Thomas Cook discusses his outlook on transparency, tax changes, and a volatile asset class
Ask Thomas Cook what made him join the financial services industry, and he’ll give you three causes: his family’s background in the field, his interest in the stock market, and his passion for helping people.
“I enjoy putting people in a better financial place than they otherwise would be if they didn’t have me helping them make decisions,” said Cook, a principal and financial advisor at Affinity Financial Group & Affinity Securities/Worldsource Securities who manages over $100 million in assets.
“Building a financial safety net and putting a plan in place is difficult for many people and families,” he said. “For some, it’s challenging because of their income, student loans or debts. For others, it’s due to complex business structures that they find confusing. They don’t learn this in school, so understanding the intricacies and figuring out how to be efficient can take a lot out of them.”
Any good financial planner knows that each financial plan has different moving parts: tax, investments, retirement, and estate planning are just some of the challenges, and it’s rare to be able to deal with any one problem in isolation. To be relieved of their financial anxiety, Cook said, clients need someone with the expertise to guide them through their financial lives.
“I was fortunate to have two great mentors,” he said. “The first was my father, Philip Cook, who built a foundation and helped me accelerate the growth of my knowledge base and professional career. The second one, Ed Lapointe, helped me and my current business partner, Graham Roy, establish Affinity. As a tax specialist and financial advisor, he helped take my knowledge to a level approaching that of many tax practitioners, which is something few in the financial advisory field can claim.”
Aside from having good mentors, Cook attributes his success to hard work and a view toward improvement. Before establishing Affinity with Roy and Lapointe, he spent two years at another large wealth-management firm, where he received training and was able to earn his CFP designation. “After that, I graduated into an IIROC platform, which helped me be a little more flexible and independent in choosing how to invest my clients’ money and how to operate my business,” he said.
For Cook and his business partner Roy, that flexibility and independence is especially important in adjusting to industry trends. Like other advisors, they have been particularly interested in the impact of CRM2 disclosure, although it has not affected their own business greatly.
“We’re primarily fee-based now anyway,” he said. “Our clients have seen how much they’re compensating us for many years now. But I think CRM2 will help investors and clients become more educated as the years go by. That means the level of service they receive will have to increase or show value; the decision to find other advisors or solutions will likely become easier for those who aren’t satisfied.”
The outlook for investors isn’t absolutely favourable, however. Rising costs of living are making it harder for Canadians to save for retirement, fund their children’s education, and just live more comfortable lives. Cook has noticed that it’s becoming particularly more challenging for younger people.
Taxes are another hurdle. “The Trudeau tax changes are creating a lot of challenges in planning for a lot of unknowns,” Cook said. “We just don’t know what the rules are going to be, so it’s hard to guide on corporate structures for the business professionals we work with. We tell clients ‘If this happens, we might do this, but if that happens, we might do something different.’ Since we take our cues from the government, the uncertainty prevents us from making solid suggestions and leaves us — and our clients — in a tough spot.”
Uncertainty is rife not just in taxation, but also in investment planning — particularly with one contentious asset class. Bitcoin has exploded in interest and demand among investors this year, but like many other professionals, Cook is advising caution.
“I think we’re looking at a lot of risks: we don’t know how it’s going to adapt with governments and bigger institutions such as banks, and we don’t know what it’s going to look like in five years or 10 years,” he said. “I’m not telling my clients that it hasn’t got potential, but the risk-reward is hard to gauge. And while a lot of the mania is swirling around bitcoin, I feel significant value will be found in the blockchain technology that makes cryptocurrencies possible. That very well could provide the greatest value for investors longer-term.”
As regulatory and market risks increase, Cook believes that there’s only one way for advisors and planners to succeed, and that’s by striving to become knowledgeable and transparent.
“In this industry, you probably want to be looked upon as an advising professional more than a salesperson,” he said. “You’re going to get a little more respect from your clients, I think, and probably have a better chance of growing your practice over time.”
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“I enjoy putting people in a better financial place than they otherwise would be if they didn’t have me helping them make decisions,” said Cook, a principal and financial advisor at Affinity Financial Group & Affinity Securities/Worldsource Securities who manages over $100 million in assets.
“Building a financial safety net and putting a plan in place is difficult for many people and families,” he said. “For some, it’s challenging because of their income, student loans or debts. For others, it’s due to complex business structures that they find confusing. They don’t learn this in school, so understanding the intricacies and figuring out how to be efficient can take a lot out of them.”
Any good financial planner knows that each financial plan has different moving parts: tax, investments, retirement, and estate planning are just some of the challenges, and it’s rare to be able to deal with any one problem in isolation. To be relieved of their financial anxiety, Cook said, clients need someone with the expertise to guide them through their financial lives.
“I was fortunate to have two great mentors,” he said. “The first was my father, Philip Cook, who built a foundation and helped me accelerate the growth of my knowledge base and professional career. The second one, Ed Lapointe, helped me and my current business partner, Graham Roy, establish Affinity. As a tax specialist and financial advisor, he helped take my knowledge to a level approaching that of many tax practitioners, which is something few in the financial advisory field can claim.”
Aside from having good mentors, Cook attributes his success to hard work and a view toward improvement. Before establishing Affinity with Roy and Lapointe, he spent two years at another large wealth-management firm, where he received training and was able to earn his CFP designation. “After that, I graduated into an IIROC platform, which helped me be a little more flexible and independent in choosing how to invest my clients’ money and how to operate my business,” he said.
For Cook and his business partner Roy, that flexibility and independence is especially important in adjusting to industry trends. Like other advisors, they have been particularly interested in the impact of CRM2 disclosure, although it has not affected their own business greatly.
“We’re primarily fee-based now anyway,” he said. “Our clients have seen how much they’re compensating us for many years now. But I think CRM2 will help investors and clients become more educated as the years go by. That means the level of service they receive will have to increase or show value; the decision to find other advisors or solutions will likely become easier for those who aren’t satisfied.”
The outlook for investors isn’t absolutely favourable, however. Rising costs of living are making it harder for Canadians to save for retirement, fund their children’s education, and just live more comfortable lives. Cook has noticed that it’s becoming particularly more challenging for younger people.
Taxes are another hurdle. “The Trudeau tax changes are creating a lot of challenges in planning for a lot of unknowns,” Cook said. “We just don’t know what the rules are going to be, so it’s hard to guide on corporate structures for the business professionals we work with. We tell clients ‘If this happens, we might do this, but if that happens, we might do something different.’ Since we take our cues from the government, the uncertainty prevents us from making solid suggestions and leaves us — and our clients — in a tough spot.”
Uncertainty is rife not just in taxation, but also in investment planning — particularly with one contentious asset class. Bitcoin has exploded in interest and demand among investors this year, but like many other professionals, Cook is advising caution.
“I think we’re looking at a lot of risks: we don’t know how it’s going to adapt with governments and bigger institutions such as banks, and we don’t know what it’s going to look like in five years or 10 years,” he said. “I’m not telling my clients that it hasn’t got potential, but the risk-reward is hard to gauge. And while a lot of the mania is swirling around bitcoin, I feel significant value will be found in the blockchain technology that makes cryptocurrencies possible. That very well could provide the greatest value for investors longer-term.”
As regulatory and market risks increase, Cook believes that there’s only one way for advisors and planners to succeed, and that’s by striving to become knowledgeable and transparent.
“In this industry, you probably want to be looked upon as an advising professional more than a salesperson,” he said. “You’re going to get a little more respect from your clients, I think, and probably have a better chance of growing your practice over time.”
Related stories:
Specialist advice
Help your clients avoid a common market danger
