Category Archives: IFA Perspectives

IFA Perspectives

IFA Perspectives: George Kapositas at Professional Capital

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George Kapositas at Professional Capital

Ryan Mellor, Sales Director at RMT Group interviews financial advisor George Kapositas at Professional Capital.

IFA Direct Home: Can you tell us a bit about your background?

George Kapositas: I have been working in the Financial Services Industry straight after University having worked for Friends Provident and NPI before becoming independent in 2000. I felt that the best way to look after private clients is to be truly independent where your employer is your client.

IFA Direct Home: Who should be seeking advice?

George Kapositas: All people need advice. Over the past years, we have seen Western Governments reducing gradually Social Security Benefits while Global Corporations moving from the gold standard Final Salary Pension Schemes into Defined Contribution Pensions, effectively removing risk from their balance sheets and passing it on to employees. Now people have to shoulder risk, leaving people with no choice nowadays but to make private provisions throughout their lifetime and make sure their assets last post retirement. Workplace Pensions have become compulsory in the UK after being imposed by UK legislation onto the private sector emphasising again the importance of building up personal savings.

IFA Direct Home: Why should they seek advice over making a decision themselves?

George Kapositas: People can make decisions themselves and particularly with the advent of internet and so much free information people can find useful information about investing money.

However, the role of a professional Financial Adviser is different. A financial adviser would help people become the architects of their life first before start investing money and putting plans in place. Would help people articulate goals, ambitions while he would manage their assets in a such a way that life objectives are met whilst protecting them for future generations. He would also be a life guardian, as a kind of lighthouse keeper, scanning the horizon for issues that may affect the client and keeping them informed.

A professional financial adviser is a good listener. The emotions triggered by financial uncertainty are real. A good adviser will listen to clients’ fears, tease out the issues driving those feelings and provide practical long-term answers. A good adviser will also be a good teacher. Getting beyond the fear-and-flight phase often is just a matter of teaching investors about risk and return, diversification, the role of asset allocation and the virtue of discipline. Even when the strategy is in place, doubts and fears inevitably will arise. At this point a good financial advisor becomes a coach, reinforcing first principles and keeping the client on track.

Now, more than ever, investors need advisers who can provide client-centred expertise in assessing the state of their finances and developing risk-aware strategies to help them meet their lifetime goals.

IFA Direct Home: What financial pitfalls might people come across?

George Kapositas: Financial Planning is people’s life journey with ups and downs and constant changes in legislation, markets and politics. These changes represent risk but also opportunity. The global financial turmoil of recent years (2008) demonstrated the value of an independent and objective voice in a world full of free internet information, product pushers and salespeople.

IFA Direct Home:  Can you explain the process of receiving financial advice?

George Kapositas: The purpose of a client’s financial plan is to fund current and/or future life objectives. Our process includes an analysis of: Life goals, Current and projected net worth, Cash flow, Income & estate taxes, Employee benefits, Current investment & retirement statements, etc. from which we can glean the necessary information, needs for current income or liquidity, the appropriate allocation of investment assets and risk tolerance which we believe are the most important components in developing a successful financial plan.

From the data provided, we will develop a financial lifestyle plan containing our analysis with observations and recommendations to meet our client’s specified objectives.
The financial plan is a living document, reviewed periodically and adjusted appropriately. Whatever the unique situation may be, everyone needs a periodic assessment of where he/she is on the road to meeting his/her life goals.

IFA Direct Home: Do you find that a client’s initial objective changes following their first meeting with you?

George Kapositas: Not usually, but as we all know life is full of ups and downs. That is why all plans we put in place are flexible and adjustable.

IFA Direct Home: How much does advice cost?

George Kapositas: The first consultation is free as it is important to establish if and how we can add value to our client’s life. The fees are a % factor charged on assets we look after and agreed with our clients.

IFA Direct Home: Isn’t it a catch-22 situation to be spending money to find out how to save money?

George Kapositas: A client that works closely with a professional financial advisor can end up on average with 3 or even 6 times the value of assets than that if he had done it all alone. I was told that by a professional advisor/personal mentor when I joined the industry in 1993. Now, 25 years down the line I have seen this with my clients. For those who still have doubts they can speak to my clients.

IFA Direct Home: How often do you review the financial situation with your clients?

George Kapositas:  Reviews are decided between us and our clients. Sometimes it is annually and sometimes every15/18 months. However, clients have access to me 24/7.

Ryan Mellor
Ryan Mellor
Ryan Mellor is Co-founder of RMT Group, IFA Direct Home, RMT Direct Leads and RegulatedAdvice.co.uk.
http://www.rmt-group.com
IFA Perspectives

IFA Perspectives: Paul Corden at Cotswold Independent Financial Services

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paul corden cotswold

IFA Direct Home: Can you tell us a bit about your background?

Paul Corden: I have been in Financial Services since 1988, I worked for a large pension and investment company until 2013 as a business development manager working with financial advisers to help them grow their businesses and work more profitably.

IFA Direct Home: Who should be seeking advice?

 Paul Corden: Ideally everyone should seek advice as the decisions they make today could have an impact on the rest of their lives.  However, we understand that this is not always possible or affordable.  We would certainly recommend any individual who is at or approaching retirement to seek advice as there are many choices available. It is vitally important that clients understand their options to ensure that they make an informed decision as some options are irrevocable and the cost of getting this wrong potentially outweighs any advice fees.

IFA Direct Home: Why should they seek advice over making a decision themselves?

Paul Corden: For the reason highlighted above that the cost of making the incorrect decision potentially outweighs any advice fees that are applicable.  By seeking advice we would do an initial financial health check to establish their current position.  Once we understand both this and the clients goals and objectives we would formulate a financial plan to help them achieve these goals.

IFA Direct Home: What financial pitfalls might people come across?

Paul Corden: Making the incorrect choice of tax wrappers or retirement options can be financially catastrophic.  Once a tax wrapper is decided upon the choice of any underlying investment has to be commensurate with the clients attitude towards risk and capacity to withstand losses.  Also withdrawing funds (particularly pension funds) could be financially penal from a tax perspective if they get it wrong.

IFA Direct Home:  Can you explain the process of receiving financial advice?

Paul Corden: The starting point at Cotswold Independent Financial Services would be to offer an initial consultation (at our expense) at this meeting we would explain who we are, how we work and potential costs. We would then seek to understand the clients current and future financial position and how this is aligned with their goals.  We would also obtain details of any current plans that the client holds to understand what their choices are.  After this initial meeting we would send a follow up email to the client to reaffirm our initial discussions and outline the process moving forward including further clarification on costs.

IFA Direct Home: Do you find that a client’s initial objective changes following their first meeting with you?

Paul Corden: Although many clients objectives do not change, the vast majority will change how they go about achieving these objectives once they understand their choices and have received advice.

IFA Direct Home: How much does advice cost?

Paul Corden: This varies depending on the client situation and the complexity.  As explained above the initial meeting is at our expense at this point we would articulate our costs and how these can be paid.  As a general rule, at Cotswold Independent Financial Services we charge a % of funds which reduces at certain points.  The maximum fee structure is 3% on the first £100,000, 2% on the next £150,000, 1% on anything above this amount.  For our retirement planning service we have a minimum initial fee of £1500.  The client can choose whether they pay this fee direct or whether it is facilitated by the new provider if a change is necessary.

IFA Direct Home: Isn’t it a catch-22 situation to be spending money to find out how to save money?

Paul Corden: We would always say that if we cannot demonstrate our advice is ‘adding value’ to the clients situation then no costs would be payable.

IFA Direct Home: How often do you review the financial situation with your clients?

Paul Corden:  At Cotswold Independent Financial Services, we offer our clients the option of one or two reviews per annum but this is entirely their choice.

Ryan Mellor
Ryan Mellor
Ryan Mellor is Co-founder of RMT Group, IFA Direct Home, RMT Direct Leads and RegulatedAdvice.co.uk.
http://www.rmt-group.com
IFA Perspectives

IFA Perspectives: Flying Colours

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Flying Colours
Ryan Mellor, Sales Director at RMT Group interviews Ben Cowley,  Head of Marketing at Flying Colours.

IFA Direct Home: Can you tell us a bit about your background?

Flying Colours: The team at Flying Colours is a mix of experienced independent financial advisers and investment experts. What we all have in common is our belief that advice and investing should be affordable to all and not erode the very value you’re trying to create or protect. We’ve designed our entire business with that approach in mind and our clients seem to like what we’re doing!

IFA Direct Home: Who should be seeking advice?

Flying Colours: Financial advice can be valuable for anyone who is unsure of how to manage their money or is looking to make more of it than they’d get saving into a cash account and having the value eroded by inflation.  Our clients include those looking to access their pension in the most suitable way; people looking to transfer out of a pension scheme or consolidate different pension pots; all the way down to millennials looking to develop a financial plan to support them and their family over the coming decades.

IFA Direct Home: Why should they seek advice over making a decision themselves?

Flying Colours: Your money gives you the opportunity to choose how you live. Investments can be complex and the tax rules in the UK are far from simple. In some situations, for example, when you come to access your pension, you might only have one chance to make decision about what happens to the money you’ve invested for many years. The implications of even innocuously making the wrong decision about how to access your pension could cost you many thousands of pounds. There are plenty of horror stories about this in the press and we don’t want anyone to have to suffer these.

IFA Direct Home: What financial pitfalls might people come across?

Flying Colours: With regard to investment decisions there are many and varied pitfalls. We’ve even producedsome research on it showing the losses that ‘DIY’ investors are subject to. But the more commonplace pitfalls are failing to have any kind of financial plan to support your retirement or missing out on tax reliefs that we are eligible to receive and that could save us money each year.

IFA Direct Home:  Can you explain the process of receiving financial advice?

Flying Colours: We offer a free initial consultation to all prospective clients. This is where we find out what you’re looking to do and explain how we might be able to help and what the likely cost is going to be. If we don’t think we can help you, we’ll let you know. But, assuming we think we can help, we’ll book in a longer meeting to gather details about your existing investments, savings, goals so that we have everything we need to recommend a course of action that gives you the best chance of success.

IFA Direct Home: Do you find that a client’s initial objective changes following their first meeting with you?

Flying Colours: The first conversation or meeting we have with a client is a great opportunity to understand what clients think they need and also to uncover some objectives they perhaps haven’t thought about but which are equally – and sometimes even more – important.

IFA Direct Home: How much does advice cost?

Flying Colours: We charge 2% initial and then ongoing advice costs between 0.5-1.05% for everything that includes advice, investments and the platform the investments sit on. The UK average 3% initial and 2.15% so we are much better value for money than many. While cost is not the only reason to choose a financial adviser – it makes a huge difference to the return you’re going to get (and specifically the ongoing ones as they hamper your investment growth). We’ve tried to keep ours as low as possible. We do this through efficiency and not through compromise.

IFA Direct Home: Isn’t it a catch-22 situation to be spending money to find out how to save money?

Flying Colours: If a financial adviser doesn’t deliver more value than they cost then there’s a big problem. Now we think that most of them do. But the more expensive they are, the less value they’re likely to be delivering to you. We think that the industry can be expensive and as a result have tried to reduce internal costs and create efficiencies which allow us to pass these savings on to our clients.

IFA Direct Home: How often do you review the financial situation with your clients?

Flying Colours: Typically we will undertake a full review of a client’s circumstances each year. That doesn’t mean that’s the only time we speak to them though! We’re always available for a chat and we also provide access to an online portal so that people can keep track of their investments.

Ryan Mellor
Ryan Mellor
Ryan Mellor is Co-founder of RMT Group, IFA Direct Home, RMT Direct Leads and RegulatedAdvice.co.uk.
http://www.rmt-group.com
IFA Perspectives

IFA Perspectives: Ian Brooks at True Potential

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Ian Brooks

IFA Direct Home: Can you tell us a bit about your background?

Ian Brooks: I have over 15 years experience in the financial services industry having worked for various high street banks before joining True Potential.

IFA Direct Home: Who should be seeking advice?

Ian Brooks: Everyone at some point in their lives would benefit from a financial review, whether it is reviewing current arrangements to ensure they are correct or to discover and discuss new ones.

IFA Direct Home: Why should they seek advice over making a decision themselves?

Ian Brooks: Financial planning can be daunting due to the jargon and complexities and there is the danger of making the wrong decision. I present advice in a clear, concise understandable manner and endeavour to ensure the correct product is chosen and remains suitable.

IFA Direct Home: What financial pitfalls might people come across?

Ian Brooks: Financial planning is a journey and pitfalls maybe encountered along the way, a financial adviser will steer around these pitfalls to help achieve the objective. Although numerous the most common pitfalls being, wrong product, under performance, unsuitable level of risk, non utilisation of tax efficient products.

IFA Direct Home:  Can you explain the process of receiving financial advice?

Ian Brooks: Firstly it begins with a very informal cost free discussion in order to ascertain if a need exists. Should there be a need a plan is formulated to achieve it before presentation to the client. Lastly the plan is monitored to ensure it remains suitable.

IFA Direct Home: Do you find that a client’s initial objective changes following their first meeting with you?

Ian Brooks: Not so much change in that new ones are discovered upon initial discussion.

IFA Direct Home: How much does advice cost?

Ian Brooks: The initial meeting is free, after which a fee is agreed between the adviser and client before any work is undertaken.

IFA Direct Home: Isn’t it a catch-22 situation to be spending money to find out how to save money?

Ian Brooks: It’s about what benefit a financial adviser can provide. If at the initial meeting it is not in the clients interest to proceed I will tell them so, I only become involved if I can make a difference.

IFA Direct Home: How often do you review the financial situation with your clients?

Ian Brooks: Clients are able to log  into a dedicated client site 24/7 via computer or mobile. I am also available throughout. A more formal discussion is held every 6 months or annually, subject to needs.

Ryan Mellor
Ryan Mellor
Ryan Mellor is Co-founder of RMT Group, IFA Direct Home, RMT Direct Leads and RegulatedAdvice.co.uk.
http://www.rmt-group.com
IFA Perspectives

IFA Perspectives: Louis-Rhys Harvey at Aventur Wealth

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louis-rhys-harvey

IFA Direct Home: Can you tell us a bit about your background?

Louis-Rhys Harvey: I started off in main stream banking, being promoted on my first day from Cashier to Senior Mortgage Adviser. Within 9 months I was a Bank Manager, still holding the record for a big High Street name of being the youngest ever appointed, at age 18. It didn’t take long though to realize the major red tape and bureaucracy in banking, hindering truly helping customers and keeping unbiased. It was then I decided to go independent, providing full holistic planning to my clients, completely independently, having no bias nor loyalty to any specific organization or institution.

At Aventur Wealth we are privileged to have a small, boutique company and therefore can provide bespoke services designed around the client, as this is how we believe a financial advisory company should be.

IFA Direct Home: Who should be seeking advice?

Louis-Rhys Harvey: Quite simply, everyone. However this is not realistic. At Aventur Wealth we endeavor to get back to basics. We believe that the old style of many years ago, having a relationship with the ‘Bank Manager’ is how things should be with your Financial Adviser. They should be there when needed, continually in contact providing advice in a holistic manner, not just pensions, not just investments, but financial services as a whole. Of course, there are specialisms, but the Financial Adviser should be the one port of call for everything in Financial Services, after all, we are the experts in the field, so why not?

IFA Direct Home: Why should they seek advice over making a decision themselves?

Louis-Rhys Harvey: I am a big fan of the saying, ‘it is expensive to hire a professional, but how much more costly it is to hire an amateur’. You wouldn’t underwrite your own insurance policy, you wouldn’t build your own house and you wouldn’t repair your car if you didn’t have the know how, expertise and up to date knowledge. You may well know a little about them, but, a little knowledge is dangerous and I have only seen it end in the demise of the client. If advice is taken, you then have the backing of that advice, the adviser taking the responsibility and the full complaints procedure should it be incorrect.

IFA Direct Home: What financial pitfalls might people come across?

Louis-Rhys Harvey: This is an endless subject and just cannot be covered, so many are the pitfalls. What immediately comes to mind is the risk assessments needed when investing, how much to invest, when to invest. What are the tax implications – coming up very often now with the new pension freedoms act. Inheritance Tax planning is always an issue, and never ceases to amaze clients as to actually how much their beneficiaries will need to pay should they remain unplanned. Unnecessary fees is another I come across often, most have no idea what they are paying providers and advisers, and are often rather shocked when they find out.

IFA Direct Home: Can you explain the process of receiving financial advice?

Louis-Rhys Harvey: Advice from Aventur Wealth is very simple;
We start by visiting the client at a place and time of their convenience.

We discuss their full financial situation, their plans and thoughts for the future, also discussing their thoughts on risk, capacity for loss, aims and objectives. We also offer a free review with an accountant or solicitor should it be relevant.

We will cover;
Pensions and Investments
Insurance
Auto Enrolment (Company Pensions)
Mortgages
Will Writing and Estate Planning
Company Legacy Planning
Free Review with an Accountant

As a client of Aventur Wealth, the clients also receive access to our Personal Finance Portal that will allow them to see their financial overview via our app or online.

Then, we write to their current providers/institutions, to get a full understanding of the products and services the client is using
Once the information comes in, we then get on with our research, this is done independently and looking at the market place as a whole with no bias. This is then recorded in a report and sent to the client for their review. At the same time, a second meeting is booked in back to the client to discuss in the detail the report and our findings.

Thereafter, the client instructs to employ our services or not and we build our relationship from there with regular reviews, attitude to risk assessments and helping the client along the way in their financial life.

IFA Direct Home: Do you find that a client’s initial objective changes following their first meeting with you?

Louis-Rhys Harvey: Depending on the client’s understanding of financial planning, objectives often change during meetings as the adviser identifies areas which could impact on the client’s needs and wider planning areas such as family protection and taxation planning etc

IFA Direct Home: How much does advice cost?

Louis-Rhys Harvey:  More often than not yes. Many clients have preconceived ideas, as we all do about subjects and industries we know a little about. It is our job to clarify these thoughts, correcting where necessary but providing solutions to the problems along the way.

IFA Direct Home: Isn’t it a catch-22 situation to be spending money to find out how to save money?

Louis-Rhys Harvey: This varies based on the type of advice and the regulatory risk of that advice to the firm.  Advice fees therefore reflect the risk.  Typically, if a client was investing a lump sum, we would charge in the region of 3% of the amount invested.  So if a sum of £10,000 was invested, that would equate to around a fee of £300.  If an amount of £50,000 was invested, then the fee would be around £1,500.  The fees can either be paid directly by the client or they can be taken from their investment or pension.  It is down to the client to decide how they pay us.

Because we provide ongoing services as standard – the ongoing service is just as, if not more,  important than the initial advice, we charge 0.75% of the value of the pension or investment per annum.
Advice on protection products (such as protection against death or ill health) is still paid for through commissions paid by the relevant insurance company.

Advice on estate planning – will writing, trusts etc. – are all fee based and vary case to case. The same is for Auto-enrolment (workplace pensions).

IFA Direct Home: How often do you review the financial situation with your clients?

Louis-Rhys Harvey: We provide a free online system for our clients to log in to via our website and our online app. This allows them to see their portfolio at anytime, 24/7. Their appointed adviser/relationship manager is then on hand, again, pretty much at anytime should they wish to discuss anything or have a visit/phone call – this is all paid for within the 0.75% per annum charge as outlined above. There is no fee for meetings, any communication and so on.

As standard we then review our client’s attitude to risk on a 6 monthly basis, electronically via email, and this feeds back in to our system. If anything is noted that needs to be discussed we then contact the client to discuss this further.

Of course, we do have examples of clients that specifically want a visit once every month, 3 months etc. Again, this is arranged and provided as its what the client wants! We are privilege to have a small, boutique company and therefore can provide bespoke services designed around the client, as this is how we believe a financial advisory company should be.

Ryan Mellor
Ryan Mellor
Ryan Mellor is Co-founder of RMT Group, IFA Direct Home, RMT Direct Leads and RegulatedAdvice.co.uk.
http://www.rmt-group.com
IFA Perspectives

IFA Perspectives: Andrew Jackson at Mosaac Ltd

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andrew-jacson

IFA Direct Home: Can you tell us a bit about your background?

Andrew Jackson: I have been an Independent Financial adviser for over 11 years and previously worked within the financial sector as a financial adviser/sales manager and district manager for the cooperative insurance

IFA Direct Home: Who should be seeking advice?

Andrew Jackson: With changes to state pension and also the introduction of workplace pensions, it is important that all clients who are planning for retirement or imminent retirement look to review their position to ensure retirement objectives are on track and are invested to suit their attitude to investment risk and capacity to investment loss

IFA Direct Home: Why should they seek advice over making a decision themselves?

Andrew Jackson: It’s important that clients seek advice to ensure that any decisions made are based on the full market place and is specific to the Clients Objectives/Need and Risk Analysis

IFA Direct Home: What financial pitfalls might people come across?

Andrew Jackson: The pitfalls clients could come across is investing in a fund which is outside their risk tolerance and is based on performance rather than suitability also investing in high cost SIPPs and also investing through Schemes that could potentially have severe tax implications( pension Liberation)

IFA Direct Home: Can you explain the process of receiving financial advice?

Andrew Jackson:

Initial Meeting

Obtain information

Client Specific Needs and Objectives in all areas (looking at Pensions, Savings, Protection and taxation)

Completion of Client Fact Find

Completion of Risk profile

Agreement between adviser and client regarding priorities and what is important to the client at this time

Completion of Authority form, this will allow the adviser to obtain information on the current product to see if Features/Fund Choice/Cost suit the client’s objectives.

Agree any fees moving forward

2nd Meeting

  • Check if the client’s objectives have changed
  • Present Information on current contracts and compare against clients objectives and risk and tax
  • Based on the client’s Objectives and Needs and taxation, present any alternative solution which is better suited to needs and objectives and taxation

This could be done 2nd/3rd meeting

  • Make Recommendation
  • Agree Solution and any fees to be paid
  • Agree what service the client would like to receive moving forward
  • Send letter of recommendation

IFA Direct Home: Do you find that a client’s initial objective changes following their first meeting with you?

Andrew Jackson: Depending on the client’s understanding of financial planning, objectives often change during meetings as the adviser identifies areas which could impact on the client’s needs and wider planning areas such as family protection and taxation planning etc

IFA Direct Home: How much does advice cost?

Andrew Jackson:  Advice cost depends on values and workload involved, this is agreed between adviser and client

IFA Direct Home: Isn’t it a catch-22 situation to be spending money to find out how to save money?

Andrew Jackson: The difference in the cost of products varies significantly and depending on the client’s own needs, the cost of reducing expensive products fees could significantly increase values over time. This together with ensuring that risk is appropriate. Investment loss could cause significant financial implication over the long term and ensuring fund suitability/risk is just as important.

IFA Direct Home: How often do you review the financial situation with your clients?

Andrew Jackson: Service is agreed with the client and this depends upon what the client wants/ complexity and is seen as beneficial for long term partnership between adviser and client and is proactive rather than reactive

Four levels of service

Responsive – no Service

Proactive Plus – 1 appointment a year

Proactive – Appointment every 2 years

Bespoke – Appointments every 6 months or more subject to needs

Costs are different for each service agreement and the levels of service can be altered to suit changes in client’s needs etc

Ryan Mellor
Ryan Mellor
Ryan Mellor is Co-founder of RMT Group, IFA Direct Home, RMT Direct Leads and RegulatedAdvice.co.uk.
http://www.rmt-group.com
IFA Direct Home, IFA Perspectives

IFA Perspectives: Paul Monk at True Potential

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IFA Direct Home: Can you tell us a bit about your background?

Paul Monk: I have been an independent financial adviser since 1991, advising on investments, pensions, protection and mortgages.

IFA Direct Home: Who should be seeking advice?

Paul Monk: Members of the public who are confused about finance and wish to simplify the complicated jargon.

IFA Direct Home: Why should they seek advice over making a decision themselves?

Paul Monk: Websites tend to have a bias towards certain products without making clear all the risks.  Suitability should always be a priority.

IFA Direct Home: What financial pitfalls might people come across?

Paul Monk: Tax implications of choosing the wrong product, the disadvantages of not writing products in trust, the suitability of products in the modern market.

IFA Direct Home: Can you explain the process of receiving financial advice?

Paul Monk: We conduct a four stage process which starts with understanding your situation, then analysing and designing a financial plan which is specific to you, before presenting this financial plan to you, and finally providing you with ongoing service and information.

IFA Direct Home: Do you find that a client’s initial objective changes following their first meeting with you?

Paul Monk: Once a client has all the information to hand, they are able to make a more informed choice.

IFA Direct Home: How much does advice cost?

Paul Monk: Initial consultation is free of charge and after this, it is an amount agreed between the client and adviser.

IFA Direct Home: Isn’t it a catch-22 situation to be spending money to find out how to save money?

Paul Monk: With a free initial consultation, this can be avoided.

IFA Direct Home: How often do you review the financial situation with your clients?

Paul Monk: Annually, although this can be amended depending on the client’s personal choice.

Ryan Mellor
Ryan Mellor
Ryan Mellor is Co-founder of RMT Group, IFA Direct Home, RMT Direct Leads and RegulatedAdvice.co.uk.
http://www.rmt-group.com
IFA Direct Home, IFA Perspectives

IFA Perspectives: Tim Sands at Money Tree Wealth Management

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tim sands

IFA Direct Home: Can you tell us a bit about your background?

Tim Sands: I have over 20 years experience in the financial services industry which included a senior management position for a successful fund and investment management company, which designed new products for institutional investors globally, including five funds being listed on the London Stock Exchange. I am therefore somewhat unique in the industry due to having both financial advisory and investment management experience. I am a member of the Chartered Institute for Securities & Investment (CISI) which is the largest and most widely respected professional body for the securities and investment industry in the UK, and in a growing number of financial centres globally. I am currently studying towards being a Chartered Wealth Manager, which is a Masters equivalent financial advisory qualification.

IFA Direct Home: Who should be seeking advice?

Tim Sands: Every adult in the UK should be seeking financial advice and should have a financial review annually to ensure their assets are protected; that they can support their family and lifestyle in the face of a disruptive life; and that they are on-track for a comfortable retirement. With regards retirement, it is very unfortunate that many members of the public face living ‘on the bread line’ in their later years due to a lack of financial planning, particularly now with fewer people becoming home-owners and not having this asset to fall back-on.

IFA Direct Home: Why should they seek advice over making a decision themselves?

Tim Sands: Even basic products such as life insurance require financial advice e.g. if life insurance isn’t written into trust it will pay-out into the person’s estate, getting caught up in months and years of probate, and potentially also facing inheritance tax. This can easily be avoided by a financial adviser writing the policy into trust with any payment being paid from the insurance policy directly to beneficiaries. More detailed financial planning such as pensions, investments and estate planning can become very complex especially when taking into account the potential tax implications. Similar to solicitors and accountants, financial advisers are trained professionals in their field.

IFA Direct Home: What financial pitfalls might people come across?

Tim Sands: Some common pitfalls include the aforementioned lack of trust planning i.e. paying too much tax; being invested in high risk funds or investments through their pension when the client is actually risk adverse; and not having their mortgage on a discounted rate and therefore over-paying each month which can add-up to very substantial sums overtime. However, another key pitfall is that clients are being subject to scammers and not checking that they are dealing with a regulated financial adviser; clients should always check an adviser’s credentials on the FCA register (my number is TPS01034). Using a regulated adviser provides clients with significant protection including access to the financial services compensation scheme (FSCS).

IFA Direct Home: Can you explain the process of receiving financial advice?

Tim Sands: When you meet or speak with an adviser such as myself for the first time this is to complete a fact-find i.e. for the adviser to understand the client’s individual circumstances, their concerns, their goals and ambitions, etc enabling the adviser to prepare a suitable recommendation. The first meeting is also an opportunity for the client to understand the services being offered, any fees and commissions and also to get to know their adviser who may work with them and their family for decades to come. From here the client can then decide if / how they wish to proceed.

IFA Direct Home: Do you find that a client’s initial objective changes following their first meeting with you?

Tim Sands: A client’s objectives often don’t change dramatically at the first meeting, but there is often a significant realisation by the client during the meeting e.g. the improvements that can be made to their monthly outgoings or how with careful planning they can actually have a very comfortable retirement. Clients realise that financial planning can actually dramatically change their lives and that of their family, the key is to take the first step and have a no obligation review.

IFA Direct Home: How much does advice cost?

Tim Sands: For insurance products such as life insurance, critical illness, etc the insurance company pays a commission, whilst for investments and pensions this would be a charge payable from the client’s investment for example. The level of such charges depends upon the complexity and time involved in the financial planning process, however important to note is that the fee is ALWAYS agreed in advance with the client, there are no nasty surprises!

IFA Direct Home: Isn’t it a catch-22 situation to be spending money to find out how to save money?

Tim Sands: I do not charge for a client to meet and understand the financial planning process and how their assets can be protected and or grown to meet their goals and objectives. The cost of any plan agreed with the client will also be far outweighed by the benefits, and with investments and pensions my fees are directly linked to the success of their portfolio – my interests are aligned with those of the client.

IFA Direct Home: How often do you review the financial situation with your clients?

Tim Sands: Every six months with a full review annually, however I can be contacted 7 days a week by phone or email.

Ryan Mellor
Ryan Mellor
Ryan Mellor is Co-founder of RMT Group, IFA Direct Home, RMT Direct Leads and RegulatedAdvice.co.uk.
http://www.rmt-group.com
IFA Direct Home, IFA Perspectives

IFA Persepective: Thomas Mannion at Wealth Aspirations

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Thomas Mannion

IFA Direct Home: Can you tell us a bit about your background?

Thomas Mannion: Great question and one you should ask every adviser, I read Economics and Economic History at Manchester University before joining an American brokerage called Edward Jones in 2008. I completed their Fast-Track programme as a Financial Adviser and Stockbroker and quickly headed the Harrogate Branch. Upon qualifying I was the youngest fully qualified financial adviser and stockbroker in the UK. I have subsequently worked alongside many individuals and businesses to maximise their financial outcomes and I only work on an Independent basis (Independent advice is the holy grail).

IFA Direct Home: Who should be seeking advice?

Thomas Mannion: Who shouldn’t is a better question. Any financial adviser worth their salt will offer a complimentary review to establish any needs an individual may have. I liken it to a mechanic – you should have someone look over things even if you think everything is still driving okay; you might just save yourself a fortune in the long run.

IFA Direct Home: Why should they seek advice over making a decision themselves?

Thomas Mannion: It is difficult even for us to keep on-top of the constant changes in taxation, rules, investments, investment markets etc etc. I don’t think it would be possible for a member of the public to understand the strange nuances, rules and loopholes that exist in the UK’s tax system, pension system and ever changing financial markets. I have fixed the poor work of many financial advisers in the past and they are supposedly professionals so I do think Joe Public would find things quite difficult.

IFA Direct Home: What financial pitfalls might people come across?

Thomas Mannion: Undersaving, underprotecting and under or over estimating the amount of risk they either are taking or should be taking and then there is tax. Tax planning is a really underperformed act by individuals and IFAs in general.

IFA Direct Home: Can you explain the process of receiving financial advice?

Thomas Mannion: Pre – I establish if someone is serious about looking after their finances. I don’t want to deal with someone who isn’t as serious about their money as I am. Following that the following is the usual process:

1. Speak to the adviser on the phone, discuss your queries.
2. The adviser will ask some probing questions back to qualify any potential needs you made have.
3. Meet with the adviser to complete a factfind.
4. The adviser will explain charges and what services they will provide at the initial meeting.
5. The adviser, with your agreement, will then go and put together a strategy to help you achieve your objectives.
6. Often the adviser will implement the strategy for you.
7. You will then have a review at least once per annum an ongoing basis to make sure that you are still on track to reach your goals and that changes in rules, tax, investments and risk haven’t changed leaving you exposed to pitfalls.
8. Most advisers want a client for life – this means nurturing a relationship.

IFA Direct Home: Do you find that a client’s initial objective changes following their first meeting with you?

1. For my younger clients yes it often does. My older clients usually have one of three needs.

IFA Direct Home: How much does advice cost?

Thomas Mannion: That is the hardest question to answer. I refer back to my mechanic analogy. Sometimes you look at a client’s situation and they require no help or guidance or just a point in the right direction or the reassurance that they are doing everything correctly. Another time everything might seem fine to a client but they have an antiquated pension policy an investment strategy that is all wrong and they are not properly protected. Either way we present the prices to a client after our initial meeting and provide the cost upfront to service their requirements.

IFA Direct Home: Isn’t it a catch-22 situation to be spending money to find out how to save money?

Thomas Mannion: Haha, yes it sounds that way but it really isn’t. If the cost of advice were to outweigh the potential benefits I would walk away and say to the prospective client that the cost of advice wouldn’t be worth the gain they would receive. Usually, however, with things retirement planning, taking retirement benefits and planning for inheritance tax the savings we make clients far exceed any fee. I will put it a different way, I have not had a client leave me yet or ever had a complaint.

IFA Direct Home: How often do you review the financial situation with your clients?

Thomas Mannion: We have two service levels. One provides annual reviews the other provides 6 monthly reviews -we aren’t too strict about this though. We will work with a client to suit their needs and our advisers will aim to be available 24/7 (obviously within reason). If a client calls on a Sunday evening because they need money to buy a second home or to help a family member that has fallen on hard times we will usually be straight on the phone to them to get things sorted for them as soon as possible. On the other end of the spectrum some individuals will only require our advice once – say they are buying an annuity – in which case they don’t need to see us after we have given them advice.

Ryan Mellor, Co-founder at IFA Direct Home

If you are an Independent Financial Advisor or Restricted Advisor and would be interested in working with us,
Click here to find out more.

Ryan Mellor
Ryan Mellor
Ryan Mellor is Co-founder of RMT Group, IFA Direct Home, RMT Direct Leads and RegulatedAdvice.co.uk.
http://www.rmt-group.com
IFA Direct Home, IFA Perspectives

IFA Perspectives: Graham Thompson at Huntington Ross

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graham thompson

IFA Direct Home: Can you tell us a bit about your background?

Graham Thompson: Sure, I first entered the world of Financial Services in 1997.  After leaving university I started working for a large insurance company, alongside the team of financial advisers working for the firm.  This gave me a real feel for the role and inspired me further to go on and obtain the qualifications I needed to become a financial adviser myself.

I gained my first regulated advice role at the start of 2001 and have been working as a financial adviser since.  I have worked for several companies over that time (both large and small) and now work on a self employed basis as a completely impartial, Independent Financial Adviser.  After several years of working within the restrictions of various companies, I was regularly frustrated by not always being able to select the absolute best solution for me clients.  Those frustrations are now gone as I now able to work 100% in the interests of my clients, as opposed to a company I work for.

IFA Direct Home: Who should be seeking advice?

Graham Thompson: A good question, but for me this is quite simple.  Anyone who is faced with an important financial decision (whether that is making the right plans for retirement, deciding where to invest money for income or growth or understanding how best to protect their loved ones if the worst should happen) and is unsure of how to make that decision, needs to take financial advice.

IFA Direct Home: Why should they seek advice over making a decision themselves?

Graham Thompson: I have seen the consequences of people making the wrong decisions and it can be very costly and have a significant impact on their futures.  If advice is taken, then you have the backing of that advice and cause for recompense if the advice turns out to be unsuitable.  If you do not take advice and it all goes wrong, then you do not have the backing of that advice and must live by your decisions.

IFA Direct Home: What financial pitfalls might people come across?

There are almost too many to mention here.  A few would be, not understanding your tolerance to risk and investing within assets that subject your funds to an unsuitable level of risk.  You could be paying more in the way of charges than you should, or you may be investing within assets that are simply performing badly.  Another would be failing to plan correctly for an event (be it a wedding, house or car purchase or a longer term event such as retirement) and then struggling to cope with the demands of the event.  Finally, failing to protect liabilities and loved ones can have a disastrous impact if an accident, sickness or a death removes a significant income from the household.

IFA Direct Home: Can you explain the process of receiving financial advice?

Graham Thompson: Before any adviser can provide advice, it is vital for them to fully understand the circumstances of their clients.  We always offer a free introductory meeting, where the adviser can discuss the client’s requirements and situation and where the client and adviser can decide if they will be comfortable working together.  The adviser will explain how they work, how they get paid and the services they offer.

From then on the adviser will carry out a ‘fact finding’ exercise where they gather all of the important facts regarding a client’s position, as well as understanding their feelings and emotions towards specific subjects.  This is a very two-way exercise where it is important to build the fullest picture possible.  With regard to investment and retirement planning, this process will involve assessing a client’s attitude towards risk, understanding their aims, objectives, knowledge and experience as well as their capacity to sustain financial loss

Once the adviser has a clear picture of the client’s circumstances, they will go away to formulate specific and clear recommendations, which will be presented to the client in the form of a suitability report.  This will explain exactly why the recommendations are suitable for the client, along with other options that have been considered and the risks applicable with accepting the recommendations.

The client will then decide whether to accept the recommendations presented.

IFA Direct Home: Do you find that a client’s initial objective changes following their first meeting with you?

Graham Thompson: Yes, this is quite often the case.  The financial world is rarely straightforward and it is common for there to be a range of solutions that may be suitable for a client.  A recent example would be following the huge changes to the rules on accessing pension funds.  It is easy to read or watch an article on the subject and feel that you then know the right action to take, but quite often, these articles do not take into account the full picture and there may well be an option out there that is more suitable to a client’s specific requirements.

I have reviewed clients who were dead set on on taking a pension fund as cash, only to realise that they would be giving up a fantastic rate of guaranteed retirement income if they did.  After looking at the full picture, they would have been significantly worse off by taking the cash from their pension and therefore changed their minds.  It may have cost them to receive the advice, but had they not elected to take the advice, they could have been thousands of pounds out of pocket and would have lost an important source of guaranteed income at a level which is simply unavailable today.

IFA Direct Home: How much does advice cost?

Graham Thompson: This does vary based on the type of advice and the regulatory risk of that advice to the firm.  As mentioned earlier, it really is the backing of the advice and the protection that offers, that you are paying for.  If an adviser gets the advice wrong, it can cost tens of thousands of pounds to put right.  Advice fees therefore reflect this risk.  Typically, if a client was investing a lump sum, we would charge in the region of 3% of the amount invested.  So if a sum of £10,000 was invested, that would equate to around a fee of £300.  If an amount of £50,000 was invested, then the fee would be around £1,500.  The fees can either be paid directly by the client or they can be taken from their investment or pension.  It is down to the client to decide how they pay us.

As well as paying for initial advice, a client may wish to receive on-going advice on their investments or pensions.  For this we would usually charge between 0.5% and 0.75% of the value of the pension or investment per annum.

Advice on protection products (such as protection against death or ill health) is still paid for through commissions paid by the relevant insurance company.

IFA Direct Home: Isn’t it a catch-22 situation to be spending money to find out how to save money?

Graham Thompson: It can seem like that initially, but hopefully after understanding my earlier points, it is clearer why paying for advice is important.  If an investment does not meet a client’s risk tolerance level, that can lead to them panicking at the wrong time and withdrawing their funds at a significant loss.  If an investment a client has chosen performs badly, then that can see them lose thousands when compared to an investment a regulated adviser may have selected.  Similarly, an investment a client may have selected my have high on-going charges.  The compound effect of these charges can make the charges paid to receive the advice seem tiny in comparison.

IFA Direct Home: How often do you review the financial situation with your clients?

Graham Thompson: This all depends on the type of client and their on-going needs.  Some clients have fairly simple financial needs and are invested within plans which only need to be reviewed every year or even every 2 years.  Some clients have more complex needs, which require several meetings throughout the year, often alongside other financial professionals.

Ryan Mellor, Co-founder at IFA Direct Home

If you are an Independent Financial Advisor or Restricted Advisor and would be interested in working with us,
Click here to find out more.

Ryan Mellor
Ryan Mellor
Ryan Mellor is Co-founder of RMT Group, IFA Direct Home, RMT Direct Leads and RegulatedAdvice.co.uk.
http://www.rmt-group.com