This is not a new phenomenon, it is something we at Hewison Private Wealth have been providing our clients with for many, many years. It involves meeting with clients and allowing them to share what is truly important to them in the short, medium and long term. 

While the industry may strive to provide goals-based advice, unfortunately, it was found wanting during the Royal Commission.  It was highlighted how many consumers felt the advice they received was not always linked to their individual goals and objectives, but rather to investment products and sales. 

How can you be sure your adviser is providing true goals- based advice? Here are three things to look out for: 

Is the conversation centred on you? 

To provide goals-based advice an Adviser needs to understand what you are trying to achieve. It may be as simple as saving for a home deposit or a longer-term goal of accumulating/preserving wealth for retirement.  

These goals cannot be ascertained from a risk-profiling questionnaire or data collection form, rather from a detailed conversation with your adviser about your current situation, your needs and wants and most importantly, your goals and objectives. 

You need to be sure that your adviser is working for you and not leading you into a specific investment product based on what they think you want to achieve. 

Can you sleep at night? 

The ‘sleep-at-night factor’ is an important part of providing goals-based advice. You need to be comfortable with your financial strategy and understand the pros and cons of each step you take. If your Adviser is bamboozling you with rates of return, risk metrics, compound earnings and/or commissions then perhaps you need to take a step back and assess whether they are providing the advice you truly need. 

Is the advice you receive independent? 

Independent advice firms exist to provide clients with independent, unbiased advice. This gives the advantage of offering a range of product and investments to achieve your goals and objectives – not line the pockets of the big product manufacturers. 

Using goals-based advice is not rocket science. Hewison Private Wealth has been providing clients with goals-based advice for the past thirty years. We pride ourselves on establishing long term relationships with clients and partnering to achieve your goals and objectives. How refreshing!