There is little doubt in James Cavanough’s mind what he would have done with his working life if he hadn’t had a head for numbers.
“I would have been a psychologist or a social worker,” he says.
“I am a very compassionate person, emotionally intelligent, have very strong people skills.
“I just love people.”
Financial planning, with its combination of facts and figures, as well as human interaction, suits Cavanough perfectly. But it took him a while to find his niche.
He spent his high school years at King’s College in Sydney and felt the pressure to do something substantial with his life. Upon graduation, he returned to the Northern Territory where he undertook a law degree at Charles Darwin University.
“I only passed half the subjects, it wasn’t my bread and butter,” Cavanough says.
“Obviously coming from a prestigious boarding school I felt a certain pressure to achieve.”
He switched to a commerce degree at the University of Southern Queensland and after graduation headed in the direction of the banks.
“They were big and they were profitable and, in my mind, they were safe,” he says.
He spent the next six years in a number of high-profile roles: he sold managed funds at Macquarie and worked at Westpac Investment Management – now absorbed into BT Investment Management – where he raised capital in a corporate advisory role.
“It was the sexy side of the bank,” he says, with a laugh.
But eventually, it wore thin.
“I wasn’t supported, I was asked to do a lot of things that were quite stressful,” he says.
“I just wanted to go back to people and l knew it was time to do something a bit different.”
Apathy the biggest challenge
Cavanough took on a role with CommSec as an adviser in late 2005, before eventually finding his way to the offices of accounting firm HLB Mann Judd in Brisbane.
He felt like he had found his place.
“It was a great firm to work for and very supportive of the independent space and we weren’t pushed to sell the product,” he says.
“It was a great place to learn.”
In 2013, he was poached by Lantern Advisory, where he is now a director. He says the industry has changed a great deal in the past ten years, a lot of it owing to the global financial crisis (GFC).
“Pre GFC, you could tip $100,000 into something, a typical balanced fund, and it would work,” he says.
“Now if you tip in $100,000, we want to make sure it’s working, we only tip in money where there is a value basis.
“There is also a high level of anxiety among people who don’t want to go through that (GFC) process gain.”
When asked what are the future challenges for the industry, Cavanough is unequivocal: it’s apathy.
“A lot of people are guessing about their financial situation,” he says.
“Or they are in denial and have never sought advice about their retirement or super.
“For them, it’s a space that is always changing and industry laws can change quickly.”
This widespread apathy has made Cavanough despondent to the point where he has considered leaving the industry all together.
“It was a few years back, and I talked to my wife about it and she helped me see that I really enjoy what I do, and that it’s important,” he says.
“And I really do feel that now is the perfect time for Australians to seek advice about their super. The bad apples (planners) have left or are going to leave.
“The people who have stuck around are the advice soldiers.”
Planner profileJames Cavanough Name of firm: Lantern Advisory Name of licensee: Centrepoint Alliance, Professional Investment Services Years in the industry: 18 Academic qualifications: BCom, Masters of Applied Finance, ADipFP Accreditations: CFP, FFin Professional association memberships: FPA, Finsia Other memberships: Family Business Australia – registered adviser |
This article was edited on 25/7/16 to clarify that Cavanough previously worked at Westpac Investment Management, not the Westpac institutional banking division.
