Since joining Cambridge Partners, I’ve become aware of an unfortunate dynamic in the New Zealand financial advice market: for decades, financial advice has largely been reserved for the wealthy. Many firms set high minimum asset requirements – often $500,000 or more – before they’ll even consider taking on a client. Because advice fees are typically linked to the assets an adviser manages, those without significant investment assets (arguably the people who need advice the most) have often been unable to access quality financial guidance.
At Cambridge Partners, we’ve taken a different approach. Here’s why.
When Financial Advice Matters Most
Think about when you’ve faced your most significant financial decisions. Was it later in life, when you were comfortable and retired? Or was it earlier when you had debt to pay off and strategic investment decisions to make?
For many of us, the most financially complex years are between the ages of 30 and 50. This is when we’re making decisions about upgrading homes, balancing debt repayment with investing, considering Employee Share Option Plans (ESOPs), or pursuing partnership pathways.
The power of financial planning is significantly greater when implemented earlier in life due to the benefits of compounding returns.
Despite this need, most people don’t receive professional advice at this stage, or they rely on family and friends, whose guidance may not always be informed or objective.
The reason for this lack of advice is, unfortunately, a supply issue, not a lack of demand.
See a Need, Fill a Need
In the 2005 animated film Robots, the catchphrase “See a need, fill a need” was coined by a famous inventor. That idea resonates with us.
We understand that many people need quality financial advice, even if they don’t yet have the asset base to support traditional wealth management fee structures.
Rather than turning these people away, we developed alternative service models to meet their needs. We asked ourselves: What’s the most affordable way we can deliver this service to clients? The answer led us to two main options:
- Ongoing Wealth Management
For those with busy lives and high incomes who are early in their wealth accumulation journey, we offer a base fee model ($3,500 + GST per year). This provides ongoing wealth management advice tailored to the financial complexities of this life stage. It also helps clients start building wealth early, setting the stage for strong compounding returns over time. - KiwiSaver Advice
For those without the complexity or income to warrant full wealth management, we offer managed KiwiSaver advice. While not as comprehensive, this service provides a valuable touchpoint to keep retirement plans on track and offers a chance to discuss financial challenges or opportunities. There are some requirements around KiwiSaver balance and contribution rates that apply.
These models allow us to serve clients at various stages of their financial journey while maintaining the high standard of advice that defines our practice.
What Is Financial Advice?
We’ve all received financial advice in different forms. Maybe your parents told you to save your pocket money; a friend recommended the latest hot stock, or a senior partner at work said, “It’s all worth it once you make an equity partner.” That’s advice, though often unregulated and sometimes questionable.
When facing a financial decision, you ideally want to speak with someone you trust, someone who understands your situation, has the expertise and is independent of your personal life (i.e., don’t ask your son how much you should gift him).
You could turn to a family member or friend. They may know you well, but do they have the expertise? And can they offer truly impartial advice?
At Cambridge Partners, we don’t offer one-off plans; we provide ongoing wealth management. A financial plan offers valuable direction at a given point in time, but its value is limited when considered in isolation.
Markets shift. Life changes. Careers evolve. The unexpected happens.
Our experience shows that the real value lies in an ongoing partnership. The initial plan is just the foundation. The relationship, regular adjustments, accountability, and perspective during emotional market cycles are where lasting value is created.
Your adviser becomes the one person who understands your goals, has the expertise to guide you, and has the objectivity to ensure the advice you receive is aligned with your aspirations.
At Cambridge Partners, we’re committed to providing quality guidance at every stage of your financial journey with service models that adapt as your needs evolve.
If you or someone in your network could benefit from professional financial guidance without traditional asset barriers, I’d welcome a conversation. Sometimes, the most valuable financial decisions are the ones made early in your journey.