John Grace is the Founder and President of Investors Advantage Corp., a Westlake Village, California-based financial advisory firm. With over four decades of experience, John is known for his client-first approach, emphasizing data-driven decision-making and loss mitigation. Under his leadership, Investor’s Advantage has established a regional stronghold managing over $1 trillion in assets through its collaboration with LPL Financial Corp. A renowned financial advisor and author, John translates complex economic data into actionable intelligence through his work as a contributing writer for Pacific Coast Business Times.
Here’s a glimpse of what you’ll learn:
- [1:39] John Grace’s entrepreneurial roots of mowing lawns in South Los Angeles
- [4:17] The pivotal mentorship that launched his financial advisory career
- [9:04] Why John founded Investors Advantage Corp in the mid-80s
- [11:32] Overcoming self-doubt through investment in high-level research
- [13:16] Transforming limiting beliefs through critical questioning
- [15:23] Why John chooses independent research over commission-driven sales
- [17:30] Building trust with engineers through analytical rigor
- [20:21] How proactive planning helped clients avoid 2008 losses
In this episode…
Mentorship can be a powerful catalyst in shaping a person’s career, especially in industries where representation is lacking. Too often, young professionals miss out on guidance that could unlock their potential and set them on a transformative path. How can a single mentor alter the course of someone’s life and career trajectory?
According to John Grace, who founded and leads Investors Advantage Corp., his entry into the financial world began with an unexpected offer from the father of a friend — a seasoned advisor who saw promise in him and offered to be his mentor. That relationship gave John not only the technical knowledge to earn his license but also the confidence to succeed in a field where few looked like him. Decades later, he continues that legacy by mentoring the next generation, including the grandson of his original mentor.
On this episode of the Top Business Leaders Show, Rise25’s John Corcoran welcomes John Grace, Founder and President of Investors Advantage Corp., for a conversation about financial resilience, mentorship in underserved communities, and what makes engineers the ideal clients. John also offers powerful advice on independent thinking in a saturated financial world and the importance of proactive planning for uncertain futures.
Resources mentioned in this episode:
- John Corcoran on LinkedIn
- Rise25
- Email the team at Rise25: support@rise25.com
- John Grace on LinkedIn
- Investors Advantage Corporation
- Redondo Beach (formerly TRW, Inc.)
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Episode Transcript
Intro: 00:04
Welcome to the Top Business Leaders Show. Powered by Rise25 media, we feature top founders, executives, and business leaders from all over the world.
John Corcoran: 00:20
All right. Welcome everyone. John Corcoran here. I’m one of the hosts of this show. And you know, every week we feature smart CEOs, founders, and entrepreneurs from all kinds of companies.
And if you check out our archives, we’ve got lots of great episodes in there for you to listen to, including companies like Netflix, Grubhub, Redfin, Gusto, Kinkos, and many more. And before we get into this interview, this episode is brought to you by Rise25. At Rise25, we help businesses to give to and connect to their dream relationships and partnerships. How do we do that? We do that by helping you to run your podcast.
We are the easy button for any company to launch and run a podcast. We do three things: strategy, accountability, and full execution. And we even invented what some are calling the Wix of B2B to be podcasting. It’s our platform. Podcast Copilot.
So if you want to learn more about that, you can go to our website at rise25.com or email our team at support@Rise25.com. All right. My guest today is John Grace. He’s the founder of Investors Advantage Corp, an expert in wealth management.
And we’re going to talk about that as well. But we’re also going to dive into his background. His story grew up in South Los Angeles. And John, a pleasure to have you here today. And I was talking to you last time about what you were like as a kid, and I always loved to know what people were like.
And it kind of entrepreneur hustles they had at a young age. And you grew up mowing lawns, and you said that you loved the smell of fresh, fresh cut grass, which is one motivation. The other kind of green is the other kind of motivation behind mowing lawns. I imagine it wasn’t just the smell of the grass that was motivating you. So talk a little bit about what that was like when you were growing up.
John Grace: 01:54
Well, it used to be a lot easier. John, is it good to be with you? Right. Whether it was throwing your newspaper or you had your own money. That’s the point, right?
So for the first time, you weren’t looking for a handout increase in your allowance? No, this is my money. So I get to save and do with it as I wish. That’s very satisfying. And being outside to me is also very satisfying.
So yeah, it hits a lot of notes.
John Corcoran: 02:21
And so you started doing that, and you had a lot of gardeners in the area and you started. Did you go around knocking on doors? Did you ask neighbors like, how did you get your first few clients?
John Grace: 02:33
Yeah. Well, I started on my own lawn. Right. And the neighbors would notice how that looked really good, and some of them would approach me sometimes, when I noticed that a lawn needed some work, I would go knock on the door. So that’s the way you kind of figure out, hey, maybe you didn’t notice how these lawns are looking, but guess what?
We can take care of your lawn. And I do hedges too. So let’s get started. And yeah, it was it was great fun. Good memories there.
John Corcoran: 02:59
Talk to me a little bit about what your upbringing was, was like, because you grew up on the South Side and you ended up to school on the West Side. For those who don’t know Los Angeles. Explain that to me. Like socioeconomically, what was that like, and what was that experience like for you?
John Grace: 03:14
Well, to my friends at school, yeah, I grew up in the flatlands. That’s what they called it, because they lived on the hill. Right? And that was an area.
John Corcoran: 03:22
For those who don’t know, California hills, generally nicer flats, generally not as nice views and people. Everyone wants a view in California.
John Grace: 03:31
Everyone wants a view. Yes, yes. And that’s what I saw every day, you know, going back and forth to my, my I had a set of godparents. He was a pharmacist. And they bought a house on the hill and they said, yes, you can use our address to go to elementary, middle school and high school.
And every day I would see the people who were, you know, working good people. But these folks on the hill, my goodness, where there’s two Cadillacs and you could look out the back window over the fence and see the view of Los Angeles. And it’s just commanding all this growth and all this opulence. So I think that probably planted a seed, if you will, because, you know, on a daily basis, you’re seeing the people who are really well-to-do and the ones who are not so well-to-do. And that probably was the catalyst for me to kind of wonder about all this.
And then, I happen to be a best man in a Jewish wedding. And the family had bought in the Marina, and he heard me talking.
John Corcoran: 04:28
Del Rey and Marina del Rey, the beautiful areas of Los Angeles.
John Grace: 04:32
Beautiful area. More. More water, more views. You know, more vistas. Who doesn’t like the ocean, right?
I certainly do. And this the father of the groom said, hey, I’m a financial advisor and I’m willing to be your mentor. If you’d like, I’ll coach you on how you too, can be a financial advisor. I’m like, really? I’ll explain more.
How much blood do you want? Okay, let’s get started.
John Corcoran: 04:55
Yeah. What did he see in you? Why do you think? Why did he make that offer to you?
John Grace: 05:00
I you know, I never asked that question, but I was, I suspect that, well, I you know what? I had to come over to the house for training. I had to make sure the car was clean. I had to make sure that I showed up in suit and tie for the training. Just with him for the classes.
Right. And we would go through some of the things that, he learned so I could get licensed, and it might have something to do that I, you know, for the most part, I wasn’t disheveled and I was clean cut and I could speak pretty well. And he thought that that might be a good combination to see where I might go under his tutelage.
John Corcoran: 05:38
It’s funny how life just pivots. It’s funny how life just takes a turn on that one relationship. You know, one person. Well.
John Grace: 05:46
And to your point, this is just 2019. I was flying up to Seattle for a conference, and that’s where the groom and his wife now live. And I’m on the airplane on the phone with the groom’s son in Boston, who says, I wanted to talk to you because my dad says you’re you’re you’re were trained by my grandfather. And maybe you could give me some pointers on whether or not I should be a financial advisor. I’m like, oh my goodness.
You know, talk about who would have thunk. I’m like, listen, you need to know Zach. You own me. All right. Whatever I can do.
Count on.
John Corcoran: 06:23
It. That feels like a heavy sense of obligation.
John Grace: 06:27
100%. I’m like, I don’t know how this happened, but, man, I am here. You tell me what you need, and I am. I am there. And by the way, you might be interested to know that I can tell you some stories about your grandfather.
You didn’t. You didn’t get. Because I know you two never met.
John Corcoran: 06:41
Oh, that’s really nice.
John Grace: 06:43
We can talk about that, too.
John Corcoran: 06:44
That’s true. Was that really gratifying, being able to tell him stories about his grandfather?
John Grace: 06:49
Yeah. Priceless. Both combinations. And by the way, he did get licensed, and he’s in the business.
John Corcoran: 06:54
Wow. Wow. Why do you think it skipped a generation like that? Why did the grandson get interested in going into it?
John Grace: 07:01
Well, the son became a biomedical engineer. You know.
John Corcoran: 07:05
Not too.
John Grace: 07:06
Shabby. Yeah, really smart guy. And that’s what. That’s what he wanted to do when he grew up. And that’s what he did.
John Corcoran: 07:13
He also had a mentor, Ken Morse.
John Grace: 07:16
That’s his name.
John Corcoran: 07:16
That was that was. That was the same one.
John Grace: 07:18
Yes. Yes, sir. That’s the groom’s dad. Yes. Got it.
Morse? Yes.
John Corcoran: 07:23
So? So you get this. You get this training. And then what happens next? You get a job in the industry.
John Grace: 07:30
Oh, yeah. Yeah. And I’d like to say, you know, it’s sometimes it’s better to be lucky than good. Back in the old days, you know, if you weren’t with Mother Merrill as a stockbroker, you weren’t really legit.
John Corcoran: 07:42
And Merrill Lynch was the brokerage that everyone depended on. Yeah. Huge.
John Grace: 07:48
Mother. Merrill. All right. They wrote the rules. Until they went away.
But at that time, it was like a boxing match, you know, because for the most part, people were either stockbrokers or they were insurance brokers, and never the two shall meet. And I happened he happened to be with the company that was the largest independent financial planning organization, not with Mother Merrill. They didn’t do financial planning. They were stockbrokers. But this was like a marriage, if you will, between.
Well, we need to put a plan on both sides of the equation. If you live too long or die too soon, we want it financially to be a non-event. So we’re not mired too far to the left in stocks, nor to right on the side of insurance. We need to do both so that, whether you, as I say, live too long or die too soon financially, you can see what it takes to be better off. So that was a beautiful beginning.
And lo and behold. And then we got to the point where we would say about ourselves, because we weren’t Mother Merrill. We were on the dark side. Okay. And guess what, Mother Merrill?
Merrill Lynch went away. Now, Bank of America Merrill Lynch and so many of the advisors that were with the big wirehouses came to the dark side and started doing financial planning.
John Corcoran: 09:08
So but you were way ahead of your time then, because you founded your company in 1979, back when there weren’t as many independent advisories back then?
John Grace: 09:18
Well, that’s when I got my first license. I started Investors Advantage around 86. Okay, so.
John Corcoran: 09:23
Still early though, right? I mean, was it still early? Was that pretty contrarian at the time? What did that take some convincing to to explain to people why you shouldn’t go with a big company like Merrill, why you should go, why they should trust you?
John Grace: 09:36
Well, you know, for me, it’s about determining what you think is the better or the best offer, not to be too mired in whatever you do to me. We should all be a lot more agile. And as I say, if we’re going to do a financial plan, it’s not just how much money can you put in the stock market? And it’s not about what your budget for buying the most insurance someone can sell you. It’s it takes a more thorough approach to really figure out when you want to make work optional.
You know, most people aren’t doing that. But for me, that just seemed like the right thing to do. And by the way, when I talk to young people now and they’re saying, well, I’m getting these offers, what do you think I should do? I said, you need to go home and look in the mirror before you take any offer and assess what’s important to you. What do you think constitutes doing really good work in this industry?
Then look for the firm that thinks like you, because there are a lot of firms that will hire you and they will get you high on their system, and then you can’t leave there or you can’t take your clients with you. They’ve got you by the short hair. So really look in your own heart and figure out, do you want to be with the banking company? Do you want to be more insurance-based? Do you want to be more of a product person?
Do you want to be commissioned? Do you want to be paid as a flat fee for the assets under management? These are the questions you need to ask yourself and look at the operations that are doing what it is they do, and then go interview these operations that you already believe are close to how you think business should be done. Otherwise you’re going to you’re going to get in and then you’re going to have regrets. And it’s going to be really difficult to to break rank.
John Corcoran: 11:22
I want to ask you about what I think was maybe a bit of a turning point for you. You have said that you started with a bad attitude, thinking you’d never be good enough, and then you started paying up to $10,000 a year for research, which in the, you know, at the time that you started must have been a massive amount. Talk a little bit about how that played a role in kind of changing your attitude, changing your thinking.
John Grace: 11:46
Yeah, That’s an interesting experience. As I look back, you know, you can imagine being African American and talking about stocks. This is not a place that we generally play. This isn’t basketball or football or track, right? And I’m not a musician, not an entertainer.
And so when I went to my first class, the instructor was there. And he had you had to sign in and sign out to verify that you were there for the class. But I’m looking at the people in the room and I’m like, and you just look at these folks, and they’ve all got their fancy calculators, and they just look smart as they could possibly be. And, and I look at me walking in that room going, oh, am I in the right room? Is this am I going to am I going to make it here?
But that probably reveals a lack of confidence, right? It’s like, you know, basic decision, am I? I’m not good enough. That wasn’t a question. That was a statement.
And as I’m signing out the first day for this class, Joe, was instructor’s name. He said, I was looking forward to meeting you. I said, why, what’s wrong? He said, what’s your name? I go, why?
What’s wrong? He goes, well, you know what grace means, don’t you? And I go, what’s it mean? He goes, well, it means unmerited favor and he can see me.
John Corcoran: 13:07
Unmerited favor.
John Grace: 13:08
Unmerited favor. Well, you don’t get it, do you? And, you know, you’re just standing there and you’re like, I can feel the boom coming. I can’t tell where it’s coming from, but I know I’m being set up for something. And he finishes with, well, you know, it’s unmerited favor, John means like God’s gift.
You know, where you get something you didn’t deserve. That’s the definition of grace. And I’m like, really?
John Corcoran: 13:31
Was it a dis or was I can’t tell.
John Grace: 13:36
No, no. He was he thought it was a great name. That’s why he was looking forward to meeting Grace.
John Corcoran: 13:40
Okay.
John Grace: 13:42
But, you know, I never heard that before, so I didn’t know where he’s coming from.
John Corcoran: 13:46
I can see how you like. Your shoulders are hunching up like. Wait a second. What is he trying to say to me here?
John Grace: 13:53
Yeah. Where am I going to get booted? Okay. What’s going to happen next? Can I come back for the next class?
So. But that’s that’s how the the first stage, if you will. And then ultimately, as I said, I realized I made a bad statement saying, you know, you’re you’re you’re not enough. That’s a bad statement. So I discovered that what I needed to do was turn that around into a question, because when you make a statement, what you do is you fill in all the blanks with why that is true.
But if you ask an open ended question, guess what? You have to fill in the blanks with some answers, but you don’t already know the answers. So what I decided to do is to really determine what’s average. Let me what do I have to do to figure out in the profession, regardless of complexion, age, gender? What’s average?
What do most advisors do? Let me see if I can figure that out. And then once I have that basis, the question becomes, how can I beat average? Now that’s a damn good question. All right.
Let’s see what everybody else is doing. You know, kind of like the advice I’m giving to the young people now. And what you need to do, John, is figure out what you think is the right thing and see what averages. And then see what you can do to be better than average. If you get better than a C, that’s that’s better than average.
And so that’s how we actually started finding out about a research company that doesn’t have product to sell. Because you know John, when you have a product to sell, whatever the provider, the hierarchy is telling you what, how much of this you should sell.
John Corcoran: 15:26
Therefore, you must buy my mutual fund or whatever. Yeah, exactly.
John Grace: 15:29
Yeah, yeah. My ETF, my mutual fund, my annuity. Okay. Long term care. But put that in everybody’s pockets.
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