Clients often hesitate to share complete control with their financial advisors when crafting a financial plan. In fact, one study found that 71% of Americans are scared to talk to a financial advisor, fearing they will lose money by doing so.
But as financial advisors, we must dive into this discomfort and work toward building strong trust with our clients. As a chief financial officer and senior wealth strategist at Waddell & Associates, I have created and maintained trusting connections with many clients, some of whom I have worked with for up to 20 years.
Over my career, I have learned the importance of being the trusted tailor to help clients build a financial plan suited for them. In tailoring, the fit of a garment directly correlates to the intentionality, craftsmanship and excellence with which it is created.
Bringing this mindset into financial planning allows me to create my clients' plans to better suit their needs. This intentionality helps the individual feel respected and focuses on the most important objective — reaching their goals — instead of being distracted by market returns.
Here are three tools that can help you assume your position as an outstanding tailor of your clients' customized financial plans.
1. Practice Active Listening
One way that financial planners can be trusted tailors is by practicing active listening. Listening is not the same as hearing and should be based on three basic skills: attitude, attention and adjustment — collectively known as triple-A listening.
To adequately address a client's goals, wants or needs, you must maintain a constructive attitude, pay close attention to the information they're sharing and cultivate a capacity for adjustment based on what they're saying.
I find that discussing the climate of a client's past financial relationships gives me context and perspective on what they're looking for in the present. From here, we can design a partnership that strives to avoid pain points and provides comfort.
When we actively listen to clients and understand their needs, we better equip ourselves to make their dreams come to life. A few years ago, I assisted a client who dreamt of leaving their financial estate to charity at the end of their life. Through conversation, we discovered that they were financially prepared to begin donating without delay.
The client was thrilled to witness the effects of their generosity, and on several occasions, they gave away more than they had spent in a year. Understanding this client's goals allowed me to make them fruitful and meaningful realities during their lifetime.
