For many financial advice is based on investment management mixed with tax efficiency. Charged to you – the client – on a percentage basis of assets under management. Simple. The industry is changing however, its becoming a profession, and with it a small but growing number of firms are leading the way in changing how financial advice is dispensed.
These forward-thinking firms do not look at investment returns as the wholly grail, but a component of maximising a client’s (and their family’s) ‘return on life’. At its core the service is very simple. Its helping you (the client) ensure that you can meet your plans, aspirations and commitments now and for the rest of your life without the fear of ever running out of money.
Under the bonnet, it also involves behavioural coaching, emotional understanding and a confidence to tell you what you need to hear rather than what you want t hear.
The process itself is understanding your journey up to now and importantly where you and your family would like to be in 5, 10, 20 years and beyond. What emotions do you hold around money and wealth? What are you afraid of? Is there anything holding you back from taking the next giant leap forward?
Once your plans for the future are understood your adviser will assess your current level of resources (financial/time/capital); any future expected resources and using the latest technology calculate the actual amount required for you to meet your future plans year after year. It is then and only then should any conversation revolve around a need for a financial product.
It should go without saying that any financial products recommended will be tailored to meet your plans and objectives in the most tax efficient manner. But as the process is routed in regular contact and discussing progress and changes that happen in life, it’s not in the adviser’s interest to sell you ‘the next big thing’ or the latest ‘fashion investment’. All that is important is to meet your (the plans) objectives.
Now you’d think that all of this would be substantially more expensive than regular investment management? In fact, most of the advisers who provide this service do so at the same price as your traditional adviser. So, in addition to receiving investment advice, you also receive financial coaching and financial planning all at the same price. In fact, many of us are charging a fixed fee for our services.
The premise for all of this is simple. What right does anyone have to advise you on your hard-earned money if they know nothing about you – the person. A great financial plan encompasses all three of the parts mentioned above and is very powerful. Why? Because it has been designed to put you (the client) at the centre of the process – not the adviser. When done well it provides peace of mind, clarity and focus on the person that matters most in the relationship. YOU.
So based on your current financial advice relationship, are you actually receiving value for money from your current financial adviser?
Let us meet you and understand your life, your plans and your future. Contact Rajesh on 0116 262 14 14 to book your Financial Review.