How does the the advice process tend to work?
Every client is different and we tailor the way we work with each client consistent with what we see as each clients needs at the time. When a client first comes to see me, I seek to solve that part of the financial planning problem that the client is ready to solve. Over time:
Firstly, the way I solve the financial planning problem changes – because the client‘s knowledge and needs change.
As the clients knowledge of the financial planning problem broadens and deepens, the client tends to become ready for a more sophisticated solution AND the scope of my advice broadens, as the client is ready to look at the broader dimensions of their financial trajectory.
Likewise, as the client's knowledge of investments broadens and deepens, we can potentially explore a more sophisticated investment strategy for this client.
Ultimately the process is guided by the client. We do not force the client to fit some standard mould.
Very often the relationship with the client involves many many interactions each year – for some clients more than 50 interactions per year depending on the client‘s needs. This aspect of the relationship changes dramatically the nature of the problem of how the strategy is conveyed to the client – and how it is recorded.
And of course, investment markets keep changing as do tax, superannuation and estate planning laws.
So the advice process is a very dynamic, living and breathing thing.
Ultimately this advice process is in the hands of the client, but since we have travelled this road many times before, we seek to guide the advice journey seeking to optimise the outcome for the client.
|The following submission to government that I prepared a few years ago, provides additional insight into the advice process: