Editor’s Note: This article is the first in a four-part series.
It’s no longer a secret that it’s the personal side of money that drives decision-making. And it’s also no longer a secret that, as Heraclitus is rumored to have said about life back in about 500 B.C., change is the only constant.
All of your clients will experience life transition after life transition. And yet, here we are, in an industry that always has and always will have change deeply embedded in it, with no substantial education about the human dynamics of change and transition in the curricula of even our most highly regarded designations.
Hypothetical Composite Of Many Conversations:
Financial Advisor: A few years ago, one of my oldest clients—I cold-called her husband back in the day—lost her husband to cancer after a years-long battle with it. All of the financial stuff is done and we made a plan together based on everything she said was important to her and all had been going well. But now, out of the blue, she’s changing her mind about what she wants, like every . . . other . . . day.
Me: That’s not at all uncommon. The loss of a spouse is a major life transition that can take years to adapt to. She’s building a new identity or allowing one to emerge, and that takes time and attention. What are you going to do next with her? Do you have a plan for situations like this? Do you have tools and a process for when life changes?
Financial Advisor: (crickets)
It’s not just widows who behave in what appear to be unexpected ways, and it’s certainly not just women. To know transitions is to know that things don’t just come “out of the blue.” They come out of a context and a process for which there is a navigational guide.
I’m sure your business is filled with people either anticipating or experiencing divorce, retirement, inheritance or the sale of a business. Each stage of transition has its own challenges and creates an environment for internal struggles that can wreak havoc on decision-making, confidence, clarity of mind, physical and mental energy, and relationships with others.