We recently had the pleasure of speaking with with Nick Rygiel who shared about his unique career journey from the Navy to founding Ironclad Financial, a registered investment advisory (RIA) firm. Throughout his career, Nick has shared his valuable insights on investing, financial planning, and more, helping clients to build wealth and achieve their financial goals. During our conversation, we'll dive into his thoughts on private equity and venture capital investing, and gain valuable insights from his experience in the finance industry.
You can read the full conversation below! We really enjoyed it.
OneFund: Can you tell me a bit about Ironclad Financial and what you do?
Nick: Ironclad Financial is a registered investment advisor (RIA) that specializes in helping accredited investors create customized investment portfolios. We collaborate with our clients to ensure their portfolios align with their distinct long-term goals, financial needs, and risk tolerance. While individuals only retire once, we have experience guiding hundreds through retirement planning, enabling us to better support that transition. Because of this I find my work at Ironclad both rewarding and fulfilling.
OneFund: How did you begin your career as a wealth manager?
Nick: It started when I was in the Navy as a Surface Warfare Officer (SWO) on the USS PORTER. Among the sailors, there was a need for financial education. On a ship you spend a lot of time working but not much time thinking about how and why you are invested. This can lead to people inadvertently making subpar decisions. This motivated me to learn about finance and how various assets can align your portfolio with your goals and needs. I quickly realized I wanted to do this full time. After the military and then Deloitte Consulting, I went on to work at Merrill Lynch where I began my career in financial planning.
OneFund: Were there any moments in your military career that particularly influenced how you think about being a wealth advisor today?
Nick: My second deployment coincided with the 2008 financial crisis. At that time, when you were on a ship, technology limitations made it nearly impossible to stay connected to global events. Consequently, we weren’t aware of the unfolding crisis, let alone able to manage our investments. We were essentially in a forced investment lockup. Upon returning, I was grateful to have had a diversified portfolio, which cushioned the blow a bit. Although my stocks took a significant hit, my real assets and alternative investments fared better. I unfortunately witnessed many people who were concentrated in stocks or real estate lose their life savings.
OneFund: You recently took the plunge and left Merrill Lynch to start your own firm. What has been the most rewarding and challenging aspect of that transition?
Nick: The most rewarding and challenging aspect is the same: having the freedom to pursue any opportunities I desire. Striking the right balance between long-term and short-term projects, managing regulatory requirements, and controlling costs is exciting. For instance, while I would like to offer more asset types to my clients, it can be costly and time-consuming. Often, when I can't do something on my own, I collaborate with the right partners to help me do it.
OneFund: What inspired you to start your own firm?
Nick: The inspiration to start my own firm came from both technological advancements and a desire for increased flexibility. The pandemic transformed the way we communicate beyond just Zoom, and people are more receptive to these changes. Powerful CRMs, social media, newsletters, and more make it easier than ever to engage with and handle a geographically diverse client base.
In terms of flexibility, being at a large firm restricted the range of services and advice I could offer clients. I wanted the ability to provide my clients with more customized offerings and advise on any financial topic they might be interested in (such as venture capital, private equity, or digital assets) and connect them with the right platforms for those assets. For instance, I recently spoke with a prospective client about private equity, and they were surprised to learn these opportunities were accessible to them—it's not just for multi-millionaires anymore.
OneFund: How do you think about the role of private equity and venture capital in people’s portfolios?
Nick: Alternatives like PE and VC provide access to unique opportunities that aren't available through traditional channels like the stock market. With companies less likely to go public nowadays, PE and VC funds offer individuals the ability to invest early in disruptive technologies addressing real-world problems. Also, a significant portion of the US economy is now in private companies. Diversification is essential and incorporating incremental asset classes can greatly benefit a portfolio, especially if they have a lower correlation with public markets.
Regarding venture capital specifically, navigating early-stage ventures independently can be challenging due to return variance and potential high loss ratios. Partnering with experienced fund managers is crucial for success. Unique geographical opportunities in emerging markets are also appealing since future growth will likely be driven by regions such as Africa, Southeast Asia, and Latin America. Biotech is also a fascinating area within PE and VC, as there are fewer biotech options to choose from in public markets. Investing before these companies go public is a great opportunity to get in while they are still in their growth phase.
OneFund: What’s next for Ironclad Financial?
Nick: As the financial landscape continues to evolve with ongoing Central Bank and market changes, people are increasingly focused on risk management and identifying controllable factors. We are committed to guiding clients through these challenges and helping them build secure financial futures. We remain dedicated to our core values of embracing innovation and providing tailored strategies for each client.