Ultimately, the best result of a Fiscalosophy discussion is to know and understand the experiences that have made deep impressions on clients and their money. We need to understand both the experiences they’ve had and the conclusions they have drawn. We’re primarily in the people business. We just happen to work with their money.
Another frequent outcome of this dialogue is that clients see the disconnect at times between what they say they believe (their philosophy) and the level of discomfort with their current situation. This disconnect is the crux of behavioral finance—in which we fool ourselves into unhealthy financial habits and behaviors. Like it or not, it’s part and parcel of the modern advisory relationship to help clients deal with their financial reality and to acknowledge the role they play in their own success or lack thereof. At the end of the day, what’s in the best interest of your clients is to act in their own best interest.
Mitch Anthony is the creator of Life-Centered Planning, the author of 12 books for advisors, and the co-founder of ROLadvisor.com and LifeCenteredPlanners.com.