What causes some people to be spendthrifts and others to pinch pennies? Why are most Americans drowning in debt, while a few have a healthy fiscal blood pressure? Alas, this isn't a psychological treatise, but a profile on one independent professional who practices what he monetarily preaches. Hampton Scurlock III is a certified financial planner (CFP) and tax advisor whose business has no debt.
Scurlock received a B.A. in business from Transylvania in 1999. "I am a rare bird who knew what he wanted to do," he said. When he was three or four years old he was already collecting coins. Later he did chores, mowed lawns and baby-sat to put money in the bank. His parents started a Kiddie(k) program for him, matching whatever he saved. By the time he was 12, however, they stopped the match, because he was saving all the money he earned. He bought his first car - - used, of course - - at age 16 and paid for almost all of his college tuition.
At Transy, Scurlock interned with a mutual fund and insurance company. After graduation he worked for a corporation in the financial industry until he "saw the writing on the wall when management got upset with me for not offering company products and instead offering other companies' products that were better for my clients."
In August 2001 he hung out his own shingle, Retirement Tax Advisory Group, with virtually no clients because he had signed a non-solicitation agreement with the previous company (no longer in Lexington). All but one of his clients called his cell phone and came on board with him. Most of his clients today are individuals, but he does handle 401(k) retirement plans for a few companies.
One of the first programs Scurlock initiated was a $49 tax preparation for a simple return, which he still offers. His business model hasn't changed from day one. He wanted to be different, objective and able to sleep at night because he could look each client in the eye and explain the best- and worst-case scenarios for their choices.
"I am the world's worst salesperson," Scurlock admitted. "The clients are the decision makers, not me." Rarely will you see him in a suit and tie, not for comfort's sake, but for frugal reasons. "I had a client ready to hand me a $527,000 check. He said, 'I don't know if I should hand this to someone not wearing a suit' and I said, 'I'll wear a suit if you start paying the dry cleaning bills.'"
Scurlock stays current by reading online news and 20 publications each month, usually an hour a day, on the topics of tax laws, financial planning, insurance, politics and economics. "I keep them in my car and read at stop lights," he said. "The more I know, the more value I can add for my clients and improve my own finances."
He doesn't accept investment commissions, as his services are fee-based. In 2006 he earned the CFP designation. Consumers' Research Council of America named him one of the top financial planners for 2008. Last month he was awarded Commerce Lexington's 2008 Independent Professional of the Year.
Yes, frugality is practically his middle name. Scurlock actually talked his wife into naming their baby Isabella Rose Scurlock (IRS). She was born April 19 this year, giving him time to work non-stop for the April 15 deadline. Scurlock grew up with a coupon-clipping mom and a dad who had made a lot of business mistakes and shared those lessons with him. "He was the inspiration for me to be an entrepreneur," Scurlock said of his father. To this day the younger Scurlock doesn't spend a dime on anything more than is necessary. Most of his advertising budget goes into his Web site and his marketing efforts come through networking. "I try not to take on more than one additional client a week," he said. "It's controlled growth."
With the current economic climate being what it is, Scurlock claims he is not in panic mode, but he's not overly optimistic either. "The market has ups and downs," he said. "Nobody knows what's going to happen and anyone who says they do know, I want to buy their crystal ball." The main mistakes he sees people make are being too conservative or too aggressive with their investing strategies and not having a plan or goals. His goal is to help clients simplify their finances and educate them on investments and taxes. "You can never have too much time, money or knowledge."
To learn more about Scurlock's work, visit www.retirementtag.com.
Kathie Stamps is the co-founder of www.ISBO.biz, an online directory of independent/small business owners. Contact her at kstamps@isbo.biz.