Sigma Financial Corporation / Sigma Planning Corporation

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Member FINRA/SIPC
4261 Park Road, Ann Arbor, MI 48103
1-888-744-6264

In the early 1980s, Jerry Rydell worked as a state of Michigan co-manager for Homelife Insurance Company, now known as Phoenix Homelife. As an investment advisor, he was deeply dissatisfied with the broker/dealer alternatives then available. And so in 1983, he made the decision to establish Sigma Financial Corporation as a way of creating the services he had been seeking.

The following year, he founded Sigma Planning Corporation (SPC) to function as an SEC-registered investment advisor. Originally intended as a means of providing Sigma representatives with fee-based planning opportunities, the firm currently offers numerous money management services, allowing reps to compete effectively in the rapidly growing fee-based money management business.

The Early Years
Sigma Financial Corporation immediately attracted a small group of representatives, all of whom had been affiliated with Homelife. Gradually, they were joined by other professionals who had become acquainted with Jerry through his longtime activities in the local CLU and CFP chapters. Initially, Sigma emphasized fee-based financial planning and required that all representatives be Registered Investment Advisors, a mandate that was later eliminated.

A Reputation for Service
Sigma Financial Corporation continued its steady, controlled growth into the 1990s. By then, the firm was becoming well known for the “high-touch, high-quality personal service” it offered associates. This perception was reinforced in 1991, when Sigma won the Broker-Dealer of the Year Award, presented by the Dow Jones Investment Advisor Magazine. Based on a fax poll of reps, the award—combined with the firm’s newly launched advertising campaign—generated tremendous interest and attention within the industry. Before the decade was out, Sigma had garnered six separate Broker-Dealer of the Year awards, a tribute to its service-focused philosophy.

Today, high-level service and support remain a priority for Sigma, a fact demonstrated most recently by the roll-out of “Systems for Success.” This A-to-Z tool for practice management is designed to help reps thrive and prosper in today’s difficult marketing environment.

An Unswerving Focus on Reps
In 1995, Sigma launched an initiative to help registered representatives double their production in three years. To support its organization-wide campaign, the firm began conducting a variety of educational programs on a broad range of topics. Not surprisingly, this effort bolstered the company’s status even further. As a result, Sigma not only expanded its network of associates but also tripled the average production of its rep force during the 1990s.

In 1998, determined to improve the level of customer service for reps using brokerage accounts, Sigma set out to find a clearing firm that could meet its highest expectations. Following an exhaustive search, the firm made its choice and, in 1999, began clearing its trades through First Clearing. Based in Richmond, Virginia, First Clearing provides both outstanding service in the southern-hospitality mode as well as unsurpassed, technology-driven information services. As just one example, the InfoMax web site contains over 80,000 pages of research and marketing tools—everything a rep needs to conduct business.

Succeeding as an Independent
Sigma Financial Corporation is one of the few--and last--truly independent firms within an industry characterized by mergers, acquisitions and mega-corporations. Over the years, Sigma has steadfastly rejected acquisition offers, preferring to remain autonomous and self-directed.

In September of 2001, the firm announced that it had entered into a joint venture with Midland National Life Insurance to form a captive broker-dealer (Sammons Securities) that would service the agent force of Midland National Life. This alliance enabled Sigma to leverage its back office operations and, in so doing, achieve a competitive economy of scale while maintaining its independence.

Community Outreach
In addition to serving its registered representatives—who now number over 500--Sigma has made a strong commitment to corporate citizenship. Each year since 1997, the firm has supported a major charitable event in the community. Past efforts have included building a house through Habitat for Humanity, sponsoring the Wyland Foundation’s Ocean Challenge in 1998 and 1999, and hosting annual golf outings to benefit Big Brothers/Big Sisters and to support research on multiple sclerosis.

Looking to the Future
Sigma began its 20th year with approximately 500 representatives, plus another 600 “shared” reps through its affiliation with Sammons Securities. In coming years, associates can expect the firm to pursue the same strategy that has enabled it to succeed in good times and bad—a strategy that calls for a combination of careful planning, steady and controlled growth, solid alliances, and a continuing focus on service and support.
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Strong, Slow, Steady Growth
Sigma Financial Corporation continued to expand at a steady pace as its reputation spread throughout the industry. For nearly a decade, the firm relied almost exclusively on referrals from existing reps as a means of recruiting new registered representatives. That practice continued over time and, today, referrals continue to be the firm’s primary source of new representatives.

In 1987, Sigma experienced a dramatic growth surge when it acquired the registered representatives of The Saxon Group from the Alexander Hamilton Life Insurance Company. The addition of these thirty professionals brought the firm’s total number of affiliates to 100, supported by an office staff of six.

For many years, Jerry himself continued to function as a personal producer, deriving the major
portion of his income from investment clients. Having an active, practicing investment advisor at the helm created a corporate culture that was inherently and consistently producer-friendly—something that set Sigma apart from its competitors.

Built on a Foundation of Mutual Loyalty
One of the keys to Sigma’s success has been its ability to maintain long-term relationships with associates, staff and managers. Although the company has continually added new representatives during its 20-year history, only in rare cases have associates been lured away by other broker-dealerships.

This stability is evident throughout the entire organization. Over time, Sigma reps have had the benefit of an unusually stable management team. The firm continues to be led by Jerry Rydell. Sigma’s first employee, hired in 1984, now serves as its vice president. With just one exception, every individual promoted to a management position has remained with the firm; and on average, each member of the seven-person management team has been with Sigma for at least ten years. The situation is similar among the office staff, where the average term of employment is nine years.

Making Financial Security a Priority
Except for a modest mortgage on its office—a renovated, 70-year-old farmhouse that currently measures 9,000 square feet—Sigma has employed a no-debt strategy of growth. Purchasing and renovating its own office building enabled the firm to control costs. In addition, Sigma buys all office equipment outright, rather than leasing. The organization also maintains a cash reserve equivalent to six months’ worth of expenses. This strictly-adhered-to policy has allowed the company to maintain operations during severe industry-wide downturns such as occurred in 1987, the early 1990s, and again today.