Teamwork multiplies success
Don Coplin, CFP, ChFC, CLU • Puyallup, WA
Edgecombe & Coplin Wealth Strategies LLC • USA Financial Securities Corp.
Levi Edgecombe, CFP, ChFC, CLU • Puyallup, WA
Edgecombe & Coplin Wealth Strategies LLC • USA Financial Securities Corp.
Proactive Advisor Magazine: Talk about your respective roles in the firm.
Don Coplin: We work as a team for each and every client, so the roles certainly cross boundaries. But, in general, my strengths lie in the area of business development and investment analysis, asset allocations, and the selection of investment strategies and third-party money managers. But I have spent many years working in a fee-based planning and advisory model, including managing a large group of advisors before we started our firm. So, I think Levi and I both bring a holistic view of retirement planning, estate planning, and tax-advantaged strategies in many areas. It just so happens that Levi is probably one of the best planning experts—especially estate planning—on the West Coast, so that is his real area of expertise.
Levi Edgecombe: I will return the compliment. Don is excellent at building client relationships and all areas of investment planning, so our skills and experience mesh well. We also have several other top-notch members of the team in the office and a network of strong third-party experts. We focus on all areas of financial planning for clients, but I do enjoy estate planning immensely. I had the opportunity to learn from some real masters in the field. It is very satisfying to show people who have that specific need how to develop creative solutions in using their capital and assets to minimize estate tax liability.
What is the biggest issue you see with new clients?
Levi: We are continually amazed that many people who walk through our door have never met with a true financial advisor before. They may have had different types of relationships with people in the financial-services industry, but no one has ever really taken the time or effort to look at their total financial picture and develop a sound plan.
Our belief, in every case, is that you plan first and invest second. We feel so strongly about this issue that we made a major decision as a firm four years ago. For people who want to have an ongoing relationship, we will not charge planning fees. Essentially, we give clients the option of paying us a fee for advice or a fee for assets under management, but we do not charge for both. Not only is that reassuring for prospects, but it has also turned into a very sound business practice, and our revenues have doubled during that time period.
Once the planning process is underway, how do you approach the investment piece?
Levi: As part of the initial meetings we have with prospective clients, we will look at their total financial picture, including how they currently have their assets positioned. For people close to retirement or already retired, we are believers in the bucket approach to planning. Different asset classes and investments might all have a role to play, but they need to be utilized within their appropriate time horizons and with a close eye on their associated risk. Unfortunately, too many people have allowed their retirement to be severely impacted by sequence-of-returns issues.
One of the things we do early in the process is provide a Morningstar look at a prospective client’s prior investment performance over time. A prospect, even before they have decided to work with us, will get a full printout of this basic investment overview. This shows their historical returns, fees, expenses, and often a correlation and risk analysis. People really like this, and it is something they usually have never seen before.
Don: After we mutually decide if the relationship should move forward, we will then put together a client’s or client couple’s customized investment plan. For some portion of that, we may use the services of a third-party money manager. We have several different sophisticated options there and access to very specific bond and equity strategies, as well as broader portfolio strategies geared to different risk profiles.
These are all generally based upon trend-following and tactical algorithmic formulas that determine on a regular basis the type of holdings a portfolio should be in, again dependent on a client’s specific appetite for risk. So, at least once a month, these managers are basically doing two things: (1) evaluating specific investment alternatives and deciding what to buy, sell, or hold, and (2) determining exposure levels to the overall market as evaluated by their model and its indicators on market trends.
In very broad strokes, for each client portfolio we typically have at least two outside equity managers, and that might encompass several different strategies for diversification and risk management. We also will usually recommend some additional allocations to other fixed income, alternative investments, and liquid cash holdings. We have essentially constructed five basic client portfolios, and, using our risk-assessment methodology, can assign our clients to one of those portfolio options.
The education around risk tolerance is very critical. We can show people within reasonable ranges what sorts of potential returns and maximum losses a portfolio might achieve. We then help translate that into theoretical dollar losses and gains and can adjust their risk profile based on their reaction to that. It makes the quarterly review process a lot more meaningful and productive when ranges and expectations have been fully discussed in the investment-planning process.
How do you think your firm is differentiated?
Levi: We are very proud of being able to offer a full range of high-caliber services to both individuals and businesses. We have a very robust network of affiliations with attorneys, CPAs, health-benefits and long-term-care experts, third-party administrators in the retirement and pension area, business consultants, and investment professionals.
Our differentiation as a firm covers many areas. It starts with the deep experience of our people and our dedication to the financial-planning process. But we like to tell clients that it is important not only to have an advisor who can thoroughly understand their needs, but also one who investigates and understands the economic, regulatory, and tax environment in which their plans will be implemented.
Don: We believe there will always be the risk of periodic bouts of volatility and shocks to both the economy and the financial markets. Having the plans in place to calmly deal with risks associated with that uncertainty is what really makes all the difference. We strive to help our clients develop action plans designed to help move them toward wealth creation and an increased confidence in their retirement and financial-estate plans.
Don Coplin started his career as an insurance advisor in 1982 and later managed fee-based financial advisors before becoming a partner in his current private practice. In 2000, Mr. Coplin and Levi Edgecombe joined forces to form Edgecombe & Coplin Wealth Strategies LLC, enhancing the planning capabilities for their clients. Mr. Coplin’s primary responsibility in the firm is the creation, monitoring, and management of clients’ investment accounts.
Mr. Coplin has earned the Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC), and Chartered Life Underwriter (CLU) designations. He is currently a member of the National Association of Insurance and Financial Advisors and the Tacoma SW chapter of the Society of Financial Service Professionals. He has taught multiple classes for the Life Underwriter Training Council.
A member of Sound Life Church, Mr. Coplin is involved in several church and community activities. He is a church board member, plays the saxophone in the church’s orchestra, and mentors young men in the Royal Rangers program. He also loves to travel the world with his wife, Judy; camp; restore cars; and just “relax in a big chair” with his “schnauzer and beagle close by.”
Levi Edgecombe began his financial-services career in 1971 with Equitable of Iowa, following two years as a youth director at First Presbyterian Church in Tacoma, Washington. He also has earned the CFP, ChFC, and CLU designations. Mr. Edgecombe has concentrated his professional development in the areas of financial estate, business, and retirement planning for both individuals and closely held companies.
A past president of the Tacoma SW chapter of the Society of Financial Service Professionals, Mr. Edgecombe is also a member of the Tacoma Estate Planning Council. He has been the featured speaker several times for the Tacoma and Olympia Estate Planning Councils and has been a Life Underwriter Training Council Fellow instructor for advanced estate planning. In 2008, Mr. Edgecombe was a featured speaker at the Commonwealth Financial Network National Wealth Symposium. He is a graduate of Wheaton College, with a bachelor’s degree in literature.
For over 20 years, Mr. Edgecombe has been an elder at his church, Crossroads Covenant, and is actively involved as a volunteer with the nondenominational organization Young Life. Mr. Edgecombe and his wife, Denise, have been married since 1981 and have a daughter and son. He says, “We are excited about building our dream cabin in lake country and having a retreat for family get-togethers.”
Disclosure: Donald Coplin and Levi Edgecombe are investment advisor representatives of and securities are offered through USA Financial Securities, Member FINRA/SIPC. USA Financial Securities is a registered investment adviser located at 6020 E. Fulton St. SE, Ada, MI 49301. Edgecombe and Coplin Wealth Strategies is not affiliated with USA Financial Securities.
Photography by Steve Mason
