Planning the Future,
Remembering the Past

Were it not for a draft notice received one month before graduation, Lamar Smith (BBA '69) might be a professional photographer, rather than chairman and CEO of USPA&IRA, an international financial services group dedicated to serving military families.

"I was a photographer for the Signal, the Georgia State student newspaper," Smith explains. "I majored in business because I planned to develop a photography business after I graduated." Smith came to Georgia State University for an education, but left with knowledge not found in textbooks. The transition from his hometown of Gordon, Ga., to college in downtown Atlanta taught him independence and maturity. Even now, Smith experiences the benefits of a degree from Georgia State.

"I received an exceedingly practical education that gave me insights valuable in the real world," says Smith. "Since Georgia State is located in the heart of one of the most thriving business communities in the country, students have an advantage over those who go to more traditional academic institutions, and it shows once they enter the business arena."

Smith's most significant memory from his days as a business undergraduate is of a mentor who taught him as much about ambition as he did about marketing. He took three courses from the late David Schwartz, an early motivational thinker who served as chair of the marketing department when Smith was a student. Smith remembers, "He exposed me to the idea that a kid from a small, industrial town just might be able to accomplish something...that I didn't have to be limited in my dreams."

After receiving a draft notice, Smith became an officer in the Air Force and went through pilot training. His ranking of number one in his pilot training class served him well as he flew 117 missions in Vietnam. His decorations for directing search and rescue missions include two Silver Stars, six Distinguished Flying Crosses and 11 Air Medals. During his seven years as an Air Force pilot, Smith learned a lesson that became a part of his personal philosophy.

"The faster you want to fly, the further ahead you'd better think," says Smith. "It's all about thinking ahead and visualizing. You're taught in aviation to see things in your mind ahead of time. It's better to detect deviation and make a small correction in your course early than deal with the consequences later. The same thinking applies to business."

It was through the military that Smith discovered USPA&IRA (United Services Planning Association, Inc. and Independent Research Agency for Life Insurance, Inc.) in 1976. One year after becoming a client, Smith left a promising Air Force career and became a USPA&IRA representative. A series of rapid promotions took him to the Home Office in Fort Worth, Texas, in 1985 as senior vice president and director of marketing. He was named president and chief operating officer in December of that year, president and chief executive officer five years later, and in 1992 Smith became chairman and chief executive officer.

When asked how USPA&IRA is different as a company, Smith explains that the company's mission and philosophies blend the best aspects of military ideals and business ideals. For instance, the company is both militarily mission oriented and focused on the efficiency found in the business world. By viewing the company's mission statement as their "marching orders," the leaders of USPA&IRA achieve a balance between managing the business for their clients, staff and shareholders. "If we manage with balance for the long term, the USPA&IRA family will have a bright future," says Smith.

USPA&IRA, which had $130 million in revenues in 1997, has provided insurance and investment products to military families since its founding in 1958. Most of the company's agents are former members of the military who were once clients like Smith. "Military families are at the beck and call of the federal government," Smith explains. "When you get orders every two to three years, you don't form relationships in local communities so you don't receive consistent financial advice. We have a well-defined philosophy and deliver our services to our clients, wherever they are."

As a member of the baby boomer generation and CEO of a financial services company, Smith is well aware of the financial quandaries facing his generation. "There's talk about my generation waking up and developing aggressive saving habits," says Smith. "Well, I hear it, but I definitely don't see it. According to the Federal Government Personal Savings Rate report, personal income is near an all-time high, but personal savings is at an all-time low."

Smith's investment philosophy is based on three dynamics ­ input, rate of return and time. The combination of these dynamics will determine how much of an estate is developed. Input, or the amount of money invested, is dependent upon a person developing a consistent attitude of living on a little less than what he or she makes each month and choosing to invest that money instead. Rate of return is influenced by the diversity of a person's portfolio of equities. As for the final dynamic of time, Smith has one piece of advice. "There's only one thing you can do — regardless of age, start now."

Lamar Smith has come a long way since his days as a photographer for Georgia State's newspaper, and he has learned lessons that followed him from the classroom to the battlefields of Southeast Asia to the top of the corporate ladder. His response to what he would tell a young person planning for the future demonstrates the most important lesson he has to offer.

"Develop a personal financial philosophy based on common sense, but get started right now. It doesn't have to be perfect because the average plan will get you to your goals. Learn to live as debt free as possible. And most of all, don't mistake things for happiness. Financial freedom is wonderful, but it won't give you purpose, significance and happiness."

Photograph: Vertison Photograph

Return to The State of Business index for Summer '98.

Return to The State of Businessmain page.