Why advisers must change ‘goals discussion’ with clients

In a new opinion piece published on ifa, AstuteWheel’s Hans Egger said this year in particular is an ideal time for advisers to shake up their approach.

“Obviously, financial plans must be about increasing the probability of clients achieving their goals,” Mr Egger wrote.

“Unfortunately, for most advisers, the goals discussion has been reduced to a page in the fact find asking clients to provide a list of their goals framed around their reason for seeking advice. This ‘tick the box’ approach is then used to justify the advice provided for a new client and is rarely reviewed.

“This approach is no longer likely to be enough, particularly in 2022, a year which is already promising to be a year of falling share markets, rising interest rates and therefore increasingly difficult conversations.”

In the article, Mr Egger said advisers should adopt financial planning software to work with clients and discuss each goal, which should be prioritised, to better understand their desired goal.

He added that the goals should be reviewed at each meeting between an adviser and their client where the list of goals can be revisited, updated and adjusted.

“Changing your value proposition to a goals-based approach requires a profound ideological shift for both client and adviser but if done successfully will provide the foundations for a valuable, long-term, fee based professional relationship that will endure any market volatility,” Mr Egger wrote.

Read the full opinion piece here.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.