Raj Sharma is a Private Wealth Advisor and Senior Vice President at Merrill Lynch. He heads a team of professionals specializing in private wealth management, financial, estate and philanthropic planning. Chris Kemp, Ken Sharma, Christina Caputo, Deanne Riccitelli, Lauri Hartford and Binita Pathak are part of Raj’s team and they provides business financial services such as cash management solutions, stock option planning, retirement and deferred compensation, business valuation, mergers and acquisitions, and investment banking.

He has been featured for the second consecutive year by a leading industry publication Registered Rep as one of America’s Top Ten Financial Advisors. Raj and his team are profiled in a new book by Cahner’s Publishing: “The Winner’s Circle – How Thirty Financial Advisors Became the Best in the Business”. He has also been profiled in Money Magazine.

He talked to Lokvani about his life, money management philosophy and investment strategies.

Lokvani: You have a degree in communications. Yet you choose financial advising as a career. Can you describe your journey from broadcast journalism to financial advisor?

Raj Sharma: As a youngster, broadcast journalism was my passion. I used to work for All India Radio where I ran “Yuvavani”. For practical reasons, I enrolled in the MBA program at Osmania University. I came to the US, to do a degree in Communications at Emerson College. After graduation, I started working as a film producer. I made several documentaries for WGBH. I also made several ad films. Unfortunately such commercial opportunities were not fulfilling my creative needs. So I decided that I would like to make Communications a hobby and seek a career elsewhere. As I was thinking about a career change I met someone at a party who was with Merrill Lynch. My MBA which had a focus on finance came in handy and I joined Merrill Lynch.

Lokvani: So was your degree in Communications a waste?

Raj Sharma: Quite to the contrary my Communications training was a significant asset to me. I started on this career with Merrill Lynch before the crash of 1987. While market crashes are disasters for investors, it is a time when people value advice. I realized at that time that the biotech and the medical industries were doing very well. I also realized that doctors and executives from the healthcare industries had money but did not have enough time to properly manage it and were highly likely to delegate the responsibility to a professional. I decided to use my Communications training and give seminars at hospitals. People liked them very much and I got a lot of business in this manner.

Lokvani: Can you describe your philosophy of managing money?

Raj Sharma: I want to guarantee peace of mind for my clients. I would like to look at their needs in totality and not just from a narrow investment point of view. I spend considerable time with my client understanding their long-term, mid-term and short-term goals. Risk management is my specialty. Based the information I gather I propose a plan that is appropriate for them.

Lokvani: What motivated you to create the Sharma group which is a team of almost ten people?

Raj Sharma: Total financial planning has several aspects to it including estate planning, money management, risk management and portfolio management as well as corporate financial planning and compensation strategies. We need experts in all areas to present the best complete solution to our clients.

Lokvani: Who should seek a financial advisor? Is there a certain profile you are looking for in a client?

Raj Sharma: I feel everyone should seek a financial advisor. Financial advice is not just about making money – it is about ensuring a peaceful life. Every financial group specializes in helping a certain segment of clients and ours in no exception. Anybody is welcome to contact our group. If we are not the right group to help the particular person we would be happy to redirect them to other excellent teams who can help.

Lokvani: In these tough economic times what does the future look like to you?

Raj Sharma: I think the future is very bright for investors. The statistic I use to support my statement is simple. In 1970 less that 50% of the world was in the free enterprise. Today that number has risen to 95%. The opportunities that this change creates are huge.

Lokvani: What are your predictions for the different investment sectors?

Raj Sharma: The growth within US will be more slow and steady while the international markets will have the exciting growth. The emerging markets are much more predictable now. Technology is going to continue to be a bear market for the next 5-10 years. Energy is going to be very exciting. It is not Iraq but rather the growing demand from countries like China and India that is going to drive the demand. I also think the industrial sector will do well. Companies like Deere and Caterpillar have restructured and become lean and mean. They present great opportunities.

Lokvani: What is the asset allocation model that you recommend?

Raj Sharma:There are different models that are appropriate for different clients. But for a client with a average long-term growth profile I would recommend a model that is weighted towards equities at 65% and 35% towards bonds and cash. The 35% investment should be in fixed income individual taxable or tax-exempt bonds. 15-20% of the equity should in overseas assets. Of the 15-20%, at least 5% should in the emerging markets.

Lokvani: You are very involved in many charities. Why is charity work so important to you?

Raj Sharma: Whether it is financial advice or charity work, my focus has always been to help people. I think it is that philosophy that has made me successful in my career. There are many causes that I care deeply about which could use funding and I am happy to donate my funds to those causes. I also have studied successful fundraising strategies and I try to do the best I can to donate time to do fundraising. I support the Island Alliance which is working on improving the islands in and around Boston. I am part of Sharon’s Education Foundation. I am also part of other philanthropic organizations both in the USA and India.

Lokvani: When you look back at life what would you consider as success?

Raj Sharma: As I said, I am very pleased if I can help people. My family is very special to me. I consider myself very fortunate to have Nalini as my spouse. She is a great source of strength and support to me. I have been lucky to have great parents. I hope my four children grow up to be good human beings.

Lokvani: Thank you for time.

Raj Sharma: You are welcome.

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