The Book I Sold--Transferring to a Money Manager

Two years ago, 40-year veteran broker Alan Lertzman was approached by Bob Harden, principal of Silicon Valley Capital Management in Palo Alto, Calif., to join the money management firm. The timing was right since Lertzman, a rep with D.E. Frey in Campbell, Calif., was ready to go into semiretirement.Lertzman transferred his accounts, and the firm custom designed portfolios for his clients. "I'm not

Two years ago, 40-year veteran broker Alan Lertzman was approached by Bob Harden, principal of Silicon Valley Capital Management in Palo Alto, Calif., to join the money management firm. The timing was right since Lertzman, a rep with D.E. Frey in Campbell, Calif., was ready to go into semiretirement.

Lertzman transferred his accounts, and the firm custom designed portfolios for his clients. "I'm not involved in the day-to-day management of assets," Lertzman says. But he gets a 50-50 fee split with the money management firm as part of the deal.

This arrangement allows Lertzman to keep in touch with clients and pursue other interests, such as joining the local Rotary Club and teaching. Lertzman teaches "Introduction to Investing," an adult education class in Sunnyvale. One never knows who might sign up for the class. Take, for example, the student whose husband started a software company and had a portfolio worth $4 million. They became clients, and Lertzman participates in fees from that account and other new accounts he brings in.

About 25% of Lertzman's time is spent communicating with clients and 75% is spent on community activities, he says. "It's the best of both worlds--I'm still involved with delivering financial services, and I have an opportunity to do something for the community."

The only thing Lertzman regrets: "I would have done it sooner. The opportunity to diversify your life is there if you want to. It's exciting."

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