10 steps to create more personal relationships and help your clients meet their goals

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Rebecca Parsons
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1 10 steps to create more personal relationships and help your clients meet their goals

Individuals are unique and so too are their retirement journeys.

aspirations. The key is that the person himself/herself is making the evaluation of life - not experts, philosophers or others.

2 Individuals are unique and so too are their retirement journeys. The Science of Happiness is about understanding what drives your clients, identifying what their challenges are and focusing on what makes them really happy. In doing so you ll be able to match their life and financial goals with specific strategies that help them achieve their retirement aspirations. The key is that the person himself/herself is making the evaluation of life - not experts, philosophers or others. Thus, the person herself or himself is the expert here: Is my life going well, according to the standard that I choose to use? Ed Diener, Psychologist From engaging your clients early, measuring their levels of happiness to providing regular updates, we explore 10 ways to increase your clients happiness, drive your business and set you apart. The Science of Happiness 2

Research has shown that by actively engaging clients

have more satisfied clients at retirement.

are happier and are more likely to become advocates of

More satisfied clients means increased client

Source: The Financial Life Well-Lived: Psychological

3 Research has shown that by actively engaging clients in their longer term future, you are more likely to have more satisfied clients at retirement. Ultimately, individuals who are financially in control are happier and are more likely to become advocates of the financial planning process. More satisfied clients means increased client retention and referrals for your practice. Source: The Financial Life Well-Lived: Psychological Benefits of Financial Planning, Kym Irving, Queensland University of Technology, The Science of Happiness 3

Have you ever wondered how happy your clients truly are?

Twenty years of research has determined five core statements which can help you measure your

The conditions of my life are excellent 3. I am satisfied with my life 4.

If I could live my life over, I would change almost nothing On the last page you ll see how you

4 Have you ever wondered how happy your clients truly are? Did you know that even though happiness is an emotion, you can quantify it? Twenty years of research has determined five core statements which can help you measure your clients happiness. These are: 1. In most ways my life is close to my ideal 2. The conditions of my life are excellent 3. I am satisfied with my life 4. So far I have gotten the important things I want in life 5. If I could live my life over, I would change almost nothing On the last page you ll see how you can measure your clients happiness, enabling you to start a conversation about what is important to them at their stage in life. You could find there is a gap between how happy you think your clients are and how happy they actually are. Source: Satisfaction With Life Scale, Ed Diener, Robert A. Emmons, Randy J. Larsen and Sharon Griffin, as noted in the 1985 article in the Journal of Personality Assessment. The Science of Happiness 4

The focus of your conversation shouldn t

their life that will make them satisfied?

The five core statements used to measure

5 The focus of your conversation shouldn t just be on their financial goals, but also their life goals. What do your clients want to achieve in their life that will make them satisfied? Do they want to travel, change careers or volunteer? Understanding what drives your clients is essential to formulating a financial plan that meets their goals. The five core statements used to measure happiness can be used to help your clients articulate their life goals. The Science of Happiness 5

Once there is an understanding of your clients life goals,

happiness can also be used to help your clients articulate

6 Once there is an understanding of your clients life goals, you can discuss and obtain further information about their financial goals. Typical financial goals include retirement or saving for a new house. The five core statements that are used to measure happiness can also be used to help your clients articulate their financial goals. Measuring and determining client happiness drivers will help you formulate a more holistic financial plan. The Science of Happiness 6

Understanding what is challenging your clients financially is as important as

Many clients will have their unique concerns, but for most retirees their

and confidence that their financial plan will meet their needs Ensuring they

7 Understanding what is challenging your clients financially is as important as understanding what makes them happy. Many clients will have their unique concerns, but for most retirees their concerns are often focused on: Lack of planning around their retirement Trust and confidence that their financial plan will meet their needs Ensuring they have enough money to retire Major market falls - like the GFC Not having too much risk in their portfolio The Science of Happiness 7

There is a common misconception that clients

Research has shown that investors are able to

lifestyle images to start the conversation.

Psychological Benefits of Financial Planning,

8 There is a common misconception that clients have difficulty articulating their goals. Research has shown that investors are able to articulate their life goals if sufficient time is allowed and they have visual aids. You could try using charts and aspirational lifestyle images to start the conversation. Source: The Financial Life Well-Lived: Psychological Benefits of Financial Planning, Kym Irving, Queensland University of Technology, The Science of Happiness 8

Research has shown that men and women emphasise different things when it comes to

Men tend to place a lot of importance on financial security.

.. which lends itself to being able to live the type of life that I and my family would

Women tend to place a lot of importance on interpersonal relationships with family and

I do a lot of work for Rotary and I head up the exchange group so I send children out

9 Research has shown that men and women emphasise different things when it comes to financial planning and goals. Men tend to place a lot of importance on financial security. Quality of life for me means job stability and a consistent revenue stream... which lends itself to being able to live the type of life that I and my family would like to live. (Married male, employed, 51). Women tend to place a lot of importance on interpersonal relationships with family and friends, followed by health, self and community service. I do a lot of work for Rotary and I head up the exchange group so I send children out every year It s my passion to develop the youth of Australia. (Married female, employed, 51). How do you formulate a financial plan that meets the needs of both men and women? Being cognisant of differing priorities between men and women will help you have productive conversations with your clients. Source: Quality of life aspirations: Exploring baby-boomer financial means-end goal structures, Malcolm Johnson, 2008 The Science of Happiness 9

10 A goals-based model broadens the conversation to essential needs, lifestyle wants and legacy wishes, giving you the opportunity to significantly impact your clients happiness. Legacy Lifestyle Essential needs Covering endowments and the desire to leave something behind for grandchildren or a cause close to your clients hearts. Covering holidays, a new car and luxury items that are not essential. Covering everyday living expenses such as food, clothing and shelter. The Science of Happiness 10

Implementing financial and investment strategies that are directly linked

greater sense of control, but clients are less likely to act irrationally

Both planning for the future, and knowing that their financial strategies

11 Implementing financial and investment strategies that are directly linked to a clients stated goals improves both client confidence and their overall wellbeing. Research suggests that not only is planning for goals associated with a greater sense of control, but clients are less likely to act irrationally if they are confident that their goals will be met. Both planning for the future, and knowing that their financial strategies are on course to meet personal goals, facilitates a sense of perceived control that, in turn, enhances life satisfaction regardless of age. The Science of Happiness 11

Research has shown: Providing a sense of direction and progression can

Reminding clients of where they have set off from, what they have

How often are you engaging with your clients?

12 Research has shown: Providing a sense of direction and progression can increase happiness. Reminding clients of where they have set off from, what they have achieved and where they are headed on a regular basis is beneficial. How often are you engaging with your clients? Source: The Financial Life Well-Lived: Psychological Benefits of Financial Planning, Kym Irving, Queensland University of Technology, The Science of Happiness 12

You have the ability to influence your clients happiness and ultimately change their lives for the better. To find out how, visit ampcapital.com.

13 You have the ability to influence your clients happiness and ultimately change their lives for the better. To find out how, visit ampcapital.com.au/goals or call Important note: While every care has been taken in the preparation of this document, AMP Capital Investors Limited (ABN , AFSL ) and AMP Capital Funds Management Limited (ABN , AFSL ) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This document has been prepared for the purpose of providing general information, without taking account of any particular investor s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to the investor s objectives, financial situation and needs. This document is solely for the use of the party to whom it is provided. The Science of Happiness 13

There are plenty of ways to bring the idea of happiness into the conversation. Here s a starter for you. Step 1.

1 2 3 4 5 6 7 Strongly Disagree Strongly Agree In most ways my life is close to my ideal... The conditions of my life are excellent... I am satisfied with my life.

Tally up the scores and use the table below to see how your client scores on the happiness meter.

14 There are plenty of ways to bring the idea of happiness into the conversation. Here s a starter for you. Step 1. Ask your clients to rate each statement on a scale between 1-7, with 1 being Strongly Disagree and 7 being Strongly Agree Strongly Disagree Strongly Agree In most ways my life is close to my ideal... The conditions of my life are excellent... I am satisfied with my life... So far I have gotten the important things I want in life... If I could live my life over, I would change almost nothing... Total Step 2. Tally up the scores and use the table below to see how your client scores on the happiness meter. Combined score Extremely satisfied Satisfied Slightly satisfied 20 Neutral Slightly dissatisfied Dissatisfied Slightly dissatisfied Dissatisfied Extremely Dissatisfied Source: Satisfaction With Life Scale, Ed Diener, Robert A. Emmons, Randy J. Larsen and Sharon Griffin, as noted in the 1985 article in the Journal of Personality Assessment. Step 3. Use their score to start a goals-based conversation. The Science of Happiness 14

Hope for a better life. And the help and support to get you there.

Hope for a better life. And the help and support to get you there. Mind and the NDIS 2 Mind and the NDIS When you re really struggling, just having someone who believes in you makes a real difference.