MoneyMinding Monitor

My role today in the financial services industry is education of both advisors and clients so I hear this situation from several angles.  Here are a couple thoughts I’d like to share with you and your readers: 1)      The advisor needs to ask themselves, “Have I given my client the tools and the system he or she needs to make a financial decision that supports their lifestyle choices – today and in the future?” 
2)      The financial services industry is to help people reach their goals by using all available resources efficiently.  Therefore if the client wants to do something that is in conflict with their original goals, then perhaps they weren’t committed in the first place.  That means the advisor needs to have more tools to work with the client on the psychology of money over and above just the management of dollars and cents. 

3)      If the client is more wrapped up in the emotion of a short sighted decision or lure of a get rich quick plan, that seems to be in conflict with their financial goals, then either the goals weren’t really the true goals, and more help is necessary, OR the advisor is best to terminate the relationship rather than get dragged into the drama or potential consequences.   Advisors need to understand their clients’ values and underlying psychology, as well as their own so they can guide the overall process.  If the relationship needs to be terminated they need to do so without judging so the door will always be open for future transactions and the client feels encouraged and supported, not judged and criticized.   ‘Irresistible opportunities’ and emotional situations with money will always come up, and when an advisor has a system in place to help their clients make business decisions that are based on what’s truly important to them they avoid the potential crisis both for themselves and their clients.