Goal Based Planning (GBP) puts clients and their goals and aspirations at the center of the strategy and the decision-making process. With this approach, financial advisory is making a paradigm shift from taking a product-centric approach towards a client-centric one.

The process of goal-based planning

In the goal-based planning process, you start with assessing the goals that a client wants to achieve. Then you find a solution that can help achieve these goals, based on transparent advice that outlines the various options that the client has and provides insights into the return and risk of those options. Finally, you monitor whether the client is on track to reach his or her goals, and promptly adjust the options if necessary. This is the essence of the Goal-based financial planning process.

How does GBP help in increasing clients’ trust?

In general, it has been seen that the goal-based financial planning helps in increasing clients’ trust because the entire process is aspirational. They appreciate talking about the feasibility of achieving their dreams in the most efficient manner instead of merely focusing on the performance of their portfolios. In a true client-centric approach, GBP advocates that clients must be supported in their financial decision-making process. The core of goal-based financial planning lies in demonstrating the feasibility of goals under various scenarios. The impact of changing circumstances on financial goals becomes transparent to clients. Hence, this enables clients to have a clear understanding of ‘why’ they need to take a certain financial decision and the repercussions could be. The better the information, the better the decisions that can be taken.

GBP - improving the quality of advice

There are three important aspects of goal-based financial planning that ensure financial plans are improving in quality and becoming more personal:

  • The use of a dynamic scenario model
  • A holistic approach
  • The combined insights into both income and investment risk

The fact that you can add personal goals is the first important step in deciding whether the goals are feasible and realistic. The second important quality improvement is taking into consideration all the factors that are relevant and impactful to the client and his wealth development.

By offering more insights into the future income and wealth development of your client and considering a broad spectrum of factors that impact your client’s life, we help you with a more holistic and dynamic approach with financial planning. With this approach, you can guide your client in a more comprehensive way to set an investment goal which is realistic and achievable.

Do not think only about costs, but put the focus on insight in risk and return, taking the allocation strategy, the risks such as investment risk, inflation, interest rate fluctuation and currency risk into account. With OPAL, Ortec Finance offers a global solution that is localized in terms of taxes, local products, etc. Furthermore, we do not calculate the plan only based on the expected returns but also give insight into the relevant risks by calculating the financial plan thousands of times.

OPAL also brings structure to advisory, sales and risk management processes within an organization. Risk and return are communicated consistently across the entire product range and business models resulting in an uniform investment experience for the client.

Are you interested in OPAL? If you want to learn more, click here.

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