EDMONDS — Most financial advisers work for large firms, the Charles Schwabs and the Prudentials of the world.
About 20 percent work in smaller independent firms, according to the National Association of Personal Financial Advisors.
One of those firms is Koenig Financial Group in Edmonds, a three-person team that strives to help clients understand their financial goals and strategize a road map of how to achieve them.
“Sometimes it is just as simple as starting the conversation about people’s finances,” said Mike Koenig, who heads up the firm. “People are not in the habit of talking about gaining and managing wealth, funding their kid’s education and what they want their retirement to look like.”
Financial planning is considered to be one of the fastest-growing occupations, according to the U.S. Department of Labor, with a projected growth rate of 27 percent between 2012 and 2022.
That’s an additional 60,300 positions added to the existing 175,470 jobs nationwide, with a median salary of $67,520.
Industry experts pin this growth on Baby Boomers as they march toward retirement with the oldest of the boomers reaching 65 in 2011.
Koenig embraces technology for its forecasting and modeling capabilities and presents that information to his clients, stripped of any product-driven skew. Building a computer generated portfolio presents a keen visual for clients as they allocate assets.
“People really need to know and understand where they are in the big picture,” said Koenig. “It is more engaging for people to visually see their information on a computer screen. ”
While the high tech approach is engaging it does not replace the high touch ability of earning the trust of clients, building and maintaining a deep level of financial expertise, Koenig said.
He meets two to four times a year with each of his clients giving them a report card of their portfolio. He likes being in the educator role and schedules four to seven client meetings per day.
In business since 1995, Koenig Financial Group has serviced clients, ending up working with whole families down to the grand kids. They have also taken on small businesses as clients planning out succession, real estate and tax planning.
Koenig started his financial career as a new graduate of Seattle University going to New York Life for 17 years and then to Guardian Life for nine years, prior to striking out on his own.
“Our team culture is one of respect for our 300-plus clients no matter what size their portfolio is,” Koenig said. “We like helping a broad range of people. We want to teach them what to look for and what to ask.”
The firm’s oldest client is 98 year old. The youngest clients come from a group of dental offices Koenig works with, helping them to understand the advantages a steady savings program will bring.
As an independent, Koenig has the ability to have a flexible fee structure. He uses a combination of billable hours with a fee-based management fee, which generally runs 1 to 2 percent of the total assets in the portfolio and there are commissions on some products.
“Understanding your financial goals and knowing when you will need to use your money and what you will be using it for can be daunting,” Koenig said. “Taking the first step is daunting, but once clients get into the process using all the tools they find it enriching and with a financial pay off.”
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
