Q&A: Lee Leads Firm to Reach $100M in Managed Assets

David Lee is the CEO and founder of Mach 1 Financial group, a financial planning services company. Lee is also an active community member and serves on the Bella Vista Library Board. He is married to Jennie and is the father of two children, Faith and Connor.

How did you decide to become a financial planner?

“From the time that I was about 5, I wanted to become a fighter pilot. I pursued that dream and, after graduating from the United States Air Force Academy, I went on to pilot training and eventually became an F-16 fighter pilot.

“After 10 years in that career, my wife and I decided that we didn’t want to move our family around every two to three years. Becoming a commercial pilot wasn’t really an option, because I wanted to spend time with my family. Even though I’d just been promoted to the rank of major, I resigned from the military and decided to pursue entrepreneurship.

“I was interested in investment and finance, so I reached out to my parent’s financial planner, [Chuck Beale of CW Beale & Associates in Hot Springs Village.]

“Chuck mentored me, and I eventually took over his satellite office in Bella Vista. When I took over in 2005, we had around 30 clients with less than $3 million of assets under management. Today, we have over 500 clients and manage over $100 million in assets.”

You are a Registered Financial Consultant®. What does that mean?

“To hold the designation of Registered Financial Consultant® (RFC), one must have completed a course of study in financial planning through an undergraduate or graduate degree, or have completed college curriculum approved by the RFC board. Additionally, the holder is required to have four years of full-time experience as a financial planning practitioner and complete 40 hours of continuing education each year.”

When should people think about talking with a financial professional?

“The earlier one gets started with a budget and an investment plan, the better. The most important thing they should do is take time to meet with an investment advisor who will take time to educate them on our changing economy and how that affects their finances. We’ve all heard the old saying, ‘Failing to plan is planning to fail,’ and that is very true of anything in life. It is especially true of financial planning, because one of the most important ingredients for a financial plan to work is time. So, take time to plan with an advisor who has a fiduciary duty — and do it soon.”

Most people don’t stay with one company for the bulk of their career anymore, changing jobs several times within their lifetime. Is it a good idea to consult with a financial planner each time you start a new position?

“Absolutely. When you change jobs, you can roll over your 401k [retirement plan]. Any time you have the opportunity to roll over a 401k, you should do so. Why? Because you’ll usually have more options outside your current employer’s plan.”

You operate in Northwest Arkansas, a very entrepreneurial area. Do entrepreneurs have special financial planning needs?

“Yes, and I know about this because I’m an entrepreneur myself. Because we are typically self-employed, it’s important for us to make sure we are adequately insured in the event we lose our income. There are also unique ways that self-employed entrepreneurs can accumulate more savings in a tax-deferred manner, [through means] such as SEP IRAs or solo 401ks.

“Entrepreneurs with very successful businesses should be aware some of the more sophisticated strategies to mitigate taxes, such as section 831b Captive Insurance companies and charitable giving strategies.

“We also need an exit strategy so that we can retire one day. A good financial planner can guide us in developing a realistic valuation of our company, as well as developing a strategy to minimize our tax obligation when we retire and sell our businesses.”