Factors Affecting A Client’s Circumstances

Question 1

What are the different factors that are involved in shaping a client’s circumstances?

Answer 1

1. The client’s financial situation - influenced by income, wealth, marital status, occupation, tax status, and health.
2. Attitude to risk and financial goals - shaped by past experiences and personal background.
3. Satisfaction with financial position - indicates priorities such as income production, wealth preservation, or growth.
4. Ethical or personal values - impacts investment choices and financial planning strategies.

Fact-finding helps advisers understand these factors and create a tailored financial plan.