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Our previous post ‘What to expect from a Financial Planning Meeting’ touched on the magic that occurs during ongoing reviews. Now, let’s delve into what goes on behind the scenes. Roughly four weeks before the review meeting, we ask our clients to provide us with updates on their incomes, employee pension values, cash values, and any assets not placed with Fenrir Financial. This information is crucial to ensure a thorough and effective review.

Our Approach to Client Reviews

To ensure that our clients are always on track with their financial planning, we employ a few strategies. First, we have them review their completed expense questionnaire and redo it. Additionally, every few years, we ask them to redo their risk questionnaire. While we don’t anticipate significant changes, the time horizon element may shift during certain life stages. Lastly, we inquire about any changes in their circumstances that may impact their financial planning and ask if there are any specific areas they would like included in the review.

Analysis

With our cashflow system now updated, we analyse the following:

  • Has their current position changed and see if it has improved, worsened or remained the same.
  • We review their current position to identify areas efficiencies can be achieved.
  • We sense check the numbers against our key performing indicators which picks up any trends that we need to be aware of, positive or not.
  • We monitor the balance between growth and non-growth assets and depending on where the client is in their planning life cycle adjustments may be required.

Our next step is to focus on the client’s desired position and consider the scope they have to get closer to their goals. It is not our intention to burden our clients with strategies but suggest changes that are appropriate and affordable.  For younger clients we find they may have less scope to implement strategies but have a greater risk appetite for assets invested. For older client the opposite may be true.

At the end of the review meeting the client will see the impact of their planning to date.  We’ll present them with numerous insights, including but not limited to the following examples:

  • What levels of protection they may require.
  • What investment return they need to achieve.
  • How much they need to save.
  • Show the impact of retiring early or deferring retirement.
  • Show the impact poor investment performance has on their planning.

Leaving Clients with a Clear Plan of Action

Finally, we leave our clients with an action plan which outlines the ongoing tasks to be worked on over the next twelve months by us and by our clients.

By having these reviews year in year out, not only ensures that both our clients and us as planners, are on the same page in terms of planning goals, deepening our mutual understanding and relationship. Also it brings a sense of predictability to their planning which in turn gives our clients the confidence to stay committed to the programme.

Want to learn more? Get in touch with us today.