Communication Essentials For Financial Planners

The chapter on politeness and sensitivity coaches readers on what words and terms to avoid with a client—references to marital status, gender, sexual preference, religion and illness are discussed.

The ephemeral and subtle must be addressed, the authors say: learning how to read body language and unspoken cues is important, as is understanding mannerisms such as shrugs and winks.

In an interesting discussion of the costs and benefits of the client-planner relationship, the authors argue that even a client with limited net worth can be of value:

“Maybe the client provides intellectual stimulation, or the financial planner may find that the client is truly benefiting from the advice given. This may provide the financial planner with an intrinsic sense of value.’’ Not wholly sentimental, the authors add that the same client could refer high-net-worth clients!

“Structuring the Process of Communication’’ includes handy illustrations of office settings that make a client comfortable or uncomfortable—avoid sitting behind a large desk that’s a barrier; instead, choose couches and round tables for conferences.

In “Listening Skills ‘’ and “Questioning,’’ Grable and Goetz provide practical information on how to become a good listener and responder, and they offer this nugget: “Financial planners often place their clients under stress’’ by asking challenging or awkward questions. Best that a planner learn to control “emotional baggage that unconsciously clouds his judgment or affects his client communication. This is countertransference.’’

The authors provide exercises to develop awareness of and eliminate countertransference behavior—anger, frustration, impatience.

And they say that financial planners, who are goal- and action-oriented, would be wise to adopt the nondirective form of communicating with clients, which encourages them to talk openly about their financial aspirations and hoped-for outcomes.

“It is precisely how well a financial planner can promote open dialog among his or her clientele in the financial planning process that drives client trust and commitment.’’

Communication Essentials for Financial Planners: Strategies and Techniques by John E. Grable and Joseph W. Goetz. John Wiley & Sons, Inc.  206 pages. $50.00.

Eleanor O’Sullivan is an award-winning freelance journalist who writes for Financial Advisor magazine.