Robert Newman on the personal side of financial planning

[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_column_text]

With 20-plus years as a leader in the financial services industry, Robert Newman currently serves as managing partner of National Planning Corporation (NPC), a third-generation comprehensive financial planning firm founded in South Florida in 1951. Back in the day, Newman’s grandfather served as CEO, but coming back to Miami Beach where the young executive was born and raised wasn’t necessarily part of some grand plan. Newman, at least for a time, was a Wall Street guy. But witnessing the events of 9/11 changed everything for him. The MBA from the University of Miami talked to SFBW about knowing when it’s time to make a bold move—whether for your own mental health or in terms of financial strategy. 

[/vc_column_text][vc_empty_space][vc_column_text]

One day 19 years ago I was working downtown. I was the business analyst for a consulting firm and I got off at the subway at the Wall Street stop on Sept. 11. I watched what unfolded that day with my own eyes. I was on the ground looking up as the second plane crashed into the building. Four or five months before that, I’d interviewed at a firm in Tower Two on the 77th floor and when you look up where the plane penetrated the building, it was between the 77th and 93rd floors. 

That prompted a big change in my life. I decided it was time to be close to my family again. My wife’s from here. On Nov. 15, I said to my girlfriend, who is now my wife and mother of my daughters, “I’m moving back home. Let’s go.” I moved home and learned about what my father and grandfather had done with their careers. So I joined the firm and built my own practice.

If I could tell one story about making a dramatic difference in someone’s life, it had to do with a client who’d overextended themselves. Their lifestyle was outpacing what they were earning. They were very successful, making plenty of income, but spending every dollar. We call it lifestyle creep: As they made more money, they continued to spend more money. They were talking to me about retirement, but they were never going to catch up. They had bought way too much house, and financed too much of it. They wanted to know that they could get their finances under control and have less stress in their lives. Living above one’s means is fairly common down here in South Florida, with people trying to keep up with everybody else. It’s a flashier lifestyle down here—but people also want the best for their families. It’s about private schools as well as material possessions.

[/vc_column_text][vc_empty_space][blockquote text=”Living above one’s means is fairly common down here in South Florida, with people trying to keep up with everybody else.” show_quote_icon=”yes”][vc_empty_space][vc_column_text]

These clients ended up selling their home and moving—this is a pretty dramatic thing for a client to do, but you show them the economics of their situation. You provide guidance and coaching and encourage them to be more disciplined. It’s about presenting the information in a way they’d never seen before. They had never looked at their entire financial picture on one organized platform. That’s what we present to people—enabling them to look at their financial picture—assets, liabilities, cash flow, what their risk management system looks like—from a 30,000-foot view. People tend to look at their situations in a very micro, piecemeal way. 

In terms of investing, you can put dollars into certain time horizon categories: There’s short-term, mid-term and long-term. You’re not necessarily going to expose short-term to the fluctuations of the market. If you’re looking to send your kid to college next year, or make a down payment for a house, you’re probably not going to stick that in Bitcoin or some risky proposition. If it’s long-term—like if you’re putting dollars away for the future and leave them alone—you obviously have a lot more runway and you have to stay the course and not react to the market. If it goes up, that makes everybody feel great. But it’s on paper. And if it goes down, it’s also on paper. But if you’re investing long-term, you have to stick to the strategy and what your risk tolerance and risk aversion is. We remind them of those fundamentals and we understand their personalities and what they’ve shared with us.

 

Photos by Larry Wood[/vc_column_text][/vc_column][/vc_row]

You May Also Like
Inter&Co Grows Its Presence in U.S. Market

The company has its U.S. headquarters in Brickell Key.

Read More
Inter&Co Miami
Navigating Tax Changes

The estate exemption will be going back to previous levels.

Read More
Tax Changes
Banesco USA Achieves Landmark Achievement With Assets Exceeding $4 Billion

The community bank has seven locations between South Florida and Puerto Rico.

Read More
Banesco USA
Stephanie Green at the Forefront of Fifth Third Bank’s Rapid Growth in South Florida

JD Power ranks it as the top bank in Florida for customer satisfaction.

Read More
Stephanie Green
Other Posts
Private Equity Firms Unite for Habitat for Humanity, Raising $331K for Affordable Housing

South Florida private equity firms team up for Habitat for Humanity of Greater Palm Beach County’s second annual Private Equity Community Build.

Read More
South Florida private equity leaders help Habitat for Humanity homeowners open the door to a brighter future.
$400,000 Raised in Support of Handy’s Mental Health and Youth Development Programs

The 3rd annual Moonrise event was presented by the Moss Foundation at Bonnet House Museum & Gardens in Fort Lauderdale on Saturday, February 1st.

Read More
Guests danced the night away at the Moonrise event while supporting Handy's programs.
Forman Capital Provides $53.69 Million in Financing for New Hollywood, Florida Apartment Development

Phase one construction of Caltopia is expected to start during the fourth quarter of 2025

Read More
New Study Ranks Florida as the 6th Best State for Entrepreneurs in 2025

Entrepreneurs are launching in states with lower costs – a trend that is expected to continue.

Read More
Florida ranks high for entrepreneurs with strong job creation and educated worker mobility.