By Breece Private Wealth
Breece Private Wealth Management Group, led by Justin W. Breece, has partnered with TSG Wealth Management to create what he feels will be “the best of all worlds.”
After nearly two decades as a wealth advisor that includes achieving many key accreditations such as a family wealth advisor, alternative investment director and executive director, Breece and his team decided they wanted to explore the independent channel in an effort to enhance customer experience. As Breece stated, “Through independence we can commit to being a true fiduciary to our clients, devote 100% of our focus to our clients’ lives, and deliver advice in an unincumbered and modern manner. Further, amongst the many lessons coming out of a pandemic is that we need the ability to be flexible with our practice management to attract and retain the highest level of professional talent. Making decisions at the local level for the benefit of our clients and our practice is critical and can only be achieved by leaving large top-down organizations.”
While diligently investigating his options over a year, Breece learned about TSG Wealth Management, a dynamic and robust firm managing around $7 billion as of December 2022 with 11 offices and highly accomplished advisors, including Mark Schulten, a Barron’s Top 100 Private Wealth Teams from 2021-22, that were seeking the right team to enter the Scottsdale/Phoenix market. “From the initial call with CEO Brian Borst, it felt like the perfect fit. We feel we are in complete synchronicity in all the key areas of business and life. TSG understands the importance of delivering world-class wealth management solutions, resources and a differentiated client experience that very often transcends the professional relationship.” Breece, now a managing director at Breece Private Wealth Management, will work closely with Mark Correa, who is also a managing director in their newly opened office in Kierland Quarter.
The Forbes Best-in-State Wealth Advisors rating algorithm is based on the previous year’s industry experience, interviews, compliance records, assets under management, revenue and other criteria by SHOOK Research LLC, which does not receive compensation from the advisors or their firms in exchange for placement on a rating. Investment performance is not a criterion. Self-completed survey was used for rating. This rating is not related to the quality of the investment advice and based solely on the disclosed criteria.
The Barron’s Top 100 Private Wealth Teams ratings are based on the previous year’s assets under management, revenue generated for the advisors’ firms, and the quality of the advisors’ practices. Investment performance isn’t an explicit factor, because clients have varied goals and risk tolerances. Self-completed questionnaire was used for rating. This rating is not related to the quality of the investment advice and based solely on the disclosed criteria.
“Ironically, going independent with TSG has deepened and enhanced my resources that I deliver to my trusted clients. There is a real culture of partnership amongst the entire team, including having dedicated portfolio managers, custom lending experts and investment planning professionals. Further, though we aren’t employees, we are able to tap into the vast resources offered through Wells Fargo Advisors, including their $1.2 trillion balance sheet for client safety and their tax planning, philanthropy, lending, business banking and investment banking.”
Breece brings his own skill set to TSG, including being a corporate securities attorney, investment banker, wealth advisor and portfolio management director, with over 20 years of experience in financial services. “Especially for my private business owners, they often appreciate that I can understand them in a entirely deeper level given my legal, investment banking, entrepreneurial and financial advisory background.”
Another virtue of TSG that Breece finds attractive is their commitment to younger professionals and their life evolution. Breece says he is passionate about educating young advisors. The industry is very top heavy with older advisors; accordingly, Breece, similar to TSG, is devoted to developing younger talent that learn how to properly care for clients. “I was very fortunate to have been trained by some special individuals with a meticulous program designed for modern, comprehensive, planning-based advisors. As such, I was able to give back and improve the quality of advice being delivered.”
Correa will work with Breece’s team daily to foster a team of dedicated client service specialists and helping develop the TSG brand in Scottsdale. Correa has over 25 years of experience, most recently with Wells Fargo Advisors in San Luis Obispo, California. Correa and Breece also share an extensive background in working with professional athletes and entertainers.
Breece takes a consultative approach to clients, similar to the way in which he did as a successful business attorney. This incorporates developing a deep understanding about all aspects of the client’s life that goes well beyond numbers. A critical part, according to Breece, of this job, is to help them manage their emotions in life and investing.
“Continuous learning and an in-depth understanding of client needs gives me a road map about how I want to go about investing,” Breece says. “It gives me that much more clairvoyance. Once we have a targeted, customized rate of return goal with the client that’s agreed upon, then it’s up to me to figure out what are the right tools I can use that gives us the best opportunity of success while taking the lowest amount of risk.
“Once you get that customized rate of return goal that the client completely understands, that has a powerful impact because it should turn down some of that emotion.”
Correa focuses on working directly with clients to determine their unique goals. “We focus on taking the stress away from the clients and transferring it to us,” Correa says. “We want to ensure our clients can achieve their goals in all aspects of life. We want to foster lifelong relationships with our exceptional customer service abilities.” Correa focuses on blue chip stocks with dividend growth and strong balance sheets, taking customer needs and interests into consideration when developing an investment mix.
Investments depend on the client. Of course, stocks and bonds play a key role in the investment mix, but Breece also works on tax efficiency for his clients. For the right clients, alternative private investments are offered. He doesn’t invest in products he doesn’t understand.
Breece works with business owners, who may receive an offer from business equity fund or someone within their own industry to purchase their company. Breece helps with liquidity equity planning. “Many times, that number on paper is quite exciting, and the inclination or knee-jerk reaction is to accept it. That tends to be where I am drawn in. What we will do is unpack the business valuation but answer the question of what that will mean for their personal life. What does it mean in the context of ‘let’s walk through it, if you do accept this, and sell the business for this price.’”
Breece creates a detailed analysis and evaluation to help sharpen the client’s mind and create clarity for the business owner to make a better, more elevated decision.
What is next in 2023
Breece quotes baseball great Yogi Berra, who also is known for his amusing quotes, in terms of what Breece thinks will happen in 2023. “Yogi Berra said, ‘Predictions are hard to make, especially those about the future,’ and I believe that,” Breece says. “Anyone who tells you with certainty that they know what will happen is someone to avoid.”
“Through constant reading, challenging and processing, I formulate strong views that are sometimes quite out of consensus. Right now, it seems like everyone is extremely pessimistic about ‘23 and equity returns. The last time I saw such muted and negative predications was 2013, a year that ended with over 30% gains in the S&P. Anecdotally, when I see such universal consensus, it certainly makes me keen to lean into opportunities in the other direction. Ultimately, there is only so much we can control in the short term. As the adage goes, ‘It’s not about timing the market, but about the time in the market.’ The only constant is change. Markets will gyrate with economic cycles, macro events, politics, etc., … but the one constant is human behavior. As such, as an advisor it is critical to keep clients from their emotions as we know that emotions will cause us to make terrible decisions — too greedy and too pessimistic. Returning to ‘23, when I see such historically extreme pessimism in so many key markets today, my instincts turn even more constructive on investments such as equities, certain areas of fixed income and especially unloved areas like Emerging Markets and U.S. small caps.”
Breece believes we are at a key juncture of what will break first — the economy or inflation. He believes inflation rates will continue to decrease faster and earlier than the consensus dire earnings decline predictions. Provided the consumer continues to “hang in there,” and the fed eases or even signals easing on the intense interest rate hiking program, then he thinks markets will recover sooner than perhaps most expect and continue their long-term ascent. “If you look at historical returns coming out of these recessionary environments, they are quite strong, often north of 30%” he says. Further, historically there has never been a down year after a midterm election. The key is that markets anticipate changes well ahead of the economy. Missing these moves, especially in the initial stages, can materially reduce your long-term returns. Given the intense volatility
and constant stimulation of views — social media — Breece made a reference to Napoleon when he said that what makes someone exceptional is “keeping your head on while others are losing theirs.” “Our goal is to keep our head on, focus on the client’s long-term goals and provide a differentiated relationship.”
For more information about Breece Private Wealth Management, visit tsgwm.com/breece-private-wealth-management.
Wells Fargo Advisors Financial Network is not a legal or tax advisor.
Investment products and services are offered through Wells Fargo Advisors Financial Network LLC (WFAFN), Member SIPC. TSG Wealth Management is a separate entity from WFAFN.
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