The practice of fact-finding conversations can help financial advisors determine a client’s needs without having to make assumptions, it also enables you to prepare a solid customised financial plan, and even identify potential objections from them before they come up. These types of conversations will usually reveal matters and opinions that a client feels either positively or negatively about and this will enable you to anticipate rejections and prepare answers to effectively counter them before they arise.  

“Before even speaking about the subject of financial planning, I always practice fact-finding to understand my clients better. I ask them questions about their work, hobbies, family life, pets (if any), dreams and aspirations. After gathering some information, from there, I will zero in on what matters most to them and push that hot button,” Foong Eu-Jin, a three-year MDRT member from Malaysia, shares. 

Examples of fact-finding questions 

One of Foong’s favorite fact-finding questions is to ask his prospects or clients is, “What are the changes you expect to happen in your life in the next three to five years?” He shares that from this, you will be able to discover what their short-term goals are. “The answers I usually get are to get married, to have kids or to own a home. So, we must find out if they are financially prepared for these changes which are ultimately going to be big financial commitments.” 

Another question he likes to ask is “What do you feel is your most pressing financial concern right now?” Foong shares that through this question, you can discover what is keeping your clients awake at night. “It could be a loan they are trying to clear off, a business succession plan they need in place. It can even be about their income and how they want to increase it. How are they going to protect their income if they fall sick? How much is enough?” He added that when we ask the prospect questions that are related to what is important to him or her, they will become receptive to your caring and thoughtful attitude, helping to build trust and loyalty.   

How fact-finding questions help 

These questions will help you as a financial advisor gain a peek into a client’s mind and discover their needs and wants, and really figure out how to help them reach their goals and service them better. You will be able to fine-tune your proposal and design a financial solution that really fits their goals.  

A way to begin the fact-finding exercise is by sending the client a checklist to complete, ahead of an initial meeting. You can include a list of basic questions asking about their family, career, health, assets, future plans, and details of dependents they may have.  

The art of fact-finding can help financial advisors plan for more sales to cover additional client needs in the future. The more you know, the greater the likelihood that you will uncover a need that can serve as a basis for future contact. 

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