The financial landscape changes quickly, and for medium to large-sized advice firms, remaining on-top of new developments and assessing their implications for customers can be quite the task. To better understand the long-term needs of their clients, a recent survey conducted by Wealth Wizards revealed enlightening insights into the services and processes these firms offer.
Results pin-pointed that the firms serve an average of 2,000-3,000 customers who possess assets ranging from £25,000 to £50,000. Since long-term investors require regular evaluation of the advice they were initially given, the firms provide annual reviews. In most cases, proceedings go smoothly and the fee for ongoing review is comparatively low.
Still, Wealth Wizards’ research draws attention of those processes that require special attention. The survey focused on areas such as increases or decreases in risk level, variations of current asset allocations, movements in the financial markets, and changes in the customers’ personal circumstances. All these factors have an impact on the firms’ ability to design a multi-year strategy with objectives tailored to the individual needs of their customers.
For in-depth advice to be provided accordingly, the firms typically use holistic assessments. This helps determine which asset classes are best for reaching specific goals and whether the current approach is still suitable. The assessment results are then presented to the client to ensure that the recommended strategy suits their objectives in the long-term.
In short, large to medium-sized advice firms support thousands of customers each year by assessing their financial needs annually and ensuring they are on track. By conducting a thorough review of their existing strategies, the advisors help their customers make well-informed decisions and plan a secure financial future.