Increased demand for wealth management services in the Lake Country area and clients’ expectations for a more thorough, sophisticated approach to wealth management have created growth opportunities for Integrated Financial Solutions LLC (IFS) of Delafield.
Brion Collins and Todd Sivak, managing partners of IFS, have been in business together since 2000. They have grown the firm to 130 clients, 86 of whom rely on the firm for wealth management advice, up from 73 last year.
The company’s revenues have increased about 15 percent per year for the last five years, essentially doubling the business in that time frame.
To handle the increased work load, IFS is growing its staff. At the beginning of October, the firm had nine employees. It now has 12 employees and will be growing again next year, Collins said.
“We’ll have 15 to 20 people by the end of 2008,” he said.
IFS calls its services “Wealth Engineering,” because it wants to work with clients on all of their financial needs, Collins said, not just investments.
“(Investments) are one piece to the wealth management picture,” he said. “When you layer it all on, it’s very complex.”
IFS looks at clients’ financial needs, makes specific recommendations on how to improve their situation and helps clients execute them, either by managing their assets directly or working with existing financial advisors.
“We’re coordinating and quarterbacking their financial situation,” Sivak said.
Collins and Sivak are the main client contacts for IFS. The rest of the staff works behind the scenes, managing accounts, researching and translating financial data for customers.
“To manage all of the information and data and to do detailed work on the insurance side and put a plan in place, it takes bodies,” Sivak said. “We have two full-time people in our securities department for asset management, a full-time case manager that just does insurance and insurance analysis, and by the end of (October), we’ll have four in plan management.”
The plan management department looks at tax codes, estate taxes, cash flow, risk management and other issues for individual clients, looking for weaknesses and opportunities within their portfolios.
“It’s really our wealth management center,” Sivak said.
The plan management department plays a critical role in both the day-to-day management of clients’ assets, as well as the creation of a financial plan for new clients when they walk in the door.
IFS also has a CPA on staff who examines tax issues and helps coordinate with clients’ current accountants.
“As we go through the process of examining strengths and weaknesses, we look at cash flow,” Collins said. “Most people don’t have a clue what their cash flow is. We look at their retirement and investment portfolio and find out what tax efficiencies there are. No one looks at the net after-tax of their portfolio and risk efficiencies. We also look at their disability, life and long-term care insurance and make sure they have the right coverage.”
When it is hired to craft a financial plan for a new client, IFS charges a flat fee, calculated based on the level of financial complexity that is required. It generally takes two to three in-person meetings with clients to create the plan, Collins said.
When the individual plan is complete, IFS starts coordinating between an accountant for tax planning purposes and attorneys for estate planning needs, Collins said.
Part of the financial plan process includes talking with clients about what portion of their assets they want to pass on to family or charity.
Once the plan is finalized, IFS generates a list of action items – things the client should change.
Some clients determine that they want some or all of their assets managed by IFS, Collins said. Others want only advice and want to keep their existing relationships with financial managers.
For clients needing new or additional life insurance policies, IFS sells low-commission life insurance.
“You’ve already paid us for advice,” Sivak said. “We have the luxury position to offer innovative products. It’s worked well for us. It’s a wonderful competitive advantage.”
Integrated Financial Solutions LLC
Address: 709B Milwaukee St., Delafield
Employees: 12
Growth: 15 percent annual revenue growth for the past
five years
Web site: www.IFSfinancial.net
