When it comes to improving the physical and mental wellbeing of clients, Michael Pavani AFP^® leads by example. He talks about the importance of encouraging good health as part of the overall financial planning process.

Name: Michael Pavani AFP^®

Position: Financial Adviser

Practice: Insight Investment Partners

Licensee: Insight Management Partners

Years as a planner: 2 years

Appropriately, the office of Insight Management Partners is located close to one of Sydney’s most popular exercise spots, the Iron Cove Bay Run, which attracts everyone from hardcore runners to dog walkers and parents with strollers.

It makes sense because the company is rolling out an holistic approach to advice, including the impact client’s health and wellbeing has on the financial planning process. It’s an innovation that is attracting interest to this young business.

Established in 2011, what differentiates Insight from many other businesses in the financial services sector, is the number of sporting names – including rugby league, soccer and tennis professionals – who are turning to its integrated offering, which includes a sports management and marketing arm, Insight Sports.

Interestingly, Insight’s service offering for athletes has helped shape the business’s approach to the health and wellbeing of its staff and clients.

“We’ve got a very strong culture of fitness and health in the office,” says Michael Pavani AFP^®, a financial adviser at Insight Investment Partners – a subsidiary of Insight Management Partners. “A group of us go for a run at lunch each day, and there are a few tennis and gym goers, so it’s quite a flexible work environment. Insight places a lot of emphasis on having a good work/life balance, which makes a much happier, motivated and productive workplace.”

Walk the walk

But one thing that is clearly evident at Insight is the fact that when it comes to health and fitness, the business ‘walks the walk’. The importance it has placed on developing its own culture of health and fitness within the office, is now also being transitioned across to clients – and not just its sporting professionals.

“While our approach to health and wellbeing isn’t suited to every client, we are engaging with an ever-increasing number of highly motivated individuals,” Michael says.

Take Christian Abou-Rizk – a 28-year-old client of Michael’s who runs his own building company, Vestro.

“I did some insurance work for Christian and part of the process involved finding out what motivated him – not just what he wanted to get out of the financial planning process but what he also wanted to achieve for his lifestyle,” Michael says.

Michael quickly ascertained that good health and fitness were important for Christian, who also enjoyed travelling and building his business.

“So, when we were doing the insurance recommendations, we found the AIA Vitality program, which was able to provide Christian with a platform to extend himself in his health and fitness regime, while receiving genuine incentives and rewards from AIA, such as discounts on his insurance premiums, discounts on travel and discounts on movie tickets,” Michael says. “This was something that appealed to Christian.”

But the 27-year-old also believes it’s important for planners to show they are emotionally invested in the advice they provide their clients, and so to encourage his clients with their fitness regime, he has developed a competition to help incentivise them.

“As part of the AIA Vitality program, participants accumulate points for being active. So, you can accrue points for going to the gym, as well as taking preventive measures like visiting the dentist and doctor for regular check-ups,” he says.

“Christian and I have a competition to see who can accumulate the most points in a week. Christian is very motivated and is getting everything he can out of the program, which is providing him with good discounts and other incentives.”

But importantly, Michael’s approach to working with his clients on their health and wellbeing is also enabling him to improve his client engagement and build stronger relationships with them.

“If you can help a client build their financial security, as well as give them a lifestyle goal, then you can build a much stronger connection with that client,” he says.

And it’s a view supported by Christian, although he admits that health and wellness isn’t something you would normally speak to your financial planner about.

“When I think of health and fitness, you would normally seek advice from a doctor, dietitian of gym instructor – not a financial planner,” an amused Christian says. “But when I met Michael, he clearly showed me the connection between being healthy and the reduced risk of any health-related issues, thereby enabling me to reduce the premiums on my insurance.

“And by looking after my health and wellness, I could tap into other benefits, like those offered in the AIA Vitality program, which encourages me to live a healthier and more active lifestyle.”

Education and conversation

So, in what other ways does Michael motivate his clients to take greater interest in their personal health and wellbeing, along with their financial goals?

“It really depends from client to client,” Michael says. “I’m not going to push somebody who definitely is not interested in exercise and sports or maintaining their health and wellbeing, which I think is important for a lot of people.

“So, it’s more about how I educate clients about the benefits that health and wellness will give them. People save up for their retirement through super contributions, but programs like AIA Vitality are providing people with a platform to save up for their health as well. That’s priceless,” he says.

“I tell my clients that by working on their fitness and wellness now, they can be in a much better position to physically and emotionally enjoy their retirement. It’s about building awareness now.”

According to Michael, the AIA Vitality program does a good job in communicating this approach to health and wellness. The first step is about knowing your health; followed by improving your health. The third step is about reaping the rewards of improved health, such as discounts on insurance premiums.

“This approach has been beneficial to both me and my clients by forging closer client/planner connections,” Michael says. “But really, for all successful relationships, it all comes down to finding common interests. If you can find commonality with the client of any age, then you can build that relationship.

“Normally in the financial planning process, you might have three or four touch points with the client each year. But with this program, there are about 76 touch points per year – be it anniversaries, client incentives and the like. They’re all points that planners can use to build trust and stronger relationships with their clients. It’s been a great client engagement tool.”

A symbiotic relationship

Both Michael and Christian firmly believe that the core elements of a fulfilling life – financial independence, strong relationships, and good physical and emotional health – are symbiotic, all dependent on each other as part of the jigsaw.

“Holistic advice isn’t just about the monetary side of planning; it’s about building awareness of what the client wants from their lifestyle. So, if you’re able to link a financial advice strategy with meeting the client’s lifestyle goals, you’re likely to have a lifelong connection with that client,” says Michael.

So, how did Christian find the whole client engagement piece by Michael?

“Michael took the time to understand what my financial needs were – both personally and professionally. By taking the time to really understand me as an individual, as well as my circumstances, Michael was able to put together a plan that better suited my financial and lifestyle aspirations,” Christian says. “This included recommending the AIA Vitality program, which has incentivised and rewarded my health regime.”

To which Michael adds: “When Christian came and met with me, his needs outlined to me weren’t reflected in his previous advice. At the same time, he was also going through a big change in his life. So, with a focus already on improving his health and wellbeing, it also gave me the opportunity to use this focus to improve his wealth at the same time.”

Measurable success

Michael is quietly satisfied by his holistic approach to advice, which is building stronger relationships with clients.

“The type of relationship you can build with a client when you’re not only meeting their financial goals, but also their lifestyle goals, is priceless.

“It’s all about the level of detail you go into, like understanding what the client wants out of their relationship with you. Having a program like AIA Vitality and the personal competition I have with my clients, means we have a common goal. This type of camaraderie helps to cement that relationship and connection.”

Michael is a firm advocate of including health and wellness in the financial planning process, which he believes will increasingly become the way of the future.

His advice for other practices looking to integrate health and wellness into the financial planning process is to simply, “buy into it”.

“It’s something you need to believe in yourself. You have to live it and breathe it,” he says. “Otherwise, how are you going to convince clients to emotionally buy into it?

“So, by genuinely believing in the advice you’re providing to the client and being emotionally invested in it, will help you build your relationship with the client, which is very important in this profession.”

It’s a view supported by Christian.

“From a client’s perspective, it’s very easy to say you’re busy being busy. But you need to take the time to step back and take a look at the bigger picture. It’s not just about the money. And that’s where the help of a professional, like Michael, has been invaluable,” he says.

“Today, my health and wellbeing is closely tied in with my overall financial plan. Who would have ever thought that your health and wellness was something you talked to your financial planner about! I guess it’s a sign of the changing times.”