Clients must be Reminded of their Investment Goals

If you are a financial adviser, then it is also your responsibility to remind your clients on the investment goals that they have set from time to time.

As a financial adviser, you will have to remind your clients about the goals that they have set during the uncertain market period. You should always highlight to them that they are working towards a goal and not for a desired return. If clients know that they are on the right track and can achieve their goal, then they will never think of anything else than staying invested, no matter what the market situation is.

A clear set of goals will help the clients to make better financial decisions in their life and to not rush things and hit the panic button when the trading is down. The role of the financial adviser is to help their clients to make better decisions on their investments.

1

One of the simplest ways of keeping focus on the set goals is to write it down and ask the client to take a look at it whenever they are restless. One of the best ways is to give a structure to the goals of the client and charting down certain plans to achieve the goals will help the clients understand their goals better. This will help them to know where they are at present and where they need to go.

Never feel shy to talk about the goals to the client or to remind him or her about the goals sometimes. You should never take a back step from reminding the clients that wishes will not turn into reality unless there is some action taken to achieve the wishes. You should help your clients to be clear about their financial goal, so that they will not be tempted to take an untoward situation. Reminding about their goals at critical moments will help clients take better decisions. Clicking Here to know ‘Look Beyond Traditional Investment’ will give you tips on all kinds of investment you can make.

If you have set of goals based investing, then the objectives to achieve these goals must be perfect. You should suggest your clients to spread their goals into four categories:

  • Things that would need at present (e.g., Child’s special needs, home renovation)
  • Things that would want now (e.g., Summer vacation every year)
  • Things they would need later (e.g., Regular income after retirement)
  • Things that they would want later (e.g., Charity donation)

This will help the clients to make clear cut goals and to put their money in the right portfolio. The client must be told that their path to their goals is not a linear one and can deviate from their path by about 10% to 20%. This way there is every chance for the clients to land on the right goal spot.

People must be helped to get clear about why, and not just how or how much they are investing. It is important for you as a financial adviser to take your client towards a conversation about their goals to help them set realistic goals in investments. Wishes are undefined things that do not have a structure and will finally remain as a wish. Hence, help your clients to set goals as they will have the structure.


Leave a Reply