STREET MOVES: Former Rinet Adviser Establishes Planning Firm
January 04 2010 - 3:25PM
Dow Jones News
Rob Florek, formerly a senior relationship manager with Rinet
Company LLC, has established Florek Financial LLC, a
wealth-management firm with offices in Boston and nearby Duxbury,
Mass. The firm aims to help its well-to-do clients control tax and
investment costs by bespoke planning and passive investing.
Boston-based Rinet's management bought the firm back from Boston
Private Financial Holdings (BPFH) in September 2009. Florek says
Rinet, an active manager that caters to ultrahigh-net-worth clients
and their families, asked him to stay on, but he declined because
of his belief "that with a passive investment model coupled with
sophisticated financial and tax planning, we're able to give the
end user much better service for the premium they're paying" than
with active investment management.
Florek and his colleague Paul Furcinito advise clients to put
low-cost, tax-efficient mutual funds and exchange-traded funds at
the core of their portfolios with select municipal-bond and
alternative managers as more opportunistic satellite plays. They
don't claim that passive investing beats active approaches hands
down or across all strategies; merely that in conjunction with
careful, customized planning, it offers more value than active
investing over the long run.
Besides an eight-year sojourn with Rinet, Florek spent five
years as a private-client tax planner with PricewaterhouseCoopers.
Furcinito was in equity sales at Deutsche Bank (DB) before he
joined Florek Financial in November 2009.
Though the firm still is early in its development, Florek says
it will cater to two groups of private clients: those with at least
$15 million that are looking only for financial-, tax- and
estate-planning services, and those with between $2 million and $5
million who want investment advice and planning from a single
source.
Right now, Florek Financial has between $3 million and $4
million under management; by the end of 2010 Florek expects to be
managing about 10 times that.
-Thomas Coyle, Dow Jones Newswires; 207-631-4235
thomas.coyle@dowjones.com
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