What is the reason that people engage a financial advisor?
The logical thought is that people use consultants because they need them.
And that is of course also the case:
They need a mortgage advisor if they want to move house and need a new loan;
They need an accountant to compile and audit the annual accounts and calculate the tax;
Unfortunately, this is not very obvious in financial planning. Because financial planning is a service that is not “tangible”.
The pitfall is that financial advisers are still going to tell people why they need financial planning.
Financial Advisers say things like:
You need financial planning to achieve your goals;
You need financial planning to gain insight and overview;
You need financial planning to find financial peace of mind.
Do you notice the difference? People generally have no financial planning needs . But often wish they very much did.
It is therefore better to focus on what the customer wants instead of what they need to have.
Below there are eight reasons people like and want financial planning:
- To reduce complexity
Superannuation, annual returns, mortgages, life insurance, pension management, debt ratios. “I can’t see the wood for the trees anymore.”
- To take action
I’ve wanted to buy that new home. But I don’t know if I’m doing it right and if it will all remain affordable.
- To save time
Job. Children. Sport. Friends. Vacations. Study work. “I don’t have time to sort it all out.
To make someone else happy
“I understand it myself, I think. But my wife would like someone else to have a good look at it.”
- To be reassured
“I want to sell my company, but I doubt whether this is the right time.”
- To be encouraged
“I now have quite a bit of capital and I am thinking of giving some to my children.”
- To blame someone
“My advisor indicates that it can easily be done if I buy a Volvo XC90.”
- Sense of security
“Hey, we should have done this much earlier. I now know exactly where I stand.”
It is good to be aware that people often have very illogical reasons for seeking financial planning.
And especially about their financial goals. Because when you discuss the financial goals with them, they often get wildly enthusiastic about the adviser and the wonderful financial planning service.
Financial planning matters!
Listeners can come in and have a chat. All you need to do is call or visit us and spend some time with us. A coffee, a tea and a chat are free.