The holistic approach to financial planning

When Peter Leggett says he believes in an holistic approach to financial planning, he means an approach within which an investment strategy is only a part of the broader equation.

Leggett, who was a finalist in the 2002Money ManagementFinancial Planner of the Year Award, was nominated again in 2003 because of the holistic approach that has become a hallmark of Leggett Financial within the broaderHillross Financial Group.

Explaining his approach, Leggett says that where most financial planners may look at a client’s needs from the investment point of view, he seeks to look at their requirements utilising a set of core values aimed at providing an over-arching strategy and appropriate structures capable of delivering the right solutions.

He says the implementation time for such a strategy could be anywhere from six to 12 months but that it includes estate planning, debt planning, private banking, risk management and other key elements.

What is more, Leggett says this approach allows clients to digest the concept in bite-sized chunks.

According to Leggett’s nomination documentation, “the financial planning process doesn’t end when a client’s strategy is implemented”.

“They work with clients over many years, as their life plans are refined and change through circumstance. They conduct internal monthly reviews and annual reviews of life strategies to ensure their clients are on track to achieve their financial goals and objectives and to continue to create, preserve and protect their core wealth,” it says.

The approach pursued by Leggett is probably explained by his view that a rationalisation is occurring within the financial planning industry, with the banks jostling to take up space.

Based on this belief, his advice to up-and-coming financial planners is to “fill a niche and go boutique”, “move away from selling products” and “adjust to the current climate”.

Leggett, a certified financial planner (CFP) and member of theFinancial Planning Association(FPA), has developed a high profile, participating in regular segments on Melbourne radio and acting as an industry spokesperson when contacted by the media.

He says it is important for advisers to be clear about what they want to do and to provide individual solutions.

“People want to pay you for advice, not for the end recommendations,” he says.

“In this period of low returns, we can’t be selling investments. We have to help clients reach their goals.”

According to Leggett’s nominating documentation, key issues facing the industry include the need to understand and focus on what “holistic life planning” is and what it means to clients, estate planning for families, including death taxes and the way to provide against them, and the recognition of self-managed superannuation funds as a wealth vehicle for protection and growth.

Leggett also argues strongly for the appropriate training and development of graduates in the financial planning industry and their practical integration in all levels of the financial services chain.