3 questions financial advisers should ask their clients

| 21 Jun 2022

As financial advisers, you are professionals who assist clients with wealth management and personal finance decisions. These come in the form of a variety of services, including asset management, tax preparation, and estate planning; and expertise ranging from answering queries about insurance to setting out a comprehensive money-management plan.

Changes in tax rules or other legislation, as well as shifts in offerings from financial institutions can also impact your client’s money situation.

Financial advisers should take care of this research for their clients, saving them time and simplifying the investing process. Part of your job is to explain what’s involved in achieving your client’s long-term objectives.

Here are three questions you should ask your clients to determine whether they require the services of a financial adviser.


1.  Do you lack confidence in money management? 

Financial confidence is an overview of specific behaviours such as active saving, tracking, and purchasing habits. These include having self-control over spending, a healthy cash flow and manageable liabilities, and the ability to plan for the short- and long-term.  If your client lacks these qualities, he or she should seek your advice as a financial expert. 


2.  Are you looking for retirement guidance? 

In the past, people would plan for 15 to 20 years of retirement. But with increased life expectancy owing to advances in healthcare innovation, it is possible to live well into your 90s.

Hence, if your client wishes to retire at 55, he or she would need to plan for at least the next three decades and make sure he or she has necessary funds for living needs when the time comes.  One of the best strategies for efficient retirement planning is re-evaluating your client’s savings and investments on an annual basis, and exploring new opportunities. This is where you as a financial professional can help.


3.  Are you trying to get out of debt? 

As a financial adviser, you can help your clients with debt management by helping them map out their cash flow and detect existing and/or future problems. 

Some people may find it intrusive to have a stranger evaluate their spending patterns and financial mistakes, and your clients should be aware they may be confronted with some difficult truths. 

But once they overcome this stumbling block, you will be able to create a new and balanced budget that covers their requirements while not adding to their debt load.

This usually entails eliminating unnecessary expenses so that any extra income can be used to pay off their debts.


This article is an abridged version of one that first appeared in MyPF.