As financial advisors we work with lots of different people. Although no two situations are identical, we do see the same themes coming up again and again.
For this article we asked some of our colleagues in the South African financial planning industry to share a memorable client story.
Do you see a little bit of yourself (or someone you know) in any of the case studies?
“If a man is not faithful to his own individuality, he cannot be loyal to anything.” (Claude McKay)
Case study 1: Family matters
One financial advisor told us about a 68-year-old client who sold his business and worried his children would be ruined by inheriting too much wealth. The advisor created a Family Constitution outlining rights, values, and responsibilities for managing family wealth. The children were involved in developing it and adapted it significantly, particularly regarding philanthropy.
The Constitution included a plan where the children would inherit funds progressively while their father was still alive, allowing him to monitor and guide their financial behaviour. The children made initial mistakes, but they shifted to more responsible investing over eight years. This process alleviated the client’s depression and improved his spending freedom, allowing him to live out his life more contentedly.
Case study 2: Kindness brings happiness
Another advisor talked about supporting a staff member who needed help with her budget. Over time he helped her to eliminate debt and adjust her expenses. This freed up money for her passion — volunteering at a domestic animal rescue group. Her improved financial situation helped her to buy more dog food and it also freed up more time for her to walk and groom the animals. This boosted her happiness and her work performance.
Case study 3: The power of the budget
A third advisor emphasised the importance of a personal budget. Three years ago, a struggling family sought help. They had various policies and investments but couldn’t contribute due to financial strain. The advisor helped them create a detailed household budget, identifying overspending areas like groceries and entertainment.
With coaching, the family became mindful of their spending. Within six months, they’d turned their deficit into a surplus and started planning for the future, including investments and retirement. The budgeting process was so successful that the husband applied the same principles to his new construction business, and it was soon turning a profit. The simple act of budgeting had turned their lives around.
Case study 4: Have the difficult conversations
Another advisor spoke of a client in her early 50s who was diagnosed with a terminal illness and needed help planning for her family’s future. To make matters more complicated she was the primary breadwinner in her family. The advisor reviewed and adjusted her policies, created a slush fund for her husband, and prepared a detailed Living Will. This challenging but necessary process ensured her family’s financial stability and allowed them to grieve without distraction when she passed away.
Case study 5: True connection is at the heart
A fifth advisor told us about a client named Sarah who was sceptical of the financial industry. Through conversations about her first significant money memory, the advisor established trust. Sarah shared her financial concerns and how past negative experiences had impacted her beliefs.
Over the years, the advisor built a connection by focusing on empathy and coaching. They discussed significant life experiences and values, ensuring she felt seen, heard, and valued. This approach helped Sarah gain confidence in her financial future.
Case study 6: Retirement isn’t easy
Despite the idealised image of golfing days and chardonnay sunsets, retirement can be daunting. The last advisor we spoke to talked about a client, unhappy in his corporate job, who thrived after retiring. He engaged in charities, family, surfing, and travelling. But this didn’t just fall into place by accident.
The advisor explained how she uses a straightforward process involving visualisation and the five Cs: Connectivity, Challenge, Curiosity, Creativity, and Charity. These factors indicate how successful retirement can be. Rather than a sudden switch, a phased retirement can be less daunting.
The advisor’s method involved envisioning a new lifestyle and conservatively estimating its cost. They considered potential setbacks like low investment returns or a spouse’s illness.
The ball is in your court
This article highlights the importance of personalised financial planning, which addresses clients’ unique needs and values. If any of these case studies resonate with your circumstances, please get in touch with us now to fine-tune your plan.
Disclaimer – *The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice. © DotNews
