Deep financial experience adds value for clients
Deep financial experience adds value for clients
Proactive Advisor Magazine: Tyler, talk about your experience and path to becoming a financial advisor.
I joined my father’s firm, Impact Wealth Group, in 2022, after working for almost 20 years in a variety of positions in the investment industry. My interest in the financial markets started at an early age. My father, Clyde, had a big influence on me through his career encompassing different financial-industry roles.
I majored in marketing at the University of Iowa, studying different areas of business management, including several finance courses. My brother had started an investment trading company a few years earlier and had several traders working with him. I was very interested in what he was doing. The late 1990s and early 2000s were exciting and evolutionary times for the markets. By my senior year, I was working part-time as a trader, going to my classes, and playing highly competitive college tennis. It was a challenging schedule, but I loved every minute of it. When I left college, I joined my brother’s trading firm full-time. I felt that it was a great fit, a combination of employing analytical skills along with a lot of the competitive intensity that you get from sports.
After about four years of working with my brother and then another proprietary trading firm in Los Angeles, I decided to get back into competitive tennis and joined the ATP Tour. While I had some success, with wins over players ranked in the top 100, I concluded I might never get established in the upper tier myself. I went back to the financial field and worked as head of trading operations for one firm for five years. I left to become a managing partner for a hedge fund, where we specialized in asset management for high-net-worth individuals.
Across all of this experience in the financial industry, I have developed a deep knowledge of investment strategy and implementation, risk management, and—importantly—how to effectively address the objectives of clients and other stakeholders. I think that background is invaluable in working with our clients at Impact Wealth Group. I have worked hard at making a successful transition from serving clients in an investment capacity to now addressing the full scope of their financial-planning needs. I appreciate the mentorship of my father and others in our firm—and I am also building my knowledge base through a wide variety of other resources.
Describe your broad approach to the financial-planning process.
We take a team-oriented approach to working with clients. My father and I usually attend most client meetings together and collaborate on their specific planning needs. We also will consult, as needed, with one of our other highly experienced advisors if we feel it is a particularly complicated client case involving complex tax or estate planning.
We take a comprehensive approach to planning as it relates to our core competencies of repositioning and allocating assets, providing strategic investment guidance, assessing risk and liability strategies, and developing a specific road map for retirement income. We place great emphasis on client education and helping our clients improve their overall financial literacy. We are also dedicated to helping clients maximize their after-tax income in retirement.
The planning process starts at the first meeting, where we begin both a qualitative and data-driven discovery session. First, we really want to find out how the client feels about their current financial situation, what is important to them on a personal basis, and how they view their future goals and aspirations. This can be a far-ranging conversation, and we want to learn as much as possible about their family situation, career, and history with investments or other aspects of financial planning. We also want to understand their attitudes about investment risk, which usually involves a good deal of probing, as well as going through a suitability questionnaire. The data collection involves building a comprehensive view of their current financial condition and reviewing all of their existing accounts, retirement plans, and personal or family balance sheet.
After we have completed the first phase, we begin the plan development, which starts with identifying goals and priorities. We then analyze asset management and growth strategies, retirement funding and distribution strategies, risk and liability management, and tax and legacy planning. The software we use in the planning process helps provide sophisticated cash-flow analysis, with the goals of maximizing net worth and efficiently employing a client’s assets to produce retirement income. Our primary goal is to help our clients identify misdirected assets and reallocate those assets in a plan that seeks growth and increases after-tax retirement income. Our firm, under my father’s direction, also uses a process called the “Zero Tax Roadmap”—which features specialized tools and customized use of investment vehicles to provide as much tax-free income in retirement as possible.
“We have consistently demonstrated the ability to build income and preserve assets. …”
What is your overall philosophy on client investment planning?
I believe my two decades of experience in proprietary trading, risk management, and investment management can deliver great value to our clients. I have an extensive understanding of the structure of the markets, multiple asset classes, and strategic analysis. I also have demonstrated success in evaluating and working with third-party investment providers and implementing sophisticated investment strategies.
First and foremost, I believe in the guiding principles of sound diversification, which may include using both active and passive strategies, building an investment plan that meets the unique needs of each client, and achieving capital growth through the significant use of strategies that seek to avoid steep drawdowns. The power of compounding will have a greater impact over the long term if a client’s strategic and tactical allocations are designed to mitigate the losses seen in unfavorable market conditions. The overall goal is to seek managed growth—taking advantage of market opportunities when they are present and playing defense when it is appropriate. We definitely do not want to expose clients to the kind of catastrophic losses that can destroy a retirement plan.
We have many tools and strategies that may be appropriate for any given client—across a wide variety of asset classes, including alternatives, fixed- and guaranteed-income products, and insurance solutions. Impact Wealth Group utilizes asset management services for our clients through an affiliated company, IWG Investment Advisors LLC (IWGIA)—a licensed registered investment advisor. IWGIA has a relationship with a highly experienced third-party investment management firm that is a leading provider of risk-managed investment services and investment strategies. This firm strives to provide investors with competitive returns while working to reduce risk through the use of diversified investment products and cutting-edge technology. They focus on preserving and growing capital through a robust active management approach combined with investment risk management. We are very pleased with this relationship and the benefits that it can deliver for our clients.
How would you summarize the advantages of working with your firm?
We have many years of experience and a proven track record of meeting the customized needs of clients from all walks of life. We have consistently demonstrated the ability to build income and preserve assets via our planning approach. We think clients will see us as effective educators and trusted advisors—placing the client’s interests at the forefront. My father has always believed the success we achieve as a firm will be solely based on the success of the work we do with our clients and their level of satisfaction. I share that belief and look forward to continuing and enhancing that mission.
Tyler Cleveland is a principal advisor and the CEO of Impact Wealth Group, a full-service financial-planning firm located in Delray Beach, Florida. He is also an investment advisor representative for IWG Investment Advisors LLC. Mr. Cleveland has diverse experience across the financial sector, a record of generating value for stakeholders, and deep knowledge of financial markets.
Mr. Cleveland was born in San Diego and raised primarily in Iowa, along with his brother and two sisters. His father has had a long career as an entrepreneur and financial professional and is the founder of Impact Wealth Group. His mother has worked with his father in running marketing companies and managing rental properties, including their hotel in Costa Rica.
Mr. Cleveland says he attended “a unique private school that provided an excellent curriculum, as well as a focus on creative thinking and meditation.” He was a talented athlete in high school and a member of the varsity cross country, basketball, baseball, and tennis teams. He says, “I began playing tennis in grade school, had excellent instruction, and started entering tournaments at a young age.” He was his age group’s leading player in Iowa, winning the Division 1A state high school championship for three straight years.
Mr. Cleveland attended the University of Iowa on a tennis scholarship and studied business management. He says, “Although my major was marketing, I took quite a few finance courses, which reinforced my strong interest in investing, trading, and the financial markets.” He earned several honors during his tennis career and was Big Ten Player of the Year in 2000 and 2001. He was the University of Iowa athlete of the year in 2000 and later was inducted into the school’s athletic Hall of Fame. He had a two-year career as a tennis professional on the ATP Tour.
Mr. Cleveland entered the financial-services industry after college, holding positions at several firms as a proprietary trader and head of trading operations, as well as managing partner for a hedge fund, where he specialized in asset management for high-net-worth individuals. He has extensive experience in investment strategy development; investor relations; capital investment generation; risk management; and compliance, audit, tax, and administrative processes. He is skilled at evaluating and working with third-party investment providers. He joined Impact Wealth Group as CEO in 2022. He says, “I greatly enjoy working with my father, our firm’s team, and our valued clients and partners.”
Mr. Cleveland enjoys “going to the beach with friends and family, and surfing.” He also enjoys golfing and travel. He continues to play competitive tennis and coaches junior players. He is a former U.S. Tennis Association (USTA) 40-plus national clay court champion.
Disclosure: Tyler Cleveland is an investment advisor representative. Investment advisory services offered by IWG Investment Advisors LLC. Insurance services offered via an affiliated entity, Impact Wealth Group LLC. Tyler Cleveland, Impact Wealth Group, and IWG Investment Advisors LLC are not affiliated with Proactive Advisor Magazine. IWG Investment Advisors LLC (“IWGIA”) is a fee-only registered investment advisor registered with and regulated by the State of Florida’s Office of Financial Regulation, Division of Securities. IWGIA does not render or offer to render personalized investment or financial advice through this medium. The opinions expressed in this article are presented for educational purposes only. Disclosures based on existing content.
Photography by Jennifer Jones
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Tyler Cleveland is a principal advisor and the CEO of Impact Wealth Group, a full-service financial-planning firm located in Delray Beach, Florida. Mr. Cleveland has diverse experience across the financial sector, a record of generating value for stakeholders, and deep knowledge of financial markets.
Mr. Cleveland says his firm has a productive relationship “with a highly experienced third-party investment-management firm that is a leading provider of risk-managed investment services and investment strategies.”
He notes that there are several features and benefits of working with this type of firm that help build value for clients, including the following:
- A goal of preserving and growing capital through both a robust active management approach and investment risk management.
- The use of highly diversified investment products and cutting-edge technology.
- A focus on rules-based, algorithm-driven strategies that remove emotion and discretion from investment decision-making.
- The ability to build client allocations using different managed strategies across multiple asset classes.
- The use of strategies that seek to avoid steep drawdowns, take advantage of market opportunities when they are present, and play defense when it is appropriate.