In a world where financial advice often feels like a maze of jargon, Mr. Bryan Nicol stands out for his clear, practical approach that puts people first. He is the MD of Freedom Financial Planning, a firm that believes in making financial planning accessible and meaningful for everyone. With a flat-fee structure, he takes a refreshing approach to guiding people through life’s financial challenges, from retirement planning to investment strategies.
But his work isn’t just about numbers. Mr. Nicol brings a personal touch to financial planning, helping his clients build the life they want, not just manage their wealth. I had the privilege of conversing with him for Calculated Conversations, and in this discussion, we dive into how his approach stands apart, the common myths he encounters, and why financial freedom starts with understanding the basics.
1. You’ve emphasized the importance of simplifying financial lives for your clients. What are some common misconceptions people have about financial planning that you aim to address early on in your process?
I think of quite a few typical misconceptions about financial planning that I come across regularly. But I will note the top 3 that come to mind:
- Financial planning is reserved for the wealthy: Financial planning can be beneficial for most people, not just the wealthy. Making great financial decisions in alignment with a well thought out financial plan can help you create wealth. You’re probably not going to get wealthy by accident or chance; it makes sense to work with a quality financial planner to support you on this journey.
- Financial planning = investing: Investing is only one of the pillars of financial planning. And what might surprise people is that when done properly, investing is not that much of a factor in the conversations we have with clients. Investing is generally a long-term endeavour where we ‘fire and forget’, implementing a planned strategy and sticking to it. The other areas of financial planning of equal, or greater, importance than investing are risk planning, estate planning, tax planning, retirement planning, debt management, and cashflow management.
- Financial planning is a one-off event: Many people have approached us believing that they just need to plan for their entire lives once and then they’re sorted. In reality, the plan will change continuously. This is because everything in one’s life is impacted by money. Now think of all the life transitions and events we experience – births, deaths, new job, no job, promotion, relocation, engagement, marriage, divorce, illness, etc. Each of these events will change the plan. And that is why a once-off plan is ‘nice’ but ongoing planning is invaluable.
2. Your flat-fee model is unique in the financial planning industry. How does this structure enhance the trust and long-term relationships you build with clients?
It is well known that there is a general misalignment of incentives in the financial advice industry. Most advisers must sell an investment product or insurance policy to earn an income. This might not be an issue for many consumers, but there’s a growing awareness of this challenge and some consumers are looking for financial advisers who are prepared to charge a specified fee that is not linked to the sale of a product.
I have found that by mitigating this conflict as far as possible, it enhances trust as the client knows they are getting the best advice we can give them without having to wonder if the advice is in my or their best interests.
3. In your experience, how do you guide clients through the emotional side of financial decisions, especially when it comes to their lifestyle goals and security for the future?
The emotional and psychological considerations in financial planning are major topics that I cannot delve into fully in this answer.
What I will say, though, is that many new clients come to us in a state of fear and/or anxiety about their finances. This is usually born out of the ‘unknown’; them not knowing if they are going to be OK, what ‘enough’ money looks like, what they need to do to get there, seeing financial hardship in their own families and worrying about falling into the same trap, etc.
In our financial planning process, we attempt to remove as much of the ‘unknown’ from the client’s financial life as possible.
Once we know what the client’s ideal lifestyle looks like, we quantify the cost thereof. We then consider where they are currently, financially speaking, to determine if they are on track, ahead of the curve, or behind where they should be. This is quite a revealing process because the client will know where they stand and we will help them determine what they need to do to achieve this lifestyle.
We obviously don’t know what anyone’s future holds, but we can, using accurate data and conservative assumptions, get an idea of what the client’s future might look like. This way we remove as much of the ‘grey’ as possible, focusing on what we can control, and then helping the client take action to get on track.
The feedback we have received is that this process is empowering for clients and removes the anxiety of not knowing if they’re going to be OK, replacing it with focus and considered action. It also helps that our financial planning process is visual, using whale graphs that indicates their progress to their goals. The visuals make it ‘real’ and engaging for the client.
4. Can you share an example of a client situation where a clear financial roadmap made a major difference in their life, perhaps in terms of peace of mind or their ability to pursue their goals?
Yes, many!
One that comes to mind is a client in her late 30s, a professional working in a demanding and competitive environment. She came to us anxious about her financial future, worried she was not making the best financial decisions. She was managing her own finances but realised she needed guidance.
We took her through our financial planning process. After we exhausted all the options she had to improve her financial situation, we helped her ‘find her number’, i.e. calculate how much she needs to invest p.m. (over and above her current provisions) to live the life she wants with the money she has.
Seeing this number motivated her, fuelling her ambition to succeed. It inspired her to motivate a salary increase and promotion. She pushed harder at work and consequently her earnings increased. Knowing what she needed to earn to get to where she wanted to be changed her mindset from ‘where can I cut back and save?’ to ‘how can I earn more and grow?’. From scarcity to abundance.
This is something I have seen over and again with clients. Give ambitious people something to aim for and they’ll get it done.
5. You’ve worked with a variety of complex estates. What do you think is the most critical financial strategy that individuals often overlook when planning for the future of their estates?
Having a will! You may be surprised that many, if not most, new clients of ours did not have a valid will in place. And these are financially savvy people who have accrued great wealth.
A will is probably the most important document you will ever draft. Without a valid will in place, your heirs will have to wait for the courts to tell them who inherits what. Also, who you leave your estate to might have tax (Estate Duty and Capital Gains Tax) implications too.
6. Many people find it difficult to understand the jargon and complexities of financial planning. How do you simplify these concepts for your clients so they feel empowered and informed?
I try to use analogies and visuals as often as possible when explaining concepts to clients, often using references to their own industries to help them understand something.
I also try to minimise the use of jargon, although I can do better here.
I view comprehension as a gift; once you understand something you’ll never unlearn it. The more I can share that gift with others, the better.
7. As a lifestyle financial planner, how do you balance long-term financial sustainability with the immediate desires of clients who want to enjoy their wealth now, rather than later?
Believe it or not, you can invest for your future while also enjoying your money today. It comes down to balance.
When we plan with clients, we show them how much money they need to contribute to investments to provide liquidity (i.e. access to money) throughout their lives. What’s left over in the budget can be used now.
As mentioned earlier, our planning process is collaborative and visual. The client sees their financial future depicted in a graph and the impact that any decision has on that future.
So, if the client wants to increase their ‘fun spending’ today, which might mean they reduce the contributions to long-term investments, they can see the possible impact of this decision in real time and decide if they are comfortable with making that trade off.
If we can help the client see and understand what possible impact their decisions might have on their futures, they will probably be as informed as they can be to make that call themselves.
A huge thank you to Mr. Bryan Nicol for joining me on Calculated Conversations. His unique blend of practical financial planning and personal connection to his clients is inspiring, and I left this conversation with a better understanding of how powerful financial freedom can be when you have the right mindset.
If you’re curious to learn more about Mr. Nicol’s work, check out his profiles below:
📌 Mr. Bryan Nicol
Here are a few insights I found most insightful:
✔️ Financial freedom starts with the basics. You don’t need to have it all figured out from the start.
✔️ The myths around financial planning often hold us back from taking action. The truth is simpler than we think.
✔️ Personal connections and trust are at the heart of good financial planning. It’s not just about the numbers, but about helping people live the life they want.
What’s one financial belief you’ve held that you’re now starting to question?
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