Longevity analysis is the process of establishing relevant time frames for financial planning illustrations and of identifying the reasons for them. This analysis will usually reveal other issues for discussion, and act as a starting point into the normal financial advice process. Longevity analysis helps ensure clients commit to the time frames chosen for scenario modelling and to the underlying time-line assumptions on which their financial plan will be based. Using examples how advisers can discuss the subject of longevity analysis with existing and new clients is explained. A very important outcome of this process is that the client owns the decisions about a time frame and the commitments to other related actions along the way. The benefits of longevity analysis for clients and advisers is discussed.

As advisers are adopting wealth management technology, they seem to be focused on the risk tolerance aspect of risk system implementation. But building a portfolio by subordinating everything else to the risk tolerance is detrimental. It is critical for the adviser to discuss goals and risk tolerance together and identify the right portfolio that will match these two elements. This research, along with supporting examples, illustrates how to bring together client’s investment goals and risk tolerance.