Locker adds, "In these cases, we are often working with people who make $50,000 or $60,000 a year, to start, and manage to save $10,000 of it. We don't have a minimum income or minimum investment. We want to educate police early about how to maximize the pension benefits and buy insurance to protect their family. For instance, if they take a lesser pension amount initially, it can protect their spouse with benefits in the future. The majority of police are so focused on doing their job and taking care of their families they don't spend much time understanding the benefits the city provides."
As of April 2009, Beacon now has permission to market to the New York State Fraternal Order of Police, which opens up a new audience of 23,000 members. The firm also holds seminars for middle- and upper-level officers so they can bring information back to the precincts.
Because of the clientele, Beacon's fees are also somewhat different. The average fee for a comprehensive financial plan is $500 unless the finances are complex, in which case the charge is $150 to $400 an hour, depending on the situation. A benefit of law enforcement is that Beacon waives the financial planning fee for officers.
The fees are discounted 10% to 20% based on assets under management, and range from 0.75% to 1.75%. Charges can be fee-based or offered in a flat package rate, though Beacon will try to base more of its accounts on fees in the future. All educational services and seminars are free.
"Our goal is to provide value on behalf of all parties in order to establish a long-term relationship," Landsman says. "The police spend their lives taking care of others, so we want to help take care of them."