Investment game changer
Kevin O’Sullivan • Quincy, MA
Integrated Financial Partners • Lincoln Financial Advisors Corp.
Read full biography below
Proactive Advisor Magazine: Kevin, how did you make the transition from professional athlete to financial advisor?
I kid around with people that I had to reorient myself in two ways before I got into the business, from an English major in college and a pro hockey player to the world of financial services. But both of those experiences serve me well in my career: Communicating effectively is extremely important as an advisor, and hockey taught me many valuable lessons in areas such as leadership, teamwork, and work ethic.
After deciding to leave pro hockey, I was recruited by a major national firm and received intensive training, both on the job and in the classroom. I had excellent mentors and that was very valuable, especially as I came into the business right around the lead-up to the dot-com bust in the markets. I learned the business from some successful people who all had a number of years of experience in delivering results-oriented financial plans.
Talk about how your career progressed.
When I first started in the business, I think two major shifts were about to take hold: First, the business was evolving from a product sales mentality to more holistic financial planning for clients, which obviously has been a very positive trend. Second, the market volatility of the early 2000s had many of us beginning to question the prevailing approach to investment theory.
Like many advisors at the time, I was more or less indoctrinated in modern portfolio theory. It was a fairly standard model of diversification and asset-allocation practices, which, based on the prior few decades, made a lot of sense at the time. Personally, I really took to the financial planning model and the idea of helping people look at their total financial picture—from identifying objectives, to investment planning, insurance needs across the board, long-term-care planning, legacy planning, and so forth. I had a lot of success early in my career and won recognition for my planning work.
Within this framework, my approach to just about all client needs has evolved to a stronger focus on risk management, whether it is in investment planning or looking at something like the full spectrum of a family’s insurance needs. Risk management is far more of a key priority in working with clients today than in my early days in the business.
What is your firm’s process in working with clients?
I joined IFP about ten years ago, and it has been a terrific experience on every level. The firm is dedicated to a very serious financial planning model and has several proprietary methods for working with clients. The fundamental underlying approach is called the lifetime income model, which is a strategy for helping clients plan for their retirement financial needs in a very disciplined fashion. It is a sequential model for planning and has an inherent risk-management focus for several different buckets or time frames.
I also really enjoy the fact that IFP provides a great deal of independence for its advisors and planners. We have the freedom to select from a wide spectrum of investment strategies and third-party investment managers. But we also have access to sophisticated support on case design, a team mentality, and, if needed, the ability to have several sets of eyes reviewing the plans we put together for clients. So, I think it is the best of both worlds, with a great deal of latitude for individual advisors but also the resources to provide support when needed in just about any area related to financial planning.
Within this context, how do you handle a risk-managed approach to investments?
As part of the lifetime income model, we thoroughly review with clients the concepts of short-term risk, mid-term risk, and long-term risk in a way they can easily grasp. It is a concept geared to those entering retirement but has application for virtually any client. We are essentially balancing income needs with prudent allocation of resources across various time frames, and using a wide range of planning options and tools to help them reach their objectives.
“We’ve all heard about pro athletes who end up with nothing, and it breaks my heart. I aim to help them, and all my clients, build financial plans with a strong focus on risk management.”
We have seen that this approach has been a very effective way to increase the probability of success for our clients. We let them know that we are not stock pickers. I am not buying individual securities, and the investments we recommend generally all have a strong risk-management component. Third-party active management allows many of our clients to have access to some pretty sophisticated strategies. We tend to use a fairly short list of managers, some who specialize in particular areas and others who have broader, more holistic investment strategies.
I explain to clients that we have access to firms that have had a proven track record over time of managing money. I expose my clients to those types of strategies that are available from several third-party managers, and we talk about the risk associated with the various types of strategies they can provide. We go over the client’s game plan and examine the options that are most appropriate. We might say, for example, this is money you do not need to touch for 10 to 15 years—here are the types of strategies that fit well with that time frame and your particular risk profile and objectives.
What types of clients do you tend to work with? What are their concerns?
I think they run the gamut in terms of age and assets, but the focus is certainly around people beginning to seriously contemplate retirement or who are already retired. The key issue for many of our clients is the legitimate concern about funding their retirement in a manner that is consistent with the type of lifestyle and legacy planning they hope to attain.
It is a serious concern, and we approach the process with great commitment. But we also try to make it as enjoyable as we can. I try to put myself in the client’s shoes and constantly ask myself these questions: What would I like to see as a client? How would I want to be treated? What would my questions be? What sort of due diligence would I want? I want to deliver at that level of excellence, and I believe we can usually exceed our clients’ expectations. I tell clients often, think of us as your financial coach, and we will do our best to put the very finest team out there to work for you.
I have also worked hard to build a somewhat different segment of my personal practice, which goes hand in hand with my love of hockey and experience in the sport. I have several professional NHL players as clients, and they, of course, are in a much different stage of their lives. Everyone is familiar with the stories about former pro athletes who end up with nothing, and it breaks my heart every time I hear that. So, I really get a great deal of satisfaction in helping these clients formulate financial plans that will serve them well—not just now, but throughout their lifetime.
Kevin O’Sullivan is a financial planner with Integrated Financial Partners, Inc. (IFP), and is located in Quincy, Massachusetts. Mr. O’Sullivan and his team of advisors deliver a wide range of resources for clients, from estate and business-owner planning to retirement and investment strategies.
Mr. O’Sullivan has over 15 years of financial services experience and has given numerous retirement seminars to individuals, organizations, and corporations in the New England area. He has received industry awards such as Rookie of the Year from Boston South Financial Group and the Outstanding Achievement Award in Financial Planning.
A native of the Boston area, Mr. O’Sullivan attended Catholic Memorial High School and Boston University and was a captain of the ice hockey teams at both schools. He was drafted after by the New York Islanders and played professional hockey for three years, including a tenure with the Montreal Canadiens’ organization. Mr. O’Sullivan’s love of hockey remains a lifelong passion, and he takes an active teaching role in youth hockey leagues.
Mr. O’Sullivan and his wife, Karen, live in Milton, Massachusetts, with their three children, Caitlin, Ryan, and Matthew.
Disclosure: Kevin O’Sullivan is a registered representative of Lincoln Financial Advisors Corp., a broker/dealer (member SIPC) and registered investment advisor. Integrated Financial Partners Inc. is not an affiliate of Lincoln Financial Advisors Corp.
Photography by Greg Anthony
