In a statement, the Sydney-based firm Leading Advice said advisers need to know the state of their clients’ health “almost as intimately as their doctor” to develop relevant financial strategies.
“New clients often turn up thinking we’re only there to discuss how many zeroes they have in their bank accounts, or what hot new stocks they should be investing in,” said Leading Advice managing director Katrina Haskew.
Ms Haskew said clients are typically “quick to embrace” discussions around their health once they move past the initial surprise.
The health of clients can influence the kinds of strategies that clients can or should use, as it will impact what strategies will work and which aren’t reasonable, what kind of insurance options should be pursued, and how much needs to be saved for retirement, the statement said.
“In the end, the evidence really is overwhelming – understanding your client’s health and lifestyle is integral to providing effective financial advice,” said Ms Haskew.
“Any adviser who is not doing this is absolutely failing their clients in my opinion.”
Stop bashing advisers. Consumers don’t voluntarily buy insurance and even after it is “sold” to them, they have the audacity to want to DIY and deprive the adviser of any remuneration.
This is something I come across a lot. So called ‘Financial’ advisers who see themselves above selling life insurance to clients who need it. They just want the glory of being seen as ‘investment’ advisers (the money man who can make you rich) and NEGLECT arguably a MORE important aspect of the client’s financial life – their financial protection. Some of these ‘investment’ advisers insist on building Centrepoint Tower on Bondi beach – in other words an elaborate plan without any foundations or safety nets. This is possibly the biggest breach of the ‘client best interest rule’ one could come across.