Four years ago, Corin Jacka reached a crossroads in his life.
Frustrated by the lack of independence in the financial planning industry, he knew he needed to make a professional change.
“There were a lot of places, and still are, that promoted their services as ‘boutique’ to make them seem independent, but they have percentage-based fees and commissions,” he says.
“And I am not sure that people realise this. When they go into a bank at least they know they are being sold the bank’s product but when they go to see a financial planner, they may not realise they are institutionally aligned.”
Jacka left his job as a director of a successful financial planning company to strike out on his own.
“I figured that if I was going to work in this industry for another 20 years then I wanted to set up my own model that was truly independent,” he says.
“In 10 years’ time, I want to be able to look back and be comfortable with what I have done.”
He hatched a plan to work from his suburban Melbourne home with a small but solid list of clients, enabling him to spend plenty of time with his family.
And so, in late 2012, Corin Jacka Financial Solutions was born, offering a flat rate and no percentage-based fees.
It was not long before he caught the eye of the directors of Priority1 Wealth Management Group, who suggested he take over the business because the two owners wanted to sell their stake to an independent professional.
“I said ‘no’, a lot of times actually, but we had a few coffees and I started to come around,” Jacka says.
“I could see the benefit of taking over the company because I had no succession plan on my own and my business was growing to the point where I needed that extra administrative support.”
Two-year transition
Jacka, who is a fellow of FINSIA, agreed to a two-year transition phase, and he will take full ownership of the company from July 1. The staff roles will remain unchanged, and he will continue to advise clients in his role as director.
One aspect that has changed, however, has been the fees model.
“Priority1 was charging percentage fees and now I have brought the flat-fee model across,” he says.
“I could have made much more money from a percentage model, but you need to be comfortable with what you do.”
Once the full transferal of ownership is complete, Jacka hopes to implement a number of community-based financial literacy and wellness programs.
He has put forward a submission to his local council for an in-house wellness centre to encourage local businesses to look after the health of their staff, with the template ideally being broadened to include schools and community groups.
“I see myself starting small at the local level and if it works broadening it out from there,” he says.
Wellness and wellbeing has long been an interest of Jacka’s.
In 2012 he launched the Community Support Program to support charity and local community groups, and to provide financial literacy education programs to workplaces and community groups.
“Having your financial house in order is very important but this is something that is not taught in schools,” he says.
Look after your own backyard
Jacka worked as a manager of fitness facilities in coastal New South Wales and Melbourne before becoming a planner, and has completed a course in strength and conditioning training at the Australian Institute of Sport in Canberra.
He is well aware of the connection between mental health, productivity and happiness, and he wants to make sure his staff at Priority1 reap the benefits of his wholistic approach.
“You have to look after your own backyard and I want to make sure that staff are happy and they have an opportunity to thrive,” he says.
“We have a profit-sharing model, for example, that allows them to share in our wins as if they were shareholders.”
He admitted taking control of the company was daunting, but he felt up to the task of running a truly independent advisory that is also financially successful.
“I have no doubt that we will do it, it will just be a matter of the best way to go about it,” he says.
Corin Jacka’s financial planning business, Priority1 Wealth Management, features in 24 HOURS – Professional Planner’s new series focusing on the inner workings of leading financial planning practices. Look for it in the May edition – out soon.
