Member of the Month - Get Rich Slow

An Interview with NEB Member John A. Kailunas II

John Kailunas has a contrarian view of financial services. He believes in “getting rich slow,” not “getting rich quick”, a commonly held view among practitioners and clients. What’s the difference? Kailunas says the slow approach focuses on doing things right, giving more than you get, and making a big impact on people’s lives. The Founding Partner, President, and COO of Regal Financial Group in Kentwood, Michigan, practices what he preaches. In one brief conversation, he shared three examples of how he ended up with more by doing things slow—and right.

The first example had to do with the period just after he and his partner, Larry Taunt, started Regal Financial Group in January 2000. One of their biggest challenges was finding the right people to represent the firm.  Kailunas admits he passed over many of the people who wanted to join—not because they couldn’t produce, but because they didn’t have the right values. “I didn’t want a lot of them to carry my business card,” Kailunas says. This may have been the right thing to do ethically, but Kailunas believes it made the launch process more difficult. From a long-term perspective, it laid a quality foundation for future growth. Today, Regal Financial Group has 80 affiliated representatives generating securities business, with about $900 million under management and gross dealer concessions in the $11 million range.

The second example was his recent interview with a woman who was interested in coming to work for Regal. Her background didn’t automatically slot into an existing opening, but Kailunas was impressed with her background and attitude. He said he wanted to create an opening for her because she was absolutely the right fit for his office. Again, doing the right thing took more time and effort, but Kailunas believed it would have a positive impact not only on the woman, but also on his entire team. “We can positively affect people’s lives by our actions,” Kailunas explains. “That’s what drives me.”

The third example deals with Kailunas’ involvement in a charity called Hunt for a Cure. The charity was established by a local machine shop owner, Pete Odland, whose son, Dylan, has cystic fibrosis. Trying to win a race against time, Pete formed a 501(c)3 charity to raise for research. Being a big-game hunter himself, Kailunas got involved and ultimately became vice chairman.  The organization’s signature event is an annual “camouflage ball.” Everyone comes dressed in hunter’s camouflage; the women come in camouflage gowns. “In one evening, we raised more than $100,000 for CF research,” Kailunas notes proudly.

Kailunas’ charity work might take time away from business. It might even slow his progress toward meeting financial goals. But again, he believes it’s the right thing to do. “People are too short sighted,“ Kailunas says. “They are more worried about what they can get, not what they can give. Hunt for a Cure is a great opportunity for me to give something to others.”

Now don’t take all this talk of “getting rich slow” and “doing the right thing” as camouflage for less-than-stellar performance. Regal Financial Group has grown geometrically since 2000, and is now the second-largest office in AIG Financial Advisors. In addition to having a strong ethical foundation, Kailunas, Taunt, and Brian Yarch have built an integrated financial services office with a strong product line-up, a diversified and loyal client base, and a vibrant producer network. Just seven years from their founding, Regal is a Michigan force to be reckoned with, having been two-time finalists for Ernst & Young’s Entrepreneur of the Year award. But Kailunas is quick to remember where he came from.

After attending Michigan State University and the University of Detroit, Kailunas purchased a restaurant. Problem was, the restaurant business didn’t agree with him. So Kailunas got the “grow-up-and-get-a-real-job” speech from his Dad, which is exactly what he did. “The old guy was right,” Kailunas admits.

So Kailunas decided to enter the property-casualty insurance business with Sentry, focusing on tool-and-die companies. Along with selling P/C coverage, he also did a lot of life insurance. But he noticed he could get a lot higher commissions for selling life insurance from a life company than from a P/C carrier. Result: He decided to get into the life business himself, joining Sun Life of Canada. His Sun Life sales manager, Larry Taunt, years later became his Regal Financial Group business partner.

At Sun Life, Kailunas worked his way up to sales manager, before joining John Hancock as a general agent. At John Hancock, he distributed financial products through banks and savings and loans. His strategy worked so well, John Hancock decided to take over a portion of his business—which led Kailunas to decide to go into business for himself. 

Although he’s a big-game hunter—pursuing his outdoor passion all over the world—and has achieved big things in business, Kailunas isn’t really driven by trophies. He lives for the quiet satisfaction of running a clean shop, helping people the best he can, and doing what’s right.

“You can’t tell clients enough that you do the right thing,” Kailunas adds. “Let’s face it. The good guys need positive press. NASD is a self-governing body, but somehow they only seem to represent the negative aspects of the business. The negative people grab all the headlines. So consumers are left wondering whom to turn to for help with their finances.”

In this regard, Kailunas has found his NEB membership very helpful. “It adds credibility to my practice and gives my clients a big sigh of relief.” This is why he’s careful to explain the NEB verification process to his prospects and clients.

Yet another thing that takes time to do right. But, as you’ve noticed by now, Kailunas is a “get rich slow” kind of guy.

How are you maximizing your NEB membership to grow your business? Would you like to be featured in our newsletter? The National Ethics Bureau welcomes your input. Send your comments to: hlew@ethicscheck.com