At other times, when a prospect meeting has been scheduled but Holland's not sure what type of service the prospect needs, both she and Powell will conduct the client's first meeting together and they will all decide, then and there, who the client is going to work with. "In those scenarios, we're very frank that Ed's a CFP with a different [service] philosophy, and that he's independent. We each represent to the prospect our different ways of planning, and the prospect decides." Adds Powell, whose own firm is called simply Powell Financial Advisors, "Sometimes people may not want to pay Cheryl's fee, or don't feel they need her level of service."

What might Powell do for the prospect? "I am happy to work with a client on an as-needed, hourly basis," he says. On the other hand, if the client needs more time-intensive services or ongoing advice, Powell will also work on a negotiated retainer basis. He does not take assets under management, nor earn commissions from sales of financial products, yet, he says, "I am committed to providing quality financial services to middle-income Americans, not just the wealthy."

If the prospect chooses Powell, they know he's using Abacus' resources and can tap its staff for any additional brainpower he may need. Does Powell pay anything to Abacus for these other resources he uses? "No," says Holland. "We have an agreement we keep an eye on. Ed owes us about five hours of financial planning a month and, in return, he gets his office space, the use of our conference room and all the Coke he can drink."

But Powell does pay Holland with additional services sometimes. "Before I got into financial planning, I spent ten years as a trust officer at South Carolina National [now Wachovia Bank] here in town," says Powell. He's also a commercial real estate appraiser. Says Holland, "We tap him for his specialized knowledge, so we've now got an expertise in-house that we didn't have before Ed joined us," She values this expertise because the firm invests client money in real estate and other alternative ventures, among other reasons.

Powell's stint as a bank vice president was an eye-opener for him. While working in this financial enterprise with ample planning resources and financial talent, he was struck by how many of the employees were doing little to plan their financial futures. "I saw a need and became determined to fill it," Powell explains.

But planning, trust and appraisal work isn't the end to Powell's talents. "I do a lot of things for Cheryl. I might do back-office work, or she may have me make a presentation to a 401(k) group," says Powell. "When we do employee education on clients' 401(k) plans, to tell their employees what's happening with their retirement money, Ed will go along with our investment team members and answer questions employees ask during these presentations," says Holland.

Powell adds, "I'm also helping Cheryl transition to a paperless office by doing some of the scanning or, if everyone in the office is off-site, I might answer Abacus' phones. Even at this juncture, I still have unbillable hours I can use to help her out," says Powell.

Does Holland ever pay Powell? "If he's got free time, we'll pay him to fill in on these kinds of tasks," says Holland. "We must decide whether each job I do is a rent offset, or something I'm going to charge for," adds Powell. His hourly rate when working with his middle-market clients is $100, which he's thinking about raising. But that's not necessarily what he charges Abacus. "If I'm just doing a simple net worth summary for a client, I'll charge a lower rate."

So where does Holland see her relationship with Powell going? "Eventually we might need the space he's in, or he might get so busy he doesn't need referrals from us. But we'll cross those bridges when we come to them," she says. Until then, Holland and Powell both predict their relationship will continue to thrive. Says Powell, "One of the biggest things it's done for me is given me instant credibility in the community." Says Holland, "I'm very pleased ... we've had no problems at all."

David J. Drucker, MBA, CFP ([email protected]), a fee-only financial advisor since 1981, is editor of the Virtual Office News monthly newsletter, and co-author of the book Virtual Office Tools for a High-Margin Practice (Bloomberg Press, 2002), both available at www.virtualofficetools.net.