5 tell-tale signs your client needs to speak to a financial planner

client with lawyer having face-to-face meeting

Your clients will often have complex needs. Whether they are a business owner, are managing an inheritance, or going through a divorce they will have individual and specific financial issues to tackle.

But how do you know when is the right time to suggest they speak to a financial planner?

In our experience, there are several tell-tale signs that a client would benefit from financial advice. Here are five of the most common.

1. Financial issues are impacting their health

It’s been a tough 18 months for many people. Even as lockdowns ease, some restrictions are likely to remain in force and there are challenging times ahead for businesses and workers.

If it’s clear that financial issues are weighing down your clients, and having an adverse effect on their health, then it’s time for them to seek help.

Studies have shown that financial advice can support emotional wellbeing. Taking control of your finances can give you peace of mind, make you feel more confident, and reduce stress. Read more about the benefits of financial planning.

If your clients are struggling under the weight of their financial problems, it’s time to suggest they speak to a professional.

2. They are worried about how their business and family would cope if something bad happens

Many of your business owner clients, or those with families, may be concerned about what might happen if they are seriously ill or, worse, they were to pass away.

A study from Aviva found that just 58% of mortgage holders have life insurance. The figures for critical illness cover (28%) and income protection (12%) are even lower. So, it’s likely that many of your clients have insufficient protection, leaving their loved ones financially exposed.

Not planning for the unexpected could lead to severe financial hardship. Furthermore, clients who have worked hard to build up their business need to ensure that their family benefit from the value they have created should anything happen to them.

If you have clients who are concerned about what might happen – and the last year has demonstrated how suddenly health issues can arise – then it’s time for them to have a chat with a financial planner.

From simple life insurance to more complex health and business protection, we can give your clients the peace of mind that the people important to them are looked after financially if the worst should happen.

3. They have had a big life event

One of the best times for your clients to speak to a financial planner is when they reach a major life event. This might include:

  • Getting married
  • Having a baby
  • Starting a new business
  • Changing career
  • The death of a loved one
  • Divorce
  • Selling a business.

We can help to give your clients peace of mind as they transition through a major life event. We’ll work with them to ensure their finances are in order and that they’re using their money in the most effective way to reach their goals.

Even if your client just needs reassurance so they can move on, we can help them to get their affairs in order at a crucial time.

4. They are unsure if they can meet their goals

People with firm goals are more likely to achieve them. You’ve probably met clients who don’t have a clear idea of when they want to retire or what they want to achieve in the future.

A good example is business owner clients. Many see their business as their pension, but they have no real idea of how they intend to exit the business and make the most of the value they have created.

If you have clients who want to retire early, buy a holiday home, send their children to university, or leave a legacy to loved ones, seeking professional advice can help them to determine whether these goals are possible.

We use sophisticated cashflow modelling software to forecast your client’s wealth, considering realistic growth rates and factoring in taxes and inflation.

Seeing a black and white picture of their potential future can be transformative for many clients and give them confidence to make big decisions that will help them to meet their goals.

5. There has been disruption to their long-term plans

When your clients are young and have just begun to invest, they have plenty of time to recover from bad investment decisions and market instability.

As clients get older, these same issues can be much more costly. Sums of money are likely to be more significant, and clients may have less time to recover from poor decisions.

If your client’s long-term goals are at risk of being disrupted – for example, by market instability – they can often benefit from seeking professional advice.

One of the best ways that we can help your clients is to enable them to make informed decisions. This can allow them to grow their wealth effectively and tax-efficiently and to recover more quickly from financial shocks.

We can also help your clients to navigate complicated tax laws, such as Capital Gains Tax, which might eat into their wealth.

If your clients are unsure about the current state of their finances, we can provide reassurance and put a plan in place to help them to achieve their aims.

Get in touch

If your clients tick any of these boxes, they should consider working with a financial planner. If we can help, please get in touch. Email info@blueskyifas.co.uk or call us on 0118 987 6655.