Rich A. Schuette

Matthew J. Lum

Rich A. Schuette &
Matthew J. Lum

MJL Advisors, Inc., based in Santa Barbara, California, is run by partners Rich A. Schuette and Matthew J. Lum. The firm, which has more than $150 million under management and more than 100 clients, is expanding rapidly—a situation that the principals attribute to their increasing emphasis on broad-based wealth management support.

Founder Lum emphasizes that he is a servant of his clients, someone dedicated to ensuring the success of those who have entrusted him with their wealth. "Matt emphasizes service in all that he does, and that's part of a larger humility," says Schuette. "Certainly this business is humbling, and markets are humbling. But if you approach them correctly, with proper humility and don't succumb to the idea that you can outwit them through tricks and quick fixes, then you may well be on your way to longterm success—for your business and, more important, for your clients."

Partner Schuette sees his role in much the same way and places a similar philosophical emphasis on free-market principles, pointing out that the free market is the greatest servant of all if treated properly. Humility, service and respect for free markets are therefore cornerstones of MJL's success.

These emphases have led the two principals to adopt consultative wealth management as their core strategy. Lum explains that wealth management addresses five main concerns of high-net-worth individuals: sound investment planning, wealth enhancement, wealth transfer, asset protection and charitable giving. An outgrowth of financial planning disciplines of the late 20th century, wealth management largely focuses on the individual's values and attempts to align them with resources that can be invested. The wealth manager therefore acts as a kind of "chairman of the board." He organizes a panoply of professional services from lawyers, accountants, insurance agents and others and ensures that required services are implemented according to a larger plan—one that helps clients remain aware of all that is important to them. "Wealth management is at the cutting edge of financial services," Lum points out. "Our firm is uniquely positioned to provide this discipline because of the way we have organized our professional services and outlook."

Lum's service orientation goes back to his childhood and his father, a pharmacist. "He taught me that you always deliver more than people expect. That's a great lesson for anyone in business." Lum's approach to life and to business, he says, can be written as "the three C's"—Competency, Consistency and Caring. He accomplishes this with a "counselor-type" approach that allows him to identify and address the deepest concerns of his clients.

Lum says his practice has worked with more women than he originally expected. He believes that growing up with two sisters and a "strong mother" gave him insights that he finds helpful today. "Women, especially women in transition, need to be listened to closely," he explains. "There are issues that women struggle with when the men in their lives have taken on certain responsibilities and then are no longer there. It's a process that demands patience and sensitivity and a true understanding of the unique challenges these women face. It is one we believe we have the resources and experience to provide."

Lum began his career as a financial advisor after graduating from the University of California, Santa Barbara with a degree in business administration. Schuette—who enjoys working with business people, especially entrepreneurs—joined him in 2003 after successfully partnering with another financial advisor in the 1990s. "I wanted independence," he recalls. "I'd come to certain conclusions about the business and how I wanted to build it, and frankly I didn't expect to find that many advisors who entirely shared my point of view. But when I met Matt, we started talking about what we could do together for clients—and we haven't stopped since. It made sense that we should combine as a team."

What also made sense was for the team to specialize in wealth management. Since joining forces, both of them have become involved with CEG Worldwide, a wealth management coaching firm that works with financial institutions and financial advisors. It was yet another good match. "CEG Worldwide is at the top of the industry, and we knew if we were going down this path we wanted to work with the best," Lum says. "They've helped us modify systems to ensure that we provide the best and most satisfactory experience to clients every time. Wealth management is a complicated undertaking with a lot of moving pieces. It helps to examine—deconstruct, really—every piece of it."

What's most important, they say, is that wealth management organizes resources and allows them to provide clients with more efficient and powerful support throughout the clients' entire financial lives. "If we can help a client to achieve his or her dreams, and certainly avoid the nightmares, then we're doing what we were meant to do in this business," concludes Lum. "That's satisfying personally and professionally, and it's what pushes us on to reach the next level—right alongside our clients."

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