No client actually cares about maximizing their wealth.

Every client cares about maximizing their life.

Therefore, money should never be a goal. It should simply be a tool.

A tool that funds the life you want to live.

That’s why every client needs to define their “financial purpose.”

It allows clients to align their money with what’s truly most important in their lives (rather than what they think is important).

But the challenge is knowing how to do this with clients.

Fortunately, Derek Hagen does this with his clients and teaches advisors a process for defining financial purpose to align their money with their life.

In this episode, we discuss:

• The two exercises he uses to clearly define what’s most important to clients (Values Cards and “Life-in-Perspective”)
• Why clients need a “Statement of Financial Purpose” and how to help them craft one
• His four-step process to help clients get “unstuck”
• A real-life example of how he helped a client reign in their spending
• Why we should diversify meaning in life just like we diversify portfolios

 

*The featured partner for this episode is Knudge, an automated system to help clients actually follow through on their tasks and reach their financial goals.

*For more resources discussed in this episode, check out www.wiredplanning.com/episode63.

*For more resources and insights on mastering the human side of advice, go to www.wiredplanning.com.

*Follow Brendan for insights on mastering the human side of advice:

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Your client’s decisions are almost always subconsciously driven by invisible influences.

Have you ever wondered:

• Should I wear a suit? (Or what if I wear a hat?)
• Should CNBC be on in the lobby?
• Does the way I’m presenting the info influence the client’s decision?
• Should I offer free financial planning in the beginning or charge for it?

Whether these things should influence a client’s decision-making or not, they do.

Fortunately, Derek Tharp has conducted the research for these questions and joined the show to share the psychological insights advisors need to know to improve the communication and delivery of advice.

In this episode, we discuss:

• What are prospective clients subconsciously assessing to determine trust and credibility
• How your clothes signal different things to different people
• The “Guardrails” approach that improves confidence and behavior around retirement spending
• The “Mapquest” vs “GPS” approach in financial planning
• Why initial planning fees impact the perceived value of ongoing planning

 

*The featured partner for this episode is Knudge, an automated system to help clients actually follow through on their tasks and reach their financial goals.

*For more resources discussed in this episode, check out www.wiredplanning.com/episode62.

*For more resources and insights on mastering the human side of advice, go to www.wiredplanning.com.

*Follow Brendan for insights on mastering the human side of advice:

Twitter

LinkedIn

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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.

There are several possible explanations.

But, one of the most prominent culprits is a psychological barrier inherent within the very nature of financial advice.

The battle between the current and future self.

In this episode, you’ll learn:

• Why the current versus future self is such a powerful force
• A strategy to counter the battle between the current and future self
• 9 simple and effective ways to use this strategy everyday with clients

 

*The featured partner for this episode is Knudge, an automated system to help clients actually follow through on their tasks and reach their financial goals.

*For more resources discussed in this episode, check out www.wiredplanning.com/episode61.

*For more resources and insights on mastering the human side of advice, go to www.wiredplanning.com.

*Follow Brendan for insights on mastering the human side of advice:

Twitter

LinkedIn

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS | More