Financial planning is a journey, not a destination, a fact that most people forget when they are planning for their financial future, according to Janine Horn, financial adviser, Momentum.
An essential part of financial planning is speaking with a financial planner and having tough conversations.
People and financial planners who shy away from uncomfortable conversations risk compromising their financial plans.
Sharon Moller, financial coach at Old Mutual Wealth, says most financial planners dread difficult conversations because "we assume certain reactions that might be difficult to manage".
These conversations can range from simple discussions about advice or product fees to emotional interactions after death or illness in a client’s family.
Moller says financial planners should use the Conversation Model as a framework to engage with people.
The Conversation Model uses a series of questions to clearly understand a person’s situation, which then leads to open engagement in which the financial planner offers possible solutions to the situation.
Many obstacles that prevent progress on important financial planning actions have less to do with what a planner has done or not done and more to do with concerns that clients have and struggle to articulate.
Financial planners who show vulnerability can help break down communication barriers and create spaces for clients to talk more about the things that trouble them. However, this should not be confused with oversharing.
Trust is also an important element that is needed between clients and financial planners.
An observation about trust, Moller notes, is that once a client sets out on the engagement process, they have already decided to trust the financial planner.
"It is then up to the planner to hold that trust, and if they break it, it will be difficult for the client to trust again."
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