Jim Mardock • Portland, OR
Transamerica Financial Advisors, Inc.
I have made several changes to my advisory practice over the years. The two biggest were moving almost exclusively to a fee-based model and using active investment management for my clients’ portfolios.
The fee-based model allows me to build a transparent and totally objective relationship with clients. I develop a financial strategy that clients know is not influenced by the motivation of selling a product. And because my fees are largely paid via a percentage of assets under management, I do not charge a fee to review an existing financial plan. I will handle some commission-based products, but that comes within the framework of what is in the clients’ best interests in their total financial strategy construct.
The move to active management has had many benefits. It fits in with my desire to employ a high level of risk management for clients after the experiences of the two market crashes of the 2000s. I do this by using third-party managers that are highly proficient at developing risk-mitigating strategies.
Active management helps clients feel confident that they will have the opportunity to take advantage of potential market returns in a more controlled and disciplined fashion.
There are two other benefits to this combined approach. First, employing highly qualified third-party active managers frees me up to focus on client needs and prospecting. It also allows me to conduct unbiased client reviews. If something is not working the way it should or if the client’s circumstances have changed, I do not hesitate to make alterations. Clients have come to understand that I am managing their assets for the long haul, and this has led to a high degree of satisfaction and retention.
Disclosure: Jim Mardock is a registered representative and an investment advisor representative with Transamerica Financial Advisors, Inc. Securities and investment advisory services offered through Transamerica Financial Advisors, Inc. (TFA), Transamerica Financial Group Division—member FINRA, SIPC, and registered investment advisor. Non-securities products and services are not offered through TFA. TFG004351-08/14
Photography by Aubrie LeGault
