Tavares | Winter Park | The Villages

Wealth Beyond Numbers: “Significance of Wealth” Podcast Premiere

Founder & CEO Tom Ruggie, ChFC®, CFP® has launched a new  podcast titled “Significance of Wealth.” Join Tom as he delves into the evolving landscape of wealth management. In each episode, Tom explores independent thinking and tailored strategies that go beyond financial expectations, shedding light on alternative investments and private investments, addressing the unique needs of the ultra-high-net-worth, as well as the world of collecting as both a passion and investment strategy.

Check out the first episode, now available on Apple Podcast and Spotify.

Thomas Ruggie, CHFC®, CFP® Named To Barron’s 1200 Top Financial Advisors for 12th Time

Ruggie Wealth Management announced that Founder and CEO Thomas H. Ruggie, ChFC®, CFP®, has been named to Barron’s list of America’s Top 1,200 Advisors: 2024, the 12th time Ruggie has earned this distinction, and the 10th straight year.

As Barron’s explains, they publish their annual Top 1200 Advisors by State compilation to recognize advisors demonstrating exceptional professionalism, client service and community involvement. Among the factors the “Barron’s Top 1,200 Advisors” ranking takes into consideration are quality of practice, assets under management, revenues, and philanthropic work.

“It is an honor to again be ranked among our nation’s top financial advisors by one of the most respected names in the financial industry,” said Ruggie of the ranking which recognizes both an elite group of independent financial professionals and large wirehouses.

“I believe our clients turn to us because of our dedication to placing their interests above ours, for the strength of our processes and collective wisdom of our team, and for our unwavering focus on helping them achieve the financial goals they’ve been dreaming of and working for their whole lives. To once again be named among Barron’s Top Advisors is an honor that reinforces that what we are doing on our clients’ behalf brings real value to our relationship with them.”

Ruggie Wealth Management provides services to individual and corporate clients, as well as to a select group of endowments and foundations. As one of the flagship companies of Destiny Wealth Partners, Ruggie Wealth Management offers a broad range of services and products to help clients achieve their financial goals.

The firm has offices in Tavares, Winter Park and The Villages®, FL. Destiny Wealth Partners also conducts business under the name KCG Investment Advisory Services in Savannah, GA, and Nichols Wealth Partners in Boca Raton, FL.

The Barron’s Top 1200 Financial Advisors is a select group of individuals who are screened on a number of different criteria. Rankings are based on data provided by over 6,000 advisers from across the nation. Factors included in the rankings: assets under management, revenue produced for the firm, regulatory record, quality of practice and philanthropic work. Portfolio performance is not a factor. Please see www.barrons.com for more information. Ruggie Wealth Management has not paid a fee to be eligible for this award. Barron’s does not require membership or payment in order for award participants and/or applicants to be considered for an award designation.

 

Investment advisory services offered through Destiny Wealth Partners, LLC, an SEC Registered Investment Advisor.

Destiny Family Office Named 2024 Family Wealth Report Awards Finalist for Third Consecutive Year

Prestigious Annual Award Recognizes Exceptionalism in Wealth and Investment Management 
Destiny Family Office, a Destiny Wealth Partners firm, has been named a finalist in the prestigious Eleventh Annual Family Wealth Report Awards in the Multi-Family Office category (up to and including $2.5 Billion in Assets Under Management/Assets Under Advisement) for a third year in a row. According to ClearView Financial Media, publisher of Family Wealth Report, independence, integrity, and genuine insight are focus areas for the judging process, which is conducted by expert panels that consist of judges from family offices, private banks, trusted advisors, consultants, and other professional service providers with deep industry experience.
“We are honored to have been recognized again and to stand alongside a special group of peers. We founded our firm with a mission and purpose forged by what we saw as an unanswered need in the marketplace: families seeking advocacy, compelling wealth and investment management capabilities and services, and consistent execution—without compromise. This recognition highlights the incredible commitment and dedication of our team who strive to deliver an exceptional client experience that is tailored to the unique situations, goals, and aspirations of those we serve,” said Tom Ruggie, ChFC®, CFP®, Founder and CEO of Destiny Family Office.
The firm works to help wealth creators, wealth inheritors and their families better navigate complexity and achieve peace of mind, by helping to protect what is most important to them and by helping position them for continued success and prosperity spanning generations.
Stephen Harris, ClearView Financial Media’s CEO, and publisher of Family Wealth Report, was the first to congratulate all finalists, “Every winning entrant has been subjected to a rigorous and independent judging process and should be rightly proud of the success they have achieved this year. These awards give organizations and individuals the opportunity to clarify their strategic thinking, have it independently validated, be recognized internally and externally and to celebrate in style with their peers. I offer my congratulations and best wishes for the future to all winners and highly commended firms—they are all worthy recipients who join the prestigious list of wealth management professionals who form the global elite of Family Wealth Report winners.”
Finalists are selected based on entrants’ submissions and their response to questions across a range of qualitative and quantitative criteria and performance metrics. The judging process is rigorous and independent. Winners will be announced May 2, 2024, at the Eleventh Annual Family Wealth Report Gala at the Mandarin Oriental in New York City.

Ruggie Wealth’s Morgan Hatfield Re-Elected to SECO Energy Board of Trustees

Ruggie Wealth Management Senior Wealth Advisor & Partner Morgan Hatfield was recently re-elected by SECO energy members living in District 9 to serve as their Trustee on the SECO Energy Board of Trustees. Voting took place during the District 9 meeting held January 30, 2024 at Spring Creek Elementary School in Paisley.

A SECO member since 2019, Morgan currently holds the position of Secretary/Treasurer of the Board of Trustees. She attained the Director Gold credential, which is the highest level of achievement through the National Rural Electric Cooperative Association.

SECO Energy is a not-for-profit electric cooperative operated for and owned by its members. SECO’s service area is geographically divided into nine Districts. One Trustee is elected from each of the nine Districts to represent their fellow members on SECO’s Board of Trustees. The Board meets monthly to monitor the cooperative’s financial status while providing fiduciary oversight and participating in policy decisions that serve the best interests of the membership at large.

“I want to thank all District 9 members for attending and showing your interest in participating as SECO members,” said Morgan during the District meeting. “I am eager to continue working with my fellow Trustees as we do our best to serve our members with an outstanding product supported by industry-leading service.”

Board President Gerald Anderson stated, “Congratulations, Ms. Hatfield, on your re-election as District 9 Trustee. I am grateful to the District 9 members who attended the Meeting and participated in our cooperative’s governance process. On behalf of our fellow Board members and peers, we are excited to support SECO Energy’s Mission and Vision through our Board service.”

Curtis Wynn CEO stated, “The Board of Trustees and the SECO Energy membership are grateful to all Trustees who give generously of their time and experience. We are very happy to have Ms. Hatfield continue with her leadership and strong contributions to the success of SECO Energy in her role as a Board Trustee and her expanded responsibilities as Secretary/Treasurer. Thank you, District 9 members, for your attendance at the meeting and your interest in SECO Energy and the strategic direction in which the board, executive leadership team and employees are taking your electric cooperative.”

Tom Ruggie Discusses Strategies for Tomorrow: Adapting to Trends in Wealth Management

video
play-sharp-fill
In this episode of the What Matters Podcast, Thomas joins Mike and Ashley to talk about the rapidly changing landscape of wealth management, delving into the future of the industry, and exploring emerging trends and technologies. They also discuss the importance of embracing change, underlining the impact of AI on financial businesses, and shedding light on the shift towards alternative investments.

Collectibles Prove to Be a Solid Asset Class for Investors

Anyone with a passion for certain collectibles and the patience to wait for values to grow could see some strong returns.

BY THOMAS RUGGIE, CHFC®, CFP®
Dec 15, 2023

Your youthful passion may just help fund your retirement: Collectibles, sometimes misperceived as passion projects for slightly eccentric investors, have morphed into an increasingly solid asset class in their own right.

For those willing to invest the time — and more than a few dollars – in a category that appeals to them, collectibles are offering a new generation of investors an exciting place to put their money to work. And while watches, wines and baseball cards shouldn’t replace your IRA, those with the right mindset, time horizon and sufficient passion for the items being collected should find themselves with strong returns as well.

The values of sports memorabilia, vintage automobiles, luxury watches and even collectible handbags have all seen strong growth over the last several years, even as other markets have stuttered or fallen.

Spurred on by stuck-at-home Americans flush with idle cash, values in the collectibles market surged coming out of the pandemic, as some collectors rediscovered an old hobby, and others stumbled onto a new one.

Even as the market has slowed somewhat, the value of certain luxury collectibles have still seen a year-over-year growth of 7%, according to the Knight Frank Luxury Investment Index, while other more niche items — like collectible Lego sets — have seen increases of up to 11%, according to a study published in the Research in International Business and Finance journal.

Those gains are better than real estate and gold over the same time period.

But before using recent performance as a justification for buying yourself a $20,000 watch, here’s what some experts have to say about the collectibles market, where it’s going and what’s worth the price tag.

Nostalgia rules

Things that remind us of childhood are fetching remarkable prices at auction, whether its Rocky Balboa’s boxing gloves or the old muscle car you admired in the parking lot of your high school.

“Those high school students are now in their 50s and have the expendable income to buy the muscle car they had always wanted, and are not afraid to pay for it,” said Joe Sabatini, president of exotic car show organizer Festivals of Speed.

As a new generation becomes the power spenders, demand in the marketplace shifts. Certain cars from the ’80s are now able to fetch up to $200,000 — valuations that had been previously associated exclusively with cars from the ’60s.

Following the trend line of nostalgia, Sabatini has a guess for what class of vehicle will pop off next: vintage Japanese cars.

Keep liquidity in mind

One key to investing wisely in collectibles: liquidity. Unlike market-traded assets that can be turned into cash quickly, most categories of collectibles take significantly more time to transact. In addition, to maximize profit, sellers need to be able to authenticate and properly market their assets — both of which require preparation and advance notice.

“It’s important that potential investors don’t earmark more money than they should to an asset class like sports collectibles,” said Brian Dwyer, president of Robert Edward Auctions. “Certain pieces have an inherent illiquidity to them, and if they have to be sold in a rush, it can be disastrous for the investor.”

That means investments in collectibles should be understood as providing long-term returns. For items like art and car collectibles, things like ownership lineage and provenance can drive up values significantly. Generally speaking, the holding period for collectibles should be thought of in multiple years, not months.

Correlated to the economy — contraction ahead?

For investors new to the world of collectibles, one note of caution: Like most parts of the economy, the collectibles market isn’t immune to the impacts of rising interest rates. Most experts in the space expect some degree of pullback over the next year as soaring interest rates slow demand and auction houses cool from their post-pandemic booms.

According to collectibles research group Altan Insights, the quantity of six- and seven-figure auction sales fell between 30% and 36% year-over-year, respectively.

Of course, that doesn’t mean there won’t be continued demand for certain items. While last year’s record-breaking sale of a vintage 1952 Mickey Mantle baseball card may have been a high point for the market, a proven asset like a Mickey Mantle card will continue to pay off. In general, the market for vintage sports memorabilia has proven resilient: Six-figure sales for vintage sports memorabilia were up 14% year-over-year, even while overall six-figure sales were down 30%.

Where to begin

Because collectibles markets have been strong ahead of the recent economic stutter-steps, buyers need to exercise extra caution when wading in. Working through trusted sellers is important, especially when purchasing big-ticket items, but buyers should also be cognizant of various market forces at play.

Ron Varney of Fine Art Advisors, for instance, cautions buyers in the art market right now. “High valuations have opened the doors for more artwork to come into the market,” he said, “and a lot of that isn’t what we would consider ‘investment-grade.’”

Fundamentally, collectors finding success are those with a true interest — whether it be in art, sports, wine or any other focused area. Investors who have a passion for their collection are not only more incentivized to hold on to their goods, but they are also going to be less likely to get swept up in speculative hype.

The best downside protection of all may come from the psychic income a collector gets from owning something they love deeply. Said Festival of Speed’s Sabatini regarding a client who watched a Ferrari they purchased grow to a multimillion-dollar valuation: “I don’t think those owners purchased the car as an investment. It was just a pure love of what the car was.”

Collectibles aren’t an asset class suited to every investor, but those with a passion for a particular class of items and patient funds to invest can find the category offers strong returns in the form of both dollars and happiness.

Investment News Ranks Destiny Wealth Partners Among Nation’s Top 75 Fastest Growing RIAs

We’re excited to announce that our independent RIA Destiny Wealth Partners has been ranked among the 2023 75 Fastest-Growing Fee-Only RIAs.

According to Investment News, “these firms are being celebrated for the growth they’ve achieved and assets they’ve attracted since July 2020. While all 75 winners are trusted and reliable partners for their clients, each firm has its own unique strategy and operating methods.”

Destiny Wealth Partners is our independent RIA founded by 30+ year financial veteran Tom Ruggie, ChFC, CFP, which also  conducts business as Ruggie Wealth Management, Nichols Wealth Partners, and Destiny Family Office. Ruggie founded the family office in 2016 to meet the unanswered needs of the ultra-high-net-worth, as they were seeking to better navigate the challenges and opportunities at the intersection of their family, wealth, and aspirations.

The firm’s culture is rooted in a shared vision to continually innovate, working collaboratively as a closely integrated team and partnering with best-in-industry third parties to create solutions that empower individuals, families, and foundations and help them achieve their highest Destiny.

As of July 2023, Destiny Wealth Partners had $1 billion in AUM. The firm’s success has been driven by targeting three key areas:

  1. presenting a compelling sphere of investments through the Destiny Alternative Fund and unique access to direct and co-investment opportunities for UHNW families seeking opportunities for greater returns
  2. creating a niche focus on high-end collectors: Tom Ruggie’s unique insights and perspectives, based on his own lifelong passion for collecting, have resulted in his expertise and thought leadership on this subject, as well as on alternative investments as a whole
  3. private trust capabilities: becoming a trust representative office for the nation’s largest trust company

Ruggie says, “Simply put, we have a growth mindset. We set big goals and have big expectations for ourselves in many areas, starting with the delivery of an exceptional client experience, the desire to continually innovate, and a commitment to invest in ourselves, in best-in-class strategic partnerships, and in the capabilities and services we provide.” Clients experience deep strategic thinking tailored to their situations, needs, and goals, such as:

  • purpose and passion
  • attention to detail
  • integrity
  • continual innovation and growth of the team, services, capabilities, technology, etc.
  • a focus on understanding clients’ “why”
  • a willingness to act as clients’ personal CFO
  • well-thought-out planning for the long term
  • a growth mindset
  • quiet leadership
  • financial strategies that simplify lives

“We believe our most compelling metric continues to be our ability to turn success into personal significance for our clients and their families. We also believe doing so has led to an exemplary client retention rate across time,” says Ruggie. “Clients surveyed say that’s a factor of well-thought-out investment strategies and investment management processes, unique planning tools, constant attention to detail, desire to challenge convention, willingness to seize opportunities, and quiet leadership.”

In addition to being named among InvestmentNews’ Fastest-Growing Fee-Only RIAs of 2023, Ruggie and his firm have received other recognitions, including:

  • Forbes/Shook Research Best-In-State Wealth Advisors (6x)
  • Forbes/Shook Research 250 Top RIA Firms (2023)
  • Barron’s Top 1200 Financial Advisors (11x)
  • Financial Advisor Top RIA Firms (11x)
  • USA Today/Statista 500 Best Financial Advisory Firms in the US (2023)
  • Family Wealth Report Awards Finalist in the category up to and including $2.5 billion in AUM (2022 and 2023)

As Ruggie reflects on all he and his team have accomplished thus far with and for the clients they serve, he remains focused on the ever-evolving needs of clients and how he can best serve them. There are plans to expand the firm’s family office offerings, pursue select M&A opportunities, and launch GenNext, an initiative targeting the younger client demographic.

Cash Balance Plans: Big Deductions and Big Retirement Savings

By Thomas Ruggie, published November 10, 2023

With the IRS focusing more on high-net-worth taxpayers, is it time for business owners to consider implementing cash balance plans?

High-current-income business owners can’t afford to sit still with the IRS loading up its audit and IT staff to drive federal tax revenue. Cash benefits plans can help lower tax burdens and build a more affluent retirement and are worth investigating.

As the IRS grows more aggressive with high-net-worth taxpayers — even announcing it’s deploying artificial intelligence audit tools in its pursuit of additional federal revenue — successful business owners need proactive tax strategies that offer big benefits.

One of the most underutilized approaches is also one of the most powerful: cash balance plans, which create the opportunity for both big deductions and big retirement savings.

What are cash balance plans?

Cash balance plans, sometimes referred to as cash balance pension plans, have elements similar to certain other pension and defined benefits plans. They’re more complex to set up and administer than a standard 401(k), so relatively few advisers fully grasp their implications and benefits.

The U.S. Department of Labor offers a fact sheet on the complex plans, which were created under the federal Employee Retirement Income Security Act (ERISA). The plans come with some regulatory and oversight burdens, as the Department of Labor, the EEOC and the IRS all have roles in the plans’ oversight.

But don’t let the regulatory regime scare you. The premise of cash balance plans is relatively simple. It’s essentially a hybrid pension plan that offers significant benefits to the owner and potentially to other highly compensated people in the company’s management structure.

Who are cash balance plans best for?

The best candidates for cash balance plans are mature businesses with forecasted sustainable profits and a stable number of employees on their books. Cash balance plans require businesses to sign off on putting away a significant amount of money on a perpetual basis, limiting the amount of money businesses have to reinvest in themselves.

But if your business can do that, the deductions are excellent, and the rate of savings accumulation can be terrific.

What’s the benefit of a cash balance plan?

In a traditional 401(k) defined contribution plan, individuals and businesses calculate a contribution amount for themselves that they can afford today. Based on their current salary, lifestyle and 401(k) contribution limits, individuals determine the amount of money they want to contribute to their plan. It’s a straightforward calculation for individuals and their accountants.

Cash balance plans have a significantly higher contribution limit and more flexible time commitments. For individuals with multiple income streams, they also offer the ability to shelter additional income, then roll up those funds into an IRA at the end of the plan.

CBPs also allow for complete freedom for the underlying investment, meaning the individual can decide how it’s structured and who it’s structured with. Investors have access to traditional bonds, stocks, mutual funds, as well as alternative investments. In some cases, it may even be possible to have life insurance funded inside of the plan, effectively paying for insurance on a tax-deductible basis.

Conversely, cash balance plans depend on more in-depth and complex calculations. Rather than defining what you can contribute today, cash balance plans are based on a statistical calculation that factors in age, target retirement benefit and target retirement age. The contribution amount is predetermined based on an actuarial assumption and can differ year to year within a set range.

What are the drawbacks?

First, the complexities make it a less utilized tool, and there are moderate expenses to create and administer it. Second, because it’s less well known and less frequently used than other kinds of tax strategies and retirement plans, there are fewer well-versed cash benefit plan advisers. Check with your financial adviser, CPA or tax attorney, and if they don’t know what they’re doing, you’ll need to find someone who does. Most screening can be done by answering a few simple questions about your business and our employees.

Additionally, unlike a 401(k) — for which almost everyone is a prime candidate — the mandated contribution rate of a cash balance plan means that only individuals with a specific income flow are good candidates. In a cash balance plan, consistency is key. Individuals who are thinking of starting cash balance plans for their companies need to be sure that they have the long-term qualities needed to continue to fund these plans.

And for growing companies that eat cash for breakfast, lunch and dinner, cash balance plans provide too little flexibility, both in terms of available capital, as well as for employee growth; the majority of businesses that utilize cash balance plans have less than 100 employees. Businesses with cash balance plans need to be able to contribute the designated amount, even with variation from year to year.

Treasures Abound at Daniel Frank Sedwick Auction

Watch a portion of Tom’s presentation

Tom Ruggie, ChFC®, CFP®,  Founder and CEO of Destiny Family Office, presented on the ‘Management of Collectibles in Wealth Portfolios’ to participants at the Daniel Frank Sedwick LLC  Treasure Auction 34, held recently in Winter Park, FL.

Tom, a 30+ year veteran of the wealth management field is also an avid collector of sports memorabilia, autographed baseball cards, and wine, who has published articles on collectibles and alternative investments in Kiplinger, Forbes.com, Crain Currency, and Sports Collectors Digest.

He spoke about the impact of collectibles as an alternative investment, the importance of including them in financial, tax and estate planning, and introduced his Collectibles Scorecard, which helps collectors understand where they are and where they ideally want to be in 10 critical areas directly impacting their collections.

Collectible Vintage Photos Emerge as Investable Asset Class

By Thomas Ruggie, CHFC®, CFP®
Published on Kiplinger, July 9, 2023

Many of the most valuable vintage photos are sports-related, and limited supply and high demand, as well as careful and trusted authentication, are key.

With global financial markets sliding sideways, visionary investors are on the lookout for new asset classes. One tangible subclass you can actually see with your eyes is worth checking out: vintage photos.

Fine art pieces have long been found in the portfolios of high-net-worth individuals and institutions — and even pooled, in recent years, and turned into quasi-securities. The unique digital images known as NFTs (non-fungible tokens) were a massive craze-turned-crash.

Vintage photographs occupy a different space, more closely adjacent to the world of rare collectibles. Many of the most valuable vintage photos are sports-related: In 2020, a 110-year-old photo of legendary baseball player Ty Cobb sold for an eye-popping $390,000. Auction houses like Robert Edward, Heritage, Lelands and even eBay routinely facilitate trades of images for tens of thousands of dollars each.

As with collectibles like sports trading cards and autographs, the key to value in vintage photographs is not only limited supply and high demand but careful and trusted authentication. Investment-grade vintage photographs tend to be authenticated by one of a handful of well-known firms, such as PSA (where Mark Cuban and Kevin Durant are significant investors).

PSA was also instrumental in the creation of a system for grading vintage photographs that has become the market standard. Photos are classified as being one of four types, based on proximity to the original negative. Types III and IV, the least valuable, are produced from duplicate negatives. Type II photos come from the original negative but were made two or more years after the photo was taken. Type I photos are printed from the original negative within two years of the original event.

Most or all investment-grade vintage are either Type I or Type II photos. The $390,000 Cobb image was judged to be a Type I photo, taken and developed on the same day (July 23, 1910) by a known photographer, Charles Conlon of the New York Evening Telegram).

As with all forms of art, the value of a vintage photograph has a subjective element that is dependent on the content and composition of the image itself. Original photos of timeless celebrities will always have value, even if they aren’t particularly vintage. A 1993 print of British model Kate Moss by fashion photographer Albert Watson sold for $25,000 in 2017.

But in a world that is now and will forever be awash in cheap digital content, all types of high-grade vintage photographs have the power to hold collectors’ and investors’ attention.

In line with fine art and collectibles, a driving force in the vintage photo market is a community of passionate enthusiasts and connoisseurs who find satisfaction in owning rare things of beauty or historical significance. But vintage photos have also drawn an increasing number of investors primarily interested in financial return and diversification.

As for how investors can access this market, there’s no single or simple answer, but the more reputable auction houses and well-known dealers are good places to start.

Even for those with a passion for collecting will want to limit asset subclasses like vintage photos to 10% or so of your overall portfolio. (I’m a sports memorabilia collector, and my collection, acquired over several decades, hovers around this mark in mine.)

It’s also good to remember that these aren’t necessarily highly liquid assets and that they’re better suited to longer holding periods. Within your portfolio, I think it’s useful to think in terms of three pools: one up to 10 years, one from 11 to 20 years and a third that’s 20-plus years. All tangible collectible assets should go into the latter two pools.

This also means that serious investors/collectors will have a mindset of buying during market downturns, just as with financial assets. But while collectibles markets will soften during financial downturns, such assets can be surprisingly non-correlated to other markets, in particular the stock market. That’s a useful feature for wealth management planning and may be particularly relevant if today’s sideways trend continues.

The many disruptions on the horizon for our AI-infused world may help stoke the deep-rooted human longing for tangible assets and simpler moments. Together, I see those factors continuing to drive the market for vintage photographs. That means some pictures will be worth not only a thousand words, but tens or hundreds of thousands of dollars.

Client Login

Click below to login to:

Charles Schwab

TD Ameritrade

RWMLink

Fidelity

Destiny Estate Planning