Lessons in Communication and the Power of AI Making us ALL smarter 

At Members’ Wealth, we pride ourselves on delivering service excellence while embracing technological advancements. Sometimes, though, we need a little reminder that we, too, can improve.

A process is only as good as the people implementing it[i] and scaling communication to reach more clients is valuable—if done skillfully. Otherwise, scaled communication can lose impact compared to more personalized approaches. Two seemingly unrelated client interactions this week served as a powerful lesson in communication, learning, and the importance of blending human touch with cutting-edge technology.

Lesson 1: ChatGPT Taught Me Something (Again 😉)

Backdrop: A long-time client recently reached out to discuss rolling over a 401(k) into an IRA. This couple has $3-4 million in IRA assets, plus a $2 million 401(k), along with significant taxable investments. Having retired recently, they wanted to know if consolidating made sense.

We already manage the 401(k) with full investment flexibility, and there’s no fee or expense difference between the accounts. However, there is an important distinction between ERISA protection for 401(k)s and creditor protection limits for IRAs. At the federal level, IRAs typically cap protection around $1.5 million, while 401(k)s offer broader protection[ii].

But did you know that Federal Protection limits might be expanded at the State Level? Well ChatGPT did.

We and our clients cannot know everything, especially every nuance of each state across every law. But we can know to ask for help. A quick use of AI can help expand your knowledge. You know 2-4 things about a topic, AI might know 20 others to consider. It does not hurt, cost much time or money to ask for help. We want to teach our employees and clients that the goal is getting to the right answers, not being all-knowing at all times.

Why do I share this? Because of our core values at Members’ Wealth:

1. Honesty and Integrity
2. Service Excellence
3. Better Every Day

Getting better every day and delivering service excellence with honest and integrity requires us to slow down and thoroughly validate information. Technology like ChatGPT is a tool to enhance our understanding—not something to fear. But with any tool, it is only as powerful as the person skilled in that tool. AI, though powerful, remains just that—a tool..

Lesson 2: Bridging the Communication Gap

I recently spoke with a newer client who regularly reads our weekly missives and blogs. In mid-March, where appropriate we executed opportunistic rebalancing in his account, using the dip in the market to position for future gains. However, he was surprised to learn (weeks later) that we had made the trades.

He received trade confirmations from the custodian, of course, but like many clients, they were overlooked or quickly forgotten and not connected to the why behind the trade. Even though we had discussed this trading strategy with him previously, life’s busyness had him miss the connection. While our weekly blog post trade touched on the strategy, it didn’t clearly convey how it applied to his specific portfolio (hard to do in general communication).

Reflecting on our core values of service excellence and getting better every day, I realized that while general communication covered the approach, it missed the mark in conveying the personalized impact. Going forward, we will seek to be much clearer on customized communication for traded accounts. Clients will receive more direct updates when we make material portfolio adjustments, ensuring they know what’s happening—and why—in real time, given their specific circumstances.

Moving Forward: Technology as a Partner, Not a Competitor

These interactions serve as a reminder that technology should complement our expertise—not replace it. At Members’ Wealth, we’re committed to finding the right balance between innovation and human touch. While AI becomes increasingly integrated into our work, we must continue to use it wisely—without losing sight of the customized human element that builds lasting relationships.

Our success in utilizing advanced tools like AI for scaled trading[iii] has brought efficiency and precision to our processes. But in our enthusiasm, we must never overlook the importance of clear, individualized communication. Customization must always remain a hallmark of what we are building at Members’ Wealth.

Looking Ahead

If you’re curious about how recent market volatility could impact your portfolio or want to discuss leveraging technology in your financial planning, reach out. We’re here to help you preserve, grow, endure, and evolve your wealth—while always striving to get better.

[i] While this sentiment is echoed in many places, it was from a one Kevin Galvin, CFA, CFP who I used to work with who loved all of the processes we built as an organization but always took the mistakes made in stride recognizing that the mistakes were rarely attributed to the process itself but to the people. Our processes improve but at the end of the day, we are all human.

[ii] At the federal level, under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), traditional and Roth IRAs are protected up to a cap of $1,512,350 (as of 2023) from bankruptcy claims. This cap is adjusted every three years for inflation.

However, it’s important to note that employer-sponsored retirement plans like 401(k)s, 403(b)s, and profit-sharing plans have unlimited protection from creditors under ERISA (Employee Retirement Income Security Act).

State laws can provide additional protections beyond federal limits. For example:

• Florida (as mentioned earlier) offers virtually unlimited protection for IRAs from creditors, regardless of the federal cap.
• Texas and some other states also offer strong protections for IRAs.

Because of this variation, it’s crucial to always check both federal and state laws when advising clients on retirement account protections.

[iii] https://www.memberswealthllc.com/insights/a-month-of-milestones

Investment strategies, including rebalancing, do not guarantee improved performance and involve risk, including potential loss of principal. Past performance does not guarantee future results.

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. 
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

About the Author – Dane Czaplicki, CFA®

Dane Czaplicki is CEO of Members’ Wealth, a boutique wealth management firm that offers a comprehensive approach to serving individuals, families, business owners, and institutions. The firm’s goal is to preserve and grow its clients’ wealth to endure over time, while thoughtfully evolving its strategy to suit an ever-changing world. With over 20 years of wealth management experience, Dane and the Members' Wealth team thrive on bringing clarity and confidence to clients' unique situations. He believes everyone needs sound financial advice from someone whose interests are aligned with theirs, and is determined to put service before all else.

Dane received his MBA from The Wharton School of Business at the University of Pennsylvania and his bachelor’s degree from Bloomsburg University. Outside work, he enjoys spending time with his wife and kids, hiking and camping, reading, running, and playing with his dog. To learn more about Dane, connect with him on LinkedIn.

To get in touch with the Members’ Wealth team today, I invite you to email info@memberswealthllc.com or call (267) 367-5453. 

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