COVID-19 and its aftermath of falling markets have highlighted something to Dan Haylett, planner at TFP Financial Planning: “All of the work we do in terms of cashflow – scenario planning, behaviors, preempting how they [clients] are going to feel, solutions and strategies we could take if things happen – brought a real level of calmness to people.”
In fact, some of Dan’s best meetings have occurred recently, as a reiteration of plans made six months ago. Clients are saying things to Dan like, “We planned for this, Dan, didn’t we? If investments fell another 15% we’re okay for this Dan, right?”
Dan’s answer is typically yes.
But why are Dan’s clients so calm? What has led to their contentment when the clients of other advisers are fretting over their investments?
One thing that’s contributed is Dan’s preemptive process, which includes cash flow modeling. “I think [it] has massively, massively helped in keeping clients calm, keeping their financial anxieties to one side. Great cash flow modeling is not being afraid to go through bad scenarios with a client. It prepares them for this time.”
Dan explains that cashflow planning can help show a client that even though their immediate plan may need to change course, they’ll still be okay. One example is a client of Dan’s whose goal was to fully stop work within the next three years. However, due to the pandemic, he was furloughed and unsure whether his job would stretch beyond the year.
His family’s original plan was to extensively travel over the next 10 years which no longer seemed like a possibility, both from a financial and from a personal point of view.
So, Dan’s showed the client and his family via their plan how they can buy a camper van and tour around locally, while working part time. As Dan puts it, “He’s got an absolute idea now that his plans can change, his goals have somewhat moved. They’re [his family] not afraid.”
Showing his clients these changes instantly helps Dan empower his clients: “The ability to use Voyant to model that really quickly is amazing in a way that instantly helps the anxiety.” Instead of saying, “Leave it with me for a week and I’ll crunch the numbers,” he can show them how their future might change before their very eyes. “Cashflow modeling… is the absolute foundation to all of this,” he says.
And, cashflow modeling is also a solution that can be delivered without contact.
“Voyant is brilliant to deliver virtually,” he explains. And Dan thinks the future will have more virtual meetings – so long as they have them with the top planners:
“A trend we’ll see from this is that the public will seek out the best planner or adviser for them irrelevant of where they live. It won’t be ‘I’ll find someone adequate to me within a 15-minute radius of the house.’”
Dan’s existing clients are appreciating the more frequent virtual check ins. Dan points out that the virtual meetings allow more frequent contact with clients, which adds to his value proposition:
“A number of my clients have preferred the Zoom meetings and are quite happy to continue. I do believe the days of charging 1% for an annual review and some wealth management are gone. Clients need to feel safer and served a lot more.”
How has the pandemic shown you how to add value as a financial planner?
Dan joined TFP Financial Planning Ltd in September 2018.
He has worked in financial services since 2005, specifically in investment management, where he has held senior sales and management positions in the City with some of the largest global asset management companies.
Dan is sports mad, with a particular love for cricket; he has played to county 2nd XI standard and has spent a year in Australia as an overseas professional. Dan also loves golf and plays to a 6-handicap.