Name: Michael Shalhoup
Firm: Merrill Lynch Wealth Management
Location: New York, NY
AUM: $1.7 billion
Forbes Rankings: America’s Top Next-Gen Wealth Advisors, Top Next-Gen Wealth Advisors Best-in-State, Best-in-State Wealth Advisors, Best-In-State Wealth Management Teams, America’s Top Wealth Management Teams High Net Worth
Background: Michael Shalhoup studied economics at West Virginia University and moved to New York City after college for a career in finance. After a short stint as an advisor at Penn Mutual, he joined Merrill Lynch in 2010, where he built his practice from the ground up, initially focusing solely on working with public company executives. “Having a deep understanding and being a specialist in that space allowed for scalability,” recalls Shalhoup. His current team of 12 has now expanded to serve different kinds of clients from all over the country.
Competitive Edge: Shalhoup describes his team’s wide age range—with advisors in their 20s up to their 50s—as a competitive edge. “We’re really helping quarterback all ages of family wealth,” he says. “That’s been very powerful, making sure that our clients feel like the entire family is in good hands.” As a largely millennial team, Shalhoup and his colleagues try to deliver an enhanced client experience by embracing tech and other financial planning tools.
Lessons Learned: “One of the most important things that sticks out to me as an advisor is communicating value,” says Shalhoup. “It’s not just about stocks, bonds and investments—in reality we do so much more than that.” He recalls how early in his career he was glued to markets, but eventually learned how to focus more on providing sophisticated financial advice. “For anyone starting in this industry, understanding how to communicate your value is the single most important thing to master.”
Investment Philosophy/Strategy: Shalhoup says his team’s core philosophy is to keep things simple and transparent, which often entails spending a lot of time sitting down with clients. “It’s important to spend a lot of time with clients educating them on what they own, as well as how and why that ties into a successful financial plan,” says Shalhoup. “It’s effectively empowerment via education, which frankly gives our clients peace of mind that they have a good line of sight.” The goal is for clients to be able to articulate what they have invested to a friend or even a child. “We tell clients not to overthink what they can’t control—when times get turbulent, that’s a great time to stress test not just client portfolios but also retirement and financial plans.”
Investment Outlook: A balanced approach is needed when it comes to current markets, says Shalhoup. “There’s so much noise in the marketplace from headline risk to different investment views—the access to information can be overwhelming.” While he says it’s difficult to predict the actions of the Federal Reserve, the markets-based view would suggest at least one more rate hike still to come. “I think history provides a nice barometer for what’s to come—if you look at the most recent bear market by length and decline, it was not unusual,” explains Shalhoup. “It goes back to making sure we’re not just being reactive.”
Best Advice: “Clients feel inconsistencies—the last thing you want is a client going somewhere else because they were unaware of what you could deliver,” says Shalhoup.
Favorite Book/Movie/Hobby: Shalhoup’s favorite movie is the 1992 classic A River Runs Through It. His biggest passion, unsurprisingly, is fly fishing: “It’s really the only place where my cell phone doesn’t come with me,” he says.
