A4 plans to be leading
financial service provider

A financial planner with an extraordinary track record-he was the top producer in the Carolinas for World Financial-is launching a financial services and investment company that targets middle class investors.

John Balcerak, 35, the principal in the new firm, A4 Capital Management, hopes to have 150 agents selling mutual funds, life insurance, annuities in a year's time. Right now, the company, based in Huntersville on NorthCross Drive, has 25 full and part-time agents.

Balcerak was pulling down on the order of $400,000 a year selling financial products through the World Financial system. He broke off on his own last year to launch A4. He has invested about $600,000 in the new business, whose name refers to an increasingly popular way to look at assets: Financial, Intellectual, Social and Human.

"We think in order to live a prosperous life, all four asset classes should be developed and balanced," Balcerak said, explaining that his goal is to help buy financial services for families, as opposed to selling to families.

In fact, the company will offer a mix of fee-based and commissionable products with the stated goal of full disclosure and doing what's best for the customer. Since the company will not have proprietary products, there is less temptation for agents to steer customers into investments with high commissions or agent incentives.

Noting that the average life insurance payout is around $14,000, Balcerak emphasized that 96 percent of Americans are under-funded for retirement. About 95 percent of the financial services organizations focus on the top 5 percent of the American marketplace.

By focusing on the vast middle ground of American demographics, Balcerak says his firm will grow and expand. Based on a business plan developed last year, gross revenue this year will be on the order of $2 million, with the company breaking even sometime this year.

Balcerak forecasts revenue in five years to reach $50 million, with offices all over the region early on, and then across the country. With each representative being an independent contractor, paid on the basis of commissions and fees, Balcerak says it will be easy to grow the company quickly.

The business model is based on World Financial and a real estate agency. The financial services representatives build their own book of business, essentially owning their own business. Rather than top agents setting up their own shops-as many real estate agents do-Balcerak encourages them to open new offices for A4, and build them up to the extent that have virtually their own business and team within the A4 framework. The home office, of course, gets an override based on tech support, the business model and marketing.

"The vision is to build a world class organization nationally. Our focus will be right here in North Carolina and South Carolina. We want to build a seamless system, plant it everywhere and have it turn-key and ready to go," Balcerak said.

The company's "bread and butter" is middle- to upper-income families. The middle, he said, being under-served by banks and investment companies. A4's Advanced Market Division will focus on the higher income families and business owners.

"Ninety-five percent of the people are being left behind when it comes to adequate retirement savings," Balcerak said.

He said the company is looking for full- and part-time representatives who have an "ambition to do what's right for people." He likes to have part-time reps come on board to see if they can earn as much money with A4 as they do with their full-time position. Then they come on board full-time, he said, with reps making $100,000 a year in their first or second year.

A4 provides mentorship, training, a professional environment and education. Balcerak himself is a graduate of Roanoke College and a Certified Financial Planner.