As the Philippine economy recovers, the Asian Development Bank forecasts that it will grow 6% this year and 6.2% in 2024, spurred on by a revival in employment and retail trade, ongoing expansion in the manufacturing sector, and increased public infrastructure investments.
With this positive outlook, Niña Tanangonan, a two-year MDRT member from Pasig City, Philippines, shares how she helps her clients by understanding their financial objectives and goals as clearly as she can. “I divide them into short-term and long-term financial goals. This way, we can identify the initial steps before taking on the bigger ones.”
Her clients’ goals include having an emergency fund, paying off debts, and purchasing a house and lot. “To help them, we follow the financial building block, where the bottom part is the foundation, which includes protecting their income through insurance and investments and identifying the best investment time. As we progress, we dive into their short and long-term goals. For my clients who will purchase real estate, we need first to identify their capacity to loan and maintain paying for their policy premiums as these are long-term responsibilities and investments. We collaborate and curate the best financial strategy for them, such as evaluating their historical expenditures and savings and analyzing the possible risks they may encounter like sudden hospitalizations or layoffs.”
However, as clients move forward, their goals change. Tanangonan says that “it is crucial to check on them from time to time to see how they and their finances are doing and implement the necessary adjustments, if any. I even request that we meet face-to-face as these interactions build a better connection as I need them to trust me.”
She had this one client who had been laid off. “She found it difficult to pay for her policy. From the savings and emergency fund we had put up for her, I advised her that I’d downgrade her premium first to cope with the challenges. During hard times, we need to think and discuss the possible ways to preserve our clients’ policies because it will be their loss in the future. I am grateful that she trusted me.”
While the financial advisor’s role is to guide their clients, holding them accountable is critical. “I have a regularly updated tracker where we put my clients’ financial goals, which includes their marital and occupational status, current life and health insurance coverage, current in-force policies, and medium to long-term goals, that help us see where we are lagging and the adjustments to be made. I also post videos about finance and product updates for my Facebook group so they are well-informed and reminded of their goals.” A client told her that the tracker and the Facebook group are helping him stay on track and be accountable.
“As financial advisors, our role is to help them achieve their goals and build good financial habits and sound decision-making to help in other aspects of their lives,” Tanangonan said. “I want my clients to live well-rounded and fulfilling lives.”
Contact: MDRTeditorial@teamlewis.com