George Ripoll, portfolio manager and investment advisor at BMO Nesbitt Burns in Peterborough, Ont.Supplied
In Behind the Advice, we ask advisors about their relationship with money from a young age, lessons learned over the years, and how those experiences influence the advice they give clients today.
George Ripoll, portfolio manager and investment advisor at BMO Nesbitt Burns in Peterborough, Ont., talks about the perils of leverage, building income streams versus buying expensive things, and why Bruce Wayne is a master of risk management and long-term planning.
Describe your upbringing and your experience with money as a kid.
I was born and raised in Peterborough, Ont., where I still live and work. My parents divorced when I was 7 years old. My dad moved to Florida for a management position in the hospitality industry, so I was mostly raised by my mom, who worked as a nurse at the local hospital.
Growing up with a single mom, I witnessed firsthand what it meant to work hard and the sacrifices involved. It ignited an entrepreneurial spirit within me. From a young age, I looked for ways to earn money to fund my extracurricular activities (mostly sports), including a newspaper route, working at the local rink and starting my own businesses in university.
Was there an experience with money early in life that impacts how you work today?
I started landscaping and property management businesses at university with funding from the Ontario government’s Summer Company program. It taught me a lot about allocating resources, budgeting, pricing jobs and dealing with clients and employees. I found out that pricing to the bottom isn’t a winning strategy. It was more important to create value by listening to what the client wants and delivering a better experience that would encourage them to come back.
What decision around money and investing made the greatest impact on your life?
When I was starting as an advisor, I noticed that some of my richest clients weren’t focused on material objects, such as the newest car or fancy clothes. Instead, their focus was on expanding their investments and building multiple income streams through real estate or different businesses. That really stuck with me. I’ve modelled my investment approach, personally and in business, from their examples.
What is the biggest money mistake you’ve made and what did you learn from it?
Trading with too much leverage. When I was an undergraduate, I used my student loan money to buy some riskier penny stocks. I ended up losing a lot of money. It was an expensive learning experience, but one I’m glad I learned early on in my investing life.
What do you see in your industry that worries you?
I mainly worry about the extensive leverage in the system – everything from government, business and individual debt – and the adverse effects it could have on our economy in the future. The financial services industry has created several products and services to encourage leverage and, in turn, risk-taking, which could be detrimental to the future of many individual investors. While there are resources available to educate people, our industry needs to do a better job of explaining the risks of overleveraging.
What’s the most significant change you see coming in your industry in the next five years?
The integration of artificial intelligence into core processes such as portfolio management, risk assessment, trading strategies and client advisory services. It’s already being used for smaller tasks within loan and insurance policy adjudication and fraud detection. Financial planning simulations may be one of the biggest changes. Any measure that reduces human error will be top of mind for regulators in our industry.
What advice do you have for someone who wants to enter your business?
A good business takes time, so don’t be discouraged if you aren’t an overnight success. There’s a lot of pressure and competition in the business, so focus on what differentiates you from another advisor or practice. Being well educated goes a long way in this field, especially given the plethora of information you need to decipher and analyze to determine what’s best for your clients.
Which famous person or fictional character would make a great financial advisor?
Bruce Wayne, also known as Batman. He was a master of strategic resource allocation, risk management and long-term planning under extreme uncertainty. Yes, he did inherit vast wealth, but he managed it actively through Wayne Enterprises, focusing on new technologies, research and development, and targeted philanthropy. He’d spot market threats before they materialized, optimize your portfolio like he does his gadgets and ensure your financial ‘Batcave’ is secure and sustainable.
This interview has been edited and condensed.