A roadmap is defined as a strategic plan that defines a goal or desired outcome, and the major steps or milestones needed to reach it. A financial roadmap, as defined by three-year Singapore MDRT member, Chen Hongyu, is a detailed plan that outlines a client’s future financial milestones, goals and strategies to reach them. This financial roadmap also includes contingency plans, when unfortunate events such as sickness or death occur.  

Crafting a tailored financial roadmap is crucial, as each client's situation is unique. By following a structured process, financial advisors can help clients navigate their financial journey and reach their long-term objectives. 

“In financial advising, most things don’t happen naturally—they happen by design,” he shares, referring to the effectiveness of the financial roadmap. As a financial advisor who has served more than 200 clients, mostly family-focused individuals in their mid-30s to 40s and pre-retirees in their 50s, Chen believes this approach works best for his clients as it is the same method he uses to plan for his own finances.  

To help tailor each roadmap to each client, Chen ensures he carries out these steps:  

• Initial consultation – the first meeting with the client is not a sales or “product-push session”, it is meant for Chen to understand the client better to plan for the future. 

• Gathering information – this includes taking note of client’s current salary, any existing investments, outstanding loans and estimated monthly expenses 

• Portfolio audit – identifying gaps between existing insurance policies in the client’s portfolio 

• Customized analysis – Using a financial modelling software to model different scenarios and outcomes based on the client's unique situation 

• Recommendation and implementation – recommend policies accordingly across insurers and partners, according to client’s needs 

• Tracking and reviewing – schedule periodic policy reviews to assess client’s financial progress and make adjustments to the roadmap as needed  

 

Tailoring the financial roadmap 

Chen’s approach to financial advising for his clients has worked for clients across different demographics and life stages. “I use financial roadmaps to plan my clients’ finances as I believe that every individual or family unit is unique,” he emphasized.  

Chen recalls meeting a couple expecting twins looking to have one parent take a sabbatical to spend more time at home. The clients’ key concerns were how the sabbatical might impact their finances in the short term and how it would affect their retirement and their children’s education funds in the long term. 

With that information and those goals in mind, Chen focused on implementing investment strategies and setting up the couple’s insurance portfolio in their financial roadmap to ensure that they reach their goals and the continuity of their lifestyle. By following the roadmap Chen planned for them, they will still be able to retire at the age of 55 as planned without compromising their lifestyle. 

In another instance, Chen had a C-suite client in his 50s who spent a lot of time at work and prioritized his children’s education fund and retirement. He also wanted to be prepared for stints of unemployment if he switched positions mid-career and preferred to retire early. With his client’s concerns and needs in mind, Chen built a portfolio that consists of multiple layers of income protection, with a diversified investment strategy – ensuring that lifestyle will not be affected during economic downturns or retirement. This proved crucial when the client faced job uncertainty during the pandemic in 2021, as it was common for roles to be made redundant at that time. A reevaluation of the roadmap was done promptly to check on the availability of emergency funds set up previously, and Chen quickly mapped out the possible impacts on the client’s timelines and milestones if there was going to be a loss of income soon. “This gave the client clarity and reassurance about his future,” Chen shares.  

Balancing short-term needs and long-term financial goals 

Chen believes clients don’t necessarily have to sacrifice their financial freedom to save up for the future. “There is a sweet spot between saving for the future and enjoying the present, and I’d like to achieve that for my clients as much as possible”, Chen says.  

When clients are hesitant about committing to long-term financial products like retirement policies due to short-term expenses, Chen helps them find the right balance through the following approach: 

1. Assessing priorities – Getting a clear understanding of client’s current financial needs and long-term aspirations
2. Implementing flexible strategies – Develop a plan that allows for adjustments to address short-term needs that arise, but does not derail long-term objectives
3. Communicating with clarity – Clearly articulate the importance of balancing short-term needs and long-term financial goals 

In his communication with clients, Chen strives to help them understand that small contributions can impact their future positively, in a significant way. By focusing on communicating the trade-offs involved when planning for the short-term and long-term, he empowers clients to make informed decisions that align with their financial aspirations.  

 

Contact: MDRTeditorial@teamlewis.com