Rich Habits Podcast Episode 90: Demystifying Private Wealth Management

Release Date: November 11, 2024

In Episode 90 of the Rich Habits Podcast, hosts Austin Hankwitz and Robert Croak delve into the intricate world of private wealth management. This episode features a special guest, Joe Percoco, co-CEO of Titan, an innovative wealth management firm redefining investment strategies for high-earning individuals. The conversation aims to provide listeners with a comprehensive understanding of private wealth management, highlighting Titan's unique approach, products, and philosophies that set it apart from traditional firms.

1. Introduction to Private Wealth Management

[00:00] Robert:
Robert opens the episode by addressing the audience's quest for financial independence and early retirement. He emphasizes the podcast's role in introducing industry experts and new investment opportunities, setting the stage for Joe Percoco's insights.

[00:44] Austin:
Austin introduces Titan as a revolutionary wealth management firm in America, likening it to the "American Express of wealth management firms." He underscores Titan's mission to serve high-earning investors who aren't yet considered high net worth, positioning it as accessible yet sophisticated.

2. Joe Percoco’s Journey and Titan’s Evolution

[02:23] Joe Percoco:
Joe shares his personal journey from a small town in New Jersey to the financial hubs of New York City, working with giants like Goldman Sachs and McKinsey. Despite his extensive background in finance, he found existing wealth management solutions lacking. This realization fueled his ambition to create Titan—a platform built to cater to individuals like himself who seek effective wealth management without the traditional barriers.

Notable Quote:
"Titan is simply a wealth team in your pocket, but we do a lot of powerful stuff under the hood for our clients." — Joe Percoco [03:42]

3. Titan’s Innovative Products and User Experience

[03:48] Joe Percoco:
Joe describes Titan's user-centric approach, comparing the platform to the Apple Store. Instead of overwhelming users with countless investment options, Titan curates top-tier investment strategies, ensuring simplicity and ease of use.

Products Highlighted:

• Flagship: An actively managed portfolio of 15-20 high-potential stocks, dubbed the "baby Berkshire."
• Smart Treasury: Automated cash management to maximize liquidity yields.
• Automated Stocks: Indexing services for broad market exposure.
• Investor Relations Team & Lifestyle Perks: Personalized support and exclusive access to events and services.

Notable Quote:
"There should be a genius bar waiting back there to answer any question you have with pretty immediate response times." — Joe Percoco [05:00]

4. The Three G's Philosophy: Growth, Generation, and Guards

[18:15] Robert:
Robert probes deeper into Titan's differentiators, seeking clarity on what sets Titan apart from standard fiduciary firms.

[18:39] Joe Percoco:
Joe outlines Titan's core differentiators:

• Cost: Titan offers significantly lower fees (20 basis points) compared to traditional firms that can charge upwards of 100 basis points.
• Simplicity: Titan employs the "Three G's" framework—Liquidity Bucket, Growth Bucket, and Retirement Bucket—facilitating straightforward wealth management.
• Performance: Titan's products are designed to deliver superior after-tax returns through strategic investment choices and active management.

Notable Quote:
"We're not going to bombard clients with four different updates... It's just three things." — Joe Percoco [28:25]

5. Client Engagement and Educational Initiatives

Joe emphasizes Titan's commitment to client education and transparent communication. Utilizing a blend of digital content, personalized calls, and in-person meetings, Titan ensures clients are well-informed and engaged.

[22:43] Joe Percoco:
He discusses the integration of technology and personalized relationships, highlighting the use of multimedia reports, Zoom calls, and even plans to incorporate artificial intelligence to enhance real-time information delivery.

[27:12] Austin:
Austin praises Titan's focused approach to delivering impactful, concise information over mere noise, aligning with the podcast's philosophy of actionable, digestible financial insights.

6. Listener Q&A Highlights

The episode transitions into a Q&A segment, addressing listener-submitted questions with detailed responses from Austin and Robert, further illustrating Titan's expertise and supportive approach.

Question 1: Robinhood's IRA 3% Match
Marvin B. inquires about the viability of Robinhood's IRA 3% match.

Austin's Response:
Austin evaluates the benefits of the match, considering costs like the Robinhood Gold subscription and the long-term commitment required. He concludes that if aligned with the listener’s investment strategy, it's a worthwhile addition.

Notable Quote:
"I don't see anything scammy about this. It could be a really cool way to add... extra money to your IRA." — Austin [33:20]

Question 2: Covered Call Funds in Dividend Growth Portfolios
Steve questions the risk associated with covered call ETFs like SPY-I and QQQI compared to their underlying indices.

Austin and Robert's Response:
They argue that such funds are not inherently riskier and can provide tax-efficient income, enhancing overall portfolio performance even in down markets.

Notable Quote:
"These income-focused funds do a great job of creating tax-efficient income inside of a well-diversified portfolio." — Austin [36:57]

Question 3: Investment Strategy for a Young Investor
Ethan, an 18-year-old, seeks advice on whether to continue investing in S&P 500 ETFs or shift to high-dividend stocks for early retirement.

Austin's Response:
Austin encourages aggressive growth investments at Ethan’s age, recommending diversification with growth-focused ETFs like VUG alongside existing holdings. He emphasizes the power of compound interest and the importance of maximizing Roth IRA contributions early.

Notable Quote:
"At 18 years old, you should be aggressive. You should look for high-octane growth stocks." — Austin [37:51]

7. Conclusion and Final Thoughts

The episode wraps up with Austin inviting listeners to explore Titan’s offerings, highlighting a promotional deal for new members. Both hosts commend Joe for his contributions, reinforcing the importance of innovative financial management.

Notable Quote:
"Finance is important and it’s behind relative to other tech, and you guys are fighting the good fight." — Joe Percoco [31:30]

Key Takeaways:

• Titan’s Low-Cost, High-Performance Approach: With fees significantly lower than traditional wealth management firms, Titan offers sophisticated investment strategies accessible to high-earning individuals.

• Simplicity and Clarity: The “Three G’s” framework simplifies wealth management, making it easier for clients to organize and grow their finances effectively.

• Client-Centric Education: Titan prioritizes client education through concise, impactful communication, ensuring investors are informed and empowered.

• Diverse Investment Products: From actively managed portfolios to automated cash management, Titan provides a comprehensive suite of products tailored to varied financial goals.

• Engaged Community: The Q&A segment exemplifies Titan’s commitment to addressing individual investor concerns, fostering a supportive and knowledgeable investor community.

This episode serves as an invaluable resource for listeners seeking to understand and navigate the complexities of private wealth management. By highlighting Titan's innovative solutions and client-focused strategies, Austin Hankwitz, Robert Croak, and Joe Percoco provide actionable insights that empower investors to take control of their financial futures.