Every person finds their own value from good financial advice. While some value a single point of contact, others value the advice team’s ability to have a bird’s-eye view of their complex financial situation. Our critical elements of financial advice are below.
Advice is focused on significant outcomes
The adviser is clear about the outcomes the advice will best achieve. Valuable advice assists people to get clear about what they want to achieve in their lives from short, to medium, and long-term aspirations.
Pathways to stated goals are clear
Our offer is based on a process and not structured around defined products. Once advisers can help clients think clearly and deeply about what their goals mean to them, it is time to address those needs with the right tools and pathways. When we move to the final meeting, we outline what process will achieve those targets. While there is a statement of advice for compliance, the actual engagement says, ‘Here’s your pathway, here’s what we have to do.’ But they ‘see’ value well before our team drafts all the technical documents.
Fees are not attached to products
With fees unattached to any specific product, the advice is unconflicted. Our clients know their adviser is totally transparent when the process doesn’t rely on the sale of products. Affordability ceases to be an issue when fees are based on what the outcomes will be, not just the work. Most of what clients are looking for is not related to the product. The biggest part of what we do relies on good quality advice and things like changing attitudes towards money and behaviours. How can your financial adviser be objective if they are only charging for a small component of the bigger picture.
Client’s bad financial habits are challenged and clients experience ‘healthy discomfort’.
Challenging the complex behaviour around finances can range from altering existing advice paradigms, to addressing poor financial habits, and even paying more attention to health. Providing alternatives that challenge what the client thinks they know puts new ideas on the table, rather than being a ‘yes adviser’. We help them create a much more disciplined approach and challenge their beliefs about money. When they’re actively participating in the advice, our clients feel like they’re doing more themselves to achieve their outcomes.
Value is visual and tangible
Visual cues such as advice maps help clients gain a full understanding of their financial life. Some client aims are intangible, such as needing security, whereas others are more tangible, such as wanting to help the grandchildren. With a precise, visual path, then clients feel accountable for the progress made, with all their aims articulated. A lot of people are very visual and don’t like to get into the nitty-gritty detail of numbers. When we put pathways and solutions in a visual representation, they start to understand the value that comes into it. Because they can make sense of it all and better understand and access that detail.
Take a big picture approach
When the purpose and outcomes of the advice are clear, clients will know how valuable the advice is. After the initial discovery meeting, ongoing support, processes in place and outcomes coming into focus, the big picture should be apparent to the client and with that, the fee structure over time. If you just talk about the insurance and Super and nothing else, it’s very short-sighted. Taking a big-picture view means that you get client buy-in to the whole process, and are able to make sure it all happens.
If you would like to know more about the fundamentals of valuable advice please contact me firstname.lastname@example.org