Jones says he’s keen to encourage other planners to adopt a values-based approach to planning.
“A lot of advisers are very good technically, with super funds and shares – and I think we’re pretty good, too,” he says.
“But once we’ve had that discussion, preferably with both [spouses] then we would look at tangible goals. Any tangible goal we have usually relates to something we really value. So if it’s family, it’s time with kids. When do they really want to start spending time with kids? There’s a financial cost, and then there’s a strategy.
“For some clients it may be that a financial goal might be to be able to retire at 60, to have the choice if I wanted to do that. The cost might be $2 million of investment assets. If that were the case … the next question would be, well, imagine it’s the day after you’ve walked out of the office, your business has been sold, how do you feel? You’re sitting down having a glass of wine that evening with friends, you’re kind of a bit exhausted, but apart from that, how do you feel?
“We take clients into that zone and get clients to really live it, for each of their key goals.”
Jones says defining core values for his clients is at the centre of everything he does for them.
“We’ve really spent some time on this because the question you had earlier was a really good one – what are people’s core values? – and the way we communicate it is [to say] that the values are the emotional ‘why’. People have a goal, but it’s what sits behind that goal.
“We’ve had clients in tears, because it’s the first time they’ve connected with some of this stuff. People in their 50s have never had this conversation with each other.
“A lot of it has been assumed – they’ve assumed they’ve communicated it. But I really do get a kick out of it, if we can help take their understanding of what’s important to them to another level. I really get a buzz out of that.”
Jones says clients genuinely “buy in” to a plan if they’ve made both an emotional and intellectual commitment to the program.
“We find that if we pursue this approach – not at the initial meeting; it’s probably the second meeting when we start looking at their values and their goals; at the first meeting we’d capture the tangible stuff, their cash-flow, like their assets and liabilities – and at the second meeting we’d delve down into their values and goals.”
The information exchange is a two-way thing. The questions Jones asks of his clients tell them as much about him, and how he will approach the job, as they tell him about them. It does not suit all clients.
“We want a committed client, a client that’s committed to their own financial wellbeing and who is prepared to allocate time and to be accountable,” he says.
“If people can align their core values, and really understand that, with their tangible goals … and a strategy that really is aligned and regularly reviewed, you’re magnifying the probability of success by at least 10 times. The research says 14 times, but I say 10 times. So why wouldn’t you do it?”
Jones says that a planner articulating to a client a clear value proposition is only part of the process. To work effectively, a planner needs to know, very clearly, why a client is seeking advice, and what they expect from an adviser. Jones finds this out by simply asking the client.
“We’re saying, it’s important to us that we understand what’s important to you, and what your expectations of us as advisers are,” Jones says. “What are the key reasons you’d like to engage in advice? And it may not be us.
“At the end of the meeting we’ll write to you so we can position our client service offer, and our proposal to you. You can think about it and come back to us, but we’ll articulate the scope of advice and the fee – the initial fee and the monthly fee, because we’re pure fee for service.
“We may or may not be right for each other. But we really want to understand these issues. So, give me three or four [issues] that really are important to you, if we’re going to work together.”
But then, Jones outlines clearly the expectations he has of the client.
“We want you to work co-operatively with us to capture all of your information,” he says.
“You must do a budget. We want you to be committed and to do what it takes to achieve your goals. We want you to inform us of any changes, and provide us with documentation.
“We want you to respect our professional advice and time.
“If we ask you to action something, we’ll put a deadline on it. And we’re a fee-based organisation. If you’re happy with our advice, we want you to pay our fees.
“And importantly, I’d [like] both of us to have a sense of humour – because occasionally we might stuff up. We’re human.
“We’re serious about your financial wellbeing, and we request that you are too. And if we’re going to work together to make the most of your opportunities, and increase the probability of successful outcomes for you significantly, we have to agree on this. Because if not, maybe we’re not the right advisers for you.”
