Boston Advisor Managing $3 Billion Says The Key Is Being Paranoid

Name: Tom Mitchell

Firm: Sconset Wealth Management / Northwestern
NWE
Mutual

Location: Boston, MA

AUM: $3.2 billion

Forbes Rankings: America’s Top Financial Security Professionals, Top Financial Security Professionals Best-In-State

Background: Tom Mitchell grew-up in Glastonbury, Connecticut with parents who were living paycheck to paycheck, he recalls. The family eventually moved to Boston before he attended Central Connecticut State University. During his senior year, Mitchell took a course designed to help figure out what profession would best suit him. The result: He would be a great financial advisor. Shortly after speaking to some advisors that his professor put him in touch with, Mitchell knew it was his calling. He joined Northwestern Mutual as a wealth management advisor in 1994, shortly after graduation, and immediately started studying to get all of his designations. “That also helped me gain a lot of confidence as well,” he recalls. Mitchell has been with the firm since: Many of his clients work in finance and he is now part of a team of six full time advisors.

Competitive Edge: “My team pays incredible attention to detail and we treat each client as an individual,” says Mitchell. “To us, it’s not a job but more something we just love to do.” He credits his high retention rate to the fact that he tries to befriend all of his clients. “I’ll send a picture of a cool car that I see if there’s one client who really likes cars, for example.”

Lessons Learned: “It’s important to have a plan for any possible risk and that gives clients confidence,” says Mitchell. “I’m paranoid and that keeps me sharp for my clients.”

Biggest Challenge: “Meeting the right client can be challenging,” says Mitchell. “We have to be selective about who we bring in because we dedicate so much time to each client.”

Investment Philosophy/Strategy: “Overall, the stock market is efficient,” Mitchell says. A big chunk of each of his client portfolios is devoted to exchange-traded funds, with a smaller portion focused on active strategies in areas such as emerging markets. More recently, he has also blended in alternatives like private credit and hedge funds, while also a big fan of direct indexing. “We like to control what we can control—and that’s taxes, not investments.”

Investment Outlook: Mitchell is bullish on the market in the long term: “Setbacks are always temporary,” he says. “It’s important to always have a plan for down markets—create a buffer portfolio for clients with safe dollars that they can turn to as needed.” With clients who are worried about inflation, Mitchell recommends weighting more toward equities as a long-term hedge.

Best Advice: “Be an advisor, don’t be a salesperson,” Mitchell suggests. “Financial planning cannot be rushed.”

Favorite Book: His favorite book to recommend to clients is Morgan Housel’s The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness.