The founder of rockwealth Reading is NICK HUTCHINGS. Here he discusses his career in financial planning and how having a plan can make so much difference for clients. He also explains how the death of his best friend in his 40s gave him new motivation for the job he loves.
Nick, what are your thoughts on joining rockwealth?
I’m very excited to be joining a leading financial planning firm where I can be 100 percent authentic in what I'm doing and I don't have to compromise. rockwealth puts the client, and the client’s best interests, front and centre of everything it does. Unfortunately, though, I feel there are some advice firms out there that try to make advisers compromise on their professional standards. I’ve seen it before, earlier in my career.
That’s really interesting. Tell us more about that.
Well, I started work as an adviser in 1997, at a firm that had a very sales-driven culture. The aim was to see as many people as you could and sell them as many products as you could. That was my introduction into financial advice, and I really didn’t like it. Then, about seven or eight years ago, I came across a financial planner called Paul Armson, who had a very different approach. Paul had a big impact on me.
For those who aren’t familiar with Paul Armson’s ideas, briefly explain them.
Paul believes advisers should really focus on trying to help their clients as opposed to helping themselves. For him, it all starts with working out what a life of meaning looks like for each and every client. That really resonated with me because, at that time, I had just lost my best friend in his mid-40s. It was a time of reflection for me, and I really gave some thought to what an important life meant to me. For me, grieving absolutely focused my mind to understand what is and is not important in life. I vowed to myself then that I would do my best to remember that feeling, because, all too often, life returns to a sense of ‘normality’ and gets in the way of taking action towards things that you truly value such as spending time with family and friends and helping others. I didn’t just want to return to the rat race. I was able to confirm that long term happiness and fulfilment have nothing to do with material possessions. I realised the most important thing to me professionally is helping people to lead the best possible life with the means they have at their disposal. So I joined a firm that allowed me to do that.
Why, then, a few years later, have you decided to leave that firm?
I didn’t really want to leave my previous employer. I was very happy there and felt that, as a firm, we were doing things the right way. Life was good. But then, out of the blue, the firm was taken over, and the financial advice arm of the business was sold to another advice firm. The new firm just didn't feel like a good fit for my clients, and therefore it couldn’t be a good fit for me. For a start, it was a vertically integrated advice business. In other words, advisers were encouraged to recommend the firm’s own in-house investment solutions. As soon as I heard that the alarm bells started ringing. I’m firmly of the view that the motivation of the adviser needs to be, first and foremost, helping clients to achieve the best outcomes. How can I invest my own funds one way and yet advise my clients’ to invest their funds in a different way? That’s not being authentic, and it doesn’t sit comfortably with me. I like to be totally transparent with clients and be able to look them in the eye and advise explain to them how I invest my own funds and why I’m recommending that they invest in the same way.
Nick, you come across as being very passionate about financial planning. What is it about the job that you enjoy so much?
I’m 50 now, and by this time of life you have a good idea of what you like doing and what you don’t like doing. For me, it’s all about the clients. I want to spend as much time with my clients as I can. That’s where my professional satisfaction comes from. The beauty of working with rockwealth is that I can choose to prioritise that. I'm simply plugging into rockwealth’s brand and processes and systems, which are all already well-established, so I don’t have to worry about any of that myself. It’s just a perfect fit for me. If I was setting up my own brand and proposition from scratch it would replicate what those of rockwealth.
What would you say to someone who’s thinking of engaging with a financial planner, perhaps for the first time?
First, I would strongly encourage them to do so. Financial planning, done well, can be truly life-changing. But make sure you choose a proper financial planner and not just another investment adviser. When you speak to an adviser, see where the conversation goes. If it’s all about you, your life and your goals, that’s a great sign. If it’s all about your money, the financial markets or financial products, for me that’s a bad sign.
At the same time, though, Nick, having good investment advice is very important, isn’t it?
Absolutely! I strongly believe that evidence-based investing is the way to go. That’s how I invest my own money. By keeping your costs down, broadly diversifying, maintaining your discipline, having patience and staying focused on your long-term objectives, the overwhelming likelihood is that you’ll be a very successful investor.
How important do you think rockwealth’s fee structure is in improving client outcomes?
I think it’s critically important. Particularly for those with larger portfolios, paying fixed fees rather than a percentage of your investable assets is generally much cheaper. So it’s much fairer from the client’s point of view. For me, charging fair fees is another example of acting in the client’s best interests.
Will rockwealth Reading have a particular niche? Are there certain sorts of clients you really want to attract?
Most of my clients are over the age of 50, and either approaching, or already in, retirement. As well as preparing people for retirement, I’ve helped many business owners to exit their businesses, and I want to carry on doing that. In addition I am also an accredited SOLLA adviser. SOLLA stands for the Society of Later Life Advisers. My interest in advice for older people began when my mum told my gran was going into care and asked me for advice. I realised that, even though I was a financial planner, I didn’t have the level of knowledge I needed. So I took it upon myself to acquire that knowledge to help families navigate the immense complexities of Long Term Care at a very vulnerable and emotionally heightened time, and I’m so glad I did. Paying for long-term care is an absolute minefield.
Finally, Nick, you’ve talked about the importance of living your best life and doing what you enjoy most. What do you like to do when you aren’t working?
I like to spend most of my spare time outdoors and with family, especially walking. I find walking gives me mental space a chance to think. As a lifetime student of financial planning, walking also provides me with an opportunity to listen to interesting podcasts and audio books. I was brought up in a family that loved walking. As a child, my holidays would be in the Scottish Highlands or the Lake District, walking in the mountains. I'm currently doing a mountain leadership course, because I want to be able to help and encourage more people to get out and enjoy the great outdoors.
