Overall, I ended up having several meetings with the client to reach the point of engagement and there were several more to reach the point of getting the recommended arrangements in place.
Once we had gotten to know one another and the client felt comfortable to proceed, she actually wanted to invest more than I thought she should.
Therefore, I explained to her we should start small and build up from there if things go to plan. This was a surprise to her and her friend, as I don’t think they expected an IFA to turn away business.
We ended up investing half of the amount she initially suggested on the back of my guidance to her.
What was the outcome for the client?
The outcome for the client has been very positive.
She has developed an understanding of how financial planning works, in addition to understanding how portfolios are constructed and reviewed.
She has achieved her ultimate goal of simplification, tax efficiency and finding the right balance between cash and investment assets based on her risk profile, comfort levels and future goals. We continue to review her positioning which delivers ongoing piece of mind.
Not only this, she doesn’t have to worry about her finances, as following the loss of the two closest men in her life, she now has an adviser that she can trust fully and that she knows has her best interests at heart.
The decision to invest only half of the client’s initially intended amount was an excellent one.
Markets have been volatile since we started, but the client is not concerned by this due to the small percentage of her overall assets exposed.
We can actually view the volatility as a positive, as it has given her a realistic experience of what investment looks like, without giving her sleepness nights.
This provides her with a foundation to maintain investment exposure in future or even increase it, where appropriate/if she has the comfort to do so.
How do you separate professionalism from the personal emotions involved?
I have a diverse client portfolio of different people with different personalities and needs. Not everyone wants to have a ‘friendship’ dynamic and ultimately, our role is a professional one.
I have clients who certainly would be considered as friends and we talk regularly away from ‘work’. But this cannot impact upon the service delivered.
For example, complacency could be a creeping concern and/or things may become a little too relaxed.
Some clients are very friendly, but we don’t talk away from work.
There are other clients who are very senior and busy people. They purely view our relationship as professional, they want discussions to be highly focussed on where we are, where we are aiming to get to and what we need to do to get there.
