Before starting a journey, one must know one’s destination.
All relationships begin with an informal but reflective discussion about the life goals that are of the greatest consequence to the client; things like preparation for early retirement, funding college/university education or just leaving a substantial legacy to loved ones or worthy causes.
The discussion will inevitably reveal a number of objectives and it is our job to help clients prioritize them in order of importance and, sometimes, to rule out those that aren’t always, shall we say, grounded in reality. Together, client and advisor determine targeted objectives and consider both ideal and acceptable results for any number of life scenarios before using those outcomes to help determine the client’s attitude to investment risk.
These discussions help to shortlist the client’s priorities and the process requires a willingness to compromise in order to arrive at the most realistic set of goals that the plan of attack can achieve in the allotted time without violating the client’s risk preferences.