Network advisor spotlight: Steven Schmitt
Advisor Steven Schmitt didn’t expect to have a career in financial services. He was passionate about meteorology and even started studying the subject while attending Penn State University. After dabbling in day trading in college, he realized his interest in finance. Today, he’s found a way to incorporate both of his passions into his work and help make a positive impact for clients by doing so.
That’s because, for Steven, “Work isn’t work, it’s just life.” He loves what he does, and it’s important for him to improve the climate in the communities he cares about. An avid snowmobiler and a member of the LGBTQ+ community, he dedicates his time and talents to making a difference in these groups.
We spoke with Steven about how he cultivates community and lives boldly.
Q: As a meteorology major, how did you end up in financial services?
I started my professional career on the institutional side of finance as an energy sector analyst. So, being an introvert, I never ever thought I would be a client-facing advisor. If you had told me that 20 years ago, I wouldn’t have believed it. I also worked on the natural gas trading floor, so I always knew I would combine it with finance, but I thought I would do it on the industry side, either as an analyst trader or institutional money manager.
Then 9/11 happened, and I was personally impacted. To make a long story short, in the weeks and months post 9/11, while tragedy was unfolding around us, I stumbled upon an article in Registered Rep magazine that highlighted the financial and legal challenges that the LGBTQ+ community faces. And, going through a personal experience and having people experience it around me simultaneously, I recognized we needed help.
I presented a business case for developing marketing to our community on the private client side, which was out of character for me being an introvert and risky at the time being out on Wall Street. My previous company helped me build a team, and here we are 20 years later.
Q: How do you support the LGBTQ+ community in your work?
Back in 2009, I was instrumental in creating the ADPA (Accredited Domestic Partnership Advisor) designation. It provides the tools to work with not only the LGBTQ+ community, but anyone that’s a domestic partner. At the time, I worked with the CFP Board attorneys, accountants and insurance professionals to develop the content. It was an almost-two-year project, a big undertaking, but I loved doing it. It provides the proper education to address the challenges that LGBTQ+ clients might encounter.
While the challenges have changed over the years, there are still differences when serving the LGBTQ+ community. Even with marriage equality, there are still state nuances and company-specific issues that require proper planning from the right advisory team to navigate.
There’s trillions of untapped wealth in our community. If we have a team of advisors across the country with the proper resources and education from the firm, and we’re able to tap into 10% of that wealth, that’s also moving the needle for the company. It’s creating shareholder value while providing helpful, sound financial advice and service to the LGBTQ+ community. It just makes sense.
Q: Incorporating meteorology into portfolio management is interesting. How do you continue to combine these passions?
I incorporate alternative assets based on global climate trends into our client portfolios and managing money, I always have. What I found is over the long term is that it has increased many client returns while mitigating overall risk level. There is a connection; it’s more than just, “Oh, it’s snowing outside.”
Weather influences investment decisions and that’s a big deal. For example, in 2005, the hurricane forecast showed an increase in activity with the concentration of storms in the Gulf of Mexico, and indeed, that was the year Hurricane Katrina happened. So, what happens when there are storms in the Gulf? Oil and natural gas are impacted, so prices go up. Having the conviction I did, I increased client exposure to those sectors of the market that summer, and it paid off handsomely.
In a different scenario, there was already a drought in the Midwest going on into the summer of 2011. The forecast was for increased dryness, which meant the prices of corn and wheat in Iowa were going to go up. That’s an opportunity.
Climate also impacts things like retail and air traffic. It impacts every industry, every part of the market.
Q: What’s your favorite kind of weather?
I love snow because I love winter sports. I’m a big snowmobiler.
I was born with a physical disability so I couldn’t downhill ski. You wouldn’t know if you just met me – it’s not visible. I’ve always learned to acknowledge it, manage and adapt. So, I not only grew up dealing with all the challenges associated with being gay but had other childhood experiences to overcome too.
I have a snowmobile farm in Vermont. I’m connected with the VAST (Vermont Association of Snowmobile Travelers) trail system, which is a network of trails through the entire state. Some landowners, like myself, have volunteered and coordinated with the trail system. We do trail maintenance year-round, clearing trees from the trails and making sure the bridges are maintained. It's a lot of work but it’s a community. We’re all more than happy to do it because it’s our passion.
I like to give back. Whether it’s in the snowmobiling community or LGBTQ+ organizations focused on education and the arts. That includes being active on my farm, in our local community. It’s important for me to support organizations whose missions are aligned with our values as a team.
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Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, Certified Financial Planner™, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
This piece was featured in Pride Perspectives, an annual newsletter from the Pride Financial Advisors Network. View the latest.
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