Real advice starts with 'why?'

I recently met a prospective client to discuss their 'situation'. The interaction began as these matters often do - with an exchanging of an investment statement and a request to give feedback on the current portfolio - to see if there were any improvements or suggestions we could offer. There were a number of these and we duly went away, put our heads together and returned with an analysis. Typically, this analysis considered all of the quantitative elements: what percentage of the portfolio was invested offshore compared to local markets; what diversification had taken place; how many counters were included in the share portfolio; what was the long-term intention for the capital etc. Whilst this analysis added some value, it felt a little 'thin' and somewhat 'commoditised'. 

In the course of the feedback session however, we began to talk. And I mean really talk. We moved off the numbers and started to discuss real issues. We got to understand where the money had been made, why it had been invested the way it had and what it was ultimately to be used for.  As it turns out, there was more to the family than was initially thought. The father - the creator of the wealth - had discovered he has a debilitating illness. In addition, he has 3 adult children and there are some financial dependency needs within the family. Until this point, the estate planning and succession needs have been relatively simple, but suddenly this situation has changed and a new approach is required as the prospect of curators and legal complications loom.

The longer the conversation went on, the more we realised that this was the advice that really mattered. By gaining these insights, we have the ability to remove the potential for the train wreck that we can see coming down the line and give the family the peace of mind that the hard-earned capital will be used as it was intended and not be the cause of ruin in the family. 

The process reinforced our belief that it is only through our clients willingness to share their 'full' stories that we can really make a difference in their lives. This revelation can only take place through a large amount of trust which has to be built over time, and by not being afraid to be bold and ask the question "why?".