In today’s complex financial landscape, even the most accomplished business leaders can fall victim to poor financial advice. Lazenby's Financial Services, a Leeds-based Independent Financial Advisory firm, is emphasising the critical importance of choosing the right advisor to help investors fully understand the risks and costs involved.
Recently, Lazenby’s welcomed a client who had spent five years with one of the UK’s top advisory firms. Despite paying an eye-watering £100,000 annually in fees, the client reported no significant growth in their investments over that period. Upon closer examination, Lazenby’s uncovered a troubling conflict of interest: the previous advisory firm had invested the client’s assets into a discretionary fund they themselves had funded with a £1 million loan.
“This arrangement not only posed a significant conflict of interest but also contributed to the poor performance that frustrated the client,” said Alan Lazenby, Managing Director at Lazenby’s. “When the client moved their considerable assets to our bespoke service, they saw more growth in just eight months than in the previous five years – and at dramatically lower fees.”
John* (real name changed to protect client confidentiality) adds: “ I was becoming increasingly despondent with the stagnation of my investments. Thankfully, following meeting Alan – who I would describe as a ‘Financial Geek’ with his vast knowledge – my investments have already grown considerably, and continue on an upward trend. I dread to think how much money I would have lost if I had stayed with my previous advisor.”
The experience highlights a critical misconception: even the most accomplished and intelligent business owners are not necessarily investment experts. “Our clients often excel in their own industries, but that doesn’t mean they have the time or expertise to navigate the intricacies of investment management,” explained Alan. “That’s where professional, independent financial advice becomes invaluable.”
With the rise in the interest around cryptocurrency, and turbulent international markets, the importance of good advice is essential to avoid huge financial losses.
Tips for Choosing the Right Financial Advisor
To help individuals safeguard their wealth, Alan shares the following advice:
- Investigate Fee Structures: Ensure transparency in fees and avoid arrangements where your advisor profits at your expense.
- Ask About Conflicts of Interest: Confirm that investment decisions are made solely in your best interest.
- Demand Measurable Results: Don’t settle for vague promises; request clear metrics to track performance.
- Seek Personalised Service: A one-size-fits-all approach often underperforms compared to tailored strategies.
- Choose a Trusted Partner: Trust is paramount; look for an advisor with a proven track record and positive client testimonials
The stakes of poor financial advice are high, and the risks often hidden. By carefully selecting the right advisor, individuals can ensure that their hard-earned wealth works as effectively as they have. Lazenby’s commitment to bespoke, client-first service underscores the value of transparency, trust, and expertise in navigating today’s financial complexities.
For more information about Lazenby’s services and how they can help safeguard and grow your investments, visit www.lazenbysfs.co.uk
