By MICHAEL PETRO

James Fashano says he knows he's in the same boat as others who provide financial planning services in Western New York.

The economic downturn that ripped through the wallets of many Americans has produced a more conservative, risk-adverse investor. And the stock market crisis of 2007-08, along with the banking crisis and some well-documented Ponzi schemes, fostered an environment of mistrust.

"That all sent a shock wave through the financial world," said Fashano, executive vice president of Williamsville-based Alliance Advisory Group. "But how you combat that is by honoring your commitments and providing fantastic service to your clients."

That's one way financial planners have stayed afloat during the recession. It also helped that firms such as Alliance stayed viable with advances in technology as do-it-yourself investing became a part of the marketplace.

Value-added service

Local professionals say there is true value in the services provided by financial planners these days. Indeed, U.S. News and World Report recently identified financial planning as one of the 20 hottest future professions.

As part of a firm or as a solo practitioner, advisers said they can help clients manage their finances in relation to income and assets. Many feel they can be of most service by helping people plan for retirement and avoiding pitfalls along the way.

"My function hasn't changed even though the world has seemed to turn upside down," said Peter Hafner of Hafner Financial Group, Williamsville, whose broker dealer is First Allied Securities. "My job is to really make sure the client's objectives are clear and to properly manage their emotions so they can move through challenging markets and realize their goals."

In some cases, changing attitudes of investors has made the ability of financial planners to manage the psychological piece of the equation just as important as managing a portfolio.

Even as the marketplace shows signs of rebound, advisers are looking outside the box to ease client fears.

"The economy has made a fair recovery, but the volatility of the market has kept many clients uncomfortable and nervous," said W. Lawrence Buck, president of Harold C. Brown and Co., Buffalo, whose 30-plus employees handle more than $600 million in client assets.

"With the recession, people are generally feeling they have less discretionary money," he said. "They're worried about their jobs, making their mortgage, putting their kids through college and meeting daily expenses today while trying to make retirement work tomorrow."

A new approach to investing

Some advisers are coming around to a new way of thinking, ditching "old-school" beliefs that diversification - spreading risk into various investment categories - is a must and that time is always on your side.

"As 2008 taught us, the standard investment model can be jeopardized under severe market stresses," said Mark Stevens of Marc Stevens Financial, who works as a CPA out of the firm's Orchard Park office. "Our thought process now requires us to look beyond our own perspective and ages as we make recommendations for those who entrust as with their financial lives."

Fashano, meanwhile, said he looks at client finances holistically and tries to build wealth by aligning investment decisions with a client's individual values. He look at their entire financial package to avoid the erosion of financial health, he added.

Hafner, a certified wealth strategist, said his main objective in working with clients is managing expectations and helping them look through the proper lens. Once that is done, he said, investing is the easy part.

Do-it-yourself approach

A savvy investor can learn to do it on their own with the tools available these days, Fashano said, but oftentimes he or she wouldn't expose themselves to 100 percent of their potential.

"It's not that someone can't do it on their own, but I think a financial planner can make it easier on you," added Buck, a certified financial planner who has been with Harold C. Brown since 1972. "They can help get you through all of the ‘financialese,' the type of risks to look out for and how to set up realistic goals."

Stevens said he likes to think he helps filter out the "noise" from what he believes is a mostly negative message coming out of media outlets.

"As a general rule, the financial media still relies on viewership, so shocking news is still a major attraction for them," Stevens said. "Certain items may be overemphasized when they really need further analysis to the individual and their portfolio and financial plan."

Though the rate of consumer savings has increased in recent years, Buck said there is still an uneasiness among clients regarding short-term deflation, long-term inflation and the possibility of falling into a double-dip recession. He said he keeps many of his clients less exposed to stocks and undue risks.

"There's no perfect formula out there," he said. "Be diversified but not too diversified."

Leveraging the Internet

The Internet has changed the way people do business, and the financial planning world is no exception.

"My job is so much easier now than it was 15 years ago because of technology," said Hafner, who started his firm in 2007 and now serves more than 100 families. "I'm as connected at my home as I am in my office."

Alliance Advisory Group uses the Internet and its Web site to create a "Living Balance Sheet" of a client's finances, which Fashano said he finds helpful in making the investor more comfortable with the process.

Stevens, however, said the Internet can also create an information overload. That could lead to an investor feeling overwhelmed and wanting to act on his or her emotions.

There's nothing like the personal touch, he said, especially when it comes to one's finances. Meeting one-on-one can have the most intrinsic value for what's done with or by an adviser.

"The consumer must recognize that the construction of a person's financial portfolio is much like the diagnosis and treatment a doctor would provide," said Stevens. "So a macro viewpoint of a person's financial situation is not the best way to approach a plan ... There's still a lot of value in getting to know people."

Fashano, meanwhile, said he attracts clientele by actively recruiting financial professionals, managers and support staff. Clients will be more willing to work with people they like and trust, he said.

"There is a huge demand at all levels in this work, so for the right person looking to build an entrepreneurial type of career, it's the right fit," said Fashano, whose firm has 68 financial advisers and 30 managers and support staff. "The more we foster the growth of new advisers, the more people we can serve."

Buck suggests that consumers conduct some research to find the right professional to fit for his or her unique needs. Presently, the industry is calling for stricter regulations in training, There currently are some states that don't require licensing and certification in the industry, sources say.

"There is a growing need for people in this position, but our educational system doesn't always do a good job of preparing you with financial life skills," Buck said.

"I think the consumer using a financial planner needs to do his or her homework. Make sure you find a firm and adviser with experience and a track record that has weathered the test of time."

Michael Petro is a freelance journalist from West Seneca.