What if there was a way to invest the precious money you’ve saved for retirement or your child’s college education without having any risk whatsoever?
Jay Smith, CFP, owner and operator of Raymond James Financial Services, Inc. offices in Oxford (28 S. Washington St.) and Rochester (2530 Rochester Rd.), can make it happen through alternative investments called ‘structured products.?
‘I would say that’s going to be the wave of the future,? Smith said. ‘We’re on the cutting edge of it.?
Structured products can consist of a wide variety of assets including stocks, bonds, futures, commodities or a mix of these potential money-makers.
The assets are packaged together and sold as a unit inside of CD wrapper, which offers the investor, worst case scenario, a guaranteed 100 percent return of their principal.
‘It’s an investment account that has principal protection,? Smith said. ‘It’s investment without risk. It’s the best of both worlds.?
The idea is an old one in Europe, where most people are fairly conservative with their finances. But it’s ‘a whole new concept for Americans,? who historically have been a nation of risk-takers, according to Smith.
As more and more Americans get older and look for secure places to invest their hard-earned nest eggs or even their children’s college funds, structured products will be their main choice in Smith’s opinion.
‘I think we’re going to see a huge influx of assets into those kinds of things,? he said.
When the time comes to invest in that structure product, Smith has 30 years of experience and a growing trend of success to offer potential clients.
Unlike many of his competitors in this troubled economy, things are going quite well for Smith, who opened the first Raymond James office in southeast Michigan in the 1980s.
‘Business is booming,? he said. ‘We had back-to-back record years. I’m expecting the same this year.?
Smith attributes this to the ‘aging of America.?
More and more pre-retirement and early retirement folks are coming to Smith via referrals from CPAs and attorneys, whom he has established ‘terrific relationships? with.
‘We work 100 percent on referrals,? he said.
One of things that really separates Smith from his competitors is the fact that 85 percent of his business is fee-based, not commission-based. With some brokers, you don’t know whether they’re advising you to buy something because it’s really good or because they want to generate a commission.
With Raymond James, most clients are charged a fee based on the management of their assets and that’s the only money the firm earns. ‘It removes the conflict of interest that a normal broker would have,? he said. ‘Clients don’t have to wonder if we’re working for their best interest. It puts us on the same side of the table with them. We both want their money to grow.?
‘People respect that,? Smith noted. ‘That’s probably the Number One reason why our office has doubled in the last five years.?
Raymond James prides itself on the fact that 100 percent of the dollars it receives from mutual fund companies for the management of clients? funds is returned directly to the client.
‘We shouldn’t charge you a fee then collect something from the mutual fund company on the side,? said Smith, noting many competitors keep these ‘soft dollars.?
By automatically refunding this money, which is not taxable, directly clients? accounts every quarter, Smith said, ‘That reduces, sometimes substantially, what our fee is.?
Whatever financial product you need, you can be sure Raymond James can provide it ? money market accounts, stocks, bonds, CDs, mutual funds, IRAs and everything in between. And you can feel safe and secure in the knowledge that whatever you invest with Raymond James is 100 percent insured.
With most competitors, clients are only insured up to $100,000.
‘Ours is $100 million,? Smith said. ‘That kind of protection lends itself well to the kind of a person who has millions of dollars. It creates piece of mind for a lot of our bigger accounts.?
On a personal note, Smith is quite proud to have his son Travis, a 2002 Oxford High School graduate, working side-by-side with him at the office everyday.
Travis earned his finance degree from Seidman College of Business at Grand Valley State University and passed his Certified Financial Planner exam in January. ‘He’s definitely moving on the fast track,? Smith said.
For more information about Raymond James Financial call (248) 628-7259, e-mail jay.smith@raymondjames.com or visit them at www.raymondjames.com/oxford.