Shifting to goals-based advice

Jeff Thurecht, Evalesco Financial Services

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“Embracing a shift to goals based advice entails getting to the core of what it is that we can really do for our clients. How can we use our experience, skills and knowledge to maximise the likelihood that our client is on the best path to achieving their goals?

“By choosing to have the conversations that others won’t, by really getting to the heart of what is important to our client, what are their fears and complexities, we become the trusted adviser and centre of our clients financial life. Allowing us to strengthen the relationship we have with our client.

“Non-aligned advice firms hold a significant competitive advantage in offering meaningful goals based advice because we do not have to deliver a product based outcome. Our clear role is to help the client to stay on course to achieve their goals.”

Bridget Lamphee, Lamphee Financial Advisors

“A truly independent, non-aligned financial advisory firm can embrace the shift to goal-based from transaction-based advice since non-aligned advice firms are able to deliver targeted, holistic, completely independent and un-conflicted advice which is in the client’s best interests. By focusing on achieving the goals of the clients we remove any potential product bias.

“In contrast, financial advice provided by banks and insurance companies is inherently conflicted and tends to be transaction-based rather than goals-based.

“Many banks and insurance companies manage the investment options and/or insurances recommended. Banking staff push product suggesting hidden motives which are not client driven. In my opinion they offer a transaction-based solution, not goal-based and it is questionable as to whether the so called “advice” is in the best interests of the client.”

Marc Bineham, Noall & Co

“As a profession, we have slowly moved from transactional to a goals-based relationship with our clients and not before time. With commission and margins being reduced or removed, firms can either be forced to change, or preferably embrace the change.

“It just makes sense though, as goals based advice ensures a stronger, more meaningful connection with your clients, where they see value and are willing to pay an appropriate fee.

“How to do this, to me you must start with the basics for building any new relationship.  As when talking to a prospective client, realise they are thinking just one simple question: Can I trust you?

“They are not thinking how smart you are or what products you can advise on, just whether I can trust and build a long-term relationship with you. So, you need to let them know what makes you tick, your ‘why’. Only then can you move to solution mode for their goals, with their trust. The final step is ensuring you back it all up with a great ongoing service offering so you are there for the journey to ensure your client has the best possible chance to reach their goals.”

Shane Nicholas, Innate Financial Services Group

“I tend to think non-aligned advice firms are in a great position to embrace the shift towards goals-based advice and in fact I suspect most have been doing so for many years.

“In the non-aligned world there are limited restrictions or pressures from a parent company or dealer group and as such the barriers to have in-depth conversations with clients required to truly shift into goal based advice don’t exist.

“This is not to say for a second that aligned advisers don’t have these conversations however for us in the non-aligned land without the support from a larger group who often can assist with training and the like in this space, we have to continually ask ourselves the questions to the challenges and shifts in trends we see, such as goals-based advice, and from there develop ways to get better.

“To that end, we see real importance in delving into the context of the client rather than purely focusing on the content is one of the keys for our business to further embrace the shift to genuine goals-based advice.”