Every now and again as a Financial Planner, I get the opportunity to review another practitioners work. Not in any formal capacity but when a new client brings me the recommendations from their previous adviser.
These days, when a client tells me their financial plan isn’t working I ask them to bring me a copy of their plan to our meeting so I can review it and I must say, that for the most part there are some pretty good advisers out there that are doing everything they can to help their clients.
Sure there is the odd one here or there that make you wonder what rock they crawled from under, but most of the plans I’ve seen over the last 14 years are good ones.
So, if the plans are good, why are they not working? I’ll outline 3 of the mistakes clients often make.
Have all the recommendations been put in place? This is one of the most common mistakes I see. Contained within a financial plan are often recommendations to do such things as increase home loan repayments to a certain figure, develop an emergency cash fund using regular savings and reduce credit card limits as their balance is reduced.
The unfortunate thing that all Financial Planners know is that the minute you walk out our door, Life will happen and you’ll run off to the next emergency having forgotten most of what we told you to do. Because we also know you’re unlikely to re-read the written recommendation report we prepared for you, once you leave our office.
These are things that your adviser is unable to control and which you need to take some responsibility for yourself. If you need help taking action steps, then please ask your adviser. We often maintain resources to help clients in these areas.
This is the one I talk about the most, because it has the capacity to jeopardise everything that you do. If your marriage seems dis-functional to you, then it probably is and you should seek some professional help before it gets worse.
A relationship in crisis will make it harder to build the wealth that you desire because both partners start opposing each other and quite often begin to implement strategies behind their spouses back. For girls, it’s usually a new store card that allows them to satisfy their comfort shopping need or retail therapy as it’s also known.
For guys, it’s typically the opposite. When a man starts to feel that his relationship is either under threat or near to the end, we start squirreling away as much cash as we can into the account you don’t know we have. You see, we know how much it’s going to cost if we have to go and fit out a new unit, we know we could have to pay bond, set up utility accounts, we may even have to stay in a hotel for a while.
Have you got a man in your life, who has always been a spender but has started scrimping for no apparent reason? Is your relationship a bit rockier than usual?
Be careful, he may be preparing himself in case you kick him out.
Similar to the first point, and much like a car, no financial plan can move forward without fuel. If something changes in your life, and you can no longer contribute to your strategy as much as you were, don’t just stop doing it and not tell us. We are on your side, the old plan may be no longer relevant but we can help you make a new one.
Have you taken a job with lower salary? Is your new job, so far away that it’s doubled your fuel costs? tell us about it and let us help you factor in the changes.
None of the Financial Planners I associate with are in this industry just to do business with you. We actually love hearing about your successes and seeing you hit your goals.
If you haven’t heard from your adviser for a while, don’t just go somewhere else, give him a call. He’d probably love to hear from you and enjoy having someone drag him from under the pile of paperwork he’s dealing with at this time of year.
*Got something to say? Add it to the comments section below.
*Remember to add your email in the sign up box so you can get all new articles hot off the press.