Though it may only be halfway through the financial year, 1 January marks a significant milestone and is often a catalyst for reflection among clients about their finances. It can also be a stressful time, with the holiday financial pinch a common problem many face.
Clients may also feel like tax arrangements are not working, their budgets behind where they think they should be or are afraid of growing economic uncertainty.
Speaking to ifa, Mazi Wealth’s Deline Jacovides highlighted that client panic is a “common theme” she comes across in the new year.
“The most common goal we see is regaining control after the holiday period. Many people feel the financial hangover from Christmas and summer spending and want to reset their cash flow,” she said.
“We also see a lot of unfinished business come up — things like estate planning or insurance. Many clients tell us, ‘I said last year I’d sort this out’, and suddenly another year has passed. The new year brings a renewed sense of urgency to finally tick those important items off.”
For Natalia Smith, founder and principal adviser at TruWealth Advice, when a worried client comes to them in the new year, targeted advice is often an effective tool in calming them down.
“Many clients have financial conversations with family and friends during the holidays, and sometimes, they come back to us with challenging questions,” she said.
“They may hear about new tax strategies, investment ideas or different ways of growing their wealth. Some of those ideas can be helpful, while others may not be appropriate for their situation at all. Our role is to listen carefully, understand the background and give clear, honest advice.”
She added: “Depending on what the situation is, our service may involve a conversation, budgeting and cash flow analysis, projections and modelling to remove uncertainty, separate facts from fear and reassurance around market volatility.
“Often they feel better simply by talking things through and realising that their fears are based on past experiences.”
For Smith, empathy is key to this process: “Our approach is a blend of empathy, education, and gentle guidance that helps clients feel more grounded and in control of their finances.”
Jacovides echoed this sentiment, explaining an example of a recent client who came to her frustrated they were unable to secure health insurance due to a previous cancer diagnosis.
“She wants to stop work to focus on recovery but is understandably panicked about the impact on their long-term goals. Her husband is also expecting redundancy in around 10 years, so they’ve had goals around reaching financial independence in their early 50s,” she explained.
“In that meeting, I brought up our modelling software, Voyant, and showed them visually what stopping work now would actually mean. We then tested different scenarios: adjusting holiday spending, and adding some part-time income later in life.”
She concluded: “Being able to see the impact helped shift the conversation from fear to options. She left understanding that while her short-term priority is her health, they still have flexibility to pivot and reach their longer-term goals.
“Often, panic comes from uncertainty. Clarity is incredibly powerful.”
