Q&A with Lexco’s president and CEO
Chris Jordan is president and CEO of Lexco Wealth Management Inc., the wealth advisory firm he began in 1999 that now features a Tarrytown, N.Y., headquarters and 11 branch offices. Those include one in Greenwich, where the firm recently moved from Soundview Avenue to Holly Hill Road, and one in Farmington. Lexco employs a total 28.
Jordan, who is 47, sees Lexco”™s professional mission as heavily invested in teaching.
“Our whole thing is education,” he said recently, citing three subsets within the teaching arena: consultation, sounding board and collaboration. Clients include BASF Corp., among the largest chemical companies in the world, which Lexco has visited at its U.S. headquarters in New Jersey for presentations three times in each of the last two years.
Jordan in June hosted a mud-soaked obstacle event at the Thunder Ridge skiing facility in Putnam County, N.Y., that raised $36,000 for the U.S. Association of Blind Athletes, on whose board he serves. The charity puts forth a bold metric for the business community: The unemployment rate for the blind is 80 percent, but it”™s cut in half via participation in sports.
Jordan answered several questions germane to his firm”™s adviser role for the Business Journal.
A year ago you came out strongly in favor of owning stocks. The market backed your feelings. What did you see then?
Jordan: “Going into last year there was still a lot of uncertainty on big issues like the ”˜fiscal cliff”™ and tax rates. The stock market was pricing in a worst-case scenario. However, corporate balance sheets looked solid and bonds were facing higher rates and tough times ahead. While we were watchful for developing problems, 2013 turned out to be the best years for stocks since 1997.”
What do you see now?
Jordan: “I see a lot of investors feeling good for a change and that makes a big difference. I feel stocks have room to run here, but tell clients to expect a repeat would be a mistake. That said, this is not a weak recovery. The bond outlook isn”™t too positive as interest rates have risen and I wouldn”™t be surprised to see the 10-year rates at 3.75 percent by year end. We”™re telling fixed-income investors to review their portfolios and evaluate the options. Staying disciplined and diversified couldn”™t be more important this year.”
What is your target market? How does managing risk factor in as age increases?
Jordan: “Our clients are very successful corporate executives, professionals and business owners. We focus on the highest impact years, as we call them, which is the six years prior to retirement and six years post-retirement. That”™s where we can bring the most value by educating people to the real risks of retirement. There”™s a lot of general information out there but that doesn”™t translate well to what each person should do for themselves. Managing risk means understanding your real risks as you get older and no two people are the same. Just avoiding the big mistakes can mean the difference.”
What are the key risks for regional retirees going forward?
Jordan: “It”™s not the short-term ups and downs of the market; for most, it”™s a lack of a real-world plan that puts it all together. People are living longer and while it”™s hard to image being without a paycheck for 30-plus years, it”™s a reality. Retirees need to have an answer to the ”˜Will I have enough and where will it come from?”™ question. Understanding how inflation, taxes and portfolio returns impact a retiree”™s chance of running out of money is the first step toward managing the key risks. We kid our clients when we first meet and tell them hope is not a strategy.”
You also educate corporate audiences. What message do you bring and how is it received?
“Our clientele are very busy, smart people that are juggling tremendous responsibilities. They are looking for a proven process that cuts through the noise and gives them better control over their finances. Deep down they know watching ”˜Squawk Box”™ or reading a few Internet articles on retirement won”™t cut it. So, our message is one of educating people in great detail so they can feel confident making important decisions based on their unique needs. We do workshops on general planning and more focused breakouts on maximizing your 401(k), pension elections, estate planning, college funding and income planning to name a few. One thing that makes us different is our commitment to education and the process we use. As a team we have a lot of experienced professionals that take the time to really explain complicated issues in plain English. In the end, we really like what we do and that”™s why we are asked back again.”