Trading Places with Allan Boomer

Will Clanton:
Welcome to the We Love Entrepreneurship podcast. I am honored today. I got a very special guest joining me today, Mr. Allan Boomer. Allan has been in the financial industry for over 20 years. He’s spent the bulk of his career advising institutional clients and wealthy families. Prior to founding Momentum, Allan spent seven years at Goldman Sachs, where he was the vice president of the firm’s investment management division.

Will Clanton:
While at Goldman, he managed $450 million investment portfolio on a team that oversaw seven billion in client assets. Allan began his career at Merrill Lynch in 1995. If you guys have not met Allan before, it is my honor to introduce him to you today, Mr. Allan Boomer.

Allan Boomer:
Hey. Thanks for having me, brother Will.

Will Clanton:
Oh, man. I am delightful that you could spend some of your time with us on this morning, Allan. Allan, why don’t you share with my community just a little bit about your story and transition from working and starting Momentum.

Allan Boomer:
Absolutely. My background is I grew up in New Jersey. My parents are from the south, just like many of us who either have roots in the south or in the Caribbean. My grandfather never earned more than $6,000 in a single year. His father was born a slave. My dad was one of the first in the family to go to college. He worked at UPS for 32 years and had a dream that his kids would be entrepreneurs.

Will Clanton:
Wow.

Allan Boomer:
His dream came true. I’ve got two brothers. Me and one of my other brothers, we’re both self-employed entrepreneurs. I got started in finance very differently than a lot of people. My first window into Wall Street was watching Trading Places with Eddie Murphy in the 1980s. It seemed really interesting to me and I was very lucky to land an internship at Merrill-Lynch, coming out of high school and, 25 years later, I’m still in the same industry. Today, I’m running my own firm.

Allan Boomer:
My firm today has about 10 employees. We’re managing about $250 million for individuals and institutions. We’ve got offices in several cities and we’re touching a lot of lives, so it’s really been a great transition story, for sure.

Will Clanton:
Amazing. Yeah, I remember Trading Places. That kind of inspired you to do your thing. Allan, I’m going to be real transparent with you and I want to have an authentic conversation with you. I think one of the things I saw one of your social media profiles was BoomBoom4Real. I was like, “Yes, let’s have a real-”

Allan Boomer:
We got to keep it real.

Will Clanton:
… “let’s keep it real.” I think you started this firm after being at Goldman Sachs, right? What went through your mind that says, “Hey, you know what? It’s time for me to step out and do my own thing.” What happened to you? What ushered you to do that and take that step?

Allan Boomer:
Well, a lot went into it, man. I always had the goal of being an entrepreneur. I was an entrepreneur in college. I had several businesses on the campus of Morgan State University in Baltimore. Then, you graduate and they send you into the workforce. Not too many of my friends went straight into entrepreneurship after college.

Allan Boomer:
Then, I had the dream one day I’m going to start a business. You start to push that one day further and further out, particularly as you get promoted and get recognition in your job, as you get more and more pay. You start to push it out. I remember initially wanting to start a business by 30. That’s when I’m in my 20s. Then, I turn 30 and I’m like, “Yeah, I want to do it in my 40s.” Then, you start saying, “I’m going to do it in my 50s.” What happened for me was really abrupt. I quite Goldman in 2010 and, at that point, I was about 33 years-old. It really was an opportunity that just opened up.

Allan Boomer:
When I say opportunity, what I mean is that opportunity doesn’t knock, it just lays there. The opportunity that laid before me at that time was we had just finished the financial crisis. Wall Street was becoming a curse word. It was a curse word. People were fed up with Wall Street and its conflicts of interest. I’m literally watching the CEO of my company, Lloyd Blankfein at the time, testify before Congress and the congressmen, congresswoman was asking Lloyd. They said, “Didn’t you have a fiduciary duty to what was in the best interest of your client?” I’m watching from my trading desk at Goldman. I’m expecting he was going to say, “Yes.” He said, “No.”

Allan Boomer:
I’m like, “No?” I had been on Wall Street, at that point, for 15 years. 15 years at that point. I had never known that financial advisors, most financial advisors at all the big firms, I did not know that we were not fiduciaries, that we weren’t required by law to act in our client’s best interests. When I saw that, I said, “I got to roll out. I got to get out of here and this is my window of opportunity to start this business. I can stay here and be in a business that goes against my values.” My value was one that I wanted to align myself with my client. Or, I could go out and try to do it better. That’s what I’ve done.

Allan Boomer:
goal was always to create a Goldman Sachs level experience but for people that don’t have Goldman Sachs money and to do it with a fiduciary lens and a fiduciary relationship. That’s what we’re doing. It’s been a wonderful story, man. It wasn’t all straight up. I had some lean years in the beginning. When I first started, it was literally me by myself working out of my mom’s basement. Today, it’s way bigger, man. We’re employing a bunch of folks and helping a bunch of folks. It’s really been a dream come true.

Will Clanton:
You said some really interesting things I want to dig into there, right there. One of the things that you said is that you left because it didn’t line up with your values. I think that is really powerful that you took a step and said, “Hey, this really means something to me and I’m going to walk away because I’m out of alignment.” I don’t think many people actually do that today, so I applaud you for walking away for your values.

Will Clanton:
But you said something else. Because most people, when they start a business, they need the office. You did it out of your mom’s basement, you said?

Allan Boomer:
Absolutely, man. Here’s the deal, we’ve been taught the wrong way on how to start businesses. We’ve been taught, when you’re starting a business, the first thing you need to do is get a business card, a website, a brochure, office space, a secretary. These are all costs. Those things cost money. The most important thing a business can have is customers that bring you revenue. At the time, I didn’t have any money to rent an office.

Allan Boomer:
So, my mom and dad, they had a fully furnished basement. I said, “Hey, can I come and work out of here until I get enough money to get an office?” That’s how I got started, man, and that’s how most people should start. I think, especially during COVID, COVID has turned the world into a place that works virtual, that understands that people are working from home. If you can work for a big company from home, why can’t you work for yourself from home? And work your way up to getting a big office?

Allan Boomer:
I just feel like, man, it was a humble way to start because I had no choice. I didn’t have funding. I didn’t have hundreds of thousands of dollars in the bank. I started the business, really, with a little bit of desperation on my back. When I quit, I didn’t have a strong game plan, I just knew I had a couple of clients that would still do business with me outside of the firm and I had a feeling that I could get some more. That was it.

Will Clanton:
Amazing. You just said something. You had a few relationships that you had. Those relationships went with you when you actually made that transition?

Allan Boomer:
Yeah, a few. Emphasis on a few. I was managing about $450 million when I was at Goldman. The clients that I had the closest relationships with added up to about $250 million. I figured if I could get $20 million worth of clients to come with me, then I could pay my bills. I could make enough money to continue to live.

Allan Boomer:
So, before I quit, I wasn’t a fool. I went to $20 million worth of clients and said, “Hey, if I left, would you come with me?” And 20 million said yes and then I quit and I called those 20 million people and only seven million actually came through. If I had only gotten seven million to say yes, I probably would not have quit. But just to put things in perspective, I needed $20 million just to pay my bill. Seven million came through, so that means I was at less than half of my goal. That means I could pay less than half of my bills in the beginning, which is why I’m in my mom’s basement and not renting some office space.

Allan Boomer:
But today, it’s only been eight years. We hit $250 this year.

Will Clanton:
Nice.

Allan Boomer:
Literally, I went from seven million to $250 million in a few years, but it really all came from the perseverance of not being able to turn back.

Will Clanton:
Right. That’s amazing. Let me just give the audience some clarification. What Allan’s saying, when he actually left and transitioned, it wasn’t seven million in fees he was getting. That was the assets he had under management.

Allan Boomer:
Yes.

Will Clanton:
Because so many people are like, “Hey, what do you mean? You left. You had seven million. That’s what you need to pay your bills.”

Allan Boomer:
No.

Will Clanton:
I just want to clarify for the audience that-

Allan Boomer:
[crosstalk 00:10:10]. I’ll give you the actual numbers. If you charge 1% on seven million, that’s $70,000. That’s how much I was bringing in, but I have three kids, a mortgage, a wife that doesn’t work, and so I figured if I could have 20 million, that would pay me about 200K. That would be enough for me to live and pay my bills. What I’m getting at is that if you’re making six figures, it’s hard to go back and make 70K, or 50K, or what have you, because I still had expenses. That 70K wasn’t all in my pocket. I had to pay for my software. I had to pay for my licenses. I had to pay for this and that.

Allan Boomer:
At seven million, I might have cleared $40,000. It was not enough to really make it, but through God, through the grace of God, through some hard work, through really some necessity, I really believe that necessity is the mother of invention. I had to reinvent myself and I had to go out into the marketplace and compete and figure out a way to win. Thankfully, we’re doing that.

Will Clanton:
That’s amazing. Allan, just in your transition story, you made this transition. Is there anything that came up that you didn’t plan for that you felt that you could’ve done better?

Allan Boomer:
Yeah. I think the only thing I wish I had done better, or done differently… and I won’t go back. I can’t redo anything, so I can’t really regret anything, but I made the mistake of bringing on an investor early in my business, an equity investor. I got this guy to believe in my story and he wrote a check. At the time, I thought, “Man, this is great. I’m using other people’s money.” But ultimately, when you bring someone into your business as an equity partner, you now have to listen to them. It’s no longer your business. It’s y’all’s business. If y’all don’t agree, then y’all are going to bump heads and somebody’s got to make a move. So, I had to buy that partner out. For every dollar he put in, I had to give him three or four dollars back, ultimately. He put in 100K. That means I had to pay him almost 400K to get him out.

Allan Boomer:
I think a lot of people think about equity like, “Hey, I need to raise some money. I need some equity.” They watch Shark Tank. Equity is the most-

Will Clanton:
They want Shark Tank.

Allan Boomer:
… equity is the most expensive money that there is. The guy invested 100K. If I had borrowed 100K, I would’ve had to pay back maybe 120K. I took in 100K as an equity investor and had to pay back 400K. That’s what I’m getting at, is if I had to do it again… I had the money in my retirement account. There are ways to use your retirement dollars to invest in a business without taxes and penalties. I wish I had thought more about that. I wish I had thought more about me being able to be enough.

Allan Boomer:
I think part of bringing in investors is feeling like you’re not enough, feeling like, “Yo, I need some help. I need some capital. I need a team. I need somebody else on my board, somebody to believe in my.” But ultimately, I realized after the fact, that God had given me everything I needed to be successful. It was me who felt, who still felt, inadequate and went out to get more. But I had everything I needed from the very jump.

Will Clanton:
Man, that is so powerful. You just sharing that. Everything you had, you had it internally. You had it. God had empowered you, but you was looking for something outside. You had it all. You had everything you needed. Very interesting.

Will Clanton:
So, that was your transition from there. What are you celebrating now? Now that you’re here and you look back, what’s going well in the business now, Allan, that you’re celebrating?

Allan Boomer:
That’s a great question, man. I love my firm’s ability to bring new professionals into the field and help them to grow and thrive. We’ve grown to 10 people. There’s a lot of success stories in that. Our firm is very diverse. You’re not going to find a more diverse firm on Wall Street, or any street for that matter. We’ve got folks of every ethnicity, every gender, every religious background. We’ve taken some folks who were struggling in their career as financial advisors and we’ve taught them. We’ve had to re-educate them in how to be an advisor, re-educate them in how to build a business.

Allan Boomer:
We’ve had some great success stories. One brother, in particular, had struggled at a few different banks. He came in and, initially, was very coachable and had a great attitude. We’ve turned him into a success. He’s making probably three or four times the money he made when he first joined. But bigger than that, man, he’s helping people. He’s become a great advisor to people. His clients are happy. These are clients that would have possibly been taken advantage of at other firms. We’re able to really touch more lives.

Allan Boomer:
So, it’s not just about me anymore, it’s about my team and helping them to grow, helping them to be better professionals, helping them to support their families better, helping them also though to teach their kids that they’ve got more options than just going to work for a big company. Their moms and dads are entrepreneurs and that’s an option too. The fact that they’re seeing that, their kids are going to have bigger worlds one day.

Will Clanton:
Amazing. Allan, I kind of did a lot of research on you. Did a lot of research and looked at some things. But I think the one thing that really stuck out to me, as soon as you go to your website it says, “Focus and discipline over time, multiplied by the right team, equals momentum.”

Allan Boomer:
That’s it.

Will Clanton:
Oh, man. That is just amazing what you’re saying there. Then, you said you got this diverse team that you have and it seems like you are just pouring value into them and it’s about building them now, it seems like.

Allan Boomer:
Absolutely, man. There’s the old African proverb, “If you want to go somewhere fast, go alone. If you want to travel a long distance, go together.” We’re growing together. It’s not just about me. I’m real spiritual, man. I believe that God has given all of us a testimony. He’s given us all the skills that we need to be successful. I’m just blessed to be able to share with other people and bring them up. We’re building a beautiful story.

Allan Boomer:
Sometimes I say to my team, I’m like, “Yo, if somebody made a movie about us, people would walk out the theater. They’d be like, ‘No way. There’s no way all this stuff happened.’ And that’s how blessed we are.”

Will Clanton:
That’s great. Allan, you need to write the book on that and share that. I like that you’re saying that you’re spiritual and what God, basically, has done for you and doing for your firm.

Will Clanton:
What’s up next for you? What’s next, Allan? What are you building? What can the people expect from you?

Allan Boomer:
We’re just doing more, man. We have a radio show. Me and my partner, Tiffany Hawkins, have a radio show on SiriusXM every Sunday. It’s called the Momentum Advisors. It’s on channel 126, Urban View. We’re growing that platform to be able to touch more people because not everyone can be a client, but if you can afford a SiriusXM subscription, you can listen to great financial advice. We talk about wealth building. We talk about entrepreneurship.

Allan Boomer:
This weekend we started a conversation about generational wealth. We talked about generation zero, which is this concept that the foundation of wealth building is really understanding the values that your ancestors wanted to instill in the family. If these values can be passed on, it’s better than money being passed on because it’s the foundation.

Allan Boomer:
So, I guess the thing that we’re growing is we want to create a new set of conversations, in the black community in particular, about how to build wealth, about entrepreneurship. I’m also an investor in franchises. I have two dry cleaning stores.

Will Clanton:
Nice.

Allan Boomer:
I have two gyms. I want to just see other people become investors, become entrepreneurs, because I just really believe, man, that we can, as people, close the wealth gap if we just focus on our own households.

Will Clanton:
Amazing. If you guys don’t notice, Allan has an MBA in finance, accounting, and entrepreneurship. Allan, what’s your thoughts on personal development?

Allan Boomer:
You’ve got to always be getting better. To me, the two biggest return on investment opportunities are education and entrepreneurship. Education, some of it is textbook and going to school. I have an MBA. I’ve got a college degree, as well. But some of it is going on YouTube University for free and learning how to do something. One of my business partners, prior to her working in our firm, she learned how to make websites sitting on a couch. She turned that into a six-figure business.

Allan Boomer:
So, you’ve got to constantly be learning. You’ve got to constantly be evolving. The thing that I challenge all of my team members to do every year is to just get better. You got to be the absolute best at what you do. If you’re the best, you can’t help but be successful. Think about that. How can you be the best at something and fail?

Allan Boomer:
There’s a card that I got from my aunt and it had a Maya Angelou quote. This is when I finished business school. It said, “Don’t make money your goal. Instead, pursue the things you love to do and do them so well that people can’t take their eyes off you.” That’s become my mantra. Personal development is huge.

Will Clanton:
Oh, my goodness. Amazing. I think, if I’m right Allan as well, you have an internship program that you’re building people through also at the firm?

Allan Boomer:
Absolutely. Yeah, we take in college students that are interested in finance. We had our first student from Morgan State University last summer. This summer we had a young man from Rutgers University. They’re doing great. I tell each of them, “You guys are going to be rockstars in this business and you’ll always have a home to come back here, but I want to see you guys go out and live your own Trading Places dream and go work on Wall Street, but just know that you got a home back here as well.”

Will Clanton:
ust talking to you, man, it just seems like you’re just a real caring human being who has a love for people and is walking in your calling, man. I love everything that you’re doing and what you’re about. Anything else you want to actually share with the community?

Allan Boomer:
Yeah, I just want to tell everybody that’s listening that a lot of us may want to be entrepreneurs and we think small because the world wants us to think small. We sometimes might be afraid to share our dreams with people, but I believe that God has given all of us dreams. It’s not to frustrate us. It’s not to be something that will happen at some point in the future. He wants us to do it now. Take some steps towards doing it now and don’t think about entrepreneurship as only something you can do on the side. Think about it as something that you can thrive in. Think about entrepreneurship as something that can allow you to make even more money than you make today in your job before yourself. You can create a financial legacy, a leadership legacy for your family, if your children can see that you’ve become successful as an entrepreneur.

Allan Boomer:
To me, entrepreneur is really nothing more than taking an idea that you think of up here, mixing it with your labor of your hands, and then producing money. Anybody can do it. The things that go into entrepreneurship… and I’m sorry I’m answering a short question with a long answer-

Will Clanton:
No.

Allan Boomer:
… but you need to have something that people need, something that people are willing to pay for, and you’ve got to be able to deliver at a price where you can make money. If you can do those three things… something that people need, something they’re willing to pay for, and if you can deliver that service or product at a price where you can make a profit… you’ve got yourself a business.

Allan Boomer:
The most important thing you need in business is not a website. It’s not an office. It’s not business cards. It’s customers. Anybody that’s got customers has a business. Any business that doesn’t have customers ain’t a business.

Will Clanton:
Right. Amazing. Allan, thank you so much for your time. Just tell the people how, if they want to connect with you, how to actually connect with you. I know you have the Sirius show, if you want to tell them how to get that. But how do they just connect to you if they want to get to Allan Boomer.

Allan Boomer:
Sure. If you’re on Twitter, our Twitter page is @MomentumAdvice. If you’re on the internet, our site is momentum-advisors.com. If you are in the extraterrestrial space of listening to radio, you can tune into SiriusXM channel 126. Our show is on every Sunday morning at 11:00AM. You can also go to the SiriusXM app and all of our shows are archived on demand there as well. Momentum Advisors is the name of the show.

Will Clanton:
Allan, thank you so much. I’m grateful that you spent this time with me. I look forward to connecting with you in the future, man. Thanks so much.

Allan Boomer:
Thanks for having me, brother Will.

Will Clanton:
Yes.