T homas J. Henske, CFP, ChFC, and his partners have found success targeting a group of

clients who are an unlikely market for financial advice.

As a partner of Lenox Advisors Inc., Henske, an eight-year MDRT member from New York, New York, targets the people who work in the center of the U.S. financial industry: Wall Street executives, hedge fund managers, law firm partners and entrepreneurs ages 30–50. “One would think these people already have their finances taken care of, but they don’t because they’re so busy. They’re a classic example of the shoemaker’s kids not having the right shoes. They just don’t have the time,” Henske explained. Many also know little about estate or insurance planning because they specialize in one narrow

area of the financial industry, he said, or they prefer to keep their personal finan-cial lives separate from their jobs.

Lenox, a full-service financial services firm, is managed by five partners. Hen-ske and two of the partners are MDRT members: Both from New York, Mi-chael A. Book, CLU, ChFC, is a 16-year member and Gregory K. Large, CLU, ChFC, is an 18-year member. Marketing themselves as “Personal CFOs,” Lenox advisors are able to coordinate all aspects of their clients’ financial lives, includ-ing retirement planning, asset and risk management, estate planning, insurance and education planning. Lenox opened its doors in 2000, and Henske merged his business with the firm in early 2003. A staff of about 150 — one-third of those are producers — serve clients out of four offices: New York; San Francisco,

California; Stamford, Connecticut; and Chicago, Illinois.

Unique concernsHenske said the majority of the firm’s clients are first-generation wealth who have found success working in Wall Street firms and hedge funds. “Our clients grew up in modest backgrounds, rolled up their sleeves, got to work and ended up in well-compensated fields,” he said.

Working long hours in high-stress environments, he said, this group pays a high price for success. Henske said most want to know the soonest date they can retire from their current profession.

“Our clients’ goal is to stop doing what they’re doing, not because they don’t like their work, but because of the frantic pace and lack of family

markets Wall street

rOUNDtHetaBle.OrG JANUARY/FEBRUARY 2010

Big Apple BusinessHenske has carved out a niche in the center of the U.S. financial industry.By Tammy B. Johnson

time,” he said. “Yet, they’ve created this big lifestyle, so they have to keep working to support it.” This cycle indicates a misalignment of the client’s values and lifestyle, and a key step in the Lenox approach is getting the client to recognize this.

Values conversationDuring their initial meetings, Henske asks questions that get his clients to articulate their values, such as, “What is it about money that’s important to you?” and “Where do you want to be in five years?” He then helps clients determine whether their lifestyle choices, to include their financial de-cisions, are in concert with those val-ues. Clients are encouraged to think about their decisions in the context of their life goals. For example, does the desire for a new house outweigh their desire to retire early?

Gaining entryThe majority of Henske’s prospects are from the Wall Street compa-nies of existing clients. Access to a high population of prospects and clients in a condensed area allows Henske to be extremely efficient. “I can fit in five meetings in one day because they’re all in one build-ing,” he said. Henske and his part-ners advise their corporate clients on different types of benefit pro-grams and qualified plans for their employees, including customized programs for senior executives. This is a major source of revenue for Lenox and often the catalyst for building long-term relation-ships with the participants of those plans. The goal is to eventually provide comprehensive planning advice, facilitated by a fee-based financial planning platform.

Lenox CFOLenox CFO is a financial planning platform designed to coordinate every area of a client’s financial life. Henske uses a Web-based tool to help with the organiza-tion of a client’s financial profile. Clients pay a monthly fee for a single access point to all their finances. Information on invest-ments, insurance, tax planning, bank accounts, group benefits and online brokerage can be accessed. By monitoring their finances from one location, clients can more easily focus on the bigger financial and estate planning picture. “Cli-ents want to see everything under one roof so they can make heads or tails of it,” Henske explained.

The service provides a recur-ring revenue source to maintain and grow the firm’s infrastructure, such as support staff, he said, which is necessary to continue to serve clients beyond the sale of a product and is essential to the firm’s growth

into the future. “Investing a substan-tial amount of time and money in our infrastructure ultimately allows us to be more productive,” Henske said. “The more productive we are, the bigger the footprint.”

Team playerHenske encourages advisors who want to target a similar market to team up with other financial services professionals. Henske said the Lenox philosophy is to divide responsibilities, become an expert in your area and trust your partners to do a good job in areas that are not your core com-petency. He details the evolution of Lenox in his new book, “From Me to We.”

“It’s easier to go at it with a group of trusted partners than to go it alone,” Henske said. “My partners and I have very differ-ent personalities and talents, and that balance should be embraced because that’s what makes a good organization.” n

Henske and his partners (left to right): Richard P. Van Benschoten, CFP; Book; Gregory L. Olsen, CFP, CLTC; Large; and Henske.

Fee-based financial planning services offered through Lenox Advisors, Inc. Lenox Advisors, Inc., offers access to securities and asset management services through

MML Investors Services, Inc., 530 5th Avenue, 14th Floor, New York, NY 10036, 212-536-6000, member SIPC. Investment adviser representatives of Lenox

Advisors, Inc. offering fee-based financial planning services may also be registered representatives and investment adviser representatives of MML Investors

Services, Inc. for purposes of offering securities and asset management services, as applicable. Lenox Advisors, Inc. is a wholly owned subsidiary of National Financial

Partners Corp. (NFP). Lenox Advisors, Inc and NFP are not affiliates or subsidiaries of MML Investors Services, Inc. Services offered through Lenox Advisors, Inc.

as an Independent Registered Investment Advisor are not sponsored or offered through MML Investors Services, Inc. CRN201201 – 129564