Most advisors understand that a comprehensive financial plan is the cornerstone of a strong client relationship and a vital tool for envisioning life after retirement. That’s why we’ve compiled 5 Tips on how to build a GREAT financial plan that delivers.
Creating this remarkable plan requires you to wear multiple hats: part psychologist, part mathematician, and part graphic designer.
Your client, on the other hand, often only comprehends the initial ‘interview’ and the final ‘plan’ presented at the conclusion of the process.
This time commitment makes sense when considering the need to document factors like the client’s risk profile, pre- and post-tax income, living expenses, dependent needs, opportunities for tax optimization (such as well-timed ROTH conversions), and philanthropic aspirations.
Did you know: financial advisors report dedicating an average of 15 hours to crafting a client’s financial plan.
After all this diligent work, it’s easy to feel like you’ve created a masterpiece worthy of recognition from financial luminaries like Adam Smith or Janet Yellen.
Regrettably, your work is only halfway done. You might feel like you’ve crossed the finish line, but in reality, you’re not even close. If your client doesn’t grasp your recommendations, it’s unlikely they’ll follow your advice. The critical remaining steps include crafting and delivering an outstanding presentation, along with the iterative refinements to fine-tune your client’s plan and the updated presentation.
Here are some valuable tips to ensure your brilliant intake interview and financial analysis leave your clients feeling confident in their plan and their decision to hire you.
Tell a Compelling Story
Just like the Titanic’s history, a financial plan is a story waiting to be told.
“An unsinkable ship sank, 1,511 people died, 1911.”
Those facts are true. But we can do better. How can we tell the same story in a more compelling way?
Let’s set the stage: a first-class beauty and a third-class charmer, thrown together by forbidden young love. They had the kind of chemistry that could set the ship’s engines on fire. A passionate romance that transcends time or place; a story that captures hearts to this day.
Much like the story of Titanic; we want our financial plan to win best picture.
It’s your job to get all the details right AND it’s your job to know that your clients will only remember a few key details.
And even the critical details may fade unless anchored in a compelling narrative of their life, complete with the dreams they aspire to fulfill.
Here’s 5 quick tips on how to build a financial plan that delivers:
Tip 1. Validate that this plan is THEIR plan
It’s important to validate and re-state all the inputs you’ve used to compile the plan. This helps clients realize that this plan is indeed theirs. Consider using names that resonate for your clients. Instead of saying “vacation”, name it with what they’ve described it as, an “around the world cruise”
Tip 2. Educate and illuminate the problems
The truth is, often clients don’t know what challenges they may face.
They may not realize they have an RMD tax bomb lurking in their future or how eye-watering painful long-term care costs may be. Before presenting a solution, you need to ensure they know what problems you have identified and solved for them as part of the planning process.
Tip 3. Get Visual
Don’t undermine your brilliant intake interview and thorough analysis with a lackluster presentation. We are visual creatures, so speak visually.
Use fun, interesting and easy-to-follow visual aids. Use them sparingly and to support the message you’re illustrating on that page.
Tip 4. Be Concise
I would’ve made this blog post shorter if I had more time. You should approach your presentations in the same way. Remember, when it comes to a narrative that has impact – less is often more.
Iterate and refine your presentations to use as little words as you can without changing or eroding the message. Tell your story in 7 pages or less.
Distill your plan into three key points that resonate with your client’s initial priorities.
Demonstrate to them that this plan is uniquely tailored to map out the path to their aspirations. Are they saving for a trip of a lifetime? Here’s how to inspire them to plan the trip of their dreams.
The only thing worse than no plan is a solid plan that fails to convince and is set aside, or when a client switches to an advisor with a more compelling and tailored narrative.
Tip 5. Get Feedback
When in doubt practice presenting to someone with similar understanding of investing and budgets to your client.
Ask what was clear and if the presentation reveals the deep consideration you have given to the client’s goals and aspirations.
Only then are you ready to sit in front of a client and have them welcome your advice and accept your recommendations.
Much like the legendary Titanic, may your financial strategies capture hearts and become the blockbuster of success!
CEO and Co-Founder
PlanScout
PlanScout: Your Partner for Personalized Financial Planning with a Friendly Touch!
We provide outsourced financial planning services for licensed financial advisors, enabling them to accelerate their growth by delivering visually engaging and comprehensive financial plans within just two business days.
