Key points on your fi­nan­cial wish-list

The Jewish Chronicle - - FEATURES - BY ADAM KATTEN

HAV­ING AD­VISED clients for around a quar­ter of a cen­tury, I hope I have some un­der­stand­ing of peo­ple’s pri­or­i­ties when ad­dress­ing their fi­nan­cial needs. In fact, I of­ten feel the role of a good fi­nan­cial ad­viser can be com­pared to that of a coun­sel­lor. Both need to be a good lis­tener and hear not only what is said by the client within the meet­ing but also what is not said but is un­der­stood in the dis­cus­sions.

I be­lieve the ini­tial pri­or­ity of most peo­ple is to feel se­cure in their fi­nan­cial cir­cum­stances. This will in­clude hav­ing enough in­come to cover their daily ex­pen­di­ture needs, suf­fi­cient in­come to pro­vide them with a com­fort­able re­tire­ment and an emer­gency re­serve in case their fi­nan­cial cir­cum­stances worsen.

This need to feel se­cure may lead clients to con­sider tak­ing out life in­sur­ance or other poli­cies to pro­tect their as­sets/in­come for their de­pen­dants if they died or suf­fered a crit­i­cal ill­ness.

The de­sire for suf­fi­cient in­come in re­tire­ment of­ten trans­lates, in fi­nan­cial plan­ning terms, to al­lo­cat­ing suf­fi­cient funds to pen­sions and other sav­ings so a tar­get in­come can be drawn from those sources in re­tire­ment.

A sec­ondary fi­nan­cial ob­jec­tive for many clients will be to “ful­fil their dreams” and this could mean go­ing on lux­ury hol­i­days in re­tire­ment or buy­ing a hol­i­day home.

This again will have fi­nan­cial im­pli­ca­tions that can be ad­dressed by an ex­pe­ri­enced ad­viser. We are in­creas­ingly us­ing life­style plan­ning tools and cash mod­el­ling to build plans with clients to en­able them to meet spe­cific fi­nan­cial tar­gets so that th­ese dreams can be­come a re­al­ity.

There will of course be some clients who feel com­pletely se­cure in their fi­nan­cial cir­cum­stances and also have enough re­sources to ful­fil their dreams.

I cat­e­gorise th­ese clients as those who wish to feel they are “win­ning” in hit­ting fi­nan­cial tar­gets through their in­vest­ments. This may mean achiev­ing a spe­cific re­turn and so per­haps view­ing fi­nan­cial ob­jec­tives as part of a “per­sonal busi­ness plan” which needs to be reg­u­larly as­sessed and mea­sured against par­tic­u­lar tar­gets.

I hope this ar­ti­cle has demon­strated the im­por­tance of hav­ing an ad­viser who un­der­stands your needs and can work along­side you in achiev­ing your own wishes, how­ever they are ex­pressed.

A good fi­nan­cial ad­viser is like a coun­sel­lor’

Adam Katten is man­ag­ing di­rec­tor of NLP Fi­nan­cial Man­age­ment, 020 7472 5550, adam.katten@nlpfm.co.uk

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