Whether it’s your first day in the business or you’re hitting a major milestone, you’ve probably had a run-in with compliance that left you feeling frustrated. My own patience was tested yet again when a compliance officer reported that I had to remove the term “peace of mind” from my company literature because the powers that be deem it “promissory and misleading.” 

Although I wanted to respond with a lengthy soapbox speech that boldly stated my beliefs, values and experiences, upon further reflection I began to realize the regulators are right … albeit it in an old and outdated way. If suggesting “peace of mind” can be created with financial products and services alone, they’re spot on. However, as life planning and retirement wellness concepts continue to evolve and change the way people think about and actually transition into retirement, new standards are being set.  One where “peace of mind” can be achieved by combining financial products with programs that foster personal awareness and well-being. 

Unfortunately, too many financial professionals are still hesitant, unprepared, or even unaware of how best to combine their financial expertise with advice to help clients reduce their stress, increase confidence and live a happier, healthier, more connected retirement.  To resolve this gap, I have established some basic groundwork that we can all use as a catalyst for “peace of mind.” 

The Difference Between Personal And Financial Answers

Advisors often paint themselves into a corner by giving the impression that they can fix or improve things through more savings, greater returns or fewer losses.  Fact is, there’s too much emphasis on our ability to fix, predict or know everything … and that shouldn’t be the case.  Instead we can approach a client’s situation in a way that balances our financial skills and knowledge with their personal preferences in order to identify the answer that will position them to experience the least amount of anxiety and most joy in retirement. 

Take, for example, the issue of being debt or mortgage free before entering retirement. On the surface it seems like a no-brainer, but surprisingly, there can be major disagreements among professionals on the topic. Some advisors may feel that, since interest rates are low right now, clients should avoid paying off their mortgage and instead invest those extra dollars in a higher-yielding asset. That may be the usual “financial” answer, but it’s only one side of the story. No doubt people love the idea of money working harder for them, but some obsess and feel anxious about debt hanging over their head. Their money may be working harder, but they won’t feel better until the mortgage is paid off. 

Therefore, if we truly want to help create peace of mind, when a client asks if they should pay off their mortgage and invest the funds, we need to step back and let them know there is more than one way to answer the question and that it depends on them as much as the dollars and cents. Some people sleep better at night knowing their money is working harder for them, while others find greater comfort in knowing they don’t have to make that hefty mortgage payment. The key point is that by simply walking a client through this approach, we take the onus off us and share it with them. Since neither answer is superior to the other and people with different personalities come to different decisions, we not only shift the focus from fixing to educating, but as a result, teach them how to make decisions that bring the least amount of stress and that provide the most joy. That translates into real value-added and will function as a tool for loyalty and referrals for years to come.

First « 1 2 » Next