Business Spotlight: Planvest Capital Management

by Laura Scott

SBJ Contributing Writer

sbj@sbj.net

Jeff Melton and his wife, Holly, who own Planvest Capital Management, know that financial planning firms can create distrust among consumers who are often reluctant to hire a financial planner for fear they will be misguided.

They have built their company on relationships and meeting the needs of the client as their priorities.

"We went on our own because it's a lot easier to help clients in the way you feel they need to be helped as opposed to somebody else's rules that are not always beneficial to the client," said Holly Melton, who heads business development for the firm. She has 13 years of lending and banking experience.

Added Jeff Melton, a certified financial planner: "We look after their best interests. It's about trust, and that takes time to build. One misstep can break us down, and you can never rebuild that trust."

Planvest's affiliation with Linsco/Private Ledger, which is a member of National Association of Securities Dealers Inc. and Securities Investor Protection Coroporation, gives the Meltons the opportunity to offer the type of relationship they desire with their clients. "They give us that opportunity with a variety of different products," Jeff Melton said. Planvest clears its trades through Linsco/Private Ledger, which also helps with compliance issues.

Jeff Melton has worked with a variety of companies providing investment advice and financial services since 1984.

"You pretty much establish your business goals and ethics along the way," he said. "Throughout 20 years you learn what it takes to run a business, and when you go out on your own you find there's so much more to learn."

One thing the Drury University graduate learned along the way was that he wanted to do things differently than the companies he had worked for.

"We wanted to create our own office and business culture based on our morals and ideals. You can't do that in a bigger firm," Jeff Melton said. "We're fortunate enough to start our own business and let everyone here be a part of that. I'm excited to come into work and know I've got control of my day. You have to be motivated and have to constantly educate yourself on a lot of new topics."

Lisa Jones and Dean Arens are independent contractors with Planvest, and Robin Uber is administrative assistant.

"We all have to wear 10 different hats on any given day to serve our clients," said Jeff Melton.

That service matters much to investor Dave Thomas, who sells bicycle parts on the Internet and also relies on his investments for his livelihood. He works with Arens on his portfolio.

"I have a relationship established with Dean and I know and like how he operates," Thomas said. " He not only has a good product, but he's conscientious about the service before and after. He makes sure I'm taken care of, and I know I can call him anytime. When you find a company that really cares about the condition of its customers and not just the bottom line, you tend to stick with them. It's a really good team effort."

In addition to relationships and service, Planvest offers education to its clientele through workshops and seminars on a variety of topics. "There's a real need for it," Jones said. "People sometimes feel intimidated to go into a large brokerage firm and ask questions. We try to educate them before they become a client."

With the investment environment constantly changing, it's a challenge to keep up with the changes as well as educating the customer. "You can't just go to workshops and learn everything and think you got it down," Jeff Melton said. "It's an ongoing process."

Customers had a lot of questions after the Sept. 11 attacks and the corporate scandals.

"We've been well diversified during the economic downturn and managed money based on risk tolerance," Jeff Melton said. "We know that trust is important since a lot of big firms have been in the news with unethical behavior. That's why we want to remain independent."

Being able to diversify and consider their whole financial picture for their clients is important, Jeff Melton said.

"We don't only sell stock, bonds or mutual funds, but we provide for estate plans and do all financial planning. We help put plans in place for property to go to the right person when clients pass on. We meet quarterly with our clients to go over all of this. We don't wait for a client to call us when something happens. We call them and remind them that we're watching things, and we're here to answer questions."

The company has a variety of payment options. A client can choose to pay by commission, a fee-based approach, a percentage of assets under management, or an hourly or flat rate for financial planning. This is decided during a free initial consultation.

Much of Planvest's clientele are retirees, but they serve a variety of people at different stages of life. "We help parents of young children, seniors and women who are divorced or widowed who didn't have a lot of input in their financial planning, and people at every stage of life you can think of," said Holly Melton. "That's why we're so diverse."

Planvest has enjoyed steady growth in revenues at a rate of 15 percent annually, Jeff Melton said. He would not disclose his revenues, but said the biggest increase is from business retirement plans.