Planning is powerful. More people need more plans now more than ever. To deliver more plans we need to meet clients where they are so they know where to go for financial advice. We surveyed end investors to understand their process of finding an advisor.
Think you know your prospective clients? Test your knowledge below.
/hōˈlistik/ - adjective
characterized by comprehension of the parts of something as intimately interconnected and explicable only by reference to the whole.
/fəˈnan(t)shəl ˈplaning/ - adjective
the process of making plans for something related to finance.
Holistic Wealth. Holistic Medicine. Holistic Education. Holistic Wellness. A holistic approach means thinking about the big picture. Each change you make to one part affects the whole.
Holistic Planning is looking at your client’s life. Not just their financial life. It’s demonstrating an understanding of a client’s finances, desired goals and aspirations, and assumptions to ultimately convey an analysis of future outcomes on one or more financial topics and may include possible recommendations.
The role of the financial professional is changing. Part of that movement is taking more of a holistic approach. Clients are increasingly looking to their financial advisors for advice and to establish deeper connections. This means acting more as their life coach, providing a planning strategy that maps closely with a client’s personal values and their preferred platforms and technologies for receiving this advice.
Meet your clients where they are now and where they are headed. When you’re determined to better understand your clients, you can help them reach success at each specific stage of their financial journey.
of investors surveyed said they want values based financial planning1.
of advisors believe the importance of financial planning has and will continue to increase over time2.
of surveyed advisors stated that there will be an increased focus on holistic financial planning within their practices moving forward3.
By taking a top-down approach, focusing on a client’s goals, advisors can strengthen their relationships and create value among existing and prospective clients.
When asked to name top priorities for choosing to work with an advisor, Gen X investors stated that years of experience (43%), and personalized advice for a holistic financial picture (37%) were leading reasons.4
The CFP Board emphasizes a holistic approach based on their objective to make certain advisors get a full view of the client’s goals so that clients aren’t receiving advice that isn’t in their best interest.
Some advisors may find operating in holistic planning is more professionally fulfilling as they become a trusted partner in helping clients achieve their life goals. They can provide meaningful advice across various life moments and opportunities.
According to a recent Fidelity study, over the last year, when compared to other advisors, advisors practicing Holistic Wealth Planning reported 47% higher growth in AUM and 67% higher growth in number of clients.2
According to a recent Fidelity study, advisors who practice Holistic Wealth Planning grew their clients/HHs by 13% on average, compared to 8% among others, in the past year.2
The importance of leading with planning and delivering an experience clients expect from their advisor has taken a new direction with today’s changing environment. By anticipating client needs and preemptively exceeding them, you can deliver value in new ways—pushing boundaries and rethinking possibilities.
The creation of a holistic financial plan and providing the confidence and control for clients to achieve their financial goals and milestones is the experience that will help clients live the life they want.
“I think when clients come to someone for advice about their future retirement investments, they kind of expect you're building a full picture behind the scenes."
of investors said they'd give their advisor more business if they focus on total wellness (e.g. this is looking at mental/physical/relational/spiritual health together)5
investors say an advisor can build trust with them by “customizing their approach to my needs”6
of investors would be willing to pay more for an advisor who provides a clearly defined roadmap of how they can financially achieve all of their lifetime goals7
The holistic planner is adept in the conversation around both the financial and emotional well-being of their clients. They are more comfortable discussing life events with their clients2. These areas can build trust, create value, earn loyalty, and open up opportunities you may not have discovered through traditional financial planning.
You’re on the right track to offering holistic, comprehensive financial planning! If you made it this far and still having doubts, check out this 5-day email course developed by CFP® professionals on how to tackle the most common hurdles to offering holistic planning.
Advisor Amanda gets a referral for a new client, Bob. Amanda’s admin reaches out to Bob asking him to fill out paperwork and bring the necessary information to complete his financial profile. Amanda goes through the data collected and puts together product recommendations and an investment plan for Bob to achieve financial success. Bob comes in for a meeting and Amanda delivers a large packet detailing his current financial status and a proposal to help grow his finances.
Good plan, but see what Holistic Planning could do for your business and your clients.