Interview
For more than 25 years I have helped people make intelligent choices about their money, get to and through retirement in financial comfort. In reality, I help people manage and protect their assets; Making their financial dreams come true. I can do the same for you!
That was James Walker, CFP of Financial Architects, one of the most prominent and successful Financial Advisors in Tucson. We’re going to interview Jim to introduce you to him and see why many individuals and corporations have already chosen Jim to handle their investment and insurance needs. But before we get to the interview, let me tell you a little about Jim.”
Jim moved from Indiana to Tucson in 1956, started his career in ‘61
as an independent insurance broker. He has earned 3 professional
industry designations, CPCU in ‘67, CLU in 1970 and in ‘81, Jim was
among the first in the country to qualify for his Certified Financial
Planner designation. His practice has evolved into a full service
independent financial planning, investment and insurance brokerage
firm. Using a financial planning approach and a reputation for
outstanding service, he has built a solid base of satisfied clients.
His clientele consists primarily of middle to upper income and high net
worth individuals, professionals and business owners.
Q. I notice that you have three professional designations. Isn’t
that unusual and can you explain how that came about and what benefit
you feel that plays in your practice?
A. Yes, it’s very unusual, but when I started my business back in 1961,
I just knew I wanted to be a professional. I felt that these
professional designations would give me the technical knowledge to
better serve my clients; however, someone once said, “Experience is the
best teacher”, and I think my 30 plus years experience coupled with my
formal education, will continue to pay dividends for me and my clients
well into the future.
Q. Jim you mentioned that you take the financial planning approach
with each client, can you expand on that a bit?
A. I can sell a person stocks, bonds or mutual funds or a life or
health insurance policy just like any other stock broker or insurance
agent. But, taking a financial planning approach with clients means
that we’re going to determine their long term goals and objectives,
their risk tolerances, retirement and insurance needs and estate
concerns. These things are done before I make any recommendations,
because I want to know that whatever investments or insurance programs
we are going to buy are going to make sense to the client and be within
their comfort zone. This also puts me on the same side of the table as
my client in an advisory capacity, as apposed to someone just selling
today’s hot performer.
Q. In listening to you, it seems to me you’re developing long term
relationships with your clients and those relationships are extremely
important to you? Share with me your philosophy in that area.
A. I do believe in long term relationships, most of our financial goals
are long term. I believe my clients should expect me to guide them
through good and bad, not just call them when I have something to sell.
I know that my success is directly tied to their success. If I’m doing
the right job for my client, I have a client for life and my success
comes automatically.
Q. You certainly have a strong belief in the financial planning
process. Why do you think it is so important?
A. It’s been said that, “People don’t plan to fail, they just fail to
plan.” However, the results are the same. Most individuals want to
achieve financial independence at some point in their life, however,
most busy, successful people just don’t take the time to put together a
good strategy to accomplish their goals. Also with the rapidly changing
tax laws and economic environment, it’s difficult for individuals to be
well informed. It’s my job to keep my clients on track in pursuing
their financial goals and objectives and act as their information
filter.
Q. Once you have met with your new client and gone through the
financial planning process, how do you determine what strategies and
money managers you’re going to recommend and how are those decisions
made?
A. As I mentioned, one of the key elements in my process is to educate
my clients as to the many different strategies that can be used in
managing their money, that may or may not require the development of a
formal investment policy statement. Once these strategies are in place
we then move to the selection of a money manager that will fit these
strategies. I put money managers into 2 broad categories: Mutual Fund
money managers and Private Portfolio Money Managers. Each have
different characteristics, costs and benefits. I often present 2 or 3
different options that I think will accomplish their goals within their
comfort level and together we will narrow the range and decide on one
or more options to employ. Then it’s my job to make sure the investment
plans get implemented and I monitor them on an ongoing basis to make
sure they are performing and meeting our expectations.
Q. Jim, I have heard the terms estate planning and financial
planning used, in fact, you used them earlier in the interview. Can you
tell me the difference between financial planning and estate planning?
A. A lot of people are confused about the difference between those two
terms, they sound very similar and basically they are. Financial
Planning is the period of time when people are saving and investing and
building their estate, and minimizing income taxes, whereas, estate
planning deals with that period in the life cycle where an estate has
been accumulated and you want to protect that estate from unnecessary
shrinkage. This involves designing a plan that will make sure the
estate is distributed to the desired heirs, in the most efficient
method, reducing estate settlement costs and estate taxes. Most people
don’t realize it, but estate tax rates start after a $600,000 exemption
at 37% and go as high as 55%. Although, under the current tax law, from
1998 to 2006 this exemption will be increased to $1,000,000 and family
owned businesses have special rules. I might also mention, there is
another term that is being used more recently and you’ll be hearing
more about in the future, it’s called, asset protection planning. This
planning is designed to protect the estate from creditors or from
liability suits. Strategies involved in this type of planning include,
charitable remainder trust, family limited partnerships, and qualified
retirement plans. I work closely with the clients CPA and attorney in
developing any of these more advanced strategies.
Q. Many of your clients are professionals and business owners. What
type of services do you offer them and how is that different from
working with individuals?
A. Lee, professionals and business owners have some unique problems and
opportunities. We can assist them in structuring their employee benefit
plans such as: life, medical, dental and disability programs, as well
as their business continuation and retirement plans including
pension/profit sharing, 401k’s and non-qualified deferred compensation
plans. Also because of their business interest, their income tax and
estate planning can present some unique planning opportunities.
Q. How much money would I have to have to utilize your services?
A. Well Lee, that’s the beauty of what I do. I put my clients with the
same money mangaers that manage money for many of the Fortune 500
companies. For instance: we have mutual fund companies where we can
open an account with as little as $25 a month. Then we also have
institutional money managers who manage individual portfolios that have
minimums of $100,000 to $200,000. My average account in this type of
portfolio is in excess of $500,000. So, we can literally handle
anything from the very smallest of investors, for a college fund or a
young family getting started to the very largest of estates or
retirement plans with several million dollars in assets.
Q. Well Jim I’m afraid we’re all out of time. But before we close is
there anything you would like to say in rapping up our interview?
A. I would just like to thank the person listening to this interview
for the time they have invested and I hope they found it to be useful
and informative. If they are looking for someone to help manage and
protect their assets, I would encourage them to take advantage of our
no cost, no obligation interview. Just call me at 884-7550.
“This concludes our interview. What you’ve just heard is a small sample of the many services that sets Jim apart from others in the industry. If you have enjoyed and benefited from the interview highlights, and if you would like to find out more how Jim might be able to help you, we cordially invite you to call or write today. Jim welcomes your questions and comments and looks forward to working with you. Please feel free to call him at (520) 884-7550. For those of you who would like an appointment, please contact his office to schedule a time that is convenient for you. Financial Architects is located at 2311 E Broadway.”
520.884.7550
jpw@financial-architects.com
3971 E. Paradise Falls, Suite 114
Tucson, AZ 85712
United States