Magenta Financial Planning is headed up by former IFP President Julie Lord CFPTM and long time colleague Gretchen Betts CFPTM.
Launching at the start of September, the business has made an ‘amicable’ split from Broadway Financial Planning in Wales. Read more here.
Ms Lord has long been a champion of cashflow lifetime forecasts and this will continue to be a central plank in Magenta’s approach, she said.
Ms Betts, who will be the new MD of Magenta, said: “Julie is a huge advocate of cashflow, as am I. Our service is all about lifetime cashflow forecasts, that’s our primary service and it forms the backbone of what we do.
“Before I met Julie and started working for her some years ago, I worked somewhere where we didn’t do cashflow. It was almost like a light bulb moment for me when I could see how it could assist clients.
“I wouldn’t ever go back, I can’t even imagine how I did without it before and I’m 100% behind her that everyone should be doing this.”
Ms Lord told Financial Planning Today magazine last month that many planners still are not convinced of the merits of cashflow forecasts. She revealed that she tells potential clients who aren’t won over by it to see another adviser instead.
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She said: “I can’t see how anyone can do Financial Planning without a cash flow model to work from.
“I’m very keen to help more people understand the power of cashflow modelling.”
Ms Lord said the aim for Magenta is consolidation in the first six months, focusing on the existing Broadway clients, before they press on. There are no major plans for expansion for the time being.
She said: “The business has been built very successfully with exactly the clients we’ve got.”
She intends Magenta to be a lot more focused on helping the families of existing clients.
Pictures: The Magenta team
Ms Lord said: “With (her previous firm) Cavendish, I didn’t know what I was letting myself in for but now I do I’m quite excited about what I can do with it.
“It does feel different to the big enterprises that we found ourselves in. There’s a lot more scope and freedom - that’s what the clients love.
“They don’t like the sausage machine of the bigger companies.”
Experience at larger businesses has taught her, she explained, that “true Financial Planning” is only possible in a smaller operation.
Asked how existing Broadway Wales clients have reacted to the creation of Magenta, she said existing clients “love the idea of going back to small and beautiful”.
Ms Lord plans greater use of social media to help promote Magenta and added that she “can’t wait for 1 September to get going” with the new venture.