Welcome to the latest interview in our Adviser Spotlight series, where we explore the world of the UK’s investors. This time, we sit down with Lynne Gadsden, Partner and Director of Grovewood Wealth Management, to talk about all things cash, and how Flagstone’s cash deposit platform helps pave the way to greater savings and security.

‘In a competitive market, I’m a firm believer that advisers who understand the full picture of their clients' wealth, provide holistic advice, and offer an opportunity for growth, stand out.’

Tell us more about Grovewood Wealth and your work with your clients.

My husband, Michael, and I run a Chartered Financial Planning firm, advising clients. We set up Grovewood as IFAs in 2001 and joined SJP in 2012. Since our son and niece joined the team, we’re very much a family business.

Based in Tunbridge Wells, we look after families, individuals and business owners. I particularly look after a lot of female clients, and people near or at retirement, especially those who are selling businesses. I give them advice on investment, retirement and inheritance tax, and – with my SOLLA accreditation – later-life advice.

The case for cash has re-emerged over the past few years. How does Flagstone fit into your wider client offering?

Flagstone has been really helpful, particularly for clients who have just sold their businesses, inherited a large sum, or are perhaps deciding to move house in the future. Many people dealing with a huge change in their circumstances can be undecided what to do next for the best. Flagstone gives them a bit of breathing space to keep their money in cash until they’re ready to make the next step. And because it’s through us at SJP, we have more control than if they’d been sent off to the bank, where they can easily have alternative financial advice thrown at them, complicating matters.

My clients also find Flagstone’s platform really useful for several reasons. They can see all their money in one place, rather than hunting around different providers’ websites with lots of different passwords. It also enables them to spread their money across a range of financial institutions and take advantage of FSCS protection for each. Plus, it’s easy to move money from one bank to another to get better rates or if they want to fix their term for a while.

Investors are holding more cash than ever. Are your clients proactively asking about cash investments, or do advisers tend to lead the conversation?

A mix of both. I am a big believer in keeping a reasonable amount of cash available so clients can spend it if needed and allow us to maintain their investments for the long term.

However, since interest rates have risen, a lot of them are realising cash offers a good return, so I do feel it’s becoming popular again. Also, after seeing the pandemic’s effect on their families, many more clients are retaining cash. My older ones helped out their children and want to make sure they could do the same if needed. They are also travelling again and like holding cash they can use.

For my later-retired clients, I always suggest keeping a cash element in case they suddenly need care. Having it readily available is particularly important if they’re a couple. Even though one might need care, the other is likely to still live in the house, so they wouldn’t have that equity to fall back on.  

Overall, when it comes to cash advice, my role is making sure clients always have some for emergencies – plus a bit extra – and to retain cash for any large purchases they may need to make in the next five years.  This allows us to invest their other money for the long term without them having to dip into it.

Do you think there are any barriers to Wealth Managers advising on cash?

Some advisers might think they won’t earn fees on cash, and so should avoid talking about it. But I think the opposite is true. If we have conversations about their entire wealth and help them keep control of it, we will earn their respect, and clients will see that we really want to help them on their full financial journey.

In a competitive market, I’m a firm believer that advisers who understand the full picture of their clients' wealth, provide holistic advice, and offer an opportunity for growth, stand out. 

Another potential barrier is that cash investments may be considered less difficult, so don’t warrant a Wealth Manager’s advice. However, if we let clients set up numerous accounts with different providers, it’s likely to be complex, chaotic and confusing.

I’m a huge advocate of keeping things simple as we head through life. Flagstone makes it easy, and helps both them and us stay in control.

Do you have any predictions for cash investments, given the rising interest rates?

If there’s one thing I’ve learned in my 30 years in the financial sector, it’s that you should never predict anything. That said, it’s nice to see people earn some money on their hard-earned cash, especially given how tight things have become for so many people – of all backgrounds.

I always tell my clients to make the most of high interest rates and shop around. Better still, use Flagstone. It’s easy for them to spread their money around safely, and look for better rates across the board – whether instant, term or fixed.

Most importantly, seek advice from your trusted adviser. We can guide you through the full financial maze, and help you achieve your short and long-term goals.

Four in five advisers say cash is a growing concern for their clients. With Flagstone, yours can access hundreds of accounts from 50+ UK banks. All in one place, with one application. For greater FSCS protection, exclusive rates – and minimal admin.

Join our network of leading referrers today, and help your clients protect and nurture their cash.