There have been several studies to demonstrate the impact in the wider industry (or should that be profession – we’ll save that debate for another day):
• Vanguard talk the potential to add returns of “about 3%” per annum through following their Advisor’s Alpha® framework, using portfolio construction, behavioural coaching and wealth management to provide extra returns for clients.
• Within a 2017 report supported by Royal London and researched and written by the International Longevity Centre, findings showed that “those who take advice are likely to accumulate more financial and pension wealth, supported by increased saving and investing in equity assets, while those in retirement are likely to have more income, particularly at older ages”.
So, some interesting evidence and it’s clear that there is a positive monetary impact in seeking financial advice. But, without those mammoth spreadsheets to demonstrate our monetary value, how else can we demonstrate the value of financial advice or financial planning? Maybe it’s demonstrating how the process of financial planning make our clients FEEL?
Research by the Financial Planning Standards Board (FPSB) showed “consumers with a financial plan are more confident – and those with a written, comprehensive plan are nearly three times more likely to feel strongly confident about achieving their life goals”.
From a personal point of view, within our business, we get excellent feedback from our clients. Although different for each and every client, there is a common them across many of our clients. We often hear feedback like:
• Peace of mind – they’re not worrying about things that they worried about before
• Confidence – clients are happy making decisions. They know, understand and are happy with the impact of their decisions.
• Focus – our clients are increasingly focused on what they want life to look life. We’ve helped them in developing clear goals and a vision of what life might look like in the future
• Direction – the planning process helps in providing them with a course of action (our Life Roadmap Report) that will see them realise their goals. They are happy to take a long term view on their finances and are less likely to be swayed by whatever the latest news is or what the latest investment fad is.
Of course, I love the technical aspect of this role. Success can be measured in terms of performance, tax efficiency and so on. But, really getting to know our clients, seeing them develop and achieve their desired lifestyles and seeing them realise what’s possible is for me what makes my role so exciting.
Nicola Watts APFS Chartered Financial Planner, Chartered Wealth Manager, CFPTM Chartered FSCI - director of Jane Smith Financial Planning
After joining the family business in 2000, Nicola qualified to provide advice in 2001, and has been a director of the business since 2006. Since the retirement of her mother (Jane Smith), Nicola bears sole responsibility for the management of the firm, and the advice provided to clients. Nicola is married to David and has two young children, Emily and Olivia, and Poppy the black labrador.