Nicolette M Hampton Of Cullen & Cioffi Capital Management: “Why we should push for more financial literacy education at a young school age”

… In my opinion we should push for more education at a young school age in regards to financial literacy, getting individuals more comfortable and knowledgeable about the topic would save people a lot of time, stress and money.

As a part of our series about “Women Leading the Finance Industry” I had the pleasure of interviewing Nicolette M. Hampton, CRPC®

Nicolette Hampton is a Senior Financial Advisor and Senior Vice President of Financial Planning at her registered investment advisory firm, Cullen & Cioffi Capital Management. Nicolette started in the industry as a financial advisor assistant and now, as a financial advisor prides her work and business around helping individuals, small business owners and millennials reach their financial goals. Nicolette holds a Chartered Retirement Plan Counselor (CRPC®) designation and sits on the board as treasurer of a non-profit organization that focuses on helping the underprivileged and minorities gain access to financial advice and guidance.

Thank you so much for joining us in this interview series! Can you tell us the “backstory” about what brought you to the finance field?

When I first started in the financial industry, I was a young mother looking for a steady 9–5 clerical position. I took a job as a financial advisor assistant working for a small group of advisors with Wells Fargo Advisors Financial Network in Montgomery Ohio where I gained a plethora of knowledge, fell in love with the industry and the role of what financial advisors do day in and day out. I have always been an extroverted individual, loved meeting new people and being “out and about”. I think it was a few years in when I had that “AH HA!” moment. That’s when I decided, “Well, I am going to be a Financial Advisor.” There was no doubt about the fact that I was absolutely terrified of this change but I hid it well, after all I was taking some big risks. I was going to go from a steady job with steady income to rolling the dice on becoming a successful financial advisor. Not only did I have to get licensed and pass exams I heard horror stories about but after that I had to actually build a book of clients while my husband was finishing school and taking care of two children under the age of 5. Could I do it? I had no idea, but I was determined to try, so I did.

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?

I think the most interesting thing about my story is that I went to nursing school. When I tell people that I get the same reaction every time… “WHAT?! How did you get into this industry doing what you’re doing when you went to nursing school?” It’s a good question, a lot of factors go into that answer. I really do believe that things happen for a reason- All of my experiences and decisions in my early adulthood led me to where I am today. In my early 20s I suffered from depression and anxiety, it was a tough couple of years but I never stopped working on getting better and controlling the illness. I never thought I would be grateful for going through such an awful period in my life but it encouraged me to take chances I probably wouldn’t have taken if I hadn’t gone through what I did. It also taught me to be thankful to be mentally strong enough to get out of bed and be able to show up to work, I knew I’d never take small things for granted again. I think the big takeaway here is that some young adults have no idea what they want to do for the rest of their lives by the time they enter college and if that is the case, that’s OK. I believe some individuals need to go through certain experiences in order to find out where they want to be long-term. Sometimes we go through things that cause “road blocks” or slow us down but that’s how life goes sometimes. Go with the flow and enjoy the journey! You will end up where you are supposed to be if you stay true to yourself and work hard.

Are you working on any exciting new projects now? How do you think that will help people?

Right now, the firm and I are working on properly structuring our non-profit organization that focuses on helping minorities and underprivileged gain access to financial advice and guidance. Ideally, we would like to construct reoccurring educational seminars on different financial topics for people to attend on a consistent basis. These individuals are often overlooked and could greatly benefit from the mission of the organization. Other than that, I am spending a good majority of my time networking/ meeting millennials and people of the younger generation and helping small business owners with start up employee sponsored plans in the institutional space.

What do you think makes your company stand out? Can you share a story?

When I say this, I think I speak for a lot of other firms and advisors who have made the transition into the independent/ RIA space. Unlike some of the bigger wealth management firms, Cullen and Cioffi works with a very broad scope of clientele. We have no minimum investment amount for clients, being independent allows us to work with clients big or small. We are truly fee based and make no commissions off of transactional business. We succeed when our clients succeed meaning we are 100% fiduciaries! It was challenging to bring on younger clients when I was at bigger firms, essentially, they urge their advisors to go for the “big fish” and personally hated having to turn individuals away because they didn’t have a half a million for initial account investment. This was one of the main drivers in my decision to go independent, I want to be able to help the younger generation along with people who really need the financial advice and guidance.

Ok. Thank you for all that. Let’s now jump to the main core of our interview. Wall Street and Finance used to be an “all white boys club”. This has changed a lot recently. In your opinion, what caused this change?

I agree that times have changed, but as far as minorities and women in this industry, we still have some ways to go. In my opinion the industry has definitely opened the doors a bit wider to include people who normally wouldn’t fit the cookie cutter persona of your “wall street” employee. I think companies have noticed more and more women stepping into the advisor role and ultimately in some cases, having more success leaving companies to believe that it could be a more lucrative avenue to acquire new business.

Of course, despite the progress, we still have a lot more work to do to achieve parity. According to this report in CNBC, less than 17 percent of senior positions in investment banks are held by women. In your opinion or experience, what 3 things can be done by a) individuals b) companies and/or c) society to support this movement going forward?

In order to build the footprint, we need more bold, hardworking women in the industry who are not scared to fail, and are willing to learn. It’s important for companies to continue to provide the opportunities to these individuals as they have been doing more and more each year. As a society, be kind and accepting.

Let’s now turn to a slightly new topic. 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? If you had the power to make a change, what 3 things would you recommend to improve these numbers?

As a financial professional I think this is a huge issue we have in our country and is a topic that I have preached about for some time now,

In my opinion we should push for more education at a young school age in regards to financial literacy, getting individuals more comfortable and knowledgeable about the topic would save people a lot of time, stress and money. This is an area is where our firm is really trying to make a difference, we want to work with all individuals big and small. We are “advisors” so why aren’t we advising the individuals that need it the most? If you ask someone at a bigger firm their answer may be “Well, they aren’t qualified” or “They don’t have enough assets to work with me” and that right there is one of the biggest flaws in the industry.

1. Push financial education at a young age.
2. Educate yourself, ask questions and surround yourself with right people.
3. Find a fiduciary advisor to work with that will not turn you away based on what you have today.

Our wealth management team is here to help!

You are a “finance insider”. If you had to advise your adult child about 5 non intuitive things one should do to become more financially literate, what would you say? Can you please give a story or example for each?

1. Build credit in a smart way. Everyone knows you need to have credit (good credit) in order to do many things as an adult, buying a home, buying a car, getting approved for a loan etc. but where do you start? It can be a slippery slope if you do not stay on top of it, start with a credit card to put various expenses on and pay it off every month until you get to where you need to be, it takes time and for one to be disciplined in order to build credit so don’t get discouraged if you are not where you want to be over night.
2. Buy a home at a young age vs renting. I understand renting a living space may be the easier way to go especially at a young age. Afterall, its faster, it doesn’t require you to get approved for a loan and come up with a hefty amount for a down payment in some cases but I think it is important that people know the pros and cons of renting vs buying a home of your own. In many cases renting may be ideal for a short period of time but if you are in the right financial situation to where you are able to purchase, I always strongly urge young people to do so. And the end of the day purchasing a home It’s an investment and will hopefully appreciate over time.
3. Budget and spend with in your means. Don’t buy it if you can’t afford. It’s very easy to slip into debt when juggling various responsibilities as an adult. Budgeting and having a plan are key to staying on track! There are many free tools/ apps and websites readily available online to assist with this for beginners.
4. Take advantage of employer sponsored plans. If you are fortunate enough to work for a company that offers their employees benefits and an employer sponsored plan, take full advantage! Many work places offer a plan with an employee match which essentially means the employer is contributing money on your behalf typically based on a percentage you are contributing. 401(k)s. 403(b)s, 457 plans etc. are all excellent avenues to start your “nest egg” for retirement. These plans also allow you to contribute more than the annual max one can contribute in a traditional retirement account that is held outside your work place plan.
5. Educate yourself, don’t be afraid to ask questions and when you’re ready to work with a financial professional find someone you feel comfortable with and can trust. When looking for the right firm/ person to work with in regards to your finances always ask the question “Are you a fiduciary?” Fiduciaries succeed when their clients succeed. Get a good understanding of why and how you will benefit by working with them and don’t be afraid to interview a few different financial professionals before deciding who you are going to go with.

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 answer may sound a bit “cliché” but it is hands down my husband and kids. They keep me going and motivated to always do better. I truly would not be where I am today with out them by my side. In addition, I cannot thank my team enough, its great to work with individuals that are true team players that I am able to lean on when I need the help.

Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?

“If you fail to plan, you are planning to fail”

If you want to be successful you have to have goals but that’s only half the formula. The other half is to be dedicated and to hold yourself accountable when you are getting off track. Be honest with yourself and work hard.

You are a person of great influence. If you could inspire a movement that would bring the most amount of good to the greatest amount of people, what would that be? You never know what your idea can trigger. :-)

I would be doing exactly what I am currently doing now! Helping people get to where they want to be financially. Guiding the people who need the guidance, advising the people who need the advice regardless of their current financial situation. I have no doubt that our firm will make a huge impact in that area. Check out our website here https://www.cullencioffi.com/

This was really meaningful! Thank you so much for your time.