Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, May 26, 1995 TAG: 9505260042
SECTION: BUSINESS PAGE: A-15 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Medium
The Roanoke financial planner, who was installed at the association's meeting in Philadelphia last weekend, said his particular goal is to continue to educate consumers that "fee-only planning means fee-only planning."
By that, he means a comprehensive plan that covers insurance, investments, taxes, retirement and estates for clients who pay for the advice.
Many brokers and insurance agents use the title of financial consultants these days, he said, but they still work mainly for commissions from the sale of policies, securities and other forms of investments. Some advisers have a fee components and a commission company, working both ways. But there is some conflict of interest between adviser and client as long as commissions are a consideration in what they advise a client buy, he said.
On the opposite end, lawyers work only for a fee, but generally limit their services to estate planning, Hudick said. Some advisers whose services are fee-based limit themselves to money management, he said.
"I firmly believe that fee-only planning offers the client and the adviser the best way to exchange a value for service objectively," Hudick said. "I strongly believe that without our advice and counsel, many consumers would never have the opportunity to achieve a higher level of financial success.
"We are fortunate that, as comprehensive, fee-only financial planners, we actually do what so many others in the financial services industry only purport to do," Hudick said.
The organization Hudick heads for the next year, which is based in suburban Chicago, is composed of advisers who work only for a fee paid by their clients for all aspects of financial planning. Its members must have three years of experience, prepare a comprehsive financial plan for review by their peers, and submit copies of the forms required by the Securities and Exchange Commission. The group's associate members are those in the process of meeting these credentials.
The association has about 500 members, all of them financial planners who work only for a fee. That's a small portion of the people who sell financial services and products. Hudick is the only member in Roanoke, although there are several associates in the area.
Hudick also wants to increase professionalism among the members and to improve their communications.
In the area of professionalism, he said, the association must see that its members are qualified to provide comprehensive planning services if that is the claim it makes.
"The board has spent a lot of time in the last year working on the education and experience requirements" for membership, he said. "We want to make sure that when we talk 'comprehensive financial planning,' everybody understands what we're talking about."
Last year, when he was treasurer, he persuaded all association members to sign on to CompuServe, an online computer link, to improve communications. This year he hopes to create a forum on CompuServe for all association members to exchange information on matters affecting their individual businesses.
He said, however, that he is "not the type who sees himself as trying to impose change. My job is behind the scenes. The president's job is to keep things moving forward."
Hudick is a partner in the Roanoke firm of Fee-Only Planning Inc. He has been in business here for 14 years. He joined the association in 1989.
by CNB