Richard Bailey, Independent Financial Adviser

An introduction to Richard Bailey

Your career to date?
I joined NatWest as a humble clerk, moved to the banks marketing department in the early 80’s and from there eventually moved to the financial planning arm. NatWest taught me the fundamentals of providing investment advice as well as instilling a strong sense of a duty of care towards my clients which is a central pillar within my business.

In 2000 I joined Bates Investment Services in order to provide a bespoke relationship based advisory service to private clients and thankfully have found that people still value the concept of a one on one relationship with their adviser.

What do you specialise in?
Retirement options and alternative investments.

If you could offer one piece of financial advice to an individual, what would it be and why?
Compound interest, the eighth wonder of the world. Compound interest arises when interest is added to the principal, so that from that moment on, the interest that has been added also itself earns interest. This addition of interest to the principal is called compounding. A bank account, for example, may have its interest compounded every year: in this case, an account with £1000 initial principal and 20% interest per year would have a balance of £1200 at the end of the first year, £1440 at the end of the second year, and by year ten be worth £6500.

Which areas of financial planning do you feel an individual should be addressing in the next 2 years?
Debt reduction and capital accumulation.

What is the most common mistake you find individuals make in financial planning?
Prevarication.

As an independent financial adviser what, for you, are the main benefits of being a part of Honister Partners Ltd?
The ability to provide a very focused bespoke service with the resources of a large organisation.