“5 non-intuitive essentials for smart investing”, with Michael Lackwood
An Interview With Jason Hartman
I would advise my adult child to have patience in each investment they make because they take time. So long as the companies are not going bankrupt, patience while investing in companies never hurts and can lead to taking a large profit.
I had the pleasure of interviewing Michael Lackwood. Michael is the CEO of Spring Delta Asset Management, a Wealth and Asset Management firm. Michael’s journey started over 15 years working with well-known corporations such as Ameriprise, Merrill Lynch, and Oppenheimer. Michael built a career in the finance industry and a passion for helping others. This desire turned out a motivation to provide a solution for clients who are looking for trustworthy financial advisors. Michael works to continually delivering innovative approaches to diversify financial services. He focuses on creating sustainable and secure futures for his client base driving him to boldly confront his customers’ biggest financial challenges. Outside of his financial day job, Michael is an avid art collector and enthusiast, Board Member of an all-girls high school in Bed-Stuy Brooklyn — Brooklyn Emerging Leaders Academy, and is the captain of a soccer team at Chelsea Piers.
Thank you so much for joining us, Michael! Can you tell us the “backstory” about what brought you to the finance industry?
When I was younger, I always noticed some of my family members would huddle up and discuss stocks over the holidays. I always found their energy and excitement around the subject interesting but didn’t necessarily know what they were talking about. After every holiday get-together I would do my own research and formulate my own questions on the market and other financial matters. That’s really where my interest started. Additionally, I became an entrepreneur and ran my own business from the age of 15 up until my college graduation. That passion of mine to be a self-starter combined with hearing family talk about finance is what led me to the financial industry.
Can you share with our readers the most interesting or amusing story that occurred to you in your career so far? Can you share the lesson or take away you took out of that story?
The general time period that comes to mind has to be the 2008 crisis. That was an interesting time for the market. Many markets sold off at 40% and many people just couldn’t take it. Rather than being patient with the market, they sold and never went back. Had those people remained patient, they could have bought stocks for $50. My main take away was patience. This is just one example that proves you need to stick it out sometimes and be patient.
Are you working on any exciting new projects now? How do you think that will help people?
My newest project that I was able to implement involves a tactical investment strategy using ETF to be able to either exploit strength or weaknesses in markets. It’s really exciting for me to look at this thought I had and now it’s a model being used to put money in the market.
According to this report in Fortune, nearly two-thirds of Americans can’t pass a basic test of financial literacy. In your opinion or experience what is the cause of these unfortunate numbers?
The results of the report are due to either how people can become embarrassed about the privacy of their finances or lack of education in high school and college. I have found through the teachings I have done in schools that talk of finance tends to go right over kids’ heads. It is important to expose them to finance at a young age, starting even around middle school.
If you had the power to make a change, what 3 things would you recommend to improve these numbers?
The first change I would make would be to offer financial literacy classes in middle school. This is important to improve the low results in the Forbes survey. Secondly, I think mentorship is beneficial so that kids have someone to talk to about investments. Household discussions should be present between the parents and the kids in the household. The final change I would make would be to form “investment clubs”. New York already has these investment clubs popping up where people are picking stocks and following them for a certain time frame. A winner is crowned at the end which promotes financial literacy and exposes a younger generation to how the stock market works.
You are a “finance insider”. If you had to advise your adult child about 5 non intuitive essentials for smart investing what would you say? Can you please give a story or an example for each.
I would advise my adult child to have patience in each investment they make because they take time. Also, it never hurts to take a profit. Diversifying finances is necessary for smart investing in addition to conducting some in-depth research. While doing research keep the economic “domino” effect issues in mind because they are crucial to smart investing. I would also advise them to invest with multiple companies and see those investments out. So long as the companies are not going bankrupt, patience while investing in companies never hurts and can lead to taking a large profit.
None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story about that?
My parents gave me a bird’s eye view growing up on what to do as well as what NOT to do with finances. My parents weren’t the best with money but they did a few things really great for their financial situation. They also began to work on improving their financial situation once they reviewed a customized financial plan. Those lessons created the framework as financial planning became a foundation for advice and planning with clients.
Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?
“If you don’t do it, you’ll never know what would have happened if you had done it.” Many times we think about attempting something but either get deterred or are uncomfortable in a possible failure outcome. You have to be willing to take a risk to achieve success in life.
Thank you for all of these great insights!
