Money coaching could increase the advisory pipeline for advisors

Incorporating money coaching into the financial advisory process could help advisors target a wider audience, create a larger advisory pipeline, and demonstrate the value of advising, Milford said.

Last week, Money Management spoke to money coach Karen Eley about how she worked with clients to ease their financial pressures and recommended that they work with financial advisors.

New Zealand firm Milford Asset Management, which recently expanded into Australia and managed $ 15 billion in funds, said it noticed the amount of time clients spent talking to advisers about non-financial issues like physical health, life goals, and theirs Job to speak.

With this in mind, it could envision a “rethought role” for financial advisors in coaching better financial behavior that offers benefits such as a broader client pipeline, demystifying financial advice, and high value-added service.

According to a whitepaper, “Financial advisors are ideally positioned to help their clients build more positive relationships with money, not by helping them get more of it (although this is usually a result) but by changing their attitudes towards the Fundamentally change money and give them a framework within which they can make better financial decisions.

“If the advice proves itself, there are also other emotional advantages that strengthen the sense of achievement and the achievement of goals.

“This new perspective on how advisors create added value for their clients implies a much broader target group for the advisory offering, advisory relationships that start younger and last longer, and fees that are detached from traditional product solutions and are calculated and paid more confidently by advisors. “Rather willing by consumers.”

Financial advisors are unlikely to require additional qualifications and there are several ways to offer the services. This included group sessions, digital courses, subscription services, and tiered models.

“There are a variety of approaches that consultants can take in setting coaching fees. It is important that if it is to be offered as an independent service, it must be priced accordingly (not as a loss guide or bundled with product or asset-based remuneration).

“One approach is based on a fixed engagement period – for example, US $ 2,500 for a six month program. Another is a monthly retainer option or an hourly / one-on-one session option. Settlement based on the savings achieved is another option, the value of which is clear to the customer. “

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