Banking CIO Outlook

'My True Calling': Wealth Planning By Bob Chitrathorn of Simplified Wealth Management Is Focused On Helping People Avoid Financial Conflicts and Improve Their Financial Efficiency

Banking CIO Outlook | Thursday, September 21, 2023

“I have worked as a financial advisor for over 19 years.”

Suthipong Robert Chitrathorn (or Bob for short) came from humble beginnings. Born to parents Puttachart and Sakul Chitrathorn, Bob was raised in a mobile home park in Colton, CA. Before settling in Southern California, his parents migrated to Michigan from Bangkok, Thailand, in 1974. As a child, Bob didn't realize how good others had it until he ventured out of the ghetto and went to friends' birthday parties. There he'd witness the luxuries of living the American dream and the possibilities ahead.

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To the Chitrathorns, life in America was a gift, and they were proud owners of property in America. They worked hard to put food on the table and to put Bob and his younger sister, Crystal, through school. Bob ate sandwiches with nothing but cheese, but he was blessed nonetheless. He learned that perspective made all the difference in life.

His mother said, "education is money in the bank." She teaches nurses still to this day, but she and Sakul, a factory worker, sacrificed to make a better life for Bob and Crystal. They paid for both kids to attend private high school and then helped pay for college.

Their dedication and sacrifice didn't go to waste. Bob received a full-ride scholarship for his first year at La Sierra University before transferring to Cal State San Bernardino. He received his B.S. in Finance, as well as a B.S. in Real Estate while minoring in business administration. Despite the rigorous course load, Bob graduated magna cum laude and was named part of the Golden Key Honor Society.  Bob later received his certificate of financial planning from Pepperdine.

In 2004, Bob became a financial advisor, an opportunity to make a good living while helping others make the best decisions for their own financial lives. He had a short stint at H&R Block and considered real estate, but he found his passion in personal finance. While Bob attended CSUSB, his parents worked with an agent at New York Life. Bob always sat in on their meetings. He found that by listening to his parents' goals and conveying their decisions' pros and cons, they would listen to him more often than their own advisor.

When Bob became an advisor, it was a no-brainer for Puttachart and Sakul to work with their son, who always listened to their needs. With over 19 years of industry experience, he has hundreds of clients beyond his parents to guide and influence. Bob recently joined newly-established Simplified Wealth Management (SWM) to help grow a new brand and to help shape the next generation of financial advisors. SWM is a values-driven wealth management company.

Also, Bob serves as a registered representative with LPL Financial, which is a member of FINRA/SIPC, and he offers securities through this affiliation. Additionally, he provides investment advice through Mariner Independent Advisor Network, LLC, where he is registered as an investment advisor. It's important to note that Mariner Independent Advisor Network, LLC, and Wealth Planning by Bob Chitrathorn of Simplified Wealth Management are separate entities operating independently from LPL Financial.

He holds the Series-6, Series-7, and Series-63 registrations with LPL Financial, Series-65 registration with Mariner Independent Advisor Network, LLC, and life, health, and long-term care insurance licenses. He also has earned his CPFA.

In 2016, Bob contributed a chapter to best-selling author and esteemed motivational speaker Brian Tracy's book. The book ‘Success Manifesto: The World's Leading Entrepreneurs & Professionals Reveal Their Secrets to Mastering Health, Wealth & Lifestyle’ was an opportunity for Bob to share his love for planning and his clients. It quickly became an Amazon Best Seller. In 2023, Bob contributed another chapter to a book called ‘The Drive To Success,’ which also ended up becoming an Amazon Best Seller.

Bob has been married to the love of his life, Brittany, for over 10 years. They live in their Riverside, CA home with their rescue dog, Mazy, a pool, putting green, and a Pittsburgh Steelers-themed bar perfect for Sunday Night Football.

The Silicon Review recently contacted Bob Chitrathorn, who serves as the Chief Financial Officer and Vice President of Simplified Wealth Management. Here's his response.

Interview Highlights

What circumstances or events led to the creation of Wealth Planning By Bob Chitrathorn of Simplified Wealth Management?

I have worked as a financial advisor for over 19 years. Initially, I worked at a larger firm, but over time, I noticed a change in the firm's priorities. This corporate shift didn't align with my values, so I decided to leave and join Simplified Wealth Management.

Originally, my journey as a financial advisor dates way back. Many years ago, during my single-digit years, I accidentally broke an expensive candy jar. It broke when it collided with the leg of a table. Surprisingly, my primary concern at that moment wasn't the consequences for myself, but rather the potential financial argument it might cause to my parents. This particular memory has remained etched in my mind throughout my life. As I have grown and continue to grow, I have come to realize my true calling: helping people avoid financial conflicts and improve their financial efficiency. This entrepreneurial mindset has been a part of my identity since my youth. 

Setbacks are a part of every growing business. Tell us about a few roadblocks and learning lessons that helped you grow through the years.   

One of the most significant challenges I faced, even after earning my Bachelor's degrees in both Science & Finance and Science & Real Estate, was my youthful appearance. I graduated from college at a young age and continued to look much younger than my actual age. To this day, people often mistake me for someone in their 20s, which can be a positive trait, but I am 44 years old. This youthful appearance posed a substantial hurdle in my career.

“The goal is not only to build wealth but also to safeguard it so that your financial plan remains resilient and effective throughout your life.”

However, I overcame this obstacle through sheer tenacity. I remained committed to constant learning, always hungry for more knowledge, and dedicated myself to becoming the best advisor possible. My focus was on helping as many people as I could and making decisions that I believed were in their best interest. This dedication helped me overcome the challenge of looking young.

As I progressed in my career, I encountered other setbacks and roadblocks. Sometimes, these challenges were internal, stemming from over-thinking. After a few years, I found myself not achieving the level of success I had envisioned. This was a setback in itself. However, I took the time to gain a deeper understanding of my goals, assess my current position, and make incremental adjustments. These changes allowed me to improve myself, help more people, and contribute positively to the world.

As an experienced financial advisor, what are your key focus areas? 

I place a strong emphasis on several key focus areas in my financial advisory practice. The following fundamental principles guide my approach to helping clients towards achieving financial stability and success.

Emergency Fund: The first step is ensuring that you have a $1,000 emergency fund in place. This serves as a financial safety net for unexpected expenses.

Debt Management: We work on developing a debt payoff strategy. The goal is to make you debt-free by systematically addressing outstanding debts.

Emergency Reserves: Once we have tackled your debt, the next focus is on building an emergency fund that covers three to six months' worth of living expenses. This provides a buffer for unforeseen circumstances.

Retirement Planning: We plan for your savings towards retirement. It's essential to have a solid retirement savings plan in place to enjoy financial security in your later years.

Education Savings: For those with children, we provide strategies for saving for their kid’s college fund.

Family Protection: It's crucial to safeguard your family's financial well-being. This includes life insurance and other forms of protection planning to ensure your financial plan remains intact even in challenging times. We offer many such protection plans to help you towards securing your financial future. 

Wealth planning encompasses a wide range of key focus areas. It goes beyond just investment strategies and being most efficient with your assets. It involves living within your means, saving appropriately, and implementing protective measures like life insurance. Additionally, it's imperative to have a thorough estate plan in place, addressing essential aspects such as guardianships and power of attorneys. Although these components may not seem directly tied to financial matters or retirement, overlooking them could have the potential to disrupt your retirement plans and overall financial well-being.

The goal is not only to build wealth but also to safeguard it so that your financial plan remains resilient and effective throughout your life.

Can you provide us with one or two success stories describing the challenges your clients faced and how SWM helped them overcome those challenges?

I can do that. One of my clients inherited both money and properties. Typically, when an individual passes away and passes on their assets to another, it's customary to employ what is commonly known as a 'step-up in cost basis.'

To illustrate, suppose you originally purchased an item for $10, and later you sell it for $100,000. The difference between $100,000 and $10 would generally be considered as capital gains and subject to taxation. However, if the person who originally owned the asset passes away while it's valued at $100,000, the individual inheriting it should receive a stepped-up cost basis of $100,000. Consequently, if they were to sell it for $100,001, they would only be taxed on a capital gain of one dollar.

Now, in the case of this particular client, some of the inherited assets did receive a stepped-up cost basis, but approximately half did not. Before taking any action, we needed to engage in discussions with the attorneys, the previous estate planning team, and the former investment advisors to understand why a second step-up in cost basis wasn't applied to those assets.  

Upon examining the documents, it looked like maybe if they had a special trust, it may have just allowed for one step-up in the past, therefore granting these clients of mine the inability to have the second step-up. Our ongoing research and discussions with the client's previous advisors and estate planning team revealed important information. With my team diligently working on behalf of this client, we eventually determined that they were indeed eligible for a second step-up.

As a result, every asset inherited by this individual received a step-up in cost basis, which was a highly beneficial outcome. This meant that if they were to sell any of these assets, their cost basis would be the new stepped-up value. Consequently, they would only be liable for capital gains tax on the difference in value since the step-up occurred. This was a significant benefit for our client, and they expressed their deep appreciation.

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