successful investor is not going to be nervous with the market. They are going to keep going and keep plugging away at those investments.”
So, what do you say to clients who get nervous when it comes to the market? Do you have clients who call you and voice these concerns? Is there a way you calm them down?
“You know, I try to give them examples, and 2008 is a perfect example of what we are currently going through. The people who lost in 2008 are the people who got scared, got out of the market, and missed the comeback. What we are going through is not nearly as bad as 2008; however, we are experiencing something similar and it should remind you of what you stuck through—or missed out on—in the past. So, it's about trying to temper their expectations a little and say, “’All markets go up and down, it's a little bit of a roller coaster—yet the people who win are the people who can stick through the tough times.’”
What would you say is the most challenging constraint to deal with when it comes to clients and their investing?
“I do more on the 401(k) side than individual investing, and the toughest constraint is people think they can’t afford to save. I think you're a prime example of this because you had a lot of debt, which is a type of constraint. Part of what we do on the retirement plan side is try to help people with those constraints. They can shift those savings they have on the debt side to saving for retirement. In my entire 20 years of doing this, I constantly hear “I can't afford it” or “I'm young and I have time.” I talk it through and let them know the time to get going is when you are young, which is when you can take advantage of the time value of money, as well as the compounding interest. We even tell our employees to at least invest 3-4% and to aim for a 1% increase every year to help them achieve a strong retirement goal.”
Is there anything other advisors do which really bothers you ?
“I have done this for a long time and I've worked with a lot of different people. I would say the part which bothers me is when they sell a product, not a solution. For example, I've seen a lot of people sell annuities to anyone they're working with – a high commission product and it's not fitting. They’re out there not thinking about what's right for those individuals. I've seen this time and time again.”
In your time being an advisor, do you believe investing is only for people who earn a high income? Why or why not?
“Not even close! I think it's for everybody. I still often hear people say, “I'll never retire.” However, if you can get going at a young age, you should be able to retire and it's never too late to get started. The earlier you get started, the greater your investing habits will become.”
What does Fiduciary Responsibility mean to you?
“To me it means I'm out there trying to protect my clients. A lot of my clients are companies and it's my responsibility to make sure the plan and the investments are set up. We also have a process to take care of their employees. I take that very seriously and I'm here to protect my clients the best I can. It's not what's best for KerberRose, it's what's best for the client.”
If someone reading this blog was interested in contacting you to look at their particular financial situation or ask for some assistance, how could they do so?
“They can reach me through my email michael.rudolf@kerberrose.com. I’m very responsive and I would be happy to help!”
About Alex
Alex is one of our financial wellness advocates on our Wealth Management team. She is a mom of four, and her passion is sharing her own personal finance journey from living paycheck to paycheck and drowning in debt to finding financial peace. Alex's unique experience has given her the ability to help families take control of their own personal finances - all while still enjoying what life has to offer.
Contact: alex.miller@kerberrose.com