A Delicate Balance

I have done literally hundreds of financial plans for advisors across the country throughout my career in this industry and one thing glares at me as I look back.  That is that so many advisors feel like they have succeeded when their financial plan shows the client dying with as much money as possible!  Is this truly the goal?  I challenge you to really think about whether that financial plan has helped the client live the LIFE they wanted.

A year ago I attended a tremendous industry conference in Orlando and this very same concept came up when listening to a speaker who I truly admire and respect.  He explained that there is a very delicate balance that you must maintain as an advisor, and that is to help clients understand the consequence of choice.  And to take it one step further… how these choices are limited by their personal constraints like:

  • Time

  • Energy

  • Money

  • Values

No client can absolutely have it all (at least not the ones I have encountered).  Our job as advisors is to understand the financial picture, yes, but to also make sure that the choices that are made align with the client’s standards and values.  For example, if your client indicates to you that their priorities are to make sure their children get a good education and that they also want to spend as much time with them as possible, your job then becomes to ensure that they aren’t working so hard that they miss all of that time and the kids are already off to college.

This very idea has made me realize that most advisors fall into the trap when it comes to investing or wealth management that it’s all about “Delayed Gratification” (what’s in the future).  But, in reality, it is truly about immediate and continuous gratification.

However, as an advisor, this lands you with a strange and interesting dilemma.  This way of client thinking is one of the major reasons so many retirement plans remain underfunded across the world!  “I can either buy these shoes today and feel great about them, OR I can potentially save for some unknown future in some unknown market”.

That trade-off decision can only be made in the context of the consequence of the choice.  If, as their advisor, you can help your clients understand that by not buying those shoes today, their kids can go to a good college, or that they’ll be able to take that amazing vacation in a few years, you will prove yourself to be invaluable not only in helping them live in retirement but also in helping them live today!

Remember, the money itself isn’t what makes people happy.  Happiness is the end result of making smart choices that are aligned with your values.  Help your clients with these choices and your business will absolutely win as a result!

-Trent Martin

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