New School of Finance founder tells WP about her decision to quit Bay Street and go it alone
New School of Finance is a business sculpted in the image of its founder Shannon Lee Simmons.
That means ditching the stuffiness for selfies and the 30-page financial plan for one that helps everyday people “map this shiz out”.
This down-to-earth approach is, admittedly, not for everyone but it’s a testament to Simmons’s persistence since quitting Bay Street in 2010 that she and her staff are booked out until November.
Drawn to the fee-only space, she was passionate about working with a demographic that is potentially more worried about debt than asset allocation. A sociable person, Simmons grew tired of encountering the same high-net-worth client problems during her career in wealth management. Now, she said, no day is ever the same.
“Yesterday I had someone swimming in a line of credit debt after a terrible ‘reno’ and they are not sure if they have to sell their house,” she said. “This morning I did a retirement plan for two teachers, and then later on this afternoon I have someone who is a freelance artist coming in and she has a royalty payment she doesn’t know what to do with.
“There is so much variation in the type of client I get to see and the problems involved.”
A taste of New School of Finance’s sense of fun can be found in its Real Selfies section on its website. Alongside a picture of Simmons with, for example, a cocktail, fancy meal out or new hairdo is another selfie with a receipt; a reminder that behind every "look-at-me" social media post is, essentially, a bill.
She said: “That project resonated so hard with people and so fast that I really felt like I had nailed something here. People are feeling broke because they are seeing all these other people, friends or family, buying a house or renovating their basement or sending their kids to camps.
“Whatever it is they see on social media, they are looking at their own life and going, why does my lie suck so bad? And that is having a huge impact on how we feel about our finances and overall about our money.”
The project, which Simmons believes taps into people’s fears about being left behind, even led to her writing a book, Worry-Free Money. A published author, a regular media contributor and founder of a successful business, it’s a world away from her Bay Street beginnings where, after graduating, Simmons spent three years with RBC Phillips, Hager & North Investment Counsel.
She is candid about the hit her own finances have taken by veering off course. Crucially, though, she has no regrets about the decision to start New School of Finance five years ago.
“I make no bones about it,” she said. “The business model alone, it doesn’t take a rocket science to work out that it’s much harder. There is no sustainable revenue model at work. Your client comes in for a session and you may not see them for two years, three years or five years so you never really know. There isn’t that trailer commission payment happening.”
That said, Simmons said the business is doing well, driven forward by her genuine desire to keep financial advice affordable for everyday folk.
She said: “For me, New School of Finance is about building something that’s much bigger than myself and changing the way that Canadians think about getting financial advice; making it accessible and making it fun.”
She added: “I go to bed every night feeling really good about what I do and I still don’t mind coming to work every morning. I love what I do.”
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