I can recognize immediately when a client or spouse does not fully understand an investment or a planning element we are discussing. They may be too embarrassed or intimidated to ask you to repeat the discussion or use different terminology so that they better understand the concept. In this type of situation, another meeting or different type of teaching process is often essential to bridging that communication gap and effectively preparing the client's skill set. Interestingly, much of an advisor's time is spent attempting to protect clients from themselves. It is one of the unspoken, unwritten services a good advisor provides. For example, it is our job to discuss with a client that although equities may be providing attractive dividend yields, outperforming fixed-income returns, that is not a reason to reallocate funds to equities from their current fixed-income holdings. We have all been through these types of meetings or calls revisiting and reminding clients why it's vital to stay on point with their financial plan, often feeling like a broken record. Yes, it can be exhausting and frustrating but it's essential to maintaining the integrity of their long-term plan.
Is there always a direct correlation of compensation for all the e-mails, calls, meetings and topic research you may do for a client? Not always. But it's far less expensive to keep an existing client than to find a new client.
The strength and longevity of any firm is based upon the relationships created and cultivated over many years. The advisor/client relationship is your business's real source of wealth and that takes time to cultivate.
A portfolio's performance or a firm's name does not necessarily create loyalty. Rather, it's the personal relationship established between client and advisor and the dedication to acting as an advocate in our industry that creates trust. An investment of time and education in a client relationship is the best investment we will make in our practice, but it takes just that: a lot of time and a lot of patience.
Let us not forget the once pure vision of why we chose this profession in the first place, to help people navigate their financial future.
Remember, you never just have them at hello.