Recently, one of our members attended a meeting with 100 advisers run by a well-known asset manager. During the session, they asked a simple yet profound question: “Does anyone in this room ask for the purpose of the money?” To their surprise, the question was met with a resounding “no,” even from the meeting facilitator. “We are all just focused on the money,” they said.
This response reveals a significant gap in how financial advice is often approached. While focusing on the money is, of course, essential, it’s not the whole story. Here’s why our member’s question matters and how asking it could benefit both advisers and investors.
1. Money as a Tool, Not a Goal
Money is, at its core, a tool—a means to an end. When we focus solely on the money, we risk losing sight of what it’s meant to achieve. Whether it’s funding a comfortable retirement, supporting a loved one, or leaving a legacy, money has a purpose beyond just existing. By asking about the purpose of the money, advisers can help clients clarify their goals and ensure that their financial strategies are aligned with what truly matters to them.
2. Aligning Financial Decisions with Personal Values
Everyone has different values and priorities. Some may want to invest in sustainable businesses, others may want to ensure their children have access to education, and some might prioritise charitable giving. When advisers understand the purpose behind a client’s wealth, they can tailor their advice to align with those personal values. This not only leads to better financial outcomes but also to greater satisfaction and peace of mind for the investor.
3. Creating Meaningful Financial Strategies
When advisers ask about the purpose of money, they move from simply managing assets to helping clients build meaningful, purpose-driven financial plans. This approach transforms the financial planning process from a transactional one into a relationship built on trust and understanding. It allows advisers to offer advice that resonates on a deeper level, addressing both the financial and emotional needs of the client.
4. Building Stronger Adviser-Client Relationships
Clients who feel that their adviser truly understands their goals and values are more likely to trust their advice and remain loyal over time. By focusing on the purpose of the money, advisers can build stronger, more personal relationships with their clients. This not only helps in retaining clients but also in attracting new ones, as satisfied clients are more likely to refer others.
5. Supporting Long-Term Financial Well-Being
When the purpose of money is clearly defined, it becomes easier to make decisions that support long-term financial well-being. Clients are less likely to make impulsive or emotionally driven decisions because they have a clear understanding of what their money is meant to achieve. This leads to more disciplined investing and a greater likelihood of reaching their financial goals.
Conclusion: It’s Time to Ask the Right Questions
Our member’s question was a crucial one, and it’s a question that every adviser should be asking. By focusing not just on the money, but on the purpose behind it, advisers can offer more than just financial guidance—they can offer peace of mind, fulfilment, and a financial strategy that truly supports the life their clients want to lead.
So, next time you sit down with your adviser, or if you are an adviser meeting with a client, don’t hesitate to ask, “What is the purpose of this money?” It’s a small question that can lead to big, meaningful answers.
Further Reading: Why leading with purpose is crucial when advising today’s wealth creators – FTAdviser
Academy of Life Planning 