Advice is undergoing a ‘metamorphosis’

Financial planning software AstuteWheel co-founder and director, Dr Michael Topper, sees the industry’s “values-focused” transformation as an opportunity to provide more comprehensive advice to clients.

The financial services industry, Dr Topper explained, has transformed from being something of a product and sales-type process to a process focused on service, strategy, and finally, goals.

“Now is the time for a values focus,” he said.

While he admitted that a focus on service, strategy and goals remained critical to the financial planning process, Dr Topper explained that understanding clients’ values better equips advisers to situate their strategy and goals around the way their clients live and work.

“If you and your client really understand the client’s values, the strategies and products required to achieve their goals should fall into place easily.

“When some action or decision is not aligned with your values, you feel conflicted and uncomfortable.”

Goals should thereafter “contribute to a person achieving their main purpose in life, and their life’s purpose should be linked to their core values and beliefs. Values help clients understand why they have the goals they have,” the director added.

Dr Topper suggested financial tools as a means of identifying clients’ values in relation to specific life areas and creating a structured approach to achieving their goals.

“For example, if they choose a value like ‘integrity’ in relation to family, they should define it in their own words. Something like: ‘Integrity — we do what we say we will’.”

Moreover, Dr Topper asserted that “values can also be used to hold clients accountable” when navigating what they may best act on in financial decision-making.

“A client might tell you that family is the most important thing to them. However, if they won’t spend the time and money on personal insurance and estate planning, then you could challenge them on this decision by pointing out the implications to their family,” he offered.

This process can be done with new clients or ones you have had for years, the director additionally assured, and said all clients can benefit from having the tools to understand what roles money plays within varying aspects of their lives.

Ultimately, he believed helping clients articulate and apply their values to financial planning allows them to “see the value that you add to them” and is a great way to secure long-term clients.