Of course, not everyone has the resources to accomplish all they want in life. So the next step in the process is to prioritize. We take each goal from the previous form and transfer it to a form we developed that prioritizes, clarifies, measures and puts a time line on each goal. As with the entire financial life planning process, dialogue is the key.
It is important that we understand the motivations behind these goals. Therefore, we discuss each goal with our clients before assigning a priority code-from "5" (a must) to "1" (not that important). A target date and an estimated cost for all goals are projected and listed. Some goals may not require financial resources. It may be the clients want to spend more time with family, eat healthy or exercise regularly. But we take these nonfinancial goals as seriously as we do those that require money. If it is important to them, it is important to us.
Depending on the clients, it often takes more than one meeting to complete the goal-setting process. Putting a time constraint on this important part of the process may risk not getting it right. How long does it take? What if you were washing a dirty jar with soap and water and wanted to ensure that it was clean and free from any soap residue? How many times must you rinse the bottle before it is clean? Five? Ten? Twenty? The answer is simple-until it is clean!
And so it is with setting goals and priorities for your clients. You continue until you get it right! Because getting it right is what we are paid to do. Remember, nothing is more powerful than helping people get where they want to go. Of course, that assumes you know where that is.
And getting it right will give you the satisfaction of having done a good job. And we may avoid having clients claim that we were more interested in our own priorities than in theirs. But most important, getting it right will help your clients accomplish what is most important in their lives.
Roy Diliberto is chairman and founder of RTD Financial Advisors Inc. in Philadelphia.