Cardiff has a brand new financial planning firm — and it’s quite unlike the vast majority of financial advice firms you will come across.
RockWealth’s investment philosophy is firmly based on peer-reviewed, time-tested academic evidence. It’s also a firm believer in values-based advice — in other words, building portfolios that, as well as delivering good financial returns, also benefit wider society and the environment.
Finally, RockWealth is one of very few advice firms that offers a fixed-fee charging model, which over the long term works out very much cheaper than the so-called ad valorem, or percentage, fee model that most firms operate.
MATT MILLARD, founder of RockWealth Cardiff, has been talking about his plans for the business, and why, in his view, RockWealth is at the forefront of positive change in the financial planning profession.
Matt, what are your overriding thoughts on launching your new business? And what are your ambitions for it?
I am really enthusiastic about what the future holds and the opportunities that lie ahead. It is an exciting time to be a financial planner! I’ve been in the industry now for over 20 years and I’ve seen things that have been done well and things perhaps not so well. When I first spoke to Tim (the managing partner at RockWealth) we instantly hit it off. When he explained who RockWealth were, how they operated and what their beliefs were I knew it would be a great fit for me. The genuine interest in supporting my business has been quite refreshing.
What was it that made you want to be a financial planner in the first place? And what is it about the job that you enjoy so much?
Growing up I always wanted a career in finance. Being an active sportsman and having played a number of team sports since a child, I have always had a natural ability to converse, relate to and get along with people. Financial planning is the perfect fit for me because it combines both my love of getting to know people, identifying their needs and aspirations along with the technical knowledge in being able to provide them with bespoke solutions.
How would you summarise the benefits of hiring a financial planner?
As a financial planner, by becoming a trusted adviser over time, you can help guide clients to make the right decisions to fulfil their dreams and ambitions. In many cases this can be life changing.
What are the skills and attributes that make a really good planner?
Improvements in the technical competency of advisers in the industry has been vital (and long may it continue) but at the heart of it this is a relationship business. First and foremost is listening! I take great pride in really trying to find out all about my clients.
What are your views on evidence-based investing? And how popular do you think it will become?
I am a firm believer in an evidence based approach to investing. I have long believed that it is impossible for financial planners to predict the market and which fund managers will outperform. Thankfully there is a huge amount of independent, peer-reviewed research which clearly supports this approach.
With the changes to client reporting under the MIFID 2 guidelines, I think clients are quite rightly asking the questions around costs and value for money. This certainly opens the door to the conversation around evidence-based investing. In fact, clients have approached me specifically for that reason and I feel it will only become more popular over time as the general public becomes more educated on the subject and as more of my peers begin to research the evidence for themselves.
Some people say that 2020 was a watershed year for ESG — when values-based investing finally went mainstream. What are our thoughts on that?
I would agree with that. Let’s be honest, ten years ago there was very little interest, appetite or opportunity for ESG investing. As environmental and social issues become more mainstream with the explosion of social media it is definitely here to stay and rightly so. However, I think it will become the norm over time especially as the question of underperformance seems to be put to bed.
RockWealth has a fixed-fee approach. What are the benefits of fixed fees from the client’s point of view?
I believe a fixe-fee approach provides clarity, fairness and value to clients. It makes it easy for them to understand the service being offered and decide if it is providing value. It also removes any conflict of interest.
2020 was a difficult year on so many levels. From an investing and personal finance standpoint, what are the main lessons to learn?
2020 was seismic! For me the main lessons I learned (and one which I preach to my clients constantly) is about finding value and meaning in your life. Prolonged lockdowns meant my family and I had to reassess and adapt to our way of living which has helped us enjoy and appreciate the things we have and realise how much of the material things were completely irrelevant. Our expenditure has reduced, yet we seem to be constantly busy and are enjoying more things.
What sort of clients will you be looking to attract? And what is it you feel you can offer them that other advisers don’t?
I have focused on the almost at or just past retirement market. Most of my clients are already well down the path of the accumulation phase and my passion is for helping clients realise when they have enough. Being able to show people who have clearly reached that mental point in their lives, that actually retirement can happen this year or next and not the five years down the line they thought is so rewarding. I am looking to attract more people in this area. I can offer them the comfort of both honesty and reality whilst building a relationship that will last the next 20 years.
I am also active in the post business sale and divorce markets.
Because of the virus, more and more financial advice is being provided online. Do you think this is a permanent shift? And how essential do you think it is that advisers see their clients face to face?
As I’ve said before, this business is a relationship business. Some advisers find rapport building and others don’t. You could be the most technically competent adviser out there but if you can’t relate to your client and communicate with them effectively, it’s not going to be a long lasting relationship. Building those relationships over a video call can be even harder. I feel there will always be a place for face to face meetings however, lockdown has taught me that clients (of all ages) have an appetite to engage remotely. Last year 15 of the clients I onboarded I had never met face to face (and at the time of writing this I still haven’t!).
Ultimately it’s down to each individual adviser, but I expect it to be here to stay and welcome it.
Want to find out more about how you can benefit from proper financial planning? Get in touch with Matt Millard and he will be happy to arrange a meeting.
