Truist-Perspectives-AUGUST_2021

Truist Perspectives
magazine
The psychology of investing
Understanding human behavior
can help you avoid common missteps.
Successful business transitions
Our Business Transition Advisory Group shares
tips to ease the planning process.
Leading with purpose
How defining your purpose can make you
a more effective business leader.
August
2021

Change is here to stay.
The pandemic has changed a lot of things. There’s
no doubt about it: COVID-19 has upended the
way we live, the way we work, and how we interact
with each other.
The silver lining, if there is one, is that we’ve all had
a unique opportunity to pause and reflect on our
values, so we can move forward with an understanding
of what matters most.
With this renewed
sense of priorities,
let’s take time to:
Reassess old thinking
In “Why smart investors make irrational
decisions,” we explore how investors can
approach their financial strategy with a
healthy combination of rationality and
humanity. When you meet with your
Financial Advisor, maybe even in person
for the first time in a long time, ask about
areas where you may have an emotional
blind spot.
Absorb new ideas
Where there’s a challenge, there’s
usually an opportunity. Take, for example,
private equity (PE), which historically
offers the best returns of any asset class.
In “Private equity investing, explained,”
learn why a PE investment may be a
good option for some investors as the
economy recovers.
This issue also offers new insight into real
estate investment trusts and the For the
99.5% Act.
Prepare for uncertainty
If you’re a business owner, this year has
likely brought a lot of unexpected change
for you. One change our Business Transition
Advisory Group can help you navigate
is a planned or unplanned switch in
ownership. “Tips for successful business
transition planning” explores how to make
your succession more intentional—
and successful.
Lead with purpose
Even as society changes, sometimes at
breakneck speed, some things should
never change. In “Leading with purpose,”
find out how focusing on his company’s
core values put Truist client Doug Rinker’s
business on the right track. Then learn
how to define and leverage your
leadership purpose.
Find new things to enjoy
When you take time to enjoy the world
around you, you may discover a new
passion. For example, art is a focus of
my family’s giving strategy. That’s why
I’m excited about “The evolving world of
abstract digital art,” which explores this
growing genre.
This year has reinforced that nothing
is certain but change. But with good
planning, you can adapt quickly and keep
growing. We hope this issue gives you
some fresh and helpful insight to apply
to your life and portfolio.
Joe Thompson
Head of Truist Wealth
CEO, Truist Investment Services, Inc.
Truist Advisory Services, Inc.
42 | Truist Perspectives

Table of contents
artist Rik Oostenbroek shares his creative
process for making and selling extraordinary pieces
22Dutch
of digital art—including NFTs.
04
Pulse
Market news and tactical
tips from the Truist team.
16
Feature
Why smart investors
make irrational decisions.
08
Insights
Business transitions, private
equity investing, and more.
20
Community
Truist actively commits to
growing financial education.
14
Leading with purpose
Learn how discovering your
sense of purpose can make you
a more effective leader.
26
Inspire
Words that offer a unique
and uplifting perspective.
Copyright © 2021 Truist Financial Corporation, 214 N. Tryon St., Charlotte, North Carolina, 28202. Find us online at Truist.com/wealth.
August 2021 | 3

Pulse: News
REITs in 2021:
Fully recovered?
A comeback for REITs will take time and be uneven, but there are signs
of improvement across certain property types.
Real estate investment trusts (REITs) have been hit hard
during the pandemic. But as the U.S. economy recovers
(albeit haltingly and unevenly) and more people get
vaccinated, we feel that we can look forward to new
opportunities from underappreciated sectors.
Our white paper on commercial real estate in a
post-pandemic economy explores these opportunities
and recovery for REITs.
Recent innovations in technology—spurred by the
demand for connectivity as people work, shop, study,
and communicate from home—have driven positive
momentum in property sectors such as industrials,
infrastructure, and data centers. This represents a
larger shift in the REIT sector mix over the past decade,
one in which REITs that support the digital economy
have seen a surge in demand and importance.
Cyclical REIT sectors, like travel, retail, and lodging,
have suffered greatly during the pandemic, too. However,
those beaten-down industries are now recovering,
recouping much of their losses as the consumers are
returning to a sense of normalcy. Conversely, REITs that
support industries still affected by the pandemic, such
as offices, are recovering more slowly.
As the economy continues to recover, so will REITs.
Sabrina Bowens-Richard, CFA, CAIA®, and Senior
Investment Strategy Analyst for Portfolio & Market
Strategy, Truist Advisory Services, Inc., favors a diversified
approach with meaningful exposure to growthoriented
technology sectors and those improving
cyclical sectors. Read the white paper for more details.
REITs are subject to risks, including market, natural disasters, and interest rate increases. The
dividend income received from REITs isn’t tax advantaged like corporate dividend income.
4 | Truist Perspectives

Pulse: News
The 99.5% Act—What
could it mean for you?
In March 2021, Senator Bernie
Sanders introduced a new act—the
For the 99.5% Act—which, if passed,
would make significant changes to
the federal estate and gift tax laws.
Here are a few of the highlights:
• Reduction of the estate tax exemption to $3.5 million
per individual and $7 million per couple. The estate tax
would continue to be indexed for inflation.
• Increase of the estate tax rate from 40% and establishment
of a new progressive estate tax rate structure.
• Decoupling of the gift tax and estate tax exemptions.
The proposal seeks to reduce the gift tax exemption
to $1 million per person, and the amount would not be
indexed for inflation.
• Alter the generation-skipping transfer (GST) tax by
placing a maximum of a 50-year term on dynasty trusts.
• Inclusion of grantor trusts in the grantor’s estate for
estate—not income—tax purposes, making this type
of planning essentially obsolete.
• Restriction of grantor retained annuity trust (GRAT)
funding by imposing a minimum term of 10 years and
a required minimum gift amount.
• Elimination of valuation discounts for
nonbusiness assets.
Portions of this legislation may impact your wealth plan,
affecting how you give (and gift) your money. Truist advisors
will know what the legislation entails when or if it passes
and can help you strategize for the most beneficial future.
Contact your advisor to plan your next steps.
Comments regarding tax implications are informational only. Truist and its representatives do not
provide tax or legal advice. You should consult your individual tax or legal professional before taking
any action that may have tax or legal consequences.
August 2021 | 5

Pulse: News
Truist Wealth:
Thought leaders
Truist’s new video series hosts conversations with remarkable leaders
who share their perspectives on the qualities of great leadership.
Inspire others, change communities, and lead by example:
These are the goals the Truist Leadership
Series hopes to help you accomplish. Through
the series, Truist CEO and Chairman Kelly
King hosts in-depth discussions with diverse,
notable leaders. You’ll learn valuable insights
about what it means to be a successful leader
and how to make yourself a better one.
In a recent video, King speaks with
Tal Ben-Shahar, former Harvard
professor and author of several
bestselling books on happiness
and positive psychology. King
and Ben-Shahar discuss finding
joy in your daily activities, define
effective and resilient leaders,
offer tips on how to develop a
growth mindset, and more.
“
While success doesn’t
lead to happiness,
happiness does lead
to more success—a
lot more. In other
words, your happiness
is a good investment.
— Tal Ben-Shahar
“
Keep the conversation going:
Subscribe to Truist’s YouTube channel
to be alerted when new videos are
posted to the Leadership Series.
6 | Truist Perspectives

Pulse: Expertise
Our take:
Insider tips for specialty clients
Athletes, artists, doctors, and those outside the U.S. often face
distinct challenges. Here’s how Truist advisors are helping our
specialty clients pivot and plan ahead this year.
Share your hopes and dreams
When a rising musician thought his dream studio was out
of reach, we found the financing and connected him with a
realtor. As specialty advisors, we understood the need to be in
the most creative environment. In three weeks, he was in his
new home—where he recorded what I believe is the biggest
song of the year! Share your dreams with your advisor, who
will figure out the steps to help you shape the legacy you want
to leave behind.
Let pros care for you
We work only with medical practices and physicians—day in,
day out—so we know what keeps doctors up at night. Right
now, we’re seeing an uptick in cyber fraud. Our clients are
often surprised that a cyber liability policy they purchased
three years ago may not cover the types of crimes happening
today. We’re recommending all clients do an insurance review
to protect patients and the practice itself against this and
other threats. It’s a good idea for any business owner to have
their policies reviewed at least once a year.
Be an open book
Many people compartmentalize their finances: Personal.
Family. Business. But international business owners tend to
view their finances more holistically. When the pandemic hit,
we already understood the big picture of their finances, so we
were able to help them pivot quickly. That was a real reminder
about how connected the world is—and how connected our
goals are, too.
Make the case for liquidity
Law firms are not like other businesses. For one, monthly
draws are usually supplemented by a big end-of-year payout,
with most of the money distributed to partners. That means
there isn’t much cash on hand for the practice—including
when a pandemic shuts down the court system. Truist Legal’s
specialized knowledge enabled us to help lawyers manage the
unique challenges of 2020. Now we’re making a strong case
for holding something in reserve so funds are more liquid in
case of emergency.
Rasheed L. Muhammad
Managing Director, Senior
Wealth Advisor, Beverly
Hills, California
Sports & Entertainment
Specialty Group
Marylin Gonzalez
SVP, Director,
Miami, Florida
Medical Specialty Group
Marcello Zaffaroni
VP, Wealth Advisor,
Coral Gables, Florida
International
Specialty Group
Wendy F. Inge
SVP, Wealth Advisor,
Richmond, Virginia
Legal Specialty Group
Muhammad, Gonzalez, Zaffaroni, and Inge, Registered Representatives, Truist Investment Services, Inc. Investment Adviser Representatives, Truist Advisory Services, Inc.
August 2021 | 7

Insights: Family
3 reasons why your family
needs a mission statement
Learn how outlining your family’s values in a mission statement
can be a critical way to preserve your financial legacy.
Your family is unique, and so are your
goals—and goal setting is an important
component of your financial legacy. Has
your family thought about what values
you collectively hold and what goals
you’re working toward? If not, now is
the time to make those conversations
part of your legacy planning to create a
family mission statement together.
What is a family mission statement?
A mission statement is a written affirmation of your
family’s values and priorities. An effective mission
statement should address the core values and principles
that will govern your family’s decisions, actions,
and objectives. In doing so, you are solidifying your
beliefs and goals. Consider it a connection point that
acts as your family’s compass moving forward.
“Values, inherent in all of us, motivate behavior
throughout our lives, establish our fundamental
belief systems, and lie at the heart of all human
relationships,” explain Carolann Grieve, managing
director of Family Governance, and Daisy Medici,
managing director of Governance and Education,
Truist Wealth Center for Family Legacy, in their
white paper “Mission statements for families of
wealth: Identify the values and reap the reward.”
Their process begins by having individual conversations
with family members about what matters most
to them and then meeting together as a group to
identify common values shared across your family.
Keep it fun and light—you may just learn something
about your kids or spouse that you never knew.
These conversations require time and effort but can
prove to be exceptionally rewarding later in life.
30%
The odds of sustaining wealth
across three generations*
* Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values,
Robert D. Reed Publisher, 2003.
8 | Truist Perspectives

Insights: Family
Here are three reasons why creating a
mission statement can be beneficial to you
and your family.
1 Preserve your family legacy.
A family mission statement can be an essential navigation
tool in wealth planning, particularly in light of
wealth-transfer data: According to a 2003 study by Roy
Williams and Vic Preisser, the odds of sustaining wealth
across three generations are as low as 30%. Lack of
communication or mission, unprepared heirs, and lack of
strategic planning within the family can be contributing
factors. Financial literacy and communication are key in
transferring generational wealth to your kids. By creating
a welcoming environment for open and honest communication,
your family can stay better connected and work
toward successful wealth preservation.
2 Get everyone on the same page.
For a mission statement to be successful, it must resonate
for everyone within the family. Plus, allowing your
children to have a seat at the table for the conversation
is a great way to strengthen relationships and provide a
learning opportunity for everyone involved.
“This open and honest communication between family
members leads to greater trust, which helps prevent
conflict,” say Grieve and Medici.
Everyone within the family must feel that their input is
accepted and appreciated. But it’s important to not rush
the process. In fact, the process can be just as important
as the end result. It can be exceptionally gratifying,
revealing, and productive to hear everyone’s point of
view and to think through what values will drive your
family’s decisions and choices.
3
Guide you through conflict and tough decisions.
“In the end, families will be rewarded with far more than
a piece of paper,” say Grieve and Medici.
By creating a mission statement, you’re outlining your
belief systems as a family unit in a way that’s clearly understandable
to everyone. Should a tough conversation,
decision, or conflict arise, you and your family can look
back to your mission statement and remain true to your
defined values to help guide your path forward. Consider
your mission statement a covenant that preserves your
family values and a compass that keeps your family on
track to hit their goals.
To learn more about why family mission statements are
beneficial in legacy planning, read Grieve and Medici’s
white paper: “Mission statements for families of wealth:
Identify the values and reap the reward.”
August 2021 | 9

Insights: Business
Tips for successful business
transition planning
No two businesses are alike, but they all have something in common: One day, they will
experience an ownership transition. Our Business Transition Advisory Group shares tips
that can ease the process.
Business transitions are inevitable yet often
unexpected, so they shouldn’t be left to chance.
Proper planning can streamline the process and set
business owners (and their families) up for success.
Most owners expect to run their company until they
are ready to retire, but the reality is that a “trigger
event” can happen at any moment. These events can
include death, divorce, illness, business disruption,
market consolidation, market timing opportunities,
the decision to retire sooner than originally anticipated,
and more.
Because trigger events are unpredictable, they can
initiate a transition sooner than anticipated, catching
business owners off guard. In fact, in our experience,
almost half of all businesses transitioned when there
was no stated intention of doing so.
“If you thought you were busy running the business,
once that trigger event happens, your days become
a lot busier,” says Russell Sanders, managing
director of Truist’s Business Transition Advisory
“
You read a book front to
back because you enjoy the
suspense of wondering how
it will end. But that’s not how
you should run a business.
Russell Sanders, managing director
of Truist’s Business Transition
Advisory Group
“
Group. “Everything becomes rushed, and you don’t
really have time to think about the long term.”
You can’t always know when a transition will happen,
but there are some tips that can make business
transition planning more intentional and successful.
04 | Perspectives

Insights: Business
It’s never too early
to start planning.
The ideal time to begin planning your exit is when you
start your business, but very few business owners actually
do that. If you haven’t already started planning, why not
start today?
“You read a book front to back because you enjoy the
suspense of wondering how it will end. But that’s not how
you should run a business,” says Sanders. “What tangible
and intangible benefits do you get out of the business?
What would you like a transition to look like? What will
you do next if you are not working for the business? Think
about these questions first, not last.”
At the very least, begin planning a few years ahead of
when you know you want to exit. “It’s a big job to create a
transition plan; you can’t just run a calculation and quickly
figure out all of the answers,” says Sanders. “You’ve got
to really think about the bigger things in life, and that is
difficult for many business owners. Give yourself time to
do it right.”
It’s an evolution.
Not the end.
Dive deeper:
Preparing for
transition
As a business owner,
you have options for
how you transition
away from your
business—and who
you leave in charge.
Learn more about how
business transition
planning lets you leave
your company in the
best hands by reading
our infographic,
“Preparation puts
transitions to work.”
Remember that business transitions are not the end of life
as you know it, but merely an evolution to the next phase
of your life. How well you plan for this shift will impact
how satisfied you’ll be with the outcome.
Sanders says that while maximizing sales proceeds is
important, what you do with the proceeds (and yourself)
after the transition is just as important. This phase of the
business transition planning process often is overlooked.
“As a result,” he says, “many business owners experience
a lack of direction or a sense of loss after they exit the
business.”
Effective business transition planning is more than just a
tactical decision that’s made right before a sale. Rather,
it accounts for decisions that need to be made before the
event, during the event, and after the event.
Preparation is key, and that includes having a personal
wealth and/or family legacy plan that can help you
evaluate strategic alternatives for your business and
ensure the best possible outcome.
August 2021 | 11

Insights: Investing
Private equity investing, explained
This long-term investment option has become a hot topic recently. Here’s an
overview of this complex asset class—and some important points to keep in mind.
In the 1970s, a Stanford
professor led studies on
delayed gratification.
Preschoolers were each
given a sweet treat—
like a marshmallow—
and a choice. They could
enjoy it immediately,
or they could resist the
urge for 15 minutes
and earn an extra one. 1,
2
Now, let’s replace
that marshmallow with
money. Could you set
aside a portion of your
capital for 10 years
in hopes of greater
returns? If so, you might
want to consider private
equity (PE).
How does private equity investing work?
In this type of investment, a fund manager selects
promising private businesses, then connects them
with the pooled resources of private investors. The
investors commit a set amount of money (ranging
from hundreds of thousands to millions) for an
extended period (usually 7 to 10 years, with provisions
for extensions). Typically, the capital is “called”
in increments (capital calls), until the commitment
is met. Throughout the process, the fund manager
often works closely with the business to strengthen
its foundation and improve its functionality, making
minor to sweeping changes, as needed.
While there is, of course, risk—as with any type of
investment—PE offers the potential for greater
long-term reward. According to McKinsey &
Company, private equity has outperformed other
asset classes since 2008 and shown less volatility,
even in the current period of recovery. 3 In fact, a
report from Burgiss showed that the top quartile
of PE fund investments in the United States had
delivered a 28.3% internal rate of return (IRR) for
the 10-year period ending September 30, 2020. 4
What makes PE unique?
There are several factors that make private equity
investing attractive to some investors, explains
Ravi Ugale, managing director of private equity and
credit strategies for Truist Advisory Services.
First, PE diverges from the public markets in some
key ways. For one, PE fund managers are not
obligated to shareholders and quarterly reports, so
they can focus on the long game, not daily market
fluctuations. This may be one reason there is not
a strong correlation between how the two asset
classes behave. 4
There is also the sheer size of this investible
universe. “There are more than 110,000 private
businesses in the U.S. of investable
quality, which means they have at
least $15 million in annual revenue,”
says Ugale. “Whereas the number of
public companies on U.S.
stock exchanges
has reduced
12 | Truist Perspectives

Insights: Investing
considerably in the last 10 years.” Thus, PE offers
opportunity for additional diversification across
the portfolio. 4
Second, PE is, by nature, a long-term investment.
Historically, this has meant its returns
have been taxed at the rate of long-term capital
gains, which has been lower than that of shortterm
gains. Its duration also makes it a possible
vehicle for the transfer of wealth. “Private equity
is one way to put money into family limited
partnerships,” says Elena Vasilescu, senior vice
president and investment manager for Truist
Advisory Services (TAS). “Because PE is a longterm
investment and this is a long-term goal, it
just makes sense.”
Finally, private equity investing offers a sense
of giving back. “Private equity firms bring
expertise and contacts to these companies to
help them grow faster and improve cash flow,”
says David Rakestraw, senior managing director
and financial advisor for the Private Client Group
of Truist Wealth. “You’re not just investing in
a stock; you’re helping a business to grow.
That’s in the best interest of all stakeholders,
including the employees, the customers, and the
community.”
Why isn’t private equity investing in
every portfolio?
Most of the downsides of PE are linked to the
size of investment coupled with its illiquidity.
In short, they tie up a great deal of money for
a lengthy period of time. While it is possible to
divest oneself from PE assets, it’s not an easy
exit, and it typically involves selling below fair
market value. Getting in the door can also be
problematic: Many fund managers won’t work
with people they don’t know and trust. And
due to the lack of a reliable “index” or even
observable market prices, it can be difficult for
investors to make an informed decision about
individual options.
For these reasons, it’s recommended that investors
work with a trusted PE advisory service
when exploring this asset class. Truist has
certain eligibility requirements to protect clients
whose portfolio cannot tolerate the unique risks
of private equity investing, and Truist works with
fund managers with a demonstrated record of
strong performance.
"The difference between
returns from the best
manager and the worst
manager can be 40%,”
says Vasilescu. “Our due
diligence in finding the
right managers is part of
the process, and unlike
many institutions, we don’t
charge a fee for that."
Elena Vasilescu, senior vice president
and investment manager, Truist Advisory
Services (TAS)
This relationship is a two-way street: Because of
Truist’s reputation, fund managers may welcome
Truist clients more readily and with a smaller
total commitment. (For example, a fund that
normally requires $5 million for entry might only
ask $250,000.)
Is PE right for you—and are you right for it?
That’s a conversation for you and your advisor,
but it may be one worth having. “Even though
the time horizon for private equity investing
requires more patience—and a higher tolerance
for risk,” says Rakestraw, “the potential for
strong returns may appeal to clients who want
to diversify their portfolio with the goal of
long-term growth.”
The risk profile of private equity investment is higher than that of other asset classes and is not suitable for all investors. There are inherent risks in investing in private equity
companies, which encompass financial institutions or vehicles whose principal business is to invest in and lend capital to privately held companies. These risks include a longterm
investment horizon, rigid liquidity restraints, and high bankruptcy rates among portfolio companies. Generally, little public information exists for private and thinly traded
companies and there is a risk that investors may not be able to make a fully informed investment decision. Past performance does not guarantee future results.
1. “Kids do better on the marshmallow test when they cooperate,” Greater Good Magazine,
February 24, 2020.
2. “Cognitive and attentional mechanisms in delay of gratification,” APA PsycNet.
3. “ A year of disruptions in the private markets: McKinsey’s Private Markets Annual
Review 2021,” McKinsey & Company, April 2021.
4. “Approach to private equity Q2 2021,” Truist Advisory Services Inc.
Additional Sources:
“ S&P 500 returns to halve in coming decade—Goldman Sachs,” S&P Global, July 15, 2020.
“ The NBA’s private equity plan is in motion and it’s betting on the allure of sports ownership,” CNBC,
January 25, 2021.
“ Private equity’s favorite tax break may be in danger,” The New York Times, April 23, 2021.
" Private investing for private investors: Life can be better after 40(%)," Cambridge Associates,
February 2019.
“ 2021 long-term asset class outlook and capital market assumptions,”
Truist, November 2020.
August 2021 | 13

Insights: Leadership
Leading with purpose
Your personal leadership purpose can set the course for your effectiveness as a leader. Here,
Truist Leadership Institute’s Eileen Hogan explains how to define your purpose—and how to
stay aligned to it as you lead.
It’s very appropriate that Doug Rinker
refers to his planned retirement
as “repurposing” his life. Rinker,
who has spent 30 years leading
Winchester Equipment Company, an
agricultural and industrial equipment
sales and service company based in
Winchester, Virginia, has a story that
really brings to life the concept of
leadership purpose.
Rinker turned to Truist Leadership
Institute as he was putting the pieces
of his succession plan in place and
working to train the team who would
lead the company next. They were
hardworking, engaged, good people
who valued teamwork, but things
weren’t coming together as well as
they could for the business.
“We just couldn’t get a level of
satisfaction that we were moving in
the right direction as a group, or, in
most cases, individually,” Rinker says.
What was the solution? Clarifying
their purpose and applying it to their
work. The leaders became more
effective at working with customers
and with one another, and they felt
more satisfied about their work.
Winchester Equipment’s experience
mirrors that of hundreds of other
companies studied in leadership
research. In its 2018 Global Talent
Trends study, the global benefits
consulting firm Mercer found that
75% of employees who consider
themselves to be thriving at work
say their company has a
strong sense of purpose
that resonates with their
personal values.
Some team members
have even thanked Rinker
and shared their personal
stories of how the discussions
of leadership purpose
helped them.
“As somebody who loves to
teach, that just really rings
my bell,” Rinker says. “When
you’ve seen the light in the
eye come on, then you know you’ve
had a good day.”
Understanding leadership purpose
Many organizations have a mission
statement or company values. Leadership
purpose simply applies that
concept to individuals. Getting clear
about your leadership purpose and
using it effectively helps you create
better business outcomes and helps
you strengthen your relationships
with your colleagues, customers, and
peers.
Consider these questions as you
contemplate your leadership
purpose:
• What is the guiding star that helps
me make decisions about what I
spend time and energy on?
• What kind of relationships do I
want to build, and how do I want to
impact people?
“Tell our story, service
our customers, be a
great team, be a role
model, and practice
the Golden Rule.”
Rinker’s purpose statement
• Why am I here? What impact do
I want to create at work? In the
world?
Talking with a leadership expert, a
mentor, or a trusted peer about your
answers to these questions can help
you define your leadership purpose.
Reflecting on the times when you
felt you were being your best, most
authentic self and were making a
positive difference can also be part
of the process. Your purpose might
involve teaching, coaching, innovating,
solving problems, or creating
access to opportunity for others.
These concepts can then be woven
together into an expression of your
individual leadership purpose.
Rinker’s purpose statement? “Tell
our story, service our customers, be
a great team, be a role model, and
practice the Golden Rule.”
14 | Truist Perspectives

Insights: Leadership
One thing I’ve noticed when I talk to people
who have defined their leadership
purpose: Though the words are always
different, when you boil them down, they
almost always relate to impacting other
people in a positive way.
How to use your leadership purpose
once you’ve defined it
Why is clarifying our leadership purpose
helpful? From a neurological perspective,
acting with purpose douses our brain
with a flood of positive emotions. And
that flood heightens the ability of our
brain’s attentional system to look for
positive things around us and opportunities
that we might not have seen
otherwise.
Leadership listen
Leadership purpose helps us see the
bigger picture. It can help us prioritize—
to determine what we spend energy
on, what we don’t spend energy on,
what we’ll tolerate, and what we will not
tolerate.
Here’s a surprising tactic to reinforce
your purpose: Let other people know
what your leadership purpose is so they
can help hold you accountable. They
can remind you when your actions are
off-purpose and help you identify ways
to be more on-purpose.
When you use purpose effectively and
consistently, it helps you show up more
consistently for others. They start to
know what to expect from you, and your
relationships with them strengthen.
Truist Leadership Institute creates a podcast for leaders called “Leadership
Amplitude.” Available on iTunes, Stitcher, Google Play, or wherever you get
your podcasts, the program covers a range of timely, thought-provoking, and
useful insights for leaders. Episodes 9 through 12 take a deeper dive into the
topic of leadership purpose with TLI experts. Listen and subscribe today!
75%
of employees
who consider
themselves to be
thriving at work
say their company
has a strong sense
of purpose that
resonates with
their personal
values.*
*2018 Global Talent Trends
study by Mercer
Recommended reads on leadership and leadership purpose
The Mind of the Leader: How to Lead Yourself, Your People, and Your Organization
for Extraordinary Results, by Rasmus Hougaard and Jacqueline Carter, Harvard
Business Review Press, 2018
Start with Why: How Great Leaders Inspire Everyone to Take Action,
by Simon Sinek, Portfolio, 2009
Mindset: The New Psychology of Success, by Carol S. Dweck, Random House, 2006
August 2021 | 15

Why
smart
investors
make irrational
decisions
Learn how understanding human behavior
can help you avoid investment missteps.
16 | Truist Perspectives

Human behavior, particularly
when it comes to
investing, can be hard to
predict. While traditional
economic models say that
humans will always act in
their own best interest—
and that may be true—
savvy investors and their
advisors know that sound
investment decisions take
finesse and strategy. It’s
not as simple as plugging
five possible stock options
into a cost-benefit
calculator and selecting
the one with the greatest
return; you have to be able
to look at economic trends
through a real-world lens
and understand the
full picture. >>
August 2021 | 17

“Economics says that humans
have stable preferences, that we
evaluate costs and benefits, and
then make decisions according
to this very rational perspective.
But what we actually see is that
people often are making decisions
based on emotion rather than
rational thought.”
Mariel Beasley, co-director
of Common Cents Lab
Because of the thought required, investment decisions
are rarely made lightly. There’s a lot of time and effort
that goes into planning investment strategy—so what
might cause a shrewd investor to make an irrational
investment decision?
Our own innate mental shortcomings.
“In the investing space, it can be incredibly difficult because
there’s a lot of uncertainty,” shares Mariel Beasley,
co-director of the Common Cents Lab at Duke University.
“And we know that as decisions become more complex,
humans rely more and more on mental shortcuts to make
decisions, rather than true rationality.”
Human emotion and the influence of outside factors—such
as societal norms, loss aversion, and other
psychological barriers—all impact our decision-making
process, whether we want them to or not. Through her
work at the lab, Beasley and her team use economics,
social and cognitive psychology, and behavioral science
concepts like choice architecture to explore the financial
psychology of how these factors influence an investor’s
decision-making.
“Economics says that humans have stable preferences,
that we evaluate costs and benefits, and then make
decisions according to this very rational perspective,”
continues Beasley. “But what we actually see is that
people often are making decisions based on emotion
rather than rational thought.”
While you’re never going to completely eliminate these
mental shortcuts or emotion from your decision-making
process, there are things you can do to avoid irrational
decision making, mitigate blind spots, and approach
your financial strategy with a healthy combination of
rationality and humanity.
Take the emotion out of it
“As humans, we tend to overvalue things that we already
own,” says Beasley. “Once you actually own a stock you
might be less likely to sell it, even if it is a dud.” With
that in mind, it’s important for investors to prepare
themselves for the emotional ups and downs of investing
right from the start.
One way to do that, as cheesy as it may sound, is to write
a letter to yourself when you make a new investment. It
doesn’t have to be anything fancy, but while you’re in a
less emotional state—the market is good, you’re happy
with the new investment—jot down why you decided to
go this direction and give yourself some unbiased advice
about how you should handle this investment if the
market changes. By having it in writing, you can revisit
your rationale in the future, when emotions may
be running high due to market volatility.
You should also make time on a regular basis to “go
through your entire portfolio and decide if, at today’s
price, you would still buy the stocks you currently own,”
says Beasley. “If the answer’s yes, great. Hold onto them
and potentially buy more. If the answer’s no, it’s time
to sell because you’re subconsciously telling yourself
that the investment might go down in the future.” Again,
the goal here is to look at your portfolio objectively and
18 | Truist Perspectives

streamline your investments based on your long-term
goals, not your current excitement or concerns.
Know your risk aversion can change
Beasley says it’s important for investors to acknowledge
that they’re not always picking a portfolio that matches
their true risk preference; your risk aversion may change
according to the options presented to you.
“You should avoid looking at your options and thinking, ‘I
know I’m not interested in the most conservative option
that’s available, I’m one up from that’—or ‘I know that I
would never select the most aggressive choice, I’ll go one
step down,’” says Beasley.
Each investment option should be evaluated
independently, because, depending on the options presented
to you, your risk aversion can shift without your
fully realizing it. For instance, if you’re shown a set of
potential investments that includes an option far riskier
than anything you’d ever consider, it makes sense that
you may automatically choose a slightly less risky option.
Where this gets tricky is when the “less risky” option is
still a higher risk than you’re typically comfortable with.
If you simply evaluate all your options based on your
perceived risk aversion—always just selecting the option
one step down from the riskiest, for instance—you could
end up with a portfolio that’s not actually in line with
your end goals. Instead, focus on making all your investment
decisions on a sliding scale. Think to yourself: “If all
these other options weren’t available, would this still be
my choice?”
Perform your own testing
If you’re interested in adding a different type of investment
to your portfolio, one about which you’re unsure
how it will play out in the long run, “pick an income
stream that you feel you can do anything with—maybe
half of your tax refund, for instance,” suggests Beasley.
Use this dedicated money to perform your own test and
see how the investment performs before incorporating
it with your main portfolio. Since we tend to think about
money differently depending on where it’s coming from,
you’re likely to be slightly less sensitive to the investment’s
performance and evaluate it more objectively.
In addition, financial literacy skills are best taught by
managing money in real life—so using this dedicated
income source for specialized investments can also be
a great way to teach your children or family members
about investing. They can learn through real-world
experience, but in a limited or controlled environment.
This strategy also helps prepare them for the future,
especially if you plan to have them manage your
investment accounts.
In the end, there’s only so much we can do about human
behavior. Emotions will always be a part of how we
make decisions—it’s what makes us people rather than
computers. But for savvy investors, objectivity is key—
and the trick is to understand your financial psychology
so you can find ways to strategically work through blind
spots or shortcomings as you evaluate your portfolio.
“
As humans, we
tend to overvalue
things that we
already own.
Once you actually
own a stock you
might be less
likely to sell it,
even if it is a dud.
Mariel Beasley, co-director
of Common Cents Lab
Want more insight
on how to assess
investment decisions?
Read our white paper:
“Coincidence
or brilliance:
how to assess
investment
decisions.”
“
August 2021 | 19

Community
A passion
for
financial
education
Truist actively commits to financial education among its teammates,
clients, and the greater community as a way to promote widespread
well-being and create pathways to greater economic equity.
“Any time, as a society,
our level of financial
literacy improves,
just about every
other aspect of our
lives improves,” says
Brian Ford, Truist’s
head of financial
wellness. “It’s not
just about dollars
and cents or building
a bigger net worth.
It’s about improving
our job prospects,
our relationships,
our health.”

Community
Truist’s purpose is to inspire and build better lives and communities. And often, that can
start with a solid financial education. Here are a few ways that Truist is trying to improve
the financial literacy of our teammates, our clients, and the communities we serve.
It starts close to home
In 2016, CEO Bill Rogers set out to improve the financial
well-being of his employees at SunTrust now Truist. He
hired Ford, who was running an independent company
called 8 Pillars, to launch an internal wellness program.
“We didn’t just roll out a program. We really put our money
where our mouth was, with $18 million paid out to our
employees over six years, helping them establish employer-sponsored
emergency savings accounts, and giving
them a full financial wellness curriculum,” says Ford.
The program worked so well that “we thought, what if we
take this out to our corporate clients?” says Ford. Now,
270 companies participate in the program, called
Truist Momentum.
Financial well-being
for everyone
Ford, along with Bright Dickson, Truist’s resident expert
on positive psychology, also launched a new content
program intended to reach a wider audience.
“Money and Mindset is a website and podcast—a movement—where
anyone can go to get unbiased, accessible
information on financial education,” Ford says. “We said,
‘What can help someone get in a better place financially?’
We have the education, the principles, the rules … but are
we really helping people get the right mindset?”
Together, Ford and Dickson created Money and Mindset
to help people create financial peace of mind. “All of
a sudden, we’re reaching people in a way that hasn’t
been done in the past,” says Ford. “This isn’t, ‘You need a
spreadsheet for budgeting.’ This is a new approach.”
Ford and Dickson do, in fact, talk about budgeting, but
they talk about it in relation to the things you really care
about—such as your family, pets, travel, and health.
“Let’s frame up your finances within the things that are
important. Then sprinkle in some positive psychology
and talk about the science behind optimism, the science
behind a growth mindset. And it’s exciting, unique, and
fun,” Ford says.
Financial literacy improves
student retention
Like a ripple in a pond, the financial education that began
with Truist teammates has expanded in ever wider circles,
with long-lasting effects. Financial education helps build
a strong foundation for economic mobility and well-being,
according to Truist Foundation Director of Strategic
Initiatives Meghan Pietrantonio.
For example, she says Georgia State University “learned
that a significant number of students drop out of college
because of a very small debt or bill—like $500 on their
student meal plan,” not because of poor grades.
GSU is one of the most diverse universities in the U.S.,
and annually graduates more African American students
than any other public or private institution. Many of the
students who dropped out were from minority groups or
the first in their family to attend college.
Building on the success of a grant from 2015, the Truist
Foundation awarded $2.8 million to Georgia State University’s
National Institute for Student Success, followed by
an additional $2.5 million in May, 2021. The Institute for
Student Success offers a universal self-service diagnostic
tool for institutions to learn where they stand in terms of
student preparedness and student success outcomes.
It also offers interactive financial coaching to students.
Both of these tools have been extended beyond GSU to a
cohort of historically Black colleges and universities.
Setting up high school students
for success
Another grant from Truist Foundation is helping Florida
International University launch a program to teach
financial education to high school students. FIU partnered
with the National Academy Foundation, a nonprofit
organization that runs career academies within traditional
high schools. Specifically, FIU will be supporting NAF’s
Academy of Finance, which operates in 193 high schools
with high minority enrollment in more than 140 cities
across the U.S.
“One of our main goals is to revamp the curriculum for two
classes: Principles of Finance and Applied Finance,” says
professor Flavio Carrillo, faculty director of the Capital
Markets Lab and senior director of the Truist FIU Financial
Wellness Clinic. Another goal is to train teachers in the
Truist FIU curriculum. Ultimately, Carrillo hopes
the program will give high school students a strong
foundation for financial success.
“As an educator, I wholeheartedly believe that education
is the great equalizer,” says Carrillo. “If we adequately
prepare students from economically challenging areas to
effectively compete on a level playing field, we may truly
move the needle in a significant way.”
Listen to the
Money and Mindset
podcast to get tips
and tools to help
manage your
fi nancial progress.
August 2021 | 21

Lifestyle
The evolving world
of abstract digital art
22 | Truist Perspectives
Artist Rik Oostenbroek
shares his process for
creating and selling
abstract digital art,
including NFTs.

Lifestyle
Digital abstract art has a very
21st-century ring to it, but
British artist Harold Cohen
began exploring the use of computers
to create art in 1968. In the early 1970s,
Cohen and a team of computer engineers
created Aaron, a computer-programmed
drawing machine designed to make large
drawings on sheets of paper. Cohen then
hand-colored the abstract shapes.
August 2021 | 23

Lifestyle Time off
“ Looking at
little bits,
little textures,
even images
from others,
influenced my
work a lot.”
Digital art today is both more complex and more
elusive. Whereas Cohen’s work can be found
in a museum, current digital art may only exist
on the computers of the artists, who share it through
websites or social media. Netherlands-born artist Rik
Oostenbroek is an example of this new generation of
digital artists.
Oostenbroek’s digital art process
Oostenbroek has a process that’s similar to compiling
a (digital) collage. He mixes photos of nature,
objects, scenes, and paint strokes he’s applied to
a real canvas using digital art software. Using the
software, he can change and align the lighting, or
magnify a small shape to look as large as a mountain.
The software also lets him control the colors in
the image, making them bolder than in real life or
layering new colors over a photo.
“Looking at little bits, little textures, even images
from others, influenced my work a lot,” Oostenbroek
says.
Many of Oostenbroek’s notable pieces are corporate
commissions, either for events, marketing campaigns,
or special commemorations. Recently he
completed a digital piece commissioned by Truist
Wealth. This abstract digital art can be enjoyed
both as a still image and as an animated video. At
first glance the work may be mistaken for a glass
sculpture, likely because a photo of glass was the
first building block Oostenbroek used in the digital
collage.
“I think the basic glass is always boringish. So I added
the painted texture to create the color palette,”
Oostenbroek says. “I painted with the Truist brand
colors on a canvas. I scanned those in and tweaked
the glass in a way that I thought it would look
dynamic and fresh but still remain transparent.”
Part of the appeal of digital art for Oostenbroek
is the opportunity to revise the work at any time.
“Instead of picking up a brush and paint where you
can’t undo anything, it gives me the power to actually
undo things I regret later,” he explains.
Trends in digital art collection: The NFT
Oostenbroek began working in digital art mediums
in 2004 and has gained recognition through
commissions from global brands including
Volkswagen, Nike, and Cirque du Soleil. He has
also been recognized by HP and Adobe as a brand
ambassador, showing the digital art capabilities of
their technologies at events around the world.
Like many digital artists today, he sells some of his
pieces as NFTs, or nonfungible tokens.
NFTs apply blockchain technology—the same open
ledger recording system used to track Bitcoin and
other cryptocurrencies—to original or limitededition
art. A collector buying digital art like an
NFT purchases it from the artist, a gallery, or even a
traditional auction house like Christie’s. Each time
the NFT is sold to a new owner, the artist receives a
share of the sale price, usually 10%. Because it’s a
digital exchange, the owner always has documentation
of the complete provenance of the work.
“Nowadays, you actually see how digital art evolved
into an art form that’s overall getting more and
more accepted throughout the world,” Oostenbroek
says. “Digital art is also art, in my opinion. I know not
everybody is on that same page, and that’s all fine.
But I try to lobby for it.”
24 | Truist Perspectives

Lifestyle
Celebrating
innovation
When Truist Wealth debuted earlier
this year, the organization wanted
to put a new spin on an old tradition.
Typically, a company might commission
a work of art for its corporate
lobby, or have a noted architect
design a landmark building for
its headquarters.
1
Collect artwork that you like. This may
sound obvious, but the primary reason
to purchase a painting, a sculpture,
or even an artisan necklace is that you
want to see it and enjoy it. It’s tempting but
ultimately unwise to invest in trendy pieces
that don’t delight or move you.
2
Know the provenance, or origin, of
the work. Documentation about the
creator and previous owners is important.
It will give you proof that the piece
is genuine, help you learn how to care for it,
and establish the piece’s value for insurance
purposes or if you choose to donate it to a
nonprofit such as a museum or university.
But in merging BB&T and SunTrust,
Truist promised to create an experience
for its clients that combined
technology with a personal touch.
So Truist Wealth celebrated with
a unique commission from
Rik Oostenbroek.
“The idea of art as something to
transport us beyond the everyday,
to elevate and highlight the world
around us, is what drew us to
partner with Rik,” explains Joe
Thompson, head of Truist Wealth.
“It’s experiential, it’s powerful, it’s
dynamic, and it’s created with both
innovative technology and the
unique eye of a visionary artist.”
3
Don’t expect liquidity or a return on
your investment. Art and collectibles
are some of the most fickle markets
around. A piece of art is not like an equity
investment; it has no “fundamentals,” just
popularity, which can change instantly.
4
Include art and collectibles in your
estate plan. This includes spelling out
your wishes for what will happen to
the collection—will it stay together? Can it
be divided among multiple beneficiaries?
It may be necessary to pair the gift of the
collection with the funds to continue to
insure and take care of it. Like a vacation
home, a gift of art that passes to your heirs
will incur insurance and maintenance costs.
August 2021 | 25

Inspire
You’re not just investing
in a stock; you’re helping
a business to grow. That’s
in the best interest of all
stakeholders, including the
employees, the customers,
and the community.
David Rakestraw,
Senior managing director and financial advisor,
Private Client Group of Truist Wealth,
Truist Investment Services, Inc./Truist Advisory Services, Inc.
26 | Truist Perspectives

Find our latest
market commentary
at truist.com/insights
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