Text version—Identify client goals and objectives

About this resource
Clients need to articulate their goals and objectives early in the financial planning process because these goals are the foundation of a financial plan. Leyla Banaei, a financial planning expert, encourages Bill to articulate his goals regarding superannuation as these will drive the financial planning process. Watch the video and note:
·  how Leyla gets Bill to engage in the discussion by starting with the issue he came to see her about first
·  that Leyla listens closely, asks open clarifying questions and gives feedback
·  the use of a diagram to help her explain information
Notes
A financial plan is built on a client's needs, goals and objectives. They become the reference point for both client and adviser at each step in the process as the adviser will keep referring back to them at each stage.
A client's goals and objectives drive the development of a financial plan and remain the reasons for its existence. When clients are talking about their aims and objectives, they are speaking about real aspirations, not theoretical wishes. They are fully engaged in the process and motivated to work towards achieving them.
In this discussion, advisers can assist their client to talk openly about their goals by:
·  allowing clients to talk openly and avoiding making assumptions
·  asking open, not closed or leading, questions
·  asking clients to explain why they want to address some issues before others
Identify client goals and objectives— text version
Leyla (interview) / It’s very important for clients to articulate their goals and objectives early on in the process and it’s the adviser’s job to actually help them do that.
Leyla / We had a bit of a chat over the phone. You mentioned that you wanted to come and see me about your super.
Bill / Yes, that’s right, I was speaking to our HR people at work and they started talking to me about super and I started to glaze over a little bit and I realize that I probably could do something better with my super. So, yeah, they suggested financial planning and here I am.
Leyla (interview) / You must be asking lots of open questions of your client to help them to give you as much detail as they can.
Leyla / With your retirement goals, what kind of lifestyle would you like to have in retirement?
Bill / Just reasonably comfortable, I’m not after luxury, I just want to be able to get by and survive and keep myself fed and looked after if I’m sick, you know, make sure there are no disasters like that happen. Yeah, just so I can get by.
Leyla / Do you have a current super fund at the moment? Do you have more than one, what’s happening with your super?
Bill / Yeah, I do have more than one. I’ve actually got three super funds.
Leyla (interview) / Some of the good questions, or better questions, that you could ask them just to get them going would be to say, “What have you come to see me for today? What’s on your mind right now? What’s some of your issues that you’re having trouble with solving?” Rather than asking the client, “Have you got any goals or objectives?” because usually people don’t come to you with goals and objectives, they come to you with issues.
Bill / Am I just trying to do too much with not enough money or should I be trying to put more in, and I’m not sure how it all works with co-contributions and all that kind of stuff.
Leyla (interview) / Once you’ve got the goals and objectives, provide the client with a visual representation of those goals so, whether it’s on a whiteboard that you have in your office, listing the goals so that the client can clearly see what’s been discussed already. You can also do it on a piece of clean paper in front of the client and once you’ve got that, it’s just a matter of asking, “What’s the most important issue for you to solve right now?” And getting the client to prioritise those one by one.

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© NSW DET 2010