Name: Kimberlee Orth
Firm: Ameriprise Financial Services
Location: Wilmington, DE
Team Custodied Assets: $940 million
Background: Kimberlee Orth grew up in New Jersey and studied business at the University of Delaware. She first started her career working in the budgeting department at a hospital in Philadelphia before deciding to take the CFP program and become an advisor. She joined Ameriprise 38 years ago and has been at the firm since. Orth began as a sole practitioner, but today she works with her husband and three of her four children and has a team of 21 staffers in total and 1,200 clients.
Investment Approach: Like other advisors, Orth starts with a financial plan and discusses goals, liquidity needs and time frame with her clients. “We use investment strategies and vehicles that are proven,” says Orth. “The basics are boring sometimes, but they do work.” On the equities side, that usually means a mix of separately managed accounts, ETFs, stocks and sometimes mutual funds. In fixed income, Orth says her team is still using certificates of deposit accounts for clients since the rates are still good. “We use bonds in the portfolio judiciously: For some clients, a structured annuity could make sense, as it provides some downside buffer with upside potential,” she adds. The good news is that you’re getting paid on cash: There is still a reasonable rate of return.” A retirement planning product, structured annuities typically provide a series of tax-free income payments over a certain period of time, thereby shielding investors from market downturns. Orth has also jumped on to the alternatives bandwagon investing client assets in real estate, private equity and private credit. “Bucketing assets and making sure you have enough liquidity is important in order to protect yourself on the downside,” says Orth.
Investment Outlook: “We’re cautiously optimistic about the stock market and always prepared for volatility,” says Orth. “Especially for clients that are taking a stream of income in retirement, we have to prepare very carefully.” Markets may get a boost from President Trump’s deregulatory agenda, but Orth is telling her clients to expect more volatility and reminding them to separate emotions from investment decisions.
Best Advice: “You can’t control the market but what you can control is your reaction to the market,” says Orth. “When you have a plan with savings in place to achieve your goals, you don’t have to be at the mercy of markets.”
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