Show Links
*If you want to be notified when the next episode packed full of practical tips and strategies to master the human side of money will be released, you can:
- Subscribe to the Show
- Join the community of like-minded advisors and planners across the world being notified via email. In addition to podcast releases, you’ll get our monthly “Wisdom Round Up” where we deliver to you the best content from around the industry on applying behavioral finance and mastering the human side of money.
*The featured partner for this episode is a must-have tool for helping clients follow-through and implement advice. After all, the best advice is useless in the absence of execution. Rather than stressing about follow up calls and emails, Knudge provides a built-in system designed to improve follow-through.
Episode Summary
The perfect plan is rendered useless in the absence of execution.
You can know the intimate details of someone’s values, hopes, dreams and fears and pair that with flawless technical advice in the form of the best financial plan and portfolio ever created.
Yet, if the advice is never implemented, none of it matters.
It’s like building a house and never moving it.
It may look good. But that’s about it.
According to this study, 70% of financial planning clients implement less than 20% of recommendations.
In other words, most clients will only implement 1 of 5 recommendations!
That’s why the job of a financial advisor and planner isn’t simply to dispense the advice, pat yourself on the back and walk away as if your job is done.
It’s to help the client follow through on your advice. Ensuring they implement and execute the items you’ve laid out that solve their problems and achieve their goals.
The reality is that getting clients to actually follow through and implement the advice you give without constant follow-up is hard (see the stat above!).
There are several possible explanations.
But, one of the most prominent culprits is a psychological phenomenon inherent within the very nature of financial advice.
The battle between the current and future self.
Things You’ll Learn
- Why the current versus future self is such a powerful force inherent in the nature of financial advice
- The most effective strategy to counter the battle between the current self and the future self
- 9 simple and practical ways to apply this strategy every day with clients
Resources
Episode 53: The Psychology of Decision-Making in Financial Planning with Hal Hershfield
Episode 14: The Importance Of Giving Advice That Sticks with Moira Somers
Episode 4: Behavioral Insights To Maximize Anxiety-Adjusted Returns with Greg Davies
“How To Use Behavioral Finance In Asset Management”
Retirement Withdrawal Policy Statement – Morningstar
Whenever you’re ready, there are 3 ways I can help you master the human side of advice:
- HSOA Masterclass: An 8-week group program on building trust & connection, aligning money and life, and delivering frictionless advice.
- The Ultimate Discovery Meeting: A proven framework to seamlessly convert prospects into life-long clients in one meeting.
- HSOA Community (COMING SOON!): An online space to meet, collaborate, discuss, brainstorm, learn and grow with other advisors passionate about the human side of advice
If you’re interested, let me know here.