A few years ago, in a business meeting, I was referred to as an idealist. It wasn’t meant as a compliment. The implication was that I was a bit naïve and didn’t really understand how to run a business. Which, in fairness, was probably true at the time. However, I didn’t see it as a negative trait then, and I certainly don’t now.
I don’t imagine I immediately come across as an idealist. I’d probably use the term realist, but I’m certainly a worrier and there are times when pessimist would perhaps be closer to the truth. However, when it comes to the concept of financial planning, I think idealist is a fair description. Certainly, the concept of building the ‘perfect’ financial planning firm was a key aspect to setting up New World.
I am very lucky that I have a business partner who if anything is more idealistic than I am and that this is a characteristic that is reflected throughout the team. We believe that financial planning can benefit everyone, and this core belief shapes all the business decisions we make, many of which would be considered idealistic by others in the profession.
Charging on a fixed fee basis is idealistic. This isn’t how most financial advice firms charge. The majority still charge as a percentage of assets advised upon. Telling a potential client in the first meeting that to build them a financial plan the cost will be £x is certainly a harder conversation than saying we’ll take a small percentage of their pension. But it is the right thing to do, and usually ends up more cost-effective. If you are only being paid if you recommend a change, there will always be a conflict of interest.
Setting up a business channel aimed at under 40s is idealistic. This is a demographic that has traditionally been neglected by the financial planning profession. It’s difficult to provide a profitable service if people haven’t yet built up any assets. However, if we reach people at a younger age, there is more time for them to plan and make good decisions. Ultimately their outcomes can be massively improved.
Getting a true understanding of what our clients want to achieve before we review any assets, such as pensions or investments, may also be considered idealistic. It may not necessarily be what the client first expects if they approach us for specific advice relating to their pensions, for example. However, only by focusing first on this vision for the future are we able to ensure that the plans we build together are absolutely right for that client.
All of these things make a difference. So yes, I am proud to be an idealist, and to be building a business that aims to improve lives, help people plan for their future, and to achieve their dreams.
Written by Lisa Tipton
