Jeff Reeter, Managing Partner, Northwestern Mutual

In an interview with Invest:, Jeff Reeter, managing partner of Northwestern Mutual’s TX Financial Group, discussed the firm’s growth, Houston’s business climate, client relationships, technology, and his upcoming transition after more than four decades with the company. “Our secret is to serve, love, and be a catalyst with our clients,” Reeter said.

What have been the biggest milestones for Northwestern Mutual’s Houston office since we last spoke?

The Northwestern Mutual office here in Houston leads the southern half of Texas, and we are grateful for what has happened over the last few years. We just finished our awards year, which ended in May, and we had what we call a quadruple-double.

Our investment assets under management grew about 28%. New clients and transactions grew in double digits, and our risk production grew 19%. It has been unbelievable to watch our advisors and our team. We seek to serve boldly.

We date back to 1857 in the risk business and 30 or 40 years in the wealth business. When you see the trajectory of our growth in wealth coming alongside what we are doing in risk, protecting clients while helping them build wealth and create financial security, a lot of people are coming to our firm.

How would you describe Houston’s current business climate and its biggest opportunities?

Houston is one of the most extraordinary cities in America, and I am grateful to have had a small part in its growth. It is a vibrant and inclusive city that wants people to succeed. If you move here, we want to pull you in.

Some major cities have a hierarchical structure where it can be difficult to break in. Business leaders in Houston have said we want to put our arms around people coming here. We have a tremendous number of people moving into the community and a vibrant economic base.

Many years ago, when the oil and gas business ebbed, our economy was really challenged. Today, Houston is multidimensional. It is not just an oil and gas city. It is a city with diverse successes. Mayor Whitmire has also done a good job helping continue that work of building an inclusive and welcoming city.

What financial concerns are clients bringing to your advisors today?

I have been doing this for 42 years, helping clients navigate markets, and the complexity today is as great as it has ever been because of political issues, geopolitical issues, and many other factors.

Several years ago, I went through a three-year program at the Wharton School called the Securities Industry Institute. One thing I learned was that history repeats itself. There are historical patterns that matter when looking at investment results.

However, the political and geopolitical environment we are experiencing today has nuances that make it different. Consumers trying to create financial security for their families and long-term financial success need an advisor who understands how to navigate that complexity. It does not necessarily have to be someone at my firm, although I am proud of our advisors.

How do you help clients make financial decisions when markets create uncertainty?

We have strong relationships with our clients where there is an emotional tie. Our firm’s mission is to seek first to serve, love, care, matter in their lives, make a difference, and be a catalyst, and let everything else take care of itself.

That creates a heartfelt relationship, but we are often called to insist that clients become unemotional about their finances. The more emotional somebody becomes, the more likely they are to make a snap decision that may be the wrong decision.

Our advisors do a great job keeping emotions in check because of those relationships and because our job is to objectively discern, based on data and ratios, how to allocate assets and establish the appropriate risk balance for each client.

Recently, clients have called saying the market has done well and they want to go to cash. We may adjust an allocation somewhat, but we do not want somebody making a significant change solely because the market shifts. Our client retention is 96.73%, and we are grateful for that.

How does Northwestern Mutual’s integrated approach differentiate the firm?

Our primary key differentiator is listening and learning through a confidential, personal questionnaire. We sit down with them and listen. We have a 17-page financial strategy where we ask about their future, their vision for their children, retirement, investments, asset allocation, and whether their family will be okay in the event of a tragedy. As people live longer, we also look at issues such as long-term care.

We are helping clients correlate their assets in a way that is uncommon in the industry. Thirty years ago, I set out to build a firm around the idea of truly loving clients well and putting them first, certainly ahead of any objective we have within our firm.

How are you attracting and developing advisors?

Northwestern Mutual has a tremendous training program nationally, and our Houston firm has been involved in assisting the corporate office with training strategy. We also do things differently here.

We are selective about who joins the firm. We interview a huge number of people and narrow that group until we identify people we believe are exceptional. We then take them through a training process lasting three to five years.

Part of our approach includes a ranch training facility about an hour and 15 minutes from Houston. We hold training and learning sessions there, along with team-building activities. We believe dynamic, multidimensional training is valuable after being highly selective about whom we bring into the organization.

We pick hearts before we pick heads. I can train almost any head, but I cannot change a heart. We want somebody whose primary motivation is not commission or income. Our advisors are among the highest paid in the industry, but that is because they are seeking to serve clients and make a difference in their lives.

How is technology, including AI, changing the way your advisors work?

When I joined Northwestern Mutual more than 40 years ago, the company operated differently. Today, we move faster, adjust strategies more quickly, and have leaned into AI and technology.

One example is how we capture client conversations. If we are discussing your financial strategy and your family’s financial future, technology can help record the conversation so I do not misunderstand what you have said. I am trying to understand your vision for your family’s financial future, and we can capture that better than ever before.

Technology has also allowed us to serve clients when the traditional model was disrupted. During the year COVID hit, our Houston firm increased new clients by 34%. Given the size of our firm, that was unbelievable.

We were early adopters of Zoom, so while many competitors struggled to conduct client meetings, our advisors were meeting clients virtually during a period when people desperately needed financial conversations. Markets had declined significantly, and there was tremendous uncertainty. Our advisors were able to meet clients where they were.

What does the next chapter look like for you and the Houston organization?

I am retiring as managing partner this fall after 42 years with Northwestern Mutual. I am the senior-most-tenured managing partner at Northwestern Mutual, and I am overwhelmed with gratitude for what has happened, the trajectory of our firm, and the opportunity to be part of such an amazing company.

I do not like to say I am retiring. I say I am re-firing. For me, that means continuing to seek to serve, love, and care for others, just in a different role.

Northwestern Mutual has hand-picked two extraordinary leaders, Kevin Chadwick and Nick Ewen. Our firm will become two firms, with Kevin leading one and Nick leading the other. I am excited because I believe they can take what we have built to another level.

The people in this firm feel like family. I am grateful that Northwestern Mutual and these two leaders will steward the future so well. We have set records and accomplished some great things, but I think the next few years are even brighter.

H.O.P.E. Helping Others Pursue Extraordinary has been a major part of my journey at Northwestern Mutual. Since I was 22, this company has allowed me to sit down with people and talk about their vision for their most extraordinary life. We help them think five years ahead about what could be possible, develop a bold vision for that future, and then run after it together. I am really grateful for that.