Ozarks Profile: Ron Penney

I’ve had my own practice for 23 years. I was a vice president, and when we got the privilege of having our own franchise, I became a franchise owner. Ameriprise – actually, back then, it was called American Express Financial Advisers – gave advisers the right to have a franchise. In doing that, it allows us to have equity in our practices and build value, and we own the right to work with our clients. I had some advisers that I had trained in the past, and they came to me and asked if we could form a team. Then Seth Murray came to me and asked if he could be a partner, and it’s been about four years ago. We are a 10-member team.

How was the transition from American Express to Ameriprise?

I think it’s been very, very positive. The CEO, Jim Cracchiolo, is a great leader, and I was real impressed. He does what he says he’s going to do.

Now we’re our own company, and we get to keep our own profits and roll them back into being a better company, which I really like. Our real focus is helping people get what they need financially by interviewing them and understanding their needs and concerns, and then helping them set goals to accomplish (them).

Ameriprise Financial … has done a great job of letting people know who we are. As American Express, when people saw American Express, they didn’t think financial advice (but) credit card and travel. I think the greatest thing this has done for us is let us build our own brand image. When we became our own company, some of the very strong people with American Express came with Cracchiolo and started being our leadership team. Warren Buffett is the No. 1 shareholder of American Express, and when Ameriprise spun out, he kept his ownership in Ameriprise, which also … made me feel very good about our future.

What was it like to be one of only 45 advisers nationwide to be invited to visit the New York Stock Exchange to introduce Ameriprise’s new ticker symbol?

We had breakfast in the board room of the New York Stock Exchange, and then only 12 advisers had been given the privilege of going on the floor when the stock went public, and I got to stand right in front of the platform when the CEO rang the bell. Then I got to go over and stand right beside our trading post when our stock first traded. It was very exciting.

What services does your company provide?

Normally we meet with clients about every 90 days, and we have a plan in place that we charge a fee for advice and we help them make sure they’re on track. We help them reduce their income taxes with income-tax planning. We do investment planning for them to make sure they’re getting the rate of return that they’re looking for at the lowest risk. We do estate planning … and refer them to attorneys. We refer them to accountants to get their taxes done. I do business planning, too.

Are there any issues you see clients having difficulty with at the end of the year?

The biggest problem is people don’t know what they are supposed to be doing. It’s real important to do income-tax planning at the beginning of the year, and then do your maintenance at the very end. Plan what you’re going to do to keep your taxes as low as possible early in the year, and as you get close to the end … make sure you’ve done everything you need to.

What keeps you interested in your work?

I have a mission. I want to help as many people as I can be as financially secure as possible. That’s what keeps me focused. I made a decision to hire good people to work for me, so it gives me the freedom to do what I really want to do. I read a book a few years ago that had a really big impact on my life. It’s called “The Right Exit Strategy” by Bruce Wright. I’ll give you a quote right off page 73. “Don’t look at it as retirement. Instead, visualize replacing your existing calendar with a perfect calendar. Let go of what is holding you back. Love when you turn over your job, or at least, the things that you don’t like about your job, to someone who hasn’t yet achieved enough wealth to become free. Embrace the freedom you have. Begin living and enjoying your perfect calendar.” One of the things I’ve done is just continue working on a perfect calendar, where I can spend a lot of time with clients, and I hire people to do the rest of the work.

What do you like to do in your free time?

I enjoy sunsets a lot. I have a lake home with a beautiful sunset view. I serve on the board of directors of Court Appointed Special Advocates, and I try to raise funds for Friend of A Child. That’s my very serious focus. I also work with Rainbow Network on a finance committee with Charlie O’Reilly and others to raise money for loans to underprivileged people in Nicaragua.