Category Archives: News

Ranked #1 in more ways than one.

In 2018, CapWealth Advisors founder Tim Pagliara was named No. 1 Financial Advisor in Tennessee by Barron’s at the same time as being named No. 1 wealth advisor in Tennessee by Forbes. This marks a special distinction, considering no one has ever been ranked No. 1 in the state by both publications at the same time.

For its ranking, Forbes considered client retention, industry experience, compliance records and use of best practices in working with clients as well as quantitative criteria such as assets under management and revenue trends. While Barron’s considered assets under management, revenue generated by advisors for their firms and the quality of the advisor’s practices.

To learn more about how CapWealth Advisors can grow, preserve and protect your wealth, call 615-778-0740 or email us at ContactUs@CapWealthAdvisors.com.

CapWealth Advisors Founder Named No. 1 Financial Advisor in Tennessee by Forbes, Barron’s 

Tim Pagliara is the first and only financial advisor in Tennessee to simultaneously earn top honors from both leading financial publications.

Tim Pagliara, founder, chairman and CEO of independent registered investment advisory firm CapWealth Advisors, was named No. 1 Financial Advisor in Tennessee by Barron’s magazine and also topped the list of Forbes’ recently released Best-In-State Wealth Advisors for 2018.

Pagliara’s accolades mark the first time a Tennessee financial advisor has concurrently resided atop both publications’ national rankings. He previously earned the top spot in Barron’s annual state-by-state ranking five times (consecutively from 2012 to 2016).

Barron’s Top 1,200 Advisors rankings are based on data provided by more than 4,000 of the nation’s most productive advisors, and factors include assets under management, revenue generated by the firm’s advisors, regulatory history, quality of practice and philanthropic work. Forbes’ Best-In-State Wealth Advisors list spotlights more than 2,000 top-performing advisors across the country who were nominated by their firms and then researched, interviewed and assigned a ranking within their respective states. Forbes partners with SHOOK Research, who determines the rankings based on an algorithm of qualitative and quantitative criteria, including in-person interviews, industry experience, community involvement, client retention data and revenue trends.

“Recognition as the best in the state by both Barron’s and Forbes underscores the focus of CapWealth’s entire team,” Pagliara said. “CapWealth’s knowledge and experience are crucial in executing our unique, trademarked process which allows us to provide the most sophisticated, straightforward and transparent advice to clients—something they won’t always find elsewhere.”

Pagliara started his firm in 2000 after nearly 20 years in the financial industry with the goal of serving clients better in two distinct ways: the exclusive use of market-traded securities and an emphasis on accountability and transparency. CapWealth Advisors practices Sophisticated Simplicity®, the art of thoroughly understanding a complicated global markets landscape and boiling it down to high-quality, straightforward investment ideas. To provide clients with a clear understanding of their returns and costs, the firm relies upon Provable Integrity™, a proprietary tracking and reporting system utilizing state-of-the-art data-aggregation technology and compliance with the rigorous standards of the Global Investment Performance Standards (GIPS).

Jennifer Pagliara Makes Another List of “Best Millennial Financial Advisors”

CapWealth Advisors Senior Vice President and Financial Advisor Jennifer Pagliara recently made the list of PeopleMaven’s “Best Millennial Financial Advisors.” PeopleMaven is a search engine designed to help uncover the world’s best people for any project at home or work. Jen was also recognized by Forbes Magazine last year as one of the nation’s top millennial advisors for 2017. She joined a list of 500 of America’s top next generation wealth advisors in the country and was honored during Forbes’ Under 30 Summit in Boston last October – a conference that drew more than 7,000 people in attendance. Learn more about Jen here.

Phoebe Venable Provides Insight on Millennial Investors in Financial Advisor IQ

CapWealth Advisors President and COO Phoebe Venable

CapWealth President and COO Phoebe Venable recently contributed her insights on millennial investors in an article for Financial Advisor IQ titled “Ignore Millennial Prospects at Your Own Peril.”

The article – which featured the insights of a select few financial industry experts, including Phoebe – highlighted recent research proving that millennials are saving for retirement more so than many think, surpassing both Gen Xers and baby boomers in their rate of savings and demonstrating themselves as worthy prospects for financial advisors.

In the article, Phoebe noted that “Younger prospects also present opportunities to teach sound investment strategies and steer them away from poor financial behavior.” She also spoke to some of the commonly asked questions that CapWealth advisors hear from this generation, from how much to allocate for loan and student debt payments to how much to save for a first home and how to split savings between 401(k) plans and individual retirement accounts.

Read the entire article here:

https://financialadvisoriq.com/c/1889684/219304

 

CapWealth’s John Lueken in Barron’s Magazine

EVP, Chief Investment Strategist John Lueken

CapWealth Executive Vice President and Chief Investment Strategist John Lueken was quoted in an article in Barron’s Magazine’s first edition of the new year, published on Jan. 1, titled “Corning: Through a Glass, Brightly.”

The article focused on the bright prospects of the glass and optical fiber maker, speaking to the new markets and products the company is embarking on, and included the insights of a few financial industry experts, including John.

While nearly all of the feedback on the company’s prospective value growth for the future was positive, John provided the most bullish opinion, deeming that Corning can earn $2.40 a share in 2019 and deserves more than the current 16 times 2019 estimate. His estimated price per earnings ratio of 17 puts Corning’s share value at $41, a 26% upside.

John provides further insight on Corning, not published in the article, below:

“Corning has been a CapWealth portfolio holding company for the past several years and is indicative of our investment process,” John said.  “In our view, it was a misunderstood business that was addressing several strategic priorities, reinvesting to diversify their product offering, and streamlining their balance sheet through proactive capital return programs to shareholders.  All the while, the company was operating in a secular growth sector headlined by the need for infrastructure investment to support rapidly increasing broadband use.  The investment community is just beginning to realize the value proposition and unique competitive positioning of this well-run, shareholder-focused company.”

If you have a subscription to Barron’s online, you can read the full, original article here:
https://www.barrons.com/articles/corning-shares-could-gain-more-than-25-1514601255

CapWealth Advisors’ Chris Burger Accepted into 2017 Young Leaders Council/Williamson County Class

CapWealth Financial Advisor Chris Burger has been accepted by the Young Leaders Council into the 2017 Young Leaders Council/Williamson County Class.

Chris Burger

Burger is the newest member of the CapWealth Financial Advisor team, having joined the firm in February 2017. He provides strategic financial and wealth management advice to CapWealth’s clients with a focus on the firm’s growing millennial clientele. Prior to joining CapWealth Advisors, Burger served as vice president of Advocacy and Public Affairs for Nashville-based Crisp Communications and, before that, as director with the DCI Group in Washington, D.C.

“Throughout my life, volunteer and nonprofit involvement has been critical to serving my fellow neighbors and the larger community,” Burger said. “The Young Leaders Council will equip our entire class to better serve our community nonprofits and those they serve.”

Burger earned a B.A. in Economics and Government from the University of Virginia, and he holds his Financial Industry Regulatory Authority Series 65 securities license. He sits on the Business Advocacy Committee of the Williamson County Chamber of Commerce and on the committee of MLS2Nashville, a group of business, civic and sports leaders committed to bringing a Major League Soccer (MLS) team to Nashville. Additionally, he volunteers with UVA Club of Middle Tennessee and is a member of Midtown Fellowship (PCA) church.

 About Young Leaders Council

Young Leaders Council is a Nashville-based nonprofit organization created in 1985 by the Council of Community Services, the HCA Foundation and the United Way to address the need to broaden and strengthen Nashville’s volunteer leadership base. Young professionals, ages 25-40, accepted by the program attend 11 weekly classes and learn crucial skills needed for today’s nonprofit leadership roles. More information can be found at www.YoungLeadersCouncil.org.

 

Jennifer Pagliara Ranked in Forbes’ “America’s Top Millennial Advisors”

Forbes recognized Jennifer Pagliara (Senior Advisor, CapWealth Advisors) as one of the nation’s top millennial advisors for 2017 – joining a list of 500 of America’s top next generation wealth advisors in the country.  Jennifer will be honored during Forbes’ Under 30 Summit this October in Boston with more than 7,000 people in attendance.  Read more about America’s Top Millennial Advisors via Forbes.

Phoebe Venable Featured in Financial Times’ Financial Advisor IQ

 

Phoebe Venable, CapWealth Advisors’ President and COO, is featured in Financial Times’ Financial Advisor IQ discussing the sharing economy, its effect on the larger economy and investment trends.

No matter how small of a demographic change is taking place in spending behaviors, she adds, clients seem to appreciate her attention to both a changing economy and their shifting personal consumption behavior.

“In a lot of cases, they don’t even realize how big of an impact a shared economy might make in shaping their long-term savings outlook,” Venable says.

The rising fortunes of goods being shared rather than owned is also being addressed in her firm’s portfolio building process.

Analysts and portfolio managers at CapWealth have created a special filter to uncover stocks primed to take advantage of the shared economy, according Venable.

“This is a huge fundamental shift in consumer markets and investing strategies — we think it’s going to result in margin compression across the entire retail space,” she says. “So we’re making our clients aware of these changes and how their portfolios might be impacted in the future.”

Read more here: https://financialadvisoriq.com/c/1696133/198993/merrill_sharing_ahead_possessing

 

Hey Millennials, for the Best of Life’s Experiences, Mix Strategy With Spontaneity

The following column from Jennifer Pagliara, CapWealth Senior Advisor, appeared in The Tennessean on June 23, 2017. Read it at The Tennessean here.

Getty Images/Hero Images

How many times would you go see your favorite musical performer or band? Five, ten, twenty times? One of my friends traveled to D.C. this weekend to see Dave Matthews for the 34th time.

While he was there, he also caught the U2 show, a group he’s now seen seven times. When he told me this last week, I was amazed.

Then listening to the radio on my way to work the very next day, the deejays asked their listeners to call in and talk about what band or singer they’d seen the most. A woman called in claiming she had seen Widespread Panic 150 times.

Widespread panic

My jaw literally dropped. That’s an enormous commitment of time and money, and the woman was only 30 years old. The media loves to talk about how much my generation, the millennials, values experiences over physical possessions. But this was revelatory for me. As I drove down the highway, I confess to experiencing some widespread panic myself.
I love concerts just as much as the next person — provided that person isn’t this woman. I have definitely seen some of my favorite bands and performers more than once. There’s just not enough music fanaticism and too much responsible financial adviser in me to see anyone 150 times!

The cost of a concert experience

It’s one thing to see a show in the city in which you live, but something else altogether if you have to travel. Let’s put some numbers around going on an overnight trip to see a concert in another city.

  • Concert ticket: According to a report by Pollstar, the average cost of a ticket in 2015 was $74.25. Obviously, this is going to vary depending on who you see and if you’re getting the ticket at face value or rebuying through a service like StubHub.
  •   Plane ticket: According to the Bureau of Transportation statistics, last year the average domestic U.S. ticket price was $346.72.
  •   Lodging: The average hotel price in 2016 was around $125.
  •   Food & alcohol: While you’re traveling, you’re going to have to eat out and alcohol at the concert venue isn’t going to be cheap. Let’s be on the conservative side and say you spend a total of $75.
  •  Transportation: Don’t forget the rides to and from the airport, going to eat and getting to and from the concert. Let’s add in another $50, which again is conservative.

The total spend on this two-day-and-one-night experience? $670.97. Multiply that by 150 and you’ve got $100,645.50. Let that sink in a moment.

Deferring today’s pleasure for more tomorrow

Now think in terms of retirement — which is how I instantly thought of it when I heard her on the radio. Let’s say a 30-year-old put that total in an investment account today. How much money would that be when that person is 65?

Assuming an annual 7 percent return on her investment, which is the average annual return of the S&P 500 adjusted for inflation and accounting for dividends since 1950, her account would be worth north of $1 million. Learn how that happens in another of my columns.

A million bucks, my dear fellow millennials, can buy a lot of experiences. The original 100 grand could provide a sizeable down payment on a house. It could launch a business. The possibilities are endless.

Mix strategy into your spontaneity

I don’t mean to moralize. For all I know, the woman on the radio is prudently saving and investing. And like her, I too believe in experiences. After all, what is life but a long (hopefully) and, in the main, satisfying (again, hopefully) sequence of experiences.

But I’m a firm believer that not only whims, but planning and discipline, too, achieve invaluable experiences: freedom from financial worry, the resources to maintain an enjoyable lifestyle and take memorable trips, the ability to send children to college, security in retirement and much, much more.

Americans Now Spend More at Restaurants Than Grocery Stores. Is It a Problem?

The following column from Phoebe Venable, CapWealth Advisors President & COO, appeared in The Tennessean on June 2, 2017.

Recently I heard our chief investment strategist say that Americans now spend more at restaurants than grocery stores. I was astonished. Could that really be true? A couple quick Google searches confirmed that indeed, last year, retail sales at restaurants and bars exceeded those of grocery stores for the first time.

It’s Norman Rockwell at my house

My next thought was, well, the rest of country might be eating out more, but not so at my house. We’re very committed to having dinner as a family each night. Plus, I have a passion for cooking. In fact, our sacred mealtime ritual, a tradition carried over from my childhood, is quaint to many of our friends. I look forward to the conversation. I look forward to the connection. I look forward to seeing my husband and my son enjoying the repast I’ve prepared with my own two hands.

Yet, being a finance and numbers freak, I was curious. What was our ratio of eating at home versus eating out?

So I separated out our grocery and restaurant purchases over the past year. You guessed it. I was stupefied to discover that we, too, spent more at restaurants! What happened to my Norman Rockwell dinnertime?

A buffet of dining options

There are several reasons behind this reversal of a longstanding pattern in which the bulk of American food spending occurs at the supermarket.

Demographics have had a large impact on this shift. While baby boomers are eating at home in an effort to save money (perhaps because they under-saved for retirement), they are outnumbered by the millennial generation. Millennials have many frugal habits but they do have a penchant for eating out. Technology is also impacting the trend with apps like GrubHub, DoorDash and Seamless providing convenient ways to order food from almost any restaurant for delivery. Takeout has become so popular that restaurants are being reconfigured to handle the growing number of customers that come in only to pick up their order.

Somewhere between a home-cooked meal and eating out is the meal kit, another new dining phenomenon. Meal kits offer pre-portioned ingredients and instructions for preparation delivered direct to your doorstep. They require cooking but there is no actual grocery shopping. Blue Apron, HelloFresh and Plated are all examples of an industry which is touting annual sales of $1.5 billion and growing.

Is this trend a problem? It depends

Is this trend a problem for the American consumer? Dining out is certainly more expensive than eating at home, but if you’re adjusting your budget to accommodate, then it shouldn’t be a big deal. But the Federal Reserve’s 2015 report on the economic wellbeing of U.S. households showed that 46 percent of adults say they either could not cover an emergency expense costing $400.

A couple of weeks ago, an Australian real estate mogul was roundly lambasted on social media for suggesting that $19 avocado toast might be why millennials couldn’t afford homes. But the truth is, eating out does add up. One wonders, too, if it’s adding up in other ways — contributing to our escalating obesity epidemic, for instance.

It’s certainly not a problem for investors.

It’s an opportunity. When consumers change their preferences, they shift spending habits, causing some companies to benefit and others to suffer. Winners and losers can be hard to identify, but if you think this trend is here to stay, investing in companies that adapt to the changes in their industry could bring bountiful returns.

Phoebe Venable, chartered financial analyst, is president and COO of CapWealth Advisors, LLC. Her column on women, families and building wealth appears every other Saturday in The Tennessean.

CFA Institute Pens Open Letter to Investment Community in WSJ Today–CapWealth Claims Compliance With CFA Asset Manager Code Too!

The CFA Institute took out a full page ad today in The Wall Street Journal to write an open letter to the investment management industry, urging them to make a bold statement about putting clients’ interests first by claiming compliance with the Asset Manager Code. The letter listed several pension funds and retirement systems that had signed on, and we’d like to say that CapWealth Advisors claims compliance with the Asset Manager Code as well!

CapWealth Advisors Welcomes Financial Advisor Chris Burger to the Firm

Independent registered investment advisory firm CapWealth Advisors, based south of Nashville in Franklin, TN, has added public affairs and advocacy veteran Chris Burger to its roster of financial advisors, Tim Pagliara, CapWealth Advisors’ chairman and chief executive officer, announced today. Burger is the first new advisor to join the top-ranked firm since 2014 and the first new hire since bringing on former Goldman Sachs vice president John Lueken as the firm’s chief investment strategist. Burger will develop new business and provide financial and wealth management advice to clients.

Chris Burger, CapWealth Advisors’ newest Financial Advisor

Having spent the last decade in public affairs, Burger excels at strategic thinking, planning and execution. “That’s a one-sentence summary of what we do for our clients here at CapWealth Advisors,” says Tim Pagliara, who has known Burger professionally for several years. “We develop strong, carefully crafted plans for each client’s unique financial situation and goals, diligently execute those plans and work very hard to make our clients successful. Chris has been doing that for years in another tumultuous, anxiety-ridden industry—politics. Chris is going to be a tremendous asset for our firm, both in respect to serving our existing clientele and further tapping into exciting new opportunities such as the Millennial market. Chris is sharp, has a great can-do attitude and builds rapport with people so well. Our firm is excited to make this announcement.” This year, Barron’s magazine named CapWealth Advisors one of the top two advisories in the state of Tennessee, following five consecutive years named the state’s number-one advisory.

Burger has been onboarding with CapWealth Advisors since February, and has been busy training, shadowing and studying the firm’s wealth-management strategies, operational policies and procedures, and customer service protocols. He’s well versed in CapWealth Advisors’ trademarked investment approach of Sophisticated Simplicity®, the art of thoroughly understanding a complicated global markets landscape and boiling it down to high-quality, straightforward investment ideas.

Prior to joining CapWealth Advisors, Burger served as vice president of Advocacy and Public Affairs for Nashville-based Crisp Communications and, before that, as director with the DCI Group in Washington, D.C. In these roles, Burger led grassroots-management, coalition-building and strategic-communication efforts for both corporations and non-profits that faced legislative, regulatory and competitive challenges. Burger also has extensive political campaign and Congressional office experience, having worked for two presidential campaigns and two Congressional representatives, overseeing field offices, staff, events and communications.

Burger is a graduate of the University of Virginia, where he earned a B.A. in Economics and Government, and holds his Financial Industry Regularly Authority Series 65 securities license. He sits on the Business Advocacy Committee of the Williamson County Chamber of Commerce and on the committee of MLS2Nashville, a group of business, civic and sports leaders committed to bringing a Major League Soccer (MLS) team to Nashville. Additionally, Burger volunteers with UVA Club of Middle Tennessee and is a member of Midtown Fellowship (PCA) church.

About CapWealth Advisors

CapWealth Advisors is a fee-based investment advisory firm based in Franklin, TN, that provides wealth management services, including investment advice, personal financial planning and portfolio management to individuals, families, foundations and endowments. Founded in June 2000, CapWealth Advisors specializes in preserving, growing and distributing assets over our clients’ lifetimes. With over $1 billion in assets under management and advisement, we are one of the nation’s leading independent wealth managers. For more information, visit www.CapWealthAdvisors.com.

 

CapWealth Senior Advisor Jennifer Pagliara to Attend ABA Trust School

A trust can be a powerful tool in managing how your wealth is passed on to your loved ones.

CapWealth Advisors Senior Advisor Jennifer Pagliara will attend the 2017 American Bankers Association‘s Trust School in Atlanta this coming September 24-29. This intensive five-day program is designed to provide a solid grounding in the fiduciary, tax, investment, financial planning and ethical issues associated with the creation of trusts.

CapWealth Advisors Senior Advisor Jennifer Pagliara

The ABA Foundational Trust School offers a state-of-the-art, performance-based curriculum, designed and delivered by a prestigious group of trust professionals, including prominent bankers, attorneys, and industry experts. In addition, students have the opportunity to build a nationwide network of peers and industry leaders, a vital resource for years to come.

A trust is a legal document that can be powerful estate-planning tool for managing how your wealth is passed on to your loved ones and other chosen beneficiaries. Among the advantages of a trust, it can:

  • Put conditions on how and when your assets are distributed after you die
  • Reduce estate and gift taxes
  • Distribute assets to heirs efficiently without the cost, delay and publicity of probate court, which can cost between 5% to 7% of your estate.
  • Better protect your assets from creditors and lawsuits
  • Name a successor trustee, who not only manages your trust after you die, but is empowered to manage the trust assets if you become unable to do so

 

Over the five days of the Trust School, students will receive a solid foundation in the technical skills and knowledge required in the fiduciary and trust, investment, financial planning, tax, and ethics industries, including the latest strategies in:

  • Account Administration
  • Fiduciary Law
  • Tax & Estate Planning
  • Investment Management

Upon completion of the ABA Trust School, Jennifer will earn the ABA Certificate in Trust: Foundational. We’re excited about this continuing education opportunity for Jennifer, just another example of CapWealth’s commitment to our clients’ financial futures!