Advisers should consider philanthropy in client discussions
Financial planners should encourage clients to consider philanthropic giving by asking them ‘how much is enough?' and directing their thinking towards leaving a legacy beyond their immediate family, according to a veteran financial planner.
Kevin Bailey, a private client adviser with Shadforth Financial Group until his retirement from planning at the end of August, said that philanthropy was a natural extension of financial planning in that it seeks to ask what happens beyond retirement and estate planning.
"Financial planning has lost its way in this regard. Planners are involved in retirement planning and estate planning and philanthropy is part of planning as well and answers the questions of ‘what can wealth do for you?', ‘how much is enough?' and ‘how much should I pass on to others?'"
Speaking at an event sponsored by the Stella Network, Bailey said while many people were thinking about their legacy they were able to do more while living than after their passing stating that "warm philanthropy is a better than cold philanthropy".
He said there was generational shift taking place in philanthropy and planners needed to be aware and engaged with the social shift among their clients.
"Baby boomers are interested in doing more than just what their parents did and Generation X are looking for work that meets their heart and their conscience."
He said planners who were involved with philanthropy should share that interest with clients to open a dialogue on the issue and could assist them in finding an area they are passionate about and engaging with it via philanthropic giving.
Recommended for you
Financial advisers and wealth managers need to exceed their clients’ desires for personalisation, a new EY report writes, and the requirements for this will vary between client segments.
Betashares chief executive, Alex Vynokur, believes technology advancements will enable banks to return to financial advice in the future as the need for advice is greater than ever.
Centrepoint Alliance has upgraded its expected financial results for FY24, thanks to strong adviser recruitment and the acquisition of Queensland advice firm Financial Advice Matters.
The corporate regulator has permanently banned a Melbourne-based financial adviser that “dishonestly attempted to induce clients to transfer their superannuation into a bank account he controlled”.
