Time to focus clients on long-term holistic planning

By Rob Tedder
Find me on: LinkedIn 26-Mar-2020 12:26:24

Time to focus clients on long-term holistic planning

There have been numerous regulation changes in recent years working in favour of cashflow modelling. It is becoming ever more important to focus clients on long-term holistic planning, rather than the short-term investment management. Planners are now viewed as ‘life coaches’. They can have a direct impact on a client’s lifestyle over the long term. Not just investment managers who focus on the short-term gains or losses.

This has been enhanced further by the volatility triggered by economic uncertainty caused by Coronavirus. Using cashflow modelling, the impact of (or lack of) market movement on clients’ long term plans should be easy. Click here to see how this can be done.

Alongside market volatility, there are regulatory struggles. MIFID II has created numerous administrative headaches across the industry. However. it shouldn’t be forgotten its other impact is to give the client transparency. This covers the service they are receiving, the performance of assets and the charges for financial planning services.

This isn’t necessarily a problem when markets are performing as they have done over the last 12 years. But what happens when valuations are down but adviser charges are still being deducted?

Again, it is crucial to focus clients on the long term. Use the visuals in the cashflow plan to demonstrate where you are adding the value. This can be by managing investments and creating long-term income to allow a client to live the lifestyle they wish. We demonstrate this in this video.

But cashflow modelling isn’t a one size fits all service. We strongly believe that the client needs to be at the centre of the cashflow modelling exercise. So that they can own the decisions based on well thought out and stress tested advice. All crafted by you, the financial planner.

Technology must help you enhance the client relationship and alleviate all current concerns and fears. To emphasis this I'll share a comment I had this morning from one of our users:

I had a client incredibly concerned and nervous about recent market volatility. We arranged a video call, and ran through his long term plan, using i4C via screen share. By the end of the meeting he was reassured that his financial plan was unaffected. Cashflow planning easily gave him clarity and confidence in the long term financial plan.

i4C is a leading UK-based cashflow modelling provider that enables the creation of simple or complex personal cashflow plans. Using i4C, financial planners convey the quality and value of their advice in an engaging and informative way.

Click here to visit the i4C website.


MiFID II/ Cashflow/ Regulation