When I work with clients, whether new clients or existing ones, I often say there is wealth and investment management for the classroom and wealth and investment management for the “real world.” I always show the following clip from the movie Back to School when discussing this.
I do this for two reasons: one, who doesn’t love Rodney Dangerfield, and two, the classroom scene illustrates the importance of working with people with industry experience.
Many classrooms and articles fail to mention how clients’ psychology and emotions play a significant role in making major financial decisions. This is referred to as Behavioral Finance.
Unfortunately, to keep clients happy, sometimes irrational decisions that may not be perceived as the “best” strategy need to be implemented so the investor can sleep at night!
The most important part about developing relationships with clients is that we listen to our clients and their needs and do not go into meetings with preconceived notions. I realize this sounds like a cliché, but it is true.
Every client’s situation is unique. What I love about my job is listening to my clients and helping them meet their financial goals.
Our wealth management process is a living, breathing, interactive tool. It is not a one-size-fits-all process, and we do not focus on comprehensive plans that are obsolete the moment they are printed. As a wealth advisor, part of my job involves managing my clients’ emotions. As I always say, “Life gets in the way!”