BenchMark In The News
BenchMark Financial Network clients have chance to earn college tuition awards
Premium content from Pittsburgh Business Times - by Patty Tascarella
Date: Friday, May 13, 2011
Joe Wojcik “Dale Dominick, managing director of BenchMark Financial Network’s Pittsburgh office, said a college tuition program is a way to help clients in tough times.”
BenchMark Financial Network, Pittsburgh’s seventh-largest investment firm, is offering clients college tuition rewards for family members that can add up to more than $40,000.
“Our Pittsburgh office is piloting the program, but our intention is to take it into our Washington (Pennsylvania)office next and then introduce it systemwide to all of our advisers,” said President and CEO Michael McCormick.
Washington, Pa.-based BenchMark employs roughly 105 financial advisers, five of whom are based Downtown.
“In tough economic times, we’re looking for ways to help our clients out,” said Dale Dominick, managing director of BenchMark’s Pittsburgh office, which finalized its agreement last week. “This is a free service (to clients) for which we pay a monthly fee.”
The program, similar to frequent flyer miles, was created by Philadelphia-based SAGE Scholars and originally targeted large insurance companies. Recently, it has been signing up investment professionals and banks. These providers pay SAGE Scholars a monthly fee enabling an unlimited number of their clients to participate.
Clients enroll family members — children, grandchildren, stepchildren, nieces and nephews — in the program prior to their junior year in high school. Enrollment can begin at birth. Currently, there are 198,977 students. Participants receive 500 bonus points as an enrollment bonus and then 250 points every six months as long as they remain clients.
The maximum scholarship varies by college but can cover as much as one year’s tuition, though that amount is not granted as a single sum. Each scholarship is paid out over four years. The largest to date was more than $40,000. The school was not identified, nor how long the client had been participating.
To claim the rewards, the student must attend one of the nearly 300 colleges or universities participating in SAGE Scholars. All are private, four-year institutions. Locals include CarlowUniversity, DuquesneUniversity, Allegheny College, Washington& Jefferson College, La Roche College, Chatham University, PointPark University, Seton Hill University, Saint Vincent College, Geneva College and RobertMorris University.
“There’s no actual money in the scholarships,” said SAGE Scholars Chairman Jim Johnston. “The colleges contractually agree to simply reduce their tuition.”
The colleges have access to SAGE Scholars’ database for recruitment purposes.
“The nature of this program is, we have three clients — the families who need a nudge to save for their kids’ education, the colleges who get unlimited access to our kids at no cost and can do email blasts for recruitment events, although they get no information about the kids’ families’ financial assets,” Johnston said. “Third are the financial providers who use the program to distinguish themselves from the competition.”
Malcolm Polley, managing director of S&T Wealth Management Group, said the wider availability of SAGE Scholars here could trigger more local companies to look into incentive programs. Polley said this has not been an issue discussed by the Certified Financial Analyst Society’s Pittsburgh Chapter, of which he is president.
“This is the first time I’ve heard of a rewards program in the investment community,” he said. “But I don’t see the advantage of this program over things that already exist like 529 savings plans.”
Polley also wondered whether SAGE Scholars’ fees would eat into participants’ profitability. Johnston said the charge was $74.95 per month.
“The price is nominal compared to the value,” McCormick said.
“Participation in Tuition Rewards is not an offer of securities. Financial Network is not affiliated with SAGE Scholars and does not endorse the Tuition Rewards program”
ARCHIVES
(JANUARY 2009) -- BENCHMARK SPONSORS OF THE PITTSBURGH BUSINESS TIMES' BOOK OF LISTS. RANKED AS THE #3 FINANCIAL SERVICES FIRM IN PITTSBURGH BY THE PITTSBURGH BUSINESS TIMES (RANKING BY SIZE -- NUMBER OF FINANCIAL NETWORK REGISTERED REPRESENTATIVES, JANUARY 2009), FIFTH STRAIGHT YEAR IN THE TOP FIVE.
Bob O'Korn, who recently joined the downtown office of BenchMark Financial Network, poses for a photo with the ING F1 Race Car, which was on display at One Oxford Centre on January 26, 2009, as part of the Pittsburgh Business Times 2009 Book of Lists Celebration.
JULY 2008 -- BENCHMARK PRESIDENT & CEO MIKE MCCORMICK WAS THE SOLE RECIPIENT OF FINANCIAL NETWORK'S CHAIRMAN AWARD IN WASHINGTON, DC, GIVEN BY FINANCIAL NETWORK INVESTMENT CORPORATION'S PRESIDENT, JACK HANDY.
President & CEO Mike McCormick and the BenchMark Team -- Winner of the 2008 Financial Network Chairman's Award -- July, 2008, Washington, D.C.
DECEMBER 2007 -- UPDATE -- BENCHMARK FEATURED IN FORBES MAGAZINE
President & CEO Mike McCormick at One Oxford Centre, opened in August 2007 and expanded in September 2008; now located on the fourth floor just across from the Rivers Club.
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