Creating a financial plan with your client in mind requires more than just crunching the numbers. It involves understanding their dreams, goals, and concerns. Old Mutual’s Integrated Wealth Planning process advocates for lifestyle financial planning and encourages planners to engage in meaningful conversations with their clients using coaching techniques. This approach allows financial planners to co-create plans with their clients that truly reflect their unique aspirations and evolving needs.

 Engaging in Meaningful Conversations

To craft a client-centric financial plan, financial planners must engage in meaningful conversations. This involves using coaching techniques, including active listening and impactful open-ended questions.

Here’s how to incorporate these techniques:

1. Active Listening: This goes beyond only hearing what clients are saying and involves paying close attention to their words, feelings and concerns.  By actively listening, you can achieve a deeper understanding of your clients' needs and co-create a financial plan that truly reflects their unique goals.
2. Asking Impactful Open-Ended Questions: Open-ended questions can be used to help clients visualise the different scenarios they can consider. At Old Mutual Wealth we believe that there are four numbers you need to help your clients in making decisions.
   
   Below are questions you can consider asking your clients with the four numbers in mind:
   

1. Assets: What currently forms part of your available assets? What is your emotional connection to these assets?
2. Lifestyle: What lifestyle do you aspire to maintain, both now and in retirement? How do you see your current spending and saving habits supporting that lifestyle?
3. Return : What rate of return do you believe you need to achieve your financial goals, and what’s influencing that belief?
4. Longevity: How do you envision your retirement years? What concerns do you have about how long your wealth needs to last?

Co-Creating a Financial Plan

Co-creating a financial plan means working collaboratively with clients to design a strategy that aligns with their goals and lifestyle. The Old Mutual Integrated Wealth Planning process supports this by providing a structured, yet flexible, advice process framework:

• Assess current situation: Begin with a thorough analysis of clients’ current financial state, using the four numbers to provide a clear picture.

• Explore possibilities: Discuss various scenarios and strategies. How might different investment options impact their return required? What adjustments can be made to current spending to support their desired lifestyle?

• Set realistic goals: Establish achievable short-term and long-term goals. Ensure these goals are aligned with clients’ values and life transitions.

• Adapt to life transitions. Regularly review and adjust the plan to account for major life events such as marriage, children, career changes, and retirement.

Benefits of a Client-Centric Approach

• Personalised strategies: Tailored financial plans that reflect clients’ unique aspirations and circumstances.
• Enhanced trust and engagement: By involving clients in the creation of their financial plans, you can build stronger, trust-based relationships.
• Greater financial clarity: Clients gain a clearer understanding of their financial situation and the steps needed to achieve their goals.
• Increased flexibility: Plans that can adapt to life’s changes and lifestyle transitions ensure clients remain on track despite unforeseen events.

Creating a financial plan with your client in mind is about engaging in meaningful conversations, actively listening, and employing coaching techniques to truly understand clients’ needs. By co-creating plans that consider available assets, desired lifestyle, and key life transitions, you can help clients navigate their financial journeys with confidence and clarity to build resilient financial plans.