During a recent life and planning review meeting with one of our clients, I congratulated them on their financial position. Surprised, they commented that it was due to our involvement. There is truth in both statements, and a history behind what has made this a successful financial partnership.
The client first consulted with us during their divorce, an area of financial planning in which we specialise. In collaboration with their divorce attorney, they were able to negotiate a fair but secure settlement. This marked the beginning of our partnership and the first of many sound decisions our client made.
Often after divorce, people spend money on experiences or things driven by emotional needs, and while we’re mindful of gender stereotypes, these are patterns that reflect certain truths. We often see women spending more than planned – or more than is affordable – on securing a family home, while men might splurge on sports cars. Others might take time off work.
These decisions may have long-term knock-on effects on spending. Higher maintenance costs, insurance, levies or related expenses then impact their cost of living.
While these expenses may be necessary for mental health recovery (and we do keep that in mind), large upfront expenses often break clients’ financial planning if not considered carefully.
So, when I congratulate clients on their financial position, I’m really commending their ability to have clearly articulated their financial needs. In this instance, that clarity positioned us to plan well. Just as importantly, they stuck within the parameters of that plan, or consulted us when they wanted to make different decisions.
People often think that the most challenging part of financial planning is the number crunching, the high-level investment knowledge, or the complicated tax and estate planning. It’s not. The real challenge is what happens after that.
A sound plan is a prerequisite, and execution, as well as ongoing monitoring, are highly valuable. However, a good plan can be rendered obsolete by personal financial decisions made without understanding their future implications – or, worse, by ignoring the long-term stress those choices place on the plan, even if our planning makes that clear.
At times, we are more concerned about a client’s future than they seem to be.
The biggest levers for a successful financial future are not the investment returns, the tax savings, or even the fees paid. They are our clients’ own financial decisions: how much they save, invest, withdraw and spend – and how long they spend saving and investing versus withdrawing.
This is why our focus has shifted from being just financial advisors to becoming our clients’ financial partners. We’ve seen that clients’ own financial decisions are often more important than ours. If we can help clients make informed financial decisions and stick to them as part of our long-term partnership, we become more effective in securing their financial futures.
The outcome of my recent client meeting was that we could provide them with feedback that a significant financial investment – a substantial treat – was well within their means. The decisions they made years ago, as part of our ongoing partnership, led to this rewarding outcome for them. We love meetings like these – when our clients’ money provides what matters to them.
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Kind regards,
Sunél
//13 June 2025