Tracy Shen is the Founder and Managing Partner of the Florin Group LLC, a holistic financial advisory based in McLean, Virginia and serving clients worldwide. In this interview with Worthwhile Magazine Co-Editor Sarah Reeder, Tracy shares her unique approach to financial advising and the mission that led her to found the *Florin Group***.

The Conversation:

Sarah Reeder (SR): Tracy, I’m honored to be able to share your perspective with our Worthwhile Magazine readers! Thank you for taking the time for this interview. I’m intrigued by your “holistic” approach to your work. What prompted you to describe your service offerings this way, and what does a “holistic” approach mean to you?

Tracy Shen (TS): Holistic means that everything is interconnected. One weak area can really pull down your entire plan. There are two “holistic” perspectives we look at. The first one is that we not only look at things from a financial perspective, but we take into account their habits, their past experience, the skills their parents taught them, and what makes them financially who they are. The second one is that our strategies are also holistic (for example, if a business owner’s tax return strategy isn’t the right one, that would also spill over and impact their cash flow ability and financial side of things. Or if a client is deteriorating in their physical health, a recommendation to a Senior Kinesiologist will strengthen their body and therefore delay the long-term care cost by an extra 10 years.)

SR: How do financial advisors typically charge? How is your business model different as an independent financial advisor?

TS: Financial Advisors typically charge one of two ways, either by the products they sell via a commission or by fee only. Our business model as an RIA (Registered Investment Advisor) is by fee only, and as an RIA, we are considered only one of 4% out of the 320,000 advisors out there. As a female RIA, I am one of only about 20% of that 4%.

SR: I know wealth advising has traditionally been a male-dominated field. I’d love to hear your thoughts and perspective about this as a female financial advisor!

TS: It is true that wealth advising has been traditionally white males and over age 50. What I bring as a female advisor leading my team at the Florin Group is a wonderful mix of professionalism, skill, and heart. In a world of many clients, we are essentially “Financial Angels.” Finance is already a difficult subject for most people to talk about, given a range of anxiety and fears. So we bring compassion and kindness into the equation. We strive to educate clients on not only moving forward toward a strong financial future but we help fix their habits, and it takes time; they come to us already with 40, 50, or 60 years of habits that they learned from their parents, and we slowly peel back the onions and reset their fundamentals.

SR: The name of your business is so distinctive! Why did you select the name Florin Group to represent your company?

TS: Florin was the first European coin made from 24k gold and played a significant commercial role internationally. It was also highly used during the height of the Medici family’s banking system around the world. As you may know, the Medici family had created multigenerational wealth, and they also were big philanthropists in the art world (from Michelangelo to Botticelli). I selected the name Florin Group to highlight our mission to help multigenerational families around the world and bring harmony to help families create a legacy of lasting wealth.

SR: What inspired you to become a financial advisor? Have your own personal experiences shaped the services you offer your clients?

TS: My grandparents were entrepreneurs and raised eight kids. They also invested all over the world. Unfortunately, they did not have a holistic advisor to help them with their comprehensive plan. They passed away without any estate plan, and there were some challenges among their adult children. Basically, their wealth was not distributed equally among the children and grandchildren. So our strategies in the Florin Group are to not only create enough wealth for the first generation but also educate the second and third generations to make the right decisions.

SR: Our worlds intersect through art and antiques, as I am an appraiser. How do you consider your clients’ collections of art and antiques when it comes to managing their overall portfolio?

TS: Their art and collections are part of their assets and what they want to pass down to their children and grandchildren. If they love their collections, we make sure that they document what they have and meet with an appraiser.

SR: Are there additional ways you feel that financial advisors and appraisers can coordinate to protect the interests of their clients?

TS: A financial advisor can work with an appraiser to not only appraise the value of the art collections so that the exact value of the artwork can be protected with insurance but also when it comes time for clients to set up charity strategies, the value can be used either as collateral or for charity tax deductions or for a family foundation. Therefore updating the art inventory regularly is recommended.

SR: Another area where our respective fields overlap is that we both frequently are immersed in highly emotionally charged situations between family members. How do you like to diffuse potential conflicts when they occur?

TS: We start with talking to individual family members separately, gathering emotional data, and knowing where everyone stands. Then we bring everyone together with already some background of understanding. We always overcommunicate and bring a sense of transparency if given permission, however, we always act confidentially as well.

SR: Who are your ideal types of clients?

TS: Our ideal clients are multi-generational families that love their family and want to create a legacy. However, we also have a soft heart for widows and women in transition.

SR: Do you have any key recommendations you wish everyone would implement right now for a better financial future?

TS: We highly recommend that clients and their partners talk about what makes them happy and what they wish to pass down to future generations (it’s not only assets but could also be their beliefs and principles). So we start with Why. Why do they work so hard, for what?

SR: In what ways can intergenerational financial planning help smooth transitions and protect long-term wealth?

TS: By starting the dialogue and planning for a smooth transition, family members are not surprised, or they are equipped to take over the family wealth. By educating your next generation little by little, you make sure your wishes are definitely clear and that everyone is on the same page. This may take years so the earlier we have this dialogue, the better.

SR: How frequently do you like to have the art and antique collections of your clients reappraised so you can monitor market growth and appreciation?

TS: I would say every 3 years.

SR: As a fellow local entrepreneur, I am continually inspired by your thoughtful and generous leadership across a number of business communities and service organizations. How do you feel these activities dovetail with your guiding mission at the Florin Group?

TS: My involvement with families and seniors lead me to be part of a senior group called Loving Life Connections. We volunteer our time to help seniors or give seniors and their adult children information so they can do the right thing and not make mistakes that will be financially costly.

SR: How can people reach you and inquire about working with the Florin Group for their wealth advisory needs?

TS: www.floringroup.com – info@floringroup.com or 703.520.2777

We extend our deepest gratitude to Tracy Shen for graciously sharing her expert insights with our readers! You can learn more about Tracy at https://www.floringroup.com/tracy-shen

A Conversation with a Financial Advisor: Tracy Shen of the Florin Group

The Conversation:

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