Experienced planners thrive in crowded field

by Christine Ballew-Gonzales

SBJ Contributing Writer

The number of companies who are entering the financial services industry has been mounting during the past decade, and the new millennium will see growing competition for those customers.

Those who have spent years in the financial services industry are well positioned for the market, according to Richard A. Hale, financial advisor for American Express Financial Advisors.

Hale, who has 21 years of experience in financial planning, has watched the numbers of financial planners swell for some 15 years.

"It really started expanding about 1984 or 1985," he said.

The growth within the financial planning industry was precipitated by the 1980s emphasis of getting more out of investments.

"The media helps people stay better informed about their assets and what they are doing," Hale said.

What are clients looking for from the abundant supply of financial planners?

"The things that most of my clients look for are experience and designations," Hale said. Designations, such as the Certified Financial Planner certification, are one way of standing apart from the competition in terms of financial planning education.

The lack of a legal criterion for the title financial planner may cause confusion among those searching for a financial planner, Hale said.

"One of the issues of financial planning that the Certified Financial Planner board is looking at is the fact that anyone can call himself or herself a financial planner," he said.

This leaves potential clients to determine on their own who is qualified.

"There are a number of 'cottage planners' out there who have no training and no company support, but they put out a shingle as a financial planner," Hale

said.

Some financial planners who have tacked that business offering onto existing services might not be able to address a client's total financial planning situation, ac-cording to Hale.

"Some people think that financial planning is financial improvement," he said.

Hale said comprehensive financial planning includes a wide range of money issues, such as cash reserves, protection needs, tax plan-ning, investment planning, retire-ment planning, and estate planning. The ability to address a variety of financial planning issues will be what separates financial planners in the future, Hale said.

"Those people who prosper will be those who work with a company and offer comprehensive financial planning services," he said.

The ability to offer a financial planning service that other companies do not have is another factor that can help financial planners set themselves apart from the pack, according to John Piatchek, president of Piatchek & Associates.

"We have a unique process that we've trademarked called the Financial Blueprint Process," Piatchek said.

"It's a process we've been using and refining for five to 10 years. It's constantly evolving. Once we get in front of the client, we've already differentiated ourselves," he said.

The Financial Blueprint Process is designed to eliminate financial dangers and capitalize on financial opportunities, Piatchek said.

Piatchek & Associates offers several financial planning services, including estate planning, financial planning and insurance planning.

Eric Kurth, division manager for Waddell & Reed Inc., said time spent finding what the client needs is important for financial planning.

"We sit down with people to determine where they are, where they want to go and how to get there," Kurth said. "We offer all kinds of services, from setting up college funds to retirement planning to estate planning."

Who will survive among those offering financial planning services?

"The ones who will survive are the ones who are truly doing financial planning and who find out what's important to the client," Kurth said.