Understanding and dealing with money goes beyond just the numbers with the need to also focus on the emotional and psychological aspects.
That’s according to Philly Ponniah, chartered wealth manager turned certified financial coach.
Speaking to FTAdviser to kick off our Coffee Corner series, Ponniah said she spent 12 years in wealth management but has now moved to help people get confident with their money.
How did she end up here?
“I moved from regulated advice in investment management to running my own business offering financial coaching,” she said.
“Helping with spending plans, short and long term goals and money management as well as the psychological side of our behaviour and habits around money.”
Ponniah joined the graduate scheme at Charles Stanley in 2011 and did her investment management exams.
From the very beginning, she worked with financial planners but she began noticing something as an investment manager.
“I mainly work with women but some couples too, and I was noticing the almost self deprecating lack of knowledge, with people leaving things to husbands. That was even people in their 30s so I kind of always had an affinity to do more than just give advice.
“Now it's more the guidance element and coaching and educating.”
She explained that money is often a sensitive situation that you have to help people through.
“A lot of what I do is actually the sort of emotional psychological side of your money,” she said.
“It's not just about the numbers actually. Remember the cue, but I do think it comes more naturally to women to then be able to not just go okay, this what you need to do.”
For those starting out, what is the biggest challenge?
Although Ponniah herself does not require as much regulation as a coach, she explained that regulation and cost is still quite a big barrier.
“It's not like the advisers don't want to help people, but actually because of the cost they can't - it's really expensive,” she said.
“Even as an investment manager, we had a minimum portfolio size just because it wasn't really very fair for the underlying client to end up spending 2 to 3 per cent.
“Regulation cost is even a thing with the big firms because they are not lacking in wanting to help but it's just the practicality of how many hours it takes to prepare a review.”
How can we help those entering the industry?
“Teaching how to sell because I find - particularly with women - we find it uncomfortable,” she said.
“It's practising that selling is just telling them how you're going to help them.
“Second point, probably to identify a niche of who you want to help because then you can be really clear in your messaging.
“I was told when I started working that I would only be useful when I had grey hair so I guess not to get put off with comments like that.”
