About Mitchell Kauffman

UCSB Economics Instructor

It doesn’t seem so long ago that I was an MBA (and UCSB) grad trying to decide on my career direction. UCSB provided a supportive environment that helped me blossom, from academic and study skills to financial aid and work study. Plus, while a Gaucho I enjoyed learning many valuable theories; I also craved opportunities to learn how those theories were applied in real life.

At the time, the financial planning profession was in its infancy. Groups of insurance and mutual fund salespeople had begun a movement towards a more client-centric, relationship-oriented approach. This was in contrast to the sales-transaction mindset that permeated Wall Street since its founding (and likely well before).

Financial Planning’s appeal to me stemmed from the diverse skills that the career demanded, including:

• Multi-Disciplinary: Ability to combine economics and finance/investments with marketing/sales and psychology.
  
• Entrepreneurial: Opportunity to serve clients and do business as I thought best.
  
• Interpersonal: Becoming a meaningful part of my clients’ lives.
  

In the early 1980’s, I found myself riding the first wave of those transformative efforts, embodied by what was then the new Certified Financial Planner™ training and certification.

My early years in financial planning were particularly difficult as I worked to develop my technical skills, while simultaneously striving to persuade prospective clients of my value. In contrast to paid apprenticeships found in law and accounting, entry-level planning positions were often commission-only, and focused on selling individual investments. Persuading clients to share their entire financial picture with me was an additional challenge that, at times, made things that much more difficult. The good thing about challenges, it has been said, is they can reveal what lies beneath.

Having also developed my public speaking skills, —from anxious dread to proficiency, and actual enjoyment—I was able to offer workshops and guest lectures at local colleges. These efforts were combined with psychologists and physicians I knew to expand the event focus to life quality, financial “health” being a key component. This seemed a unique approach that resonated with audiences, helped attract more clients, and provided a sense I was giving back regardless of whether attendees hired me. And I enjoyed encouraging people to learn about personal finances in hopes that knowledge could help them avoid costly setbacks.

The frequent first-hand stories that clients would share of their own experiences where they trusted someone only to be disappointed or outright cheated, brought home the pain such acts would cause. Seeing that pain up close served to reiterate the importance of doing the right thing, period.

Investors found me trustworthy and sincere enough to place their entire life’s savings under my stewardship. My drive toward self-improvement found me constantly identifying investment and tax planning strategies that could help clients achieve their financial dreams, often with less risk than what they previously experienced. And as I did well for them, they would refer their friends, colleagues and family members, which would help my practice grow even more.

Thirty-five years later, the wealth management practice I had spent over half my life building, was being sold for more than I had ever imagined earning. Enough to fund a comfortable retirement in Santa Barbara and provide our twin granddaughters some of the best schooling available.

In 2016, the opportunity arose to return to my alma mater and share what I had learned during my career; it was nothing short of elation. I’ve taken my teaching role as an occasion to document many of the practices I used to help clients address financial and investment challenges and integrated these as case studies within my coursework to illustrate how they can be applied using the most ethical approaches and solutions possible.