Why advisers need to change with the world

Speaking on the latest ifa podcast, the CEO of WOW Women’s Group, Tracey Sofra, said while clients are reassessing their financial futures amid heightened global uncertainty, advisers too need to readjust how they communicate their advice to reflect that shifting external environment.

“As the professional people that we are, we are holding their hands and guiding them through the maze of life I suppose and trying to get them to where they want to go,” Ms Sofra said.

“We need to make sure that we too, are adapting ourselves, our advice and not being stuck in the old ways of providing advice. We've got to adapt and evolve because the world's changed forever. It's never going to go back,” she noted.

Reflecting on the changing relationship she enjoys with her clients, Ms Sofra said many are reassessing their lives and jumping on the chance to retire early.

“They're fast-tracking,” Ms Sofra said.

“They're saying, ‘No, we're done. We're done. We're going to finish up by the end of the year or can you finish it up mid next year?’ So they're fast-tracking that and wanting to get on with life, which I totally understand, totally with them on that”.

As for her clients that are still a way off retirement, they're exhibiting signs of uneasiness.

“There's a lot of what ifs. And again, because of COVID-19, everyone's quite nervous and they're just not sure what's going to happen. There are too many elements now because of interest rates, inflation, and the Ukraine situation,” Ms Sofra said.

“But having said all of that, they're really resilient and they're surprisingly brave. I can say that. Resilient, surprisingly brave, and there’s no panic.”

As such, Ms Sofra reiterated the importance of readjusting “how we communicate our advice and how we guide our clients”.

“Financial planning is about bringing all of our knowledge around, whether it's investing, super and taxation, and all of the knowledge we have to take the client from point A to point B. And it's about the coaching and mentoring relationship — it's about building strategy and sometimes, there is no product involved.

“It's about holding what they have and guiding them through that. And it's about cash flow management strategy or debt management strategy, or all of those things.”

To hear more from Ms Sofra, tune into our latest podcast.