Change is Hard
The first step in navigating change for anyone in any circumstance is disengagement. Before you will embrace the new idea, solution, color, neighborhood, or hairdo, you’ll have to let go of the old [insert whatever]. Before a prospective client, even one who is disgusted with his present situation and sought you out on his own, will embrace you, your investments, and your financial plan, he will first have to let go of his old advisor, investments, and financial plan. I learned this from my first controller and CPA, Catherine Carroll.
Disengagement is part of the financial planning process. If I can’t help my client disengage, I will not be able to help her engage. The proven method for initiating the disengagement process is exposing the problems in the client’s financial life, including inappropriate risk, unsuitable investments, lack of diversification, excessive taxes, too much cash, too little cash, outdated estate documents, whatever. Once the problems are laid bare, the next step is obvious: disengagement.
You Can’t Overdo This
But, it is not just a matter of merely exposing problems by simply bringing them to the client’s attention. The client must take ownership of the problems, or disengagement will not occur. We all procrastinate. We all fall into denial. You must exhaustively expose the problems in the client’s financial life until there is recognition, acceptance, and ownership. Don’t short change this process. And, don’t proceed in the relationship until this step is accomplished. Be patient. Be systematic. Be thorough. Be persistent. Like the doctor who must convince her patient that his illness is serious enough to warrant the surgery, you too must convince your clients that their problems are significant enough to warrant the change. Show them the blood work, the EKG report, and the x-rays. Give them the full diagnosis. Then, give them the prognosis. The diagnosis is what is wrong. The prognosis is where it will lead if nothing is done. If you don’t do this, and well, you won’t help many folks.
Fear is a powerful shackle that keeps us in the dark, just out of reach from the abundant prosperity God desires to give to his people. What a beautiful blessing to be given the tools to break the shackles and help free your clients to take hold of the gifts that were meant for them!
“His faithful promises are your armor and protection. Do not be afraid.” Psalm 91:4-5
I know firsthand about disengagement having recently left a job of almost twenty-one years to start new here at Senior Partners. For the last several years, I unwittingly held myself back because I was too comfortable and afraid of change. I can certainly see how one could be affected in becoming a new client.