Sarah Ashby and Simon Bradley, wealth management advisors at Jarden explain what to expect and what to ask when consulting a financial advisor.
For many people, choosing to see a financial adviser is a big decision. Talking about money and finances can be a deeply personal topic and for some people, it isn’t something they’re used to being open about.
As financial advisers, we get to meet with new clients for a range of reasons. It’s generally connected to a change of situation, and they need help with what to do next. Often this is positive, where people are taking the next step towards their future by selling a property or their business, or being proactive in planning for retirement or building a legacy for their family.
On the other hand, sometimes the need to talk to an adviser can come from a place of sadness if a loved one has passed away and left provisions for you in their will.
Whatever the case, we find the first meeting is an important one. Our approach is to spend time with new clients and do a lot of listening and asking questions. This way, we can get an understanding of their current circumstances, find out what they are looking for in an adviser and what their goals are.
At this point, we will likely have a few different options that work for different scenarios and goals. At Jarden, we offer the full range of services, from transactional advice only (e.g. share broking) to a full portfolio management services. We will recommend which service we think would be most appropriate and outline the applicable fees.
If it is determined that a portfolio management service is appropriate, a big part of that meeting will involve talking about the client’s risk profile, discussing both their tolerance and ability to accept risk in a portfolio.
The risk assessment is vital for both the adviser and the client to understand levels of comfort (or discomfort) with movements in the share market – especially given the recent volatility. This can also be an interesting exercise for couples where they may both have different risk profiles, and we need to find a way forward.
A financial adviser will make sure that someone with a conservative appetite doesn’t end up with a high-risk portfolio only to find they are concerned and cash up when the market goes down. The effect of cashing up when the market falters can result in locking in losses, so it’s important to always consider the client’s goals and reasons for investing in the first place. Our job as advisers is to help them stick to the agreed long term investment strategy, rather than reacting to short term market movements.
We often have clients tell us how valuable it is to have a chance to have open, frank conversations about money and goals in a way that they don’t feel comfortable doing with family or friends.
One option that usually holds a lot of appeal for our clients is our Discretionary Investment Management Service (DIMS), which is where we provide a diversified investment portfolio that is bespoke to the client. We take care of the initial portfolio set up and the ongoing investments decisions so that clients don’t need to do that themselves.
For this service, after the initial meeting we prepare an investment proposal and present it to the client for review. In this, we play back to them what they’ve told us and recommend a way to invest in a portfolio that will fit with their risk profile and help them achieve their investment goals. At this point, we talk more about the fees for their specific portfolio.
Once the client has reviewed this and given us the green light, we proceed with creating the portfolio and taking care of it for them. We set up the portfolio, purchase all the assets, and create online access so the client can view their investment at any time.
Many clients tell us they would find setting up a portfolio a daunting task and they’re delighted that we can do this for them quickly and easily. We take care of the portfolio over time – everything from making investment decisions and regular reporting – we even provide a tax report for you.
It’s such a privilege for us to build long-term relationships with our clients and we love nothing more than seeing our clients achieve their goals.
If seeking financial advice is on your to-do list, we hope sharing this process has helped demystify things and let you know what you should expect.
Sarah Ashby 027 211 0760
Simon Bradley 027 427 3899
www.jarden.co.nz
Disclaimer: Sarah Ashby and Simon Bradley are Wealth Management Advisers at Jarden. The information and commentary in this article are provided for general information purposes only. It reflects views and research available at the time of publication, using external sources, systems and other data and information we believe to be accurate, complete and reliable at the time of preparation. We make no representation or warranty as to the accuracy, correctness and completeness of that information, and will not be liable or responsible for any error or omission. It is not to be relied upon as a basis for making any investment decision. Please seek specific investment advice before making any investment decision or taking any action. Jarden Securities Limited is an NZX Firm. A financial advice provider disclosure statement is available free of charge at www.jarden.co.nz/our-services/wealth-management/financial-advice-provider-disclosure-statement
