S.E.E.D. Planning Group sprouts clients
Don't judge each day by the harvest you reap, but by the seeds that you plant.
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The seeds for starting his own business were planted early on in his career in financial services as an account executive with
"The fracking revolution created an oil boom in
Planting the Seed
In 2009, Maus created a d/b/a called S.E.E.D. Financial Strategies designed to sell insurance products. The mnemonic - S.E.E.D. - reflected the values of the new business: Stimulating environment Ethical standards, Exceptional in meeting and exceeding high standards, and Duty as a fiduciary. In 2013, Maus and two other business owners converted S.E.E.D. Financial Strategies into an LLC and simultaneously set up
"In just two years, our assets under advisement have grown exponentially and should reach
As an insurance agency, S.E.E.D. Financial Strategies sells products such as term-, disability-, and long-term-care policies.
"Our insurance revenue from commissions is barely 1.5 percent of the gross revenue of the two corporations," explains Maus. The focus is clearly on the planning group whose planning revenues are fee-based only. We provide objective and transparent financial consultation and coaching. For individuals, the major areas include retirement, estate planning, elder care, college education, and investment For small-business owners, the major areas include employee-benefits design, succession planning, and executive compensation."
S.E.E.D. employs 10 people in its 6,500-square-foot
The industry contrarian
Maus's approach to building clients through financial planning rather than focusing on amassing assets makes him an industry contrarian. "Financial planning is the preferred introduction to our clients," avers Maus. "It drives the business. Unlike management advisors who are looking for a minimum in net assets to invest, the
He continues, "In addition to the financial-planning and investment advice we offer our wealth-management clients as an RIA, we coordinate those activities with accounting and tax services, retirement-planning, and estateplanning for a set fee. Our understanding of wealth management is that it encompasses all parts of a person's financial life. 'S.E.E.D.S of Hope' is focused on those not-for-profit corporations that want to increase their revenues and endowments, but are too small to have an advisor on staff to help with issues such as investment stewardship and legacy gifting. And SPROUT is designed for Mfflennials who are tech savvy, new to financial planning, and may have recently come into an inheritance. These divisions are growing so quickly my guess is we will spin each one off into an LLC by yearend ... While we cater to a wide variety of clients, our sweet spot is serving clients with
Navigating the industry turmoil
These are turbulent times for financial advisors grappling with a number of industry changes.
"The advent of the
Maus then turns to the impact of technology on the industry. 'The introduction and performance of ETFs (exchange traded fimds) have had a profound impact," continues the S.E.E.D. managing member. "For those clients who don't want to think about investing, are disenchanted with high fees, and seek solid returns with low risk, ETFs are a very attractive alternative. Many who are comfortable with technology are also embracing the concept of robo-advisors where an automated, digital platform based on algorithms is replacing the RIA Financial advisors are now creating hybrids where they marry the roboconcept to a help-desk which offers personal advice. Technology has also put the client in a position to control his/her total portfolio by creating a digital dashboard of all assets. We use Fidelity's e-Money wealthplanning software which aggregates all of the client's assets in real time. Anytime our clients want to review their financial status, they simply log in and get a comprehensive visual display of their current positions and correlated risk."
At the top of the list of items roiling the industry is the new "Fiduciary Rule" issued by the
"Commissions paid to financial advisors and the conflicts of interest created are the most polarizing issues today in investing," stresses Maus. "Until the DOL issued the first part of its rule this spring, there were two industry standards. The 'Suitability Standard' simply required that investments must fit a client's investing objectives, time-horizon, and experience. [Furthermore] ... an advisor woridng under this standard doesn't have to disclose any conflicts of interest or act in best-faith to minimize any conflicts. The new 'Fiduciary Standard' states simply that advisors and financial planners must put the clients' best interest ahead of their own. We won't know the fell extent of the new fiduciary standard until the rules are finalized in January, but the move to a higher industry standard is apparent
Competing
What sets
"S.E.E.D. has tied its success to the development of the local community. When we see
"But most importantly, our people make the difference," continues Maus. "The firm has assembled a talented group of employees, including a number of young professionals, who believe in our mission. They are focused solely on our clients' best interests and know how to listen. We never just assign an advisor to a client; we spend time pairing them to assure building long-term, positive relation- ships. S.E.E.D. offers equity opportunities for all key personnel as one way to attract and retain career employees. In a sense, we are planting people, which yields a rich harvest over time, not just for ourselves but also for all of our stakeholders. The feet that financial advisors are eager tojóin the firm because of our vision confirms that S.E.E.D. is on the right path." (An ancient Chinese Proverb says: If your vision is for a year, plant wheat; if your vision is for 10 years, plant trees; if your vision is for a lifetime, plant people.)
Maus is a native of the Southern Tier. He began his career in 2004 at
Maus now looks at his office picture of
It looks like
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