We love this one inspired by an award winning financial adviser in Melbourne, Australia.
This is about connecting the strategy solutions to what is really important to a client.
If you can do this and demonstrate it in the SOA not only do you maximise the possibility of the prospect becoming a client, but you have also built a framework for choices the client makes that you can always revisit especially at review time to ensure that financial decisions are always in line with the identified values of the client.
Why is this important?
This is because money habits form very early on in our lives. It’s actually between the ages of 6-8 : s we have learnt most of our lessons from our parents and this shapes how we feel and act when it comes to financial affairs.
If you don’t question a client about these feelings you really can not truly know how a client will react to certain strategies, economic events, future financial decisions.
Some simple techniques are:
- Asking a client the three key words that come to mind when you mention a financial topic : superannuation, shares, investing
- Using lifestyle questionnaires that have a list of areas for the client to consider : they can be superannuation, investing but also : main residence, holidays, kids schooling, career, etc and asking them to rank how they feel about it now 1-5 and what they would like in the future
- The use of values cards
Irrespective of the technique : you need then to include a section in the SOA about what you’ve uncovered and connect your advice to these idenitified feelings and values.
Now values cards are used by recruitment agencies, training agencies eg: the “Training WA Career Centre) and it’s all about making better decisions on the premise that life and work decisions are always most satisfying when they fit with the values most important to you.
Mostly we act in accordance with our values to maintain a sense of well-being. But often our values are compromised by circumstances or events and we do things that don’t feel right. When we do things that are at odds with our values, we feel uncomfortable. Living in a situation where it is a constant struggle to act according to our values can cause stress, anxiety and depression.
Being able to align our lives with our values helps us make important decisions and feel grounded and focused. It inevitably leads to more happiness, achievement and contentment. At a team or organisational level, shared values keep the members focused on achieving their outcomes
The Values Cards can assist individuals, couples, teams and organisations to explore what is truly important in life, their relationships or work.
So what happens with this adviser is that you as a client (or each member of a couple) is given a deck of 250 values cards. The kind of words on them are things like : compassion, connection, creativity, achievement, adventure, challenge, health, family.
The client has to select 5.
This then leads to a discussion that is wide ranging and starts to encompass how the financial decisions the client needs to make fit with these values.
So imagine one of the cards is “family” (invariably that one does get selected).
Insurance has to become a key plank of a discussion or at least estate planning and hence then trust structures, business succession, continuity etc etc.
So it becomes the client that actually instigates the direction that the strategy conversation takes rather than the adviser initiating the discussion without being able to tie it into something the client has highlighted is important.
What needs to happen though is this conversation is reinforced and highlighted in the SOA and that each strategy recommendation is connected to a value or values.
