The Rea Report Winter 2015 | Page 8

BRIGHT CLIENT INVESTMENT PARTNERS ltd Choosing To Partner Rather Than Sell IMAGINE you own an ice cream shop. A customer comes in and asks you for strawberry ice cream. You can’t give your customer strawberry ice cream because you don’t have strawberry ice cream. You have one of two options. Either you can offer the customer a variety of other flavors your shop carries, or you can give your customer the address of the ice cream shop down the road that carries strawberry ice cream. Neither option is ideal. Your customer will either not get what they want, or they may be inconvenienced and have to get back in their car to drive to the other ice cream shop. Even worse – you may lose a customer. Steve Stocker, AIF®, managing member and principal, Investment Partners, LTD (INVP), faced a similar kind of situation nearly 20 years ago. Stocker felt he had hit a wall. After a 15-year career in banking and investments, he found himself in a fateful meeting, sitting across from a particularly well-informed client. The client knew what she wanted, and requested the purchase of a specific investment product. By all accounts, it was a very smart investment decision. But, because he was employed at a commission-based investment firm that limited him to offering only certain products, Stocker was stuck. Either he could steer his client toward one of his firm’s products, or he could provide her with the 1-800 number of the firm that sold the desired investment, and wish her luck. It was in that moment that Stocker realized this wasn’t the way he wanted to serve his clients. He believed then — and still strongly believes today — that his clients and their needs should always come before a corporate rule. In that moment he was motivated to find another way. “Not being able to truly help my client was one of the worst feelings. I knew then, I didn’t ever want to find myself in a situation where I had to say ‘no’ to a client,” Stocker explained. “There’s freedom that comes with being an independent investment advisor and that’s why I started Investment Partners – so I would be able to work for and on behalf of my clients.” The Differentiator: Independence After months of preparation and infrastructure-building, Stocker and his business partner, Jim Karcher, opened the doors of Investment Partners on April 12, 1996. For its first two years, INVP ran as a four-person operation – two advisors and two part-time support staff. But, as the firm grew, so too did its staff. In July 1998, Doug Bambeck joined the firm and, Karcher soon sold his interest in Investment Partners to Rea & Associates. As a result, INVP became a strategic alliance with Rea & Associates, as both firms serve a similar clientele, and hold to a similar client-centric business philosophy. When INVP was established, the standard industry practice was to charge a commission based on the purchase or sale of stock or a mutual fund by a client. However, the practice that INVP holds is a commitment to work with clients in a fiduciary capacity by charging a fee for service as opposed to commission. While this trend never caught on with many major U.S. investment firms, it remains the cornerstone of Investment Partners. INVP has created, implemented, and monitored customized financial plans designed around the specific financial goals of affluent individuals and families, and in this, INVP is able to partner with its clients to recommend the best services and advice, un-beholden to a single corporate mandate. My goal from day one was to establish a wealth management firm where we sat on the same side of the table as the client and were able to always Choosing to Partner Rather Than Sell do what was best for the client. Steve Stocker, %