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Personal finance is like a pot of simmering chicken soup on the back burner. They know it’s there and they know it’s savory, but they also know it will not require much attention until they eat it. If they see smoke or smell scorched noodles, they will rush in for a rescue.
Out of sight, out of mind.
Advisors aren’t like most people. We love finances like a soup cook loves fresh vegetables. We crave financial order and Excel spreadsheets. We love the idea of a budget, and an hour of Bloomberg TV is better than a noon meal. We will read a financial blog just for fun! This may feel normal to you, but it decidedly isn’t.
Do not misunderstand. It’s not that people don’t care about finances; they do. But they don’t care as much as we do. And most of the time, their thoughts are devoted to other stuff.
How might this insight affect your advisory practice? Looking through their eyes, what should you think about meetings, communications, paperwork, notices, events, and daily financial behaviors? The point is to meet their needs, right?
I acknowledge that your favorite clients love you just as you are. They find your meetings sparkling, they await anxiously for your next newsletter or blog, and nothing delights them more than your annual tax filing questionnaire with its document request (one of my readers recently recounted to me an exhilarated couple after his 90-minute retirement meeting!). No need to follow-up with me on this; I already know it.
I offer these comments to help you understand other prospects and clients. Not maybe your favorites, but people who genuinely need services and advice, and are willing to pay for them. Despite this professional interest, they are still “back burner” normal. They need you; they like you, but they would just prefer to let the soup simmer without attention or drama.
Meetings: Fewer meetings are better, and shorter meetings are the best. To frame this up, think of a client meeting like a routine dental appointment. It needs to be done, and I do feel better on my way home. Still, make the appointment as convenient as possible and reduce the discomfort as much as possible.
Communications: Write in plain English, with bullet points, lots of pictures and simple graphics. Avoid investment jargon, wordiness, technical gibberish, and fluff. I try to make the whole package – envelope, return address, paper quality, general appearance – as pleasing as possible. A bunch of these will flow directly to the trash bin unopened; the piece should still make a positive impression when our client carries it between the mailbox and the trash bin.
For telephone calls, I always start with an apology for bothering them (simmering soup, remember?). I will be glad to call back at your convenience or follow-up by email or text if you prefer. I will not call just to chat, that is an unnecessary interruption.
Paperwork: Is there anything worse? Page after page of forms and notices, and often hugely redundant from account to account. Per household, there can be 4-5 accounts all requiring identical or almost identical attention. Just show them quickly where to sign. They will ask if they have questions.
Notices: My sweet mother once joked that Chuck Schwab was her new best friend: “He writes to me daily!” The SEC prescribes much of this material, but almost nobody wants it or reads it. A lot of it is delivered today via email, and we all know why.
Events: Since 1998, we have hosted some wonderful events. One time we held a retirement seminar and open house at the local Harley Davidson dealership, and another appreciation event at the Kansas City auto museum. We have enjoyed holiday parties, anniversary celebrations, and community events. But attendance is not universal, and many people are not looking to socialize with their advisors.
Daily financial behaviors: 401(k) plans work well because they are automatic. Diets fail because they are not. If the goal is to keep that soup simmering without notice, then the best financial solutions work without attention. Suggest automated payments, low-maintenance investment strategies, recordkeeping without data entry, and systems that flag problems. Less is more.
Financial emergencies: The soup is boiling over. Job loss. Car wreck. New house. Water damage. Quick, call the advisor! Routine financial emergencies are never routine to others. All hands-on deck …
I hear advisor frustration about clients who do not appreciate or elevate finances to top priority. Paperwork does not come back on time or lessons are ignored or avoided. Perhaps a deadline passes, or an assigned task goes unanswered. Every advisor sees this every day and it can be hard to fathom.
But this is the key point I am sharing: Those are normal behaviors for back-burner soup people.
There is nothing better than a hardy bowl of chicken soup. It smells terrific, tastes great, and nourishes the body and soul without a lot of fuss. It requires little ongoing time and attention to be great. Soup is nearly perfect.
More people would probably work with advisors if we were all a bit more like chicken soup.
Dan Danford, CFP® is a NAPFA member in Kansas City, Missouri. He learned early ideas about money from his late father Thad Danford who charged rent on the family lawn mower while Dan cut neighborhood lawns. Danford is a practicing investment advisor and author of HAPPY TO BE DIFFERENT: Personal and Money Success Through Better Thinking.
Read more articles by Dan Danford
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
