They gather at Ferrari showrooms, wineries and five-star hotels. They learn about investing in Las Vegas, chartering jets or marketing on the Internet.
They call themselves “The Wealthy 100,” a combination investment and social club for people who aspire to get rich and stay that way.
“The Wealthy 100” Web site lists 13 chapters nationally, with four in Orange County, more than any other region of the country. But as of this week, only one chapter here remains active.
“The Wealthy 100 sounds sort of retail,” said Todd Rustman, a Newport Beach financial adviser who announced this week that he was dropping out as a Wealthy 100 chapter leader. “I’m not a salesperson. I’m not a pushy person.”
Orange County hosts 1,638 branch offices for licensed stock brokers and dealers, according to the California Department of Corporations. So financial advisers constantly seek new ways to distinguish themselves from the pack.
“The Wealthy 100,” a name trademarked in 2002 by Arizona financial adviser Jeff Christenson, is one approach to building clientele. The name evokes memories of America’s gilded age during the late 1800s, when the country’s elite was a small group of families such as the Vanderbilts, Whitneys and Morgans, who controlled much of the nation’s wealth.
Christenson’s recipe is simple: Mix catchy name with requirement for clients to save and invest at least $1,000 a month; spice with luxury events to demonstrate the fruits of financial planning.
“One of our mottos is ‘It’s not what you make, it’s what you keep,’ ” said Christenson, 36. “Another motto is ‘Surround yourself with success.’ “
Rustman announced he was changing the name of his chapter Wednesday during a meeting at the St. Regis Resort and Spa in Dana Point. About 50 people met on the hotel’s sun-dappled patio to sample new vintages of Levendi wine. As the shadows lengthened, they moved to the hotel’s Stonehill Tavern for hors d’oeuvres such as tuna tartare and bacon-and-shiso-wrapped lobster fritters.
Inside, they watched PowerPoint presentations about new Las Vegas hotel-condo developments and Rustman’s wealth-management system that offers a daily snapshot of an investor’s net worth and progress toward long-term goals.
“It’s a nice way to approach people,” said John Saunders, a Newport Beach real estate investor. “You get to eat and drink for free when you don’t need to. The richer you get, the more people want to give you.”
Orange County, a place increasingly synonymous with wealth, would seem like a natural target for an investment group called “The Wealthy 100.” It is home to an estimated 113,000 millionaire households, host to the world’s biggest Lamborghini dealer, the largest Tiffany’s outside New York and an oceanfront home now listed for $75 million.
To start his Wealthy 100 chapter, Rustman said he took a one-day training course in Arizona. He said he had no obligation to sell products, although Christenson encouraged Wealthy 100 members to buy life insurance products he offered.
Rustman said his problem with the Wealthy 100 was both the name, which sounded snobby, and the focus on pushing products. He plans to continue offering invitation-only get-togethers under a group he dubs “Echelon,” a name he said connotes defending financial security.
“Of course I want to do good business,” said Rustman, whose clients have a minimum $500,000.
“But I don’t want to win all the business in Orange County. I just want to be one of the better firms,” he said.
The name change has nothing to do with scandal or financial hanky-panky, Rustman said. It’s more a question of marketing to a very discerning audience.
Rustman’s guest list included corporate heads, politicians and real estate investors – Janet Ford, CEO of Advanced Cleanroom Microclean, a Newport Beach company that disinfects high-tech clean rooms; Sinan Kanatsiz, president of a public relations firm, and Paul Makarechian, whose company owns the St. Regis.
“We have higher-class people here,” Rustman said. “I don’t want people to feel like I’m selling something.”
Several guests at Wednesday’s event called the name change a good move.
“The Wealthy 100 has a connotation that’s not necessarily positive. It’s elitist,” said Jason Childs, a Qwest Communicationsexecutive and retired NFL offensive lineman. “Echelon may take more explanation, but it’s better.”
Others said it’s not the name that matters.
“I don’t care if it’s Wealthy 100 or Echelon,” said Vic Tanon, president of Emplicity, an employee outplacement company in Irvine. “I come here to rub elbows with people who can give you good advice. It’s hard to find other business owners to hang out with.”
Ike Devji, executive vice president of the Wealthy 100 in Arizona, said the name of Rustman’s group is less important than his style of catering to clients.
“No matter what name he’s using, it was an investment meeting focused on a social event,” Devji said. “It’s the Wealthy 100 formula.”
Leaders of other Wealthy 100 chapters in Orange County gave an array of descriptions of their affiliation with the group.
Gary Sherwold, a Lake Forest financial planner, declined to comment about the Wealthy 100 other than saying he never activated his chapter, even though he is listed on the Wealthy 100 Web site.
Jeff Gurman ended his affiliation when he moved his office from Los Alamitos to Los Angeles.
Vito Francone, a Fullerton investment adviser, said he will continue to represent the Wealthy 100 here, even though he has not organized an event this year.
“I’m a believer in doing fun things with my clients,” said Francone, who hosted evenings at a car dealership and a Laguna Beach wine club and plans to offer Segway rides at the Queen Mary in Long Beach. “This is a trust business, and this is a fun way to build trust.”
