Fee-based financial planning is the future as clients shun opaque commissions
Investwise Financial Planning has opened a new office in the impressive Horgan’s Quay development, Cork city centre, headed up by Blarney resident Liam O’Riordan. One of Ireland’s few fee-based, privately-owned financial advice firms, Investwise Financial Planning offers expertise in financial planning, wealth management, pensions and investments for individuals and business owners. By operating a transparent fee structure instead of product commissions advice is impartial and in the best interests of the client.
Liam O’Riordan, Head of Investwise Financial Planning in Cork, “Investwise Financial Planning offers something very different to traditional financial planning firms or brokerages. We sit on the client’s side of the table, working with them to develop a real understanding of their individual needs and from that personal relationship, building a customised plan that works for them. To put it bluntly, as we are paid by our clients in a clear, transparent manner, it is in our interests to work for them. The close relationships we’ve developed with so many of our customers over the years, also advising their friends, siblings and adult children, is testament to how we operate.”
“The traditional model of commissions muddies the water and more often than not clients pay significant fees that they’re not even aware of. To give an example, we recently advised a client on how to make changes to his investment portfolio that will save him €4,000 annually. And lately we helped another client save €20,000 over the life of an illness protection policy. These may seem extraordinary cases but sadly, they are very common. Commissions incentivise brokers to encourage their client to invest in particular products which may mean a better deal for the broker, not necessarily the client. Investors rarely know how much they are paying in commissions as they are presented in a very complex manner. We work with clients to take a holistic approach to their finances to develop a plan that suits their goals and lifestyle. Our aim is to make their money work harder and ultimately help them achieve financial freedom.”
David Quinn, MD of Investwise Financial Planning said, “There is a real positivity in Cork city and county, typified by the new Horgan’s Quay development and we are very ambitious about the future here. We’re in great company with many other successful businesses choosing to be based in Cork. We believe there is great scope in Cork and the wider Munster region for the personal and savvy approach to financial planning we offer.”
There is a trend emerging in the UK of investors leaving big wealth management companies and moving to smaller, more personal investment managers who offer a transparent, fee-based service instead of commissions. The future is a fee-based, holistic model of wealth management and financial planning that delivers much more to the customer than the traditional model of commission heavy financial products. We decided a long time ago to move to a model where clients pay us directly through a transparent fee structure, rather than product commissions. We were one of the first firms in the country to do this.”
Research shows that people who get financial advice have nearly three times the savings and investments than those who don’t, are more than twice as likely to have a pension, are more financially protected and feel more confident about their financial future.
Established in 1988, Investwise Financial Planning advises 300 clients with a funds under management (FUM) value of €140million.The team of six advises a diverse range of clients including retirees, self-employed individuals, company directors and senior management.