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o, what steps can financial advisors take to create a comfortable and safe environment that puts clients at ease and helps them let down their financial emotional guard, so to speak? “Advisors Magazine” asked numerous advising professionals to share their approach. Here is what they said: Address the Elephant in the Room Don’t dance around the fact that people are uncomfortable talking
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ADVISORS MAGAZINE - JAN 2018
about money. Even though the topic isn’t as taboo for today’s investors as it was for previous generations, engaging in an open and honest financial discussion ranks lower than annual health exams on the todo list for most folks. Be upfront with your clients by telling them that you, as their advisor, understand that economics – especially personal finances – can involve a lot of conflicting emotions. “We talk about it right away,” said Wesley Kotys, president of Kotys Wealth Professionals based in Valparaiso, Indiana. “We start our
conversations with clients by letting them know we want to know how they view money.” Long before Kotys begins to formulate or recommend investment strategies, he talks with clients to learn about their history with finances and money. And if he’s working with a couple, he asks about their individual histories as well as their experience together. “We ask them what money meant to them when they were growing up because that forms much of how we view money as adults,” he said. “Then we ask them, ‘How do you view money today? Are you scared of it? It is a tool that allows you to live a certain lifestyle, or is its impact on your life something