Podcast Summary
Appreciation starts with people and leads to business growth: Appreciating professionals drives business success, LinkedIn is a valuable hiring tool for small businesses, and transparent, tailored financial advice is essential for clients
Appreciation and hiring professionals are key to personal and business growth. At Eden Red, they believe appreciation starts with people and radiates out to companies, leading to improved performance and productivity. LinkedIn is a valuable tool for hiring small business professionals, as over 70% of its users don't visit other job sites. In the world of financial advice, transparency, trust, and tailored advice are the top things clients love. However, they express frustration with the restricted advice model, where advisers can only recommend a limited range of investment products. The financial adviser industry is undergoing changes, and advisers like Alastair Fullerson of Laith and Co. see the market shifting but don't view robo-advisors as a threat. Overall, the importance of appreciation, hiring the right professionals, and transparent, tailored financial advice are crucial for individuals and businesses.
Client Criticisms of Financial Advisers: Expensive Appearances, Lack of Transparency, and High Fees: Readers criticized advisers for their expensive appearances, perceived arrogance, lack of transparency, and high fees. They preferred advisers who dress modestly, offer transparent fee structures, and provide personalized advice tailored to their needs. Top client concerns included pension and retirement planning, tax planning, and Brexit.
That financial advisers are facing criticism from clients regarding their dress sense, perceived arrogance, lack of transparency, and high fees. The readers expressed disdain for advisers who wear expensive ties, watches, and live flashy lifestyles, indicating a disconnect from their values and potential overcharging. They also expressed a desire for more transparency in fees, preferring a fixed fee structure rather than a percentage of assets under management. Additionally, readers were unhappy with being sold products that weren't right for them and wanted personalized advice. The top concern for readers was pension and retirement planning, followed by tax planning and Brexit. These issues highlight the need for advisers to address client concerns around transparency, value for money, and personalized advice to build trust and maintain strong relationships.
Changes in financial advice profession with focus on transparency and quality: New regulations require advisers to agree on payment terms upfront, but data shows most still receive payments from product providers, potentially incentivizing biased recommendations. New ranking focuses on growth rate, experience, and qualifications, providing a more comprehensive view of top advice companies.
The way financial advisers are paid has been a subject of criticism for decades, with concerns that advisers might be pushing investments based on commission. However, a shift in regulations in 2012 required advisers to agree on payment terms with their clients upfront. Despite this, data shows that most advisers still receive payments from product providers, which could potentially incentivize them to recommend certain funds. The ranking and measuring of successful advisers has also changed, with a new list focusing on factors such as growth rate, years of experience, and adviser qualifications, rather than just sales figures. This provides a more comprehensive view of the top investment advice companies in the UK. Overall, these changes reflect the evolving financial advice profession, with a focus on transparency and quality.
Understanding the difference between restricted and independent financial advice: Restricted advice is personal recommendation from a limited range of providers, while independent advice allows advice and sales from any provider in the market.
The terms "restricted" and "independent" in financial advice can be confusing for many people. Restricted advice refers to a personal recommendation about a retail investment product that is not independent, meaning the adviser or firm can only advise and sell products from a limited range of providers. Independent advice, on the other hand, means the adviser or firm can advise and sell products from any provider in the market. Many firms that give advice, but can't claim to consider every single product available, label themselves as restricted. Hargreaves Lansdown, a well-known financial adviser, is an example of a restricted firm. Alastair Fullerton, a founding partner of Laith and Co, a young advisory boutique, established his firm to offer something different in the advice profession. He and his partners aimed to provide a fresh perspective and serve a younger clientele. Understanding the difference between restricted and independent advice is crucial for consumers to make informed decisions about their financial future.
Founding Laith and Co to address innovation gap in financial advice: Laith and Co aims to provide innovative, service-led financial advice, addressing clients' top concerns: retirement planning, Brexit, and tax planning.
Laith and Co was founded to provide a more service-led and technology-focused approach to financial advice, addressing a gap in the market where innovation was lacking. The founders identified a need for advisers who challenge the status quo and seek out better ways to help clients navigate the evolving financial landscape. The age profile and location of clients, as well as the abundance of readily available information, have transformed the nature of advisory relationships. Clients now expect instant communication and are more engaged than ever before. According to a survey by FT Money, the top three concerns for clients are pensions and retirement planning, Brexit, and tax planning, which aligns with the experiences of Laith and Co. With retirement planning making up the majority of their business, advisers must help clients navigate the complexities of pension legislation and ensure they are on track for a secure retirement. Brexit and tax planning are also significant concerns due to their potential impact on clients' financial situations.
Brexit's impact on pension and tax planning: Clients worry about higher taxes, inheritance tax, and fees in the context of Brexit. Despite the rise of robo-advice, face-to-face meetings remain valuable, and advisers provide crucial reassurance and guidance.
Brexit's uncertainty is causing significant concerns for pension planning and tax planning among clients. People are worried about potential higher taxes, especially in the context of a possible Labour government. Additionally, inheritance tax and fees were identified as major concerns. Clients value face-to-face meetings with advisers, and despite the rise of robo-advice, over 70% of advisers are confident it won't significantly impact their business model. Ultimately, clients look to advisers for reassurance and guidance in their financial journey, and advisers play a crucial role in helping them navigate complex financial landscapes.
Human advisors offer comfort and reassurance robo-advisors can't: People prefer human advisors for emotional support and personalized advice, despite robo-advisors' lower fees and tech-driven suggestions.
While robo-advisors have gained popularity with their technology-driven investment suggestions and relatively low fees, they still fall short in providing the comfort and reassurance that human advisors offer. The average asset under management per client for robo-advisors is around £25-£35,000, suggesting that people are hesitant to trust robo-advisors with large portions of their money. Human advisors can look clients in the eye, provide honest opinions, and offer hand-holding during moments of doubt. Additionally, financial advisers revealed that clients are least likely to take on board advice regarding making a will or a lasting power of attorney and paying more into their pension. Despite the rise of robo-advisors, human advisors continue to provide value by addressing the intangible yet important aspects of financial planning.
Challenges in educating clients with preconceived notions: Financial advisers must help clients make informed decisions based on their individual circumstances and goals, despite challenges like clients' preconceived notions about investments and spending habits.
Financial advisers are facing the challenge of educating clients with preconceived notions about their money, particularly those who believe property is the best investment or that they can freely withdraw large sums from their pensions. Advisers also reported that older clients with large pension pots often failed to take their advice to spend more money on experiences or gifts for their families. Despite these challenges, it's important for advisers to help clients make informed decisions based on their individual circumstances and goals. The full results of the Feet Advisor top 100 list of financial advisers will be published online this Friday. For more information, visit FT.com/money.
Shopify and 1800flowers.com: Standout Solutions for Businesses and Consumers: Shopify's effective checkout system converts 36% more browsers into buyers. 1800flowers.com puts heart and love into every product, ensuring a smile for special occasions.
Shopify and 1800flowers.com offer unique solutions to help businesses grow and deliver exceptional customer experiences. Shopify's checkout system is designed to convert browsers into buyers, making it 36% more effective than other leading commerce platforms. Businesses looking to grow can try Shopify with a $1 per month trial period at shopify.com/work. On the other hand, 1800flowers.com is more than just a gift-giving destination. They put heart and love into every aspect of their business, from their farmers and bakers to their florists and makers. Their commitment to delivering a smile ensures that every product is made with care for life's special occasions. To learn more about 1800flowers.com, visit 1800flowers.com/acast. In essence, Shopify's powerful checkout system and 1800flowers.com's dedication to delivering a smile make them standout solutions for businesses and consumers alike. Whether you're looking to grow your business or celebrate a special occasion, these companies offer top-notch services that make a difference.
