40 Years of BpH Wealth- What I Have Learned About the True Value of Financial Advice
The Financial Services industry has changed significantly over the last 40 years. Once somewhat of a free-for all, the sector is now zealously policed. Countless new rules and regulatory bodies have been created to crack down on bad actors, from sloppy to downright nefarious.
At BpH, we pride ourselves on being at the forefront of the industry in terms of our commitment and ability to serve clients’ best interests. We embraced the increased professionalism through our early commitment to becoming Chartered. We strive to continually test ourselves and grow through sharing with other likeminded firms.
This is why we were the first firm in the UK to be accredited by the Centre for Fiduciary Excellence. This is a world-leading certification, ensuring we are acting in clients’ best interest and with care, skill, prudence, and diligence. I am also proud to have been part of founding the Global Association of Independent Advisers (GAIA). GAIA membership involves openly sharing with, and learning from, some of the best likeminded firms from all around the world.
We have always been an ethically minded company, the principles Michael founded the firm with are as strong as ever. In 2022 we furthered our ethical commitments by achieving B Corp Certification. This essentially extended our moral principles into a 21st century context, committing to consider our impact on people and planet in all our business decisions.
Becoming a B Corp has involved a fantastic challenge and led to a number of changes within the business already. I am looking forward to exploring even more ways we can benefit our clients, our team and wider society in the future.
The True Value of Financial Advice
Qualifications and certifications are important. However, technical knowledge alone does not make a good adviser. The best advisers help their clients make difficult decisions. They challenge clients’ thinking and coach them towards a better, more balanced life. Financial wellbeing is not about finding the optimal investment, it is more about nurturing good financial behaviour.
As an adviser to many clients and their families, it is easy to get caught up in the day to day. The work and care we put into each client is intensive, technical and multifaceted. Nevertheless, it is important not to lose sight of the wood for the trees.
As we mark our 40th anniversary as a business this year, I have a great opportunity to reflect on my time as an adviser. I want to share what I have discovered about how meaningful our service is to so many of our clients. After 35 years as an adviser, I am proud to look back on all the people we have helped live better lives.
Confidence
During my years as an adviser, I have learned that financial planning is an important piece of the puzzle. However, it is important to retain a perspective about what we are really trying to achieve.
Life is not a rehearsal. We want to ensure every client has the best chance of living the best life that they can. This is the end goal; finances are just a means to that end.
Having enough money to do what you want is one thing, but having the confidence to actually use it, or to retire and stop earning altogether, is quite another. Attitudes to money are often deeply rooted from an early age. Having ‘enough’ money is a mindset as well as a material state. Those that do not have the mindset can be prone to hoarding, risk averse or risk seeking behaviour.
Recognising that a lack of financial confidence can be a block to a flourishing and fulfilled life, I have worked to bring this into our process. Fortunately, improved financial confidence is now one of the first changes I see in new clients.
Pure financial planning certainly has a role in building confidence. Simplifying clients’ arrangements, ensuring they can fund their desired lifestyle and helping clients pick the right investments for them is crucial. However, for many, this is not enough. Building our approach more around education, coaching and understanding human behaviour has arguably been even more important.
I am fortunate to have a developed a deep and trusting relationship with many of my clients and their families over 3 decades. However, I have found it important not to take this for granted. We do not just expect clients to take our word that they are investing better. We want to help them become better investors. I have found communicating what we are doing in a simple, jargon-free manner is both hugely beneficial to my clients and to our relationship.
It is fair to say that in my time, I have encountered many different attitudes and beliefs about money. Fortunately, with experience, I am able to work through clients’ beliefs that may be harming their financial success and enjoyment of life. It is a very rewarding process to work with clients over many years, helping them form new habits which allow them a better chance of personal and financial success.
Freedom
Some of my favourite meetings are not where we get into the nitty gritty of a client’s finances. Instead, they are where clients are excited to share all of the wonderful things they have been up to since the last meeting.
True freedom is being able to do what you want, when you want, with who you want and for as long as you want. This is the goal, not some arbitrary number or level of return.
Aiming to give clients their best chance of living the life they want is difficult. The goalposts are constantly moving. Circumstances can change for the better or worse and clients’ preferences and goals can change too. I have learned the value of building flexibility into plans, helping clients have the best chance of financial and lifestyle success – whatever that means to them.
Perspective/Balance
During my 35 years as an adviser BpH Wealth has undergone a huge transformation. We have transitioned from recommending pension products to corporate clients in return for commission to a bespoke, fee-based, holistic service for individuals and families.
Working with the same clients over their whole lifetime, and families through generations, I have naturally developed deeply trusting relationships. I constantly strive to get better at supporting those I serve through the many ups and downs that life can bring.
It is my hope to help those I work with to gain perspective on their life, and to help them work through what they really want to get out of it. A life well lived requires a balance between many factors. Finances are important, but so are family, friends, health, purpose, and connection to a wider community.
With advisers informed by decades of collective experience, and equipped with the right skill set, I hope to create a lasting business that, through the generations, helps clients discover and pursue their ideal balanced life.
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