How a defined process eases client concerns

By Juli McNeely

I recently began working with a personal trainer, and I was nervous. I realized that it was because I knew nothing about the trainer – her communication style, her preferences, her experiences or even her preferred workout music.

Then it hit me – clients may experience something similar when working with us for the first time. When a new client comes through your doors, they may be afraid to divulge all their financial information to a stranger.

I have found that having a transparent financial planning process helps clients shake-off those first meeting jitters and helps us focus on finding ways to improve their financial well-being.

Discovery

The first step is to explain and define what materials are needed at this discovery stage. We found that highlighting these documentation needs from the start aids clients in understanding finances before we begin planning. Some example documents include: a pay stub, an annual report from their insurance, mortgage or housing costs, past tax returns, etc.

We’ve found that our clients often walk into our next meeting with a better idea of their where they are at and what they need help since you have already explained the importance of some of these documents.

Another vital part of the discovery step is to allow the client to learn about you and your team. In the same way that I was nervous to work with my personal trainer until I got to know her, clients may struggle to trust you until they know who you are. It also helps to take the time to get to know clients outside of their financial goals and documentation.

This provides the context you may need to better advise them in how to achieve their goals. As the client finishes their ‘homework’ of collecting the information, you can start the next step.

Taking Action

After the arduous work of gathering financial documents, clients are often eager to learn about what they can do to enhance their finances. My team will put together a priority action list – what insurance coverage they could change, what coverage they are missing out on, what carriers I work with and a detailed plan that highlights their financial goals.

I walk through each of these recommendations one at a time and ask the client their desired actions. For example – I may share that they are missing long term care (LTC) insurance and how that can pose a problem for them in the future. After covering the risk, I’ll ask the client to decide on how to proceed. This process helps to package each part of the financial plan into easily digestible steps that provide clear action clients can take.

Review

We provide an online platform for each client that houses their financial information and developed plan. This allows them to check the progress of their financial goals on their time and at their pace. Additionally, we set up an annual review. We use this time to discover if their goals have shifted or if they have any life changes that need to be included.

For example – if a person has become pregnant within the past year, their financial goals may require edits. Again, this step is outlined in the beginning to each client. They know during the discovery session that we will plan to review at least once a year; maybe even more as life changes arise. Be sure to remind your clients that this financial plan is a living and breathing document, subject to change and follow their life changes.

Walking into any scenario without knowing what to expect or the people you will work with is scary. By establishing a clear process for everyone involved, clients are more likely to be actively involved in their finances and retain you as an advisor. Sharing these clear steps provide the clarity and comfort your clients deserve.

About the Author
Juli McNeely is a 16 – year MDRT member and has attained Top of the Table status. Financial Clarity by Design is a 45-year-old independent agency founded by her father Stephen. McNeely specializes in the areas of retirement planning, business continuity and estate planning. McNeely has earned the Life Underwriters Training Council (LUTCF), Certified Financial Planner (CFP) and the Chartered Life Underwriter (CLU) designations. She is professionally affiliated with the National Association of Insurance and Financial Advisors (NAIFA) and is a National NAIFA Past President.