People want to access all facets of life on their phones.
That’s according to Ryan Alan Lax, owner of Lax & Co., who says his industry of financial planning should offer no less.
“Everyone likes having things at their fingertips, and our clients are no different,” he explained.
The financial-planning and life insurance firm, based in Warwick, serves midsized- and small-business owners throughout Rhode Island and Massachusetts.
The company’s clients include several doctors and business owners who need a team to manage their 401(k) plans and provide quality life insurance.
The firm was started in the 1970s by Lax’s father. In 2008, Ryan Alan Lax partnered with Halperin & Co., eventually buying out his partner and becoming sole owner 2 ½ years ago.
Lax sees technology playing a significant role in his industry moving forward. To plan for such a shift, he’s bought a stake in a nationwide partnership group called Lion Street, based in Texas.
The national network of independent financial planners and life insurance providers has helped Lax’s company stay on top of industry trends and gives him cutting-edge products and services he can offer to his clients.
“I suddenly had national exposure and a host of expertise on how to grow a business,” he said. “That’s when we took off and started to grow.”
Lax & Co. recently added four employees. Lax would like to hire another sales representative to help handle increased interest.
Through Lion Street, Lax is also offering his clients a phone application giving them ease of access once unobtainable.
“There aren’t a lot of people in our business who have an app,” he said.
Despite the growth, however, the trade doesn’t come without its challenges.
Lax said the recent U.S. Department of Labor’s so-called “fiduciary rule” has changed the industry. The rule, on its surface, is designed to ensure financial advisers put their clients’ financial interests above their own.
Years in the making, key provisions of the rule were supposed to take effect on Jan. 1. But the federal government last month decided to extend the start date 18 months.
Lax, a self-described advocate of transparency, said the delay is probably a good idea because it gives the industry some additional time to prepare for the changes.
“It’s very hard to move an industry and change all the rules in six months to a year,” he said. “This will allow broker-dealers to get all their ducks in a row.”
Lax also puts a lot of emphasis on trying to be different from the competition, a focus he says is – at times – challenging to convey to the customer.
“A lot of firms … look the same, act the same, so we try to be different,” he said.
Looking forward, Lax wants to continue to grow – not too fast – but at a sustained pace. The company has about $100 million in assets under management and generates about $1 million in annual revenue.
If the business continues to grow, Lax would consider opening a new location – maybe in Florida – to expand his footprint.
“Our field is excellent,” Lax said. “It will never get boring … and I think it will only get better with time.”
OWNER: Ryan Alan Lax
TYPE OF BUSINESS: Financial planning, high-end life insurance
LOCATION: 3616 Post Road, Warwick
EMPLOYEES: Five
YEAR ESTABLISHED: 2006
SALES: $1 million
Eli Sherman is a PBN staff writer. Email him at Sherman@PBN.com, or follow him on Twitter @Eli_Sherman.
