To Stephen Cox, “success” is synonymous with “service.” In fact, he believes his clients want more than products that generate strong returns – and that those financial advisors who go above and beyond what is expected of them will be rewarded with loyalty.
“What we sell is a commodity,” Cox says. “But how much service do you get with that commodity? That’s the real value. This isn’t about products. This is about process. The products aren’t that different anymore.”
For Cox, an independent certified financial planner (CFP) in Halifax who plies his trade under the banner of Lévis, Que.-based Desjardins Financial Security Independent Network, the process involves finding out what his clients need, then helping them realize their goals. In many cases, that means doing small things that mean a great deal.
“I try to do as much as I can for clients,” he says. “I’ve taken clients to appointments. I’ve gotten documents for them.”
The 44-year-old Cox also is a firm believer in the written word. The biggest thing he can do for clients, he says, is encourage them to have a formal financial plan in place: “I try to do that for all my clients. Then, the next step is to do what has to be done.”
This is often the point at which the process stalls, so Cox has become a world-class nudger. For example, if a financial plan calls for the client to have a will drawn up, Cox reminds the client about that commitment and follows up to see if an appointment with a lawyer has been made. If Cox can facilitate the process, he will. In fact, he’ll even drive the client to the lawyer’s office.
A financial plan is about much more than money – and Cox spends time getting to know his clients in the broadest sense so he can develop financial plans that will work for them. It all starts with what he calls a “non-financial discovery process.” In the first meeting with a new client, there is one topic noticeably missing from the discussion: money. Instead, Cox spends time learning about what his clients want out of life and what their hopes are for the future.
“Many people have never experienced this before,” he says. “Too often, [advisors] talk about taxes and rates of return.”
Cox often starts the discovery process with a simple question: if you were travelling to Vancouver, what would you take with you? The answer: a map.
“I’m really developing a road map for clients,” says Cox, who received his CFP designation in 2001.
For most clients, the journey is paved with common ground. Cox focuses his financial planning business on three sectors: small-business owners, professionals and seniors. But whether his clients are entrepreneurs, lawyers or grandparents, they often have the same five goals: pay off the house; pay off the bills; retire at some point; take a vacation next year and pay for it; and set aside enough for the children’s (or grandchildren’s) education.
“If you have $5 million or $50,000, the goals don’t really change all that much,” says Cox, who divides his business almost equally between investments and insurance.
However, there is a fine line between “information” and “overload,” and Cox has become an adroit tightrope walker.
“People don’t need you to analyze things to death,” he says. “The bigger picture is fundamental.”
Cox points to the patient/doctor relationship as an example of the balance required when it comes to educating a client. When given a prescription, most people want to know how it will help, the major risks in taking it and what they need to do. They don’t require a single-spaced, double-sided, four-page printout that includes the least likely outcomes and a plethora of technical jargon.
Clients do, however, require touchpoints throughout the year – and a relationship with a strong foundation. Thus, Cox connects with each client up to four times a year: “It builds trust.”
Cox has been building that trust as a financial advisor for the past 16 years. A graduate of Saint Mary’s University in Halifax, Cox landed in the financial services industry after testing the waters in several other professions. After graduating from university in 1992, he worked for five years as a truck driver and then moved on to positions with PepsiCo Inc. and a dairy. He discovered along the way that he had a penchant for independence.
“I wasn’t working my way up the ladder,” notes Cox. “I didn’t do well in a big corporate setting.”
@page_break@ He had done well, however, in his finance courses at university – even though he was a marketing major. So, Cox decided to hang up his financial planning placard in 1996. It was a sign of better things to come.
“I took the self-employment route with the backing of the big corporation,” Cox says. “I have the best of both worlds.”
He adds that while he has access to services and up-to-date information on important topics such as legal and compliance through Desjardins, he is not an employee.
The support of a major financial services firm is critical for financial planners, says Cox: “Today, to run your own brand is so much work – partly because of compliance. It’s a far different landscape. [Compliance] slows things down. It took seven months to approve my website. That’s long when you’re trying to do sales.”
“Sales” is not a word Cox tosses around lightly – or narrowly. The term defined financial planning for decades, but the terrain has shifted, he says: “We were taught to go out and sell. But when people trust you, you don’t sell [to] anybody; you guide them. The old fear tactics are gone.”
Worst-case scenarios are no longer the main topic of discussion, and the new approach to building a client base is being lauded by regulators.
“The industry really wants us to be financial planners,” says Cox, “instead of salespeople.”
In response, Cox offers clients a choice of payment options: fee for service, commission or a combination of the two.
“Most people pick the [first],” he says. “But more change is coming in this area. [Fee for service] is more transparent.”
When Cox is not helping clients get where they want to go, he usually spends time with his wife, Shelley, and their son, who’s almost 10. They cross-country ski, canoe and jog. Cox also is a hockey player when the time allows.
Of course, he’s also fond of spelling bees. His favourite word? Service.
Delivering top-notch services
Stephen Cox, an independent certified financial planner in Halifax who runs his financial advisory practice under the banner of Lévis, Que.-based Desjardins Financial Security Independent Network, says delivering top-notch service to clients is the best way to make your practice stand out.
Here are some of Cox’s tips for those who are interested in taking on this task:
– Start smart. “This is the best job in the world – once you get established,” Cox says. But, he notes, starting from scratch today would be very hard for anyone. “It makes more sense to buy a book of business or work with someone who will be exiting.”
– Stay connected. Keeping in close contact with your clients is good for you and your clients. But be careful, Cox cautions: “You have to walk the fine line between persistence and being a pain. Stay top of mind, but don’t be a broken record.”
– Stay current. People move, kids grow up, marriages fall apart. Knowing your clients and knowing how to contact them is critical. “Build a good database,” says Cox. And keep it up to date.
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