OWEN WILLIAMS is the founder of RockWealth Leamington, a new financial planning firm that’s part of a growing network of client-focused advice businesses across the UK.
Here he discusses the revolution taking place in financial advice, and explains why RockWealth is at the forefront of change.
What are your thoughts on launching your new business?
I’m very excited to have the business up and running and to be working with RockWealth. What we offer is radically different from what traditional advisers are providing. We’re right at the forefront of the revolution we’re seeing in financial advice.
There are some good advisers locally, but the RockWealth approach, client focus, fair fees and evidence-based investing, is genuinely disruptive. It’s like a breath of fresh air, and it’s long overdue in this part of the country.
What is it about financial planning that you enjoy so much?
Modern life is complicated, and there’s a tendency among those who work in this sector to make investing and finance complicated too. But it really doesn’t need to be.
What I love about my job is being able to deconstruct the technical jargon and give clients clarity, confidence and peace of mind. Done well, financial planning can be truly life-changing.
What are the attributes that make a really good financial adviser?
The ability to listen is by far the most important attribute for an adviser. I’ve met so many advisers over the years who dictate to their clients what they want their arrangements to look like.
Financial planning starts with having an in-depth conversation about the client’s values and what’s most important to them. That often involves challenging self-limiting beliefs that people have held for years. Only then can you start to put a meaningful plan in place.
RockWealth believes that paying for traditional active fund management is a waste of money. Have you always shared that view?
Actually no. Like most advisers, I used to believe in paying expensive managers to outperform. In theory it makes sense, but it’s extremely hard in practice to beat the market consistently.
I undertook an exercise recently to review a portfolio I selected myself a decade ago. I compared it to a well-known fund manager. My portfolio had beaten the fund manager, but it had still lagged the market over that ten-year period.
It’s the cost that really makes the difference. You’re much better off just helping yourself to the market return, by investing in low-cost index funds, and not trying to be clever.
Some commentators are saying that 2020 was a watershed year for ESG (or sustainable) investing. What are our thoughts on that?
It has been a long time coming, but here’s no doubt that ESG has now become mainstream. My own feeling is that it will eventually become the norm. Sadly, though, this is another subject that’s been made far too complicated. It’s no surprise that most investors find it confusing.
I am yet to find a client who wants to invest un-ethically. Everyone wants to do good with their investments if they can, and of course they also want to secure their financial future at the same time. Those two things are not mutually exclusive. It’s not as daunting as people think to strike the right balance.
RockWealth charges fixed fees. What are the benefits of fixed fees from the client’s point of view?
Good advice is very valuable, but I’ve seen clients paying far too much for it in the past. This whole area of adviser remuneration needs simplifying, so that fee structures are more in line with other professional services such as law and accountancy.
RockWealth’s fixed-fee approach is completely transparent, and it’s based on the value we actually provide rather than how wealthy the client is.
Percentage fees may be suitable for younger investors with smaller portfolios. But the more assets you accumulate, the more expensive it becomes, especially with the effect of compounding. The less you pay, the more you keep for yourself: it really is that simple.
What sort of clients are you looking to attract?
The cost advantage of our fixed-fee structure only kicks when your assets reach £250 to £300,000. That’s not to say that we won’t work with younger clients with less than that; where percentage fees work out cheaper we offer people that option.
Primarily I’m going to be working with business owners and senior executives who are looking to take control of their financial future. I’ve always enjoyed dealing with the agricultural community, so that’s another area I’ll be focusing on.
A personal interest of mine is helping clients in later life. I’m a member of the Society of Later Life Advisers and, having elderly parents in care myself, I’m very aware of the specific issues that older people face. Again, with a little guidance it is not as complicated as it seems.
To be honest, though, the RockWealth proposition provides better value for money for most people. So I’m looking forward to working with people from across the spectrum. And not just individual investors either, charities and other not-for-profit organisations can benefit hugely from an evidence-based approach to investing.
Because of the pandemic, more and more financial advice is being provided online. Do you think this is a permanent shift?
I do. The extraordinary events of 2020 have accelerated that trend. I think we’ve proved that video meetings can work for most people and that’s it’s not daunting in any way. Having said that, there are certainly many clients who want that personal, real-life contact.
So there’s surely room for both. Whether people deal with us in person or online, or a combination of the two, we will always ensure that they receive the highest possible standard of service.
CONTACT OWEN
Would you like to find out more about the benefits of having a financial plan and working with a skilled and experienced adviser like Owen Williams? Then call him on01926 969 010 or drop him an email at Leamington@rockwealth.co.uk to arrange a meeting.
