Orlando, FL (PressExposure) August 10, 2007 -- Most financial advisory institutions are primarily structured to service high net worth individuals (over $1 million in liquid assets to invest). Therefore, most financial advisors are instructed to only focus on attracting and retaining clients with very large amounts of assets. Why? For a good business reason, this segment of the market tends to be the most profitable for companies in the financial services industry. However, even these firms still have a difficult time planning, advising, actively monitoring, and properly implementing changes to client portfolios. In addition, a large portion of the population who truly needs quality financial services is completely underserved.
In order to tackle this industry wide epidemic, Allgen Financial Services, Inc. has taken a radical approach to ensure both high net worth individuals and those with less than $1 million in liquid assets to invest are equally served. There are five core parts to Allgen's strategy in its effort to change a historic industry tradition. None of these approaches by themselves are extraordinary; but, by combining them a synergy is formed to provide an experience unlike any other financial institution.
1) Fee-Based Compensation - In order to ensure the firm is able to act in the best interest of its clients, Allgen has decided to become a fee-based firm. As a fee-based firm, Allgen Financial Services, Inc. does not receive any commissions for selling financial products or services. The company only charge is a small percentage of its clients' total assets under management. Therefore, if our client's portfolio increases in value, so does Allgen's revenues. If a client's portfolio decreases in value, so does Allgen's revenues. "We have a vested interest in the performance of our clients' investments," said Paul Roldan, a Senior Partner and Chief Executive Officer of Allgen Financial Services, Inc.
Many people only hear from their financial advisor when it is time to buy and sell financial products such as stocks, bonds, or mutual funds. There is an important self serving reason for why this occurs. Most likely, the advisor is selling commission-based products. For example, life insurance and annuities tends to yield a large amount of revenue and profit for a financial services company. This does not negate the fact these financial products can be valuable to a client's portfolio. Commission-based advisors make money when they are conducting transactions. It is considered wasted time in the financial services industry if the advisor is not conducting transactions. However, this experience may be different for those who are in the top 10% of an advisor's book of business. Also, in all fairness there are situations and circumstances when commission-based advising and products are necessary.
2) Flat Rate Fee Schedule - A core belief at Allgen Financial Services, Inc., is to treat all clients equally by not presenting different charges for different size accounts. Most fee-based firms have a sliding scale for how they charge clients. The more money a client has, the less of a percentage they pay. Instead, Allgen provides a very competitive flat rate regardless the size of the account. "On average, we charge our clients 1% of their assets. This fee structure allows us to serve all our clients exceptionally well whether they have several million in assets or several thousand" said Jason Martin Senior Partner & Chief Investment Officer of Allgen Financial Services, Inc.
3) Cross-Functional Financial Team Approach - At Allgen Financial Services, Inc. every client has a dedicated team of financial experts to help plan, consult, monitor, and implement their investment portfolio. Each client has an accountant, portfolio manager, financial advisor, and a client service representative assigned to them. Most financial institutions provide only one person to handle all the needs of a client. Usually, only if a client invests over $10 million dollars will most companies begin to consider additional resources.
4) Concentration on Retirement Investing - Most financial institutions offer an array of financial products and services to capture as many business opportunities as possible. However, even though this approach would benefit those who are looking for a one stop shop for all there financial needs, it is very difficult for any financial institution to effectively offer the overwhelming amount of options available. Typically, a sacrifice has to be made somewhere. Allgen Financial Services, Inc. has decided to dedicate its resources to offering financial services as it pertains to retirement and estate planning. Allgen's primary purpose is to make a significant impact on the -1% savings rate in the United States according to the 2006 report by the US Department of Commerce. As of May 1st, 2007, the United States is currently on pace for even a lower savings rate in 2007 compared to 2006. Allgen is accomplishing this by encouraging its clients to properly save for retirement purposes.
5) Client Focused Instead of Product Focused - Unlike many financial institutions, Allgen is not required to sell a specific fund family or financial products. As a Registered Investment Advisor (RIA), Allgen is able to research the best funds in the market and matches it with each client's specific financial needs.
"As a management team we are dedicated to being change agents in the financial services industry. We are working diligently to be a completely different financial services firm from what anyone has seen or experienced in the past", said James Zimbardi Senior Partner and Chief Operating Officer at Allgen Financial Services, Inc.
About Allgen Allgen Financial Services, Inc. is a fee-based retirement and estate planning firm assisting individuals and organizations better manager their assets. Allgen services clients both domestically and internationally. Allgen's service offerings include: personal retirement planning and investing, employee retirement benefits, estate planning for executives, estate planning for foreign investors, and business succession planning for entrepreneurs.