3 compelling reasons your clients should set long-term goals, and how we can help

Before comedian Jim Carrey became the world-famous actor he is today, he set himself a goal. He wanted to earn $10 million by the year 1995, so in 1985, he wrote a cheque for $10 million dated a decade in the future.

When 1995 arrived, Carrey found out he was going to earn $10 million for his hit movie, Dumb and Dumber.

While this is an amazing story of Carrey’s goals coming to life before his very eyes, unfortunately, not everyone is disciplined about setting clear-cut goals for the future. In fact, a new piece of research published by FTAdviser reveals that 17% of UK adults have no long-term financial goals at all.

Read on to discover three reasons why goal-setting is so important, and how financial advice could help your clients cement their plans.

1. Financial goals aren’t really about money – they’re about living life to the fullest

Your clients who haven’t yet set long-term financial goals may be either:

• Keen to set goals but unsure where to begin
• Happy taking life as it comes and enjoying the present moment.

In both cases, it’s important not to judge or shame your client for having no long-term goals where money is concerned. Instead, it could help to reframe the narrative altogether, encouraging your clients to think about their life goals (irrespective of money) first.

Try talking to your clients about:

• The kind of future they want for their children
• The lifestyle they would prefer to have as they age
• Places around the world they’ve always wanted to visit, but never did
• Charity work, volunteering, or even physical challenges like running a marathon that they’d like to complete
• Their worries, concerns, or fears for their own future.

These conversations may make you realise that your clients probably do have ideas that can be shaped into goals – they just haven’t done so yet.

A financial planner could be instrumental in this process. We will listen to your clients’ future plans and offer bespoke advice on how to gear their finances towards those unique goals, offering your clients both confidence and peace of mind along the way.

2. In an age of rising costs, it pays to be goal-oriented

If your client has never sat down to think carefully about their long-term financial goals, they might be missing out on important wealth building techniques.

Indeed, those with clear-cut financial plans might be more inclined to have looked into:

• The tax breaks and reliefs available to them
• Whether their pension and other investments are in line to meet their retirement expectations
• How to utilise tax-efficient wrappers, like Individual Savings Accounts (ISAs), to grow their money
• How much State Pension they may be entitled to later in life
• The potential Inheritance Tax (IHT) bill their loved ones may have to pay after they have passed away
• How financial protection could prevent them from depleting their wealth in the event of an illness or injury.

Clients who haven’t considered these elements could be under-protected, paying more tax than they need to, or under-saving for the retirement they want.

For example, Standard Life reports that 31% of Generation X (those born between the mid-1960s and late-1970s) are unsure when to retire. With the cost of a comfortable retirement rising, and higher life expectancies meaning retirement may last longer than in previous generations, those who set goals earlier in life and are working steadily towards them could be rewarded later.

So, make sure that your clients who are yet to set long-term goals have access to support. Putting them in touch with a financial planner could help them start building wealth with a brighter future in mind.

3. Specific goals allow your clients to carefully curate a personalised financial plan

Once your clients have honed their goals carefully, they might think: “What now?”

Indeed, setting goals is only the first step towards financial prosperity and freedom. Actioning these goals requires patience, planning, and perseverance – all of which can be encouraged and supported by our qualified financial planners.

We’ll set your clients’ goals in motion through thorough tax planning, a rigorous approach to protection, expert investment guidance, and a long-term relationship that they can rely on.

To help your clients take the first step on the road to long-term financial freedom, get in touch with our team of independent financial planners today.

Email enquiries@prosserknowles.co.uk or call 01905 619 100.

Please note

This article is no substitute for financial advice and should not be treated as such. To determine the best course of action for your individual circumstances, please contact us.

Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.

The Financial Conduct Authority does not regulate estate planning or tax planning.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.