Listening…The Advisor’s Best Tool

What is the financial advisor’s greatest tool? Hint: You have two ears, but only one mouth.

Podcast Details:

Podcast Title:  Listening…The Advisor’s Best Tool
Podcast Series: Financial Literacy Boot Camp

 

The latest research suggests there are:
  • over 400,000 advisors in the US
  • over 164MM working adults (26-65) or “potential clients”
Based on these numbers, every financial advisor would have about 400 families to serve, and everyone wanting financial services would have an advisor and every advisor that wanted to serve clients would have plenty of clients to make a good living.

Factors disrupting this Utopian like scenario would be…
  • DIY Investors (that will likely never hire an advisor);
  • Robo Advisors (that will absorb some of the need for investment management service specifically);
  • there are bad advisors that don’t deserve 1 client let alone 400;
  • there are good advisors that on their best day can’t serve that many clients
ThinkAdvisor asked Alan Alda (M.A.S.H actor and former financial advisor) the following question:
TA: Why is it critical for financial advisors to communicate well?
AA: “It’s important, not so you can sell people something they don’t need but so you can help them see what they do need if you understand their goals and how they can reach them. If they don’t understand you, your clients are in danger of leaving the way I had to leave my accountant when I couldn’t understand him because he was talking in jargon — for years and years.”

My point on his comments…
Jargon alienates people.  When I go to my doctor I expect him to break down in simple terms what’s going on.  Since he’s a good physician he should be able to use all the medical terms (as if he were with peers) and then switch to a good “bed side manner” as if he were with patients.  To me, this is the mark of a good physician.  He understands that my goal is not to become a doctor, and therefore, I don’t need all those fancy terms, I just want my problem fixed.  Same way with a financial advisor.  Clients just want their problem fixed and they want to know that you can help them.  No need for fancy terms, just solutions.  You can only do this when you listen.
Alda also mentions that some clients will be afraid to ask “what does that mean” when and if they don’t understand something.  Here’s the power of being able to conduct a dialogue with clients versus a monolog.  In many cases, I’ve seen where the advisor is talking so far over the client’s head that there is a disconnect. This only causes the relationship to drift apart eventually and unmet expectations ensue.

TA:  Generally, how does one relate better? 

AA:  “It doesn’t involve staring at someone in the eyes. It involves taking in the whole person. Some research I helped get done suggests that there’s a real advantage in increasing your empathy [stepping into the other person’s shoes] by paying close attention to who you’re talking to, trying to figure out what they’re feeling by observing their face. So there’s a little science suggesting it really does matter.”

My point on his comments…
So this is a really salient point because people really don’t care how much you know until they know how much you care.  Any service professional has the duty to listen to the client and place his or her self in the client’s shoes.  After all, the client is coming to you with a problem because they think you have a solution.  We do well to fully understand the problem before inserting a solution.  I talked about “diagnosing” on Maven’s Keys recently.  So I’ll use the physician analogy again.  Any good physician is going to first diagnose the malady prior to prescribing medicine.  Here’s where the experience factor for advisors really comes to play because after working with so many clients you will begin to diagnose more accurately after listening to the client.  Unfortunately, this isn’t necessarily taught in classrooms, and even when it is, it has to be practiced constantly for the advisor to become good at it.

#FINANCIALLITERACY #FINANCIALADVICE #FINANCIALPLANNING
#LISTENING#CLIENTSUCCESS #ADVISOR SUCCESS
#EPISODE53

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About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

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Financial Idioms and What They Might Really Mean…

Today, our conversation is on the subject of language and the terms or “financial idioms” we use to describe our finances. Perhaps these statements suggest a picture of our “real” feelings.

Podcast Details:

Podcast Title:  Financial Idioms and What They Might Really Mean…

Podcast Series: The Maven’s Keys to Financial Contentment

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur.  Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

Link to Show Episode

Today, our conversation is about the language we use around our finances. You may or may not believe that words are just containers for our emotional thoughts.  What we speak or say about something is truly how we feel it about.  Note:  Ever been around someone at Happy Hour and they start to reveal “TMI” (aka too much information)????

When it comes to our finances there are several things that we say or have heard others say that are popular in our language (“financial idioms”) and I think these statements have an underlying meaning that could really reveal a lot about where we are financially and/or emotionally.

For example…
  • My spending is “out of control”.  What does that mean?  Well at first glance, you’d say that this person is recognizing a lack of discipline with how much they spend possibly in relation to what they make.  But think about what it looks like when other things are out of control or get out of control (e.g. a car).  To say that your spending is “out of control”, you may very well be dealing with a discipline issue.  But, aren’t you really saying that you don’t know what you are doing? You are likely playing in an area where you need more education/knowledge.  Another saying similar in connotation could be “living paycheck to paycheck” or I keep having to “rob Peter to pay Paul”.  All these statements suggest a lack of knowledge in regards to implementing a strategy to allocate resources properly.
  • I hear a lot of individuals say “they don’t have enough time”.  Similar statements could be:
    • I can’t afford to do that
    • I wish I had more time to do that
    • I’m too old for that

All these statements relate to an issue of stewardship.  Stewardship is just an old word that means to “manage” something–which is by the way, different from ownership.

NEWSFLASH:  You are really the owner of nothing.  

All successful and wealthy people understand this concept which is why they are so content with giving away what they have because they realize they are ultimately stewards. People like Bill and Melinda Gates and Warren Buffett do things like the “giving pledge” because they realize that they are not owners, they are just stewards.  To me, when people say “I can’t afford to do that”, or something similar it tells me they don’t really understand their role as a manager/steward.  Stewards are in control of an asset.  And can manage it to their wishes, but eventually, have to give an account to the owner for what they have done.

Consider your time as an asset, in which you have full control on how you spend it.  Therefore, it is imperative that you utilize or spend that time responsibly since you receive the same amount as anyone else.

#finlit
#behavioralfinance
#behavioraleconomics
#moneymindset
#financialidioms

 

Helpful Links:

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

#FinancialLiteracyBootCamp

Sound bumps provided by www.bensound.com

Tools for Your Personal Development

These are things I’ve learned over years of working with individuals that have had great success both in business and personally. These are 4 anecdotes for personal development…

Podcast Details:

Podcast Title:  Tools for Your Personal Development
Podcast Series: Financial Literacy Boot Camp

 

So on today’s show, I wanted to wind-up this series on “Solutions to the Career Transition” by talking about some things I have come across that will be helpful in your personal development.

Understand the difference between the necessary and the important…

  • Very successful people say “no” a lot more than they say “yes”
  • Very successful people prioritize things that are necessary (essential to life or their purpose) and focus on those things.  Important things (relevant, but not essential) receive less attention.  This is key in avoiding distractions and maintaining your focus.

To get a “return” on yourself, you have to “invest” in yourself…

  • Very successful people have invested and continue to invest large amounts of time into their personal development.  This is done consistently and intentionally.
  • Personal development is in direct correlation to your personal wealth. If you aren’t as wealthy as you want to be, then spend more time developing yourself.

Always be accountable to a higher standard…

  • Very successful people don’t allow their character to limit their opportunities.  Opportunity won’t take you where your character can’t sustain you…  You can’t be “two-faced” while rising to the top…not for long.
  • Very successful people have people around them that they trust and respect that call out their “blind spots”.  Not being aware of blind spots causes some of the worst traffic fatalities.  This is also true for career or personal failures.

Your energy for anything will be tied to how passionate you are about it, so FIND YOUR PURPOSE!

  • Very successful people have found their reason for being on this earth and this affords them the highest level of fulfillment/contentment you can find in life.  If you chase money, your level of contentment (if attained) will be fleeting, but if you chase a passion that is tied to helping others, you will always be fulfilled.
  • Very successful people realize that we as humans are designed to be in community with other people because a natural energy transfer comes from those interactions.

#financialliteracy #personaldevelopment #careertransition #success #episode52

Helpful Links:

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

Sound bumps provided by www.bensound.com

The Social Cartographer Series: Monitoring

How important is it to have a map when traveling to a destination? Using maps is a very reliable means of navigation. We also use mental maps to navigate our lives. This series is a discussion of our financial maps.

Podcast Details:

Podcast Title:  The Social Cartographer Series:  Monitoring

Podcast Series: The Maven’s Keys to Financial Contentment

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur.  Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

Link to Show Episode

So last week we talked about “PRESCRIBING“…and today we’ll cover “MONITORING”.

So a brief recap…

In DIAGNOSIS we have to have a DESTINATION DECISION and DESTINATION ADJUSTMENTS.  This is inevitable.  Although possible, it is rare when you are traveling long distances that you won’t have to make an adjustment to the route and/or itinerary.  Well, the same with reaching your financial destination.  Inevitably, some life event, job change, or recession (God forbid!) will happen to cause you to make route adjustments to your financial map.

This is the reason we put a plan in place!
In PRESCRIBING, it’s important to realize this is all about behavior adjustments.  This can only happen after you realize that the results you are getting aren’t the ones you want.  You have to first acknowledge this and then change your belief system so your behaviors change.
In MONITORING, we are trying to maintain a steady pattern of progress on our way to FINANCIAL CONTENTMENT (if you are not already there.)  The tricky thing about this is that as we begin to have success, it is human nature to get distracted.

Often the path that creates success is not the path that sustains success.
We do so much as it relates to discipline and focus in order to build momentum that will carry us towards success.  But then as we begin to have it, we will begin to let “success” take over.  An example being, more hours at work means less time with family and other relationships.  So how do I as a financial planner help with this paradox of GOAL ACHIEVEMENT equals SACRIFICE of [insert here whatever you value]?
Well, the answer is with care because it can be difficult.  Take a corporate executive that values the PRESTIGE of his or her position versus the PEOPLE you can reach in the position.  Which do you think is easier to maintain?  How long before it becomes evident to those around this person that PRESTIGE is valued over PEOPLE?  And which is easier to marshal your resources behind?  A team will always rally behind the cause of “serving the customer” instead of your climb up the corporate ladder.
This is where my formula for financial contentment really helps.  Because to be content you can’t chase success (of any variety) as the goal.  The goal has to be DEEPER.  This is so you never end up sacrificing what you believe or value for the success.

#finlit
#finance
#financialadvisor
#moneymindset
#behavioralfinance
#behavioraleconomics

 

Helpful Links:

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

#FinancialLiteracyBootCamp

Sound bumps provided by www.bensound.com