Financial planning is not just about buying products like a pension or about picking the most suitable funds, it is about assisting clients to manage all of their financial affairs in order for them to meet their life goals. Financial planning can extend from ensuring your clients have appropriate wills in place and safety nets should they fall ill, to simply spending money differently, investing through the most appropriate tax wrappers, and having an investment portfolio that matches their needs and risk profile. But most importantly it involves thinking about all of these things as one, creating a ‘holistic’ plan.
Why do your clients need a financial plan?
Getting expert advice on investing and managing investments is one of the most common reasons for clients to see their financial advisers, and forms a part of a client’s need for wider financial planning.
Managing finances can be stressful, even for experienced investors. Many may feel that they do not know enough about financial matters or investing and even if they have created a plan they may fail to follow it, falling short of meeting their goals.
However, you can help your clients to feel better prepared to achieve their financial goals. By creating a holistic financial plan in writing for your clients and reviewing it with them on a regular basis, you can help create lasting client relationships and ensure your clients meet their goals.
How to ensure your client’s investment portfolio is meeting their goals
Creating a financial plan and ensuring clients’ investments meet their needs with precision is not just about collecting information and numbers, and presenting them on a piece of paper. These form an important part of the plan but all this data needs to be overlaid by your clients’ values, emotions, social responsibility, and investment knowledge. To create a plan that delivers to your clients’ exact requirements depends on trust and listening.
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