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University of New South Wales
FINS5510 Personal Financial Planning 22T3
Adviser Engagement Assignment
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Both Tristan and Jeremy attempted to build a deep understanding of the client's situation, needs, objectives, financial literacy, and risk tolerance in their good versions. In their good versions, the two financial advisors allow their clients to express themselves vividly, encouraging them to be more open as possible. Through the clients' communication opportunity, clients open up to the financial advisors about their problems, and objectives, thus giving them a chance to understand the client's financial needs. The financial advisors develop a deeper understanding of these situations by posing why questions to the clients. For instance, Tristan, in the initial meeting, asks Sally and Peter to elaborate on the main things they probably want to get from the day's session (Tristan Scifo, 18:51). This question allows Sally and Peter to explain to Tristan their past, present and future needs, thus enabling Tristan to understand their situation, needs, objectives, and financial literacy. On the other hand, Jeremy poses what Fiona told her over the phone and asks if that's the main thing she is looking for or if there are other things (Jeremy Chiel, 11:06). This question allows Fiona to give more details about her situation, needs, and objectives, thus giving Jeremy a chance to gain a better understanding. Another way financial advisors attempt to understand their client's situations and needs are by conducting personality tests. According to Tristan Scifo (10:47), the outcome of the personality typing process gives financial advisors more understanding of how to work with clients and the best strategies to employ. For instance, Tristan gets a sense from the pre-work that Sally and Peter did that budgeting is a probable area of stress for the couples (Tristan Scifo, 17:40). On the other hand, Jeremy, through the initial questioning, get to understand how Fiona has been involved in different investment decisions (Jeremy Chiel, 13:04). Another way the financial advisors attempts to build a deep understanding of their client's situation, needs and objectives is by creating a high level of trust. Trust will enable financial advisors to develop a human connection with their clients, enabling them to open up about their situation and objectives. For instance, Jeremy develops trust with Fiona by highlighting the major areas of financial service guidelines and privacy policy, which enabled Fiona to think about her investment situation and her respective fears. On the other hand, Tristan highlights the clarity functionalities, which makes the couples gain confidence and speak about their situation.
A financial advisor needs to have a deep understanding of the client's situation, needs, objectives, financial literacy, and tolerance to help build a strategy. Tristan explains that understanding the internal expectations of the clients help financial advisors to determine the standards of measuring the financial advice activities (Tristan Scifo, 7:46). When a financial advisor gets clear about the client's situation, needs and objectives, it will be easy for them to build a financial advice strategy to achieve the client's needs and objectives. Moreover, a comprehensive understanding of the client's situation, needs, objectives, and risk tolerance will enable the financial advisor to devise a solution to guide the clients in their financial path. Additionally, financial advisors need to understand the client's situation, needs, objectives, and financial literacy to understand how to work with the clients and the best strategy types and approaches that will work for each client. Understanding the client's situation, needs, objectives, financial literacy, and tolerance of risk is important for financial advisors to help clients get what they need and devise ways of achieving their needs (Tristan Scifo, 11:04). A deep understanding of client's situation, needs and objective is also important for empowerment purpose. Financial advisors will use the information to educate the clients on the best strategies that will work in their situation. According to Jeremy Chiel, it is important to understand the client's situation, needs, objectives, financial literacy, and risk tolerance level to know how to communicate with the clients and build the relationship that will aid in good financial advice. It is also important for a financial advisor to understand the client's situation, needs, objectives, and financial literacy to have a bigger conversation with the client (Jeremy Chiel, 6:23). It is also important to have a deeper understanding of the client’s situation, needs, and objectives to devise advice targeting the client's area of concern and avoiding tackling areas that fewer concern clients. This action will facilitate trust-building between the financial advisor and the client. Moreover, having a deep understanding of the client's situation, needs and objectives are vital in avoiding personal issues that may erupt into conflict during the financial planning process. This action is also important in removing all advice conflicts in the client's area of concern. This understanding is also important in developing financial planning flexibility, ensuring the process meets the client's objectives and goals.
Trust is one of the key elements in financial planning that drives the financial planning process to success. One of the reasons why building trust with clients in the financial planning process is to build an effective relationship with the clients. When both parties trust each other, they develop relationships, creating the human connection that drives financial planning success. Building trust is an important part of the financial planning process because the process involves financial decisions that require the clients’ cooperation for implementation. Clients will only adhere to the decision they feel come from trustworthy individuals. Moreover, building trust is an important part of the financial planning process because it involves getting to know certain information about the client, such as their current situation, financial needs, and objectives. Clients will only share this information with individuals they can think are trustworthy. Therefore, financial advisors must build trust with the clients to deeply understand the client's situation, needs, objectives, financial literacy, and risk tolerance. Moreover, building trust is also important for financial planners in the financial planning process in understanding the client's situation, identifying the client's goals and concerns, and developing solutions that best meet their objectives.
