When we meet a new client or review the financial affairs of someone we have known for some time, the first thing we automatically concentrate on is what goals in life do they have? For a new client - how can we as planners really encourage them to think about what they want to do with their lives? For existing clients - we know their goals and so where are they on this journey? Are there any new factors to consider?
When we meet a new client or review the financial affairs of someone we have known for some time, the first thing we automatically concentrate on is what goals in life do they have?
For a new client - how can we as planners really encourage them to think about what they want to do with their lives?
For existing clients - we know their goals and so where are they on this journey? Are there any new factors to consider?
We can think of many examples here, but let's take three that seem to come up time and time again:
- buying a holiday home
- going part time age 50-55
- taking time out, a sabbatical
Holiday Home
Now straight away let's get to the nub. A client who says this to us is not really saying I would like some bricks and mortar in Spain/France etc.
They are usually saying:
- We love the life and culture in this country and want to have a secure base to explore
- We want to have somewhere we feel really at home on day one of our precious holiday
- We have had some fantastic holidays in the last 10 years here. The children are getting older and we hope they bring their children as family life to us is what it's all about
- As we create more time for fun in our 50s, we want somewhere we can pop over to within a couple of hours and have long weekends.
Of course, it's not to say that the investment angle is not important. It may well be a welcome secondary benefit, but drinking that nice glass of dry wine on your first night at your very own home abroad is quite special!
The big question that these clients quite often have though is that, given the financial demands on us, can they afford it? #
Going Part Time
Many of our clients have interests and hobbies - sailing - walking - sports - reading/writing - travelling etc. The thing is, these activities take time out of your working week.
To be able to go for a days sailing or travel to London to see the sights and go to the theatre, you'll probably need a few days out of your diary.
Whether you are a dentist of doctor in general practice or in a hospital, we find that going part time is a superb way to live in your 50s (so our clients tell us!).
The big worry for a lot of medics and dentists is of course, can they afford to do this? What about your pension? Will you run out of money before you die? #
Time Out - A Sabbatical
Another option for a stressed NHS doctor or dentist is simply to say that some time out is needed. A three or six month break can recharge the batteries, and allow you to return to the fray refreshed.
This can be the most difficult thing to arrange. After all, you will have family issues, commitments to honour, colleagues to take into account, and perhaps local politics to navigate.
Then of course, what about the costs? The locum to arrange? What about your pension?
All the above could result in someone giving up before they have started! #
A common denominator with all the above is that many clients do not feel they will be able to realistically achieve these goals. There is a real fear of 'biting off more than they can chew' financially. But in an ideal world, they really want to do these things.
So how do we help clients reconcile all these factors and get what they want?
# Well, we build their own FINANCIAL SAT NAV.
If you live in London and want to get to the Isle of Skye, you need a tool that knows where you are starting from, knows where you want to go, and works out the best route to get you there regardless of traffic jams.
This exactly applies to Financial Planning. Goals and objectives mean little unless you measure where you are in relation to what you want to achieve, and then devise a strategy to get there. You then review this to make sure that you don't end up in Edinburgh!
By asking what goals people have, measuring them with the FINANCIAL SAT NAV and working out a risk assessed strategy, we have in the last few months:
- Arranged the money for a Consultant to buy his Spanish Villa
- Helped a dentist to rearrange his finances to enable him and his wife to have the facility to buy their dream holiday home in Scotland
- Reassured a dentist that he will be able to go part time at 55 to pursue sailing
- Measured that a Surgeon can go to a three day week age 55 when his wife is 47 to spend more time together
- Worked out that a Consultant can cut down NHS work and keep working privately to enjoy his hobby - and NOT to buy additional NHS Pension as did not need it
- Reassured a GMP that she could take a 3 month sabbatical to take time out with her husband
In addition, they won't run out of money before they die!
There is simply nothing more satisfying than achieving these things for our clients, and putting them firmly in charge of their own destiny.
Key Considerations:
So, how long is it since you took time out to realy think about what you want?
Have you EVER done it?
To get you thinking about this, if you did not have to work from today, how would you fill your time?
It really is worth sitting down and thinking hard about what you need to do to lead the life you want.
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