1’s and 0’s

By Lewis O’Neill, Intern

Prior to joining Carbon, I had a binary view of Financial Advisory – how to maximise investment returns, and to make sure there is enough money in the bank to continue life after work. This view was quickly shifted. What stood out during my time at Carbon was their focus on getting clients to spend money. Sounds counter intuitive for most financial advisors, doesn’t it? I realised that the role of a financial planner is not to just maximise a pot of money just for the sake of growth, but to make sure there is no ‘missed fun.’ ‘Missed fun’ is a phrase I heard repeatedly during my internship and is a way of expressing a client’s goals in relation to their finances. If there is a thing/goal/place a client wants to have/do/go with their money and they did not achieve this because they were concentrating on growth for the sake of growth – what’s the point? Money without purpose is just a number, 1’s and 0’s, and making sure the client achieves their goals by using their money and remaining secure with their finances is the essence of Carbon. Some clients may initially simply wish to maximise returns, but with careful questioning, Carbon planners get to the intrinsic motivation for having money, and it is then all about trying to achieve these aims.

The various meetings with different facets of the business from the Planners, Paraplanners, Investment Team, Finance Team, Marketing, and Client Support allowed me to understand all levels of the business and the company’s culture. One of the most interesting meetings was to do with cashflow. The cashflow meeting is designed to help clients visualise their spending and show how investments and various other income streams can support them in retirement. Staying conservative on investment returns and stress-testing the model helps provide peace of mind to clients knowing how their money can be used to support their goals and lifestyle, even in times of economic uncertainty.

During my time as an intern, I attended a team night out at the Fringe Festival. This was a great icebreaker and presented another opportunity to network and get to know everyone better. I also attended a training day for the planners where the soft skills required in financial planning became apparent in tackling pre-existing biases in clients to help them make the most informed decisions for their finances. Certain areas such as power of attorney can be difficult to navigate and learning about all the different aspects of personal capacity to make decisions and how this effects estate planning was very interesting.

Throughout my time at Carbon, I worked closely with the investment team, assisting with portfolio analysis and reviews for my project. I was using fund analysis software to determine funds ongoing effectiveness for their clients’ needs and whether they still align with Carbon’s investment strategy. Looking into the various asset classes Carbon use, and the inherent risks of these asset classes against their expected returns, was particularly fascinating. After questioning the reasoning behind a passive investment strategy in global equities with tilts towards small cap and value stocks I found Carbon’s investment philosophy to be evidence based and routed in academic research. Focussing on long term returns over riskier short-term gains gives clients a great chance of success, whilst ensuring investments are aligned with their risk profile.

The internship at Carbon was an invaluable experience for my future career. Not only did I understand areas of personal finance and behavioural economics in more detail but also the intricacies and unexpected issues that arise from life events, and how best to navigate these financially. Overall, Carbon has increased my financial literacy and awareness which I intend to use in my own personal life and my career in the world of finance.