Moving Targets

Hayden, Vern C.
June 2003
Journal of Financial Planning;Jun2003, Vol. 16 Issue 6, p32
Academic Journal
This article discusses the importance for financial planners to understand the information supplied by their clients. Information is dynamic, not static. In the discovery process, the planner needs to encourage clients to discuss uncertainty and change. Generally, this leads to an interaction between client and planner in examining scenarios. The planning process needs to encourage refinement. There can be a gap between an intellectual answer to a question and an emotional reaction in real-life circumstances. Planners have to give clients the chance to unintentionally misrepresent themselves. Information is both objective and subjective. When a planner learns about a fact of a client's life, it should not mean anything until they give their subjective interpretation of that fact. The human dynamic is a factor often left out in determining how relevant academic studies should be in working with clients. Fixed asset allocation works over time but such beliefs get compromised at the thresholds of greed and fear. A client's perception of their own risk tolerance is constantly changing at varied paces. Planners manage within the context of a client's mental and emotional makeup. Clients pay planners to manage them with respect to their money.


Related Articles

  • Handling Inherited Windfalls. Hersch, Warren S. // National Underwriter / Life & Health Financial Services;1/31/2005, Vol. 109 Issue 4, p29 

    Focuses on the advisory on handling the impact of windfall on the client's financial discipline and long-term planning. Restriction of boomer clients from incorporating an inheritance into their financial planning; Designation of a disinterested third party as a trustee; Diversification of the...

  • Calibrating Comfort. Hayden, Vern C. // Journal of Financial Planning;Feb2004, Vol. 17 Issue 2, p34 

    Clients of financial planners often do not reach their objectives because they hide inside their comfort zone. The challenge for planners is to legitimately expand their comfort zone so they can encompass the ideas and strategies necessary for reaching their goals. There are six ways to help...

  • A Relationship of Shared Experience. Pullen, Courtney // Journal of Financial Planning;Feb2001, Vol. 14 Issue 2, p50 

    Deals with the strategies applied by financial planners in which they focus on their client relationships and the implications of their work on the nonfinancial portions of a person's life. Psychological issues considered by financial planners; Models of communications used in the field; Example...

  • Avoiding A Nightmare On Main Street. Ward, Steve // National Underwriter / P&C;8/1/2011, Vol. 115 Issue 27, p16 

    The article focuses on the role of independent agent as a trusted advisor in helping clients to avoid disaster. It mentions the need for independent agents to position themselves as a resource for risk management and educate clients about the damage that will be brought by a disaster to their...

  • Risk -- a walk on the mild side? De Fries, Jon // Money Management;11/26/2009, Vol. 23 Issue 44, p13 

    In this article, the author reflects the relevance of risk management. The author briefly narrates his experience in supporting financial advisers in the Risk Specialist Network and notes their efforts in providing the risk-related advice to their business clients. The author elucidates the...

  • Chris Gilchrist: Explaining client risk should be simple.  // Money Marketing (Online Edition);3/14/2014, p16 

    The article presents the author views on the clients' understanding and acceptance of investment risk. The author states that the attitude to risk (ATR) questionnaire give advisers better advice and reduce the risk of complaints. The aauthor further mentions that advisers should start with a...

  • Saving and Serving. McNeely, Juli // Advisor Today;Mar2010, Vol. 105 Issue 3, p64 

    The article offers suggestions on how to encourage clients to buy a plan after saving. It suggests getting in front of the clients because they want to talk an advisor and want to put their financial house in order. It also recommends helping clients to set their financial goals and encouraging...

  • Don't Overlook Employee Benefits. Patrician, Jim // Journal of Financial Planning;Sep2008 Practice Management Solutio, p15 

    The article discusses steps financial planners should take when recommending a employee benefits specialist to a client. Steps the author feels financial planners should take before recommending a benefits specialist include identifying the correct strategic partner, recommending someone who is...

  • OOPS! Atkinson, William // Financial Planning;Sep2012, Vol. 42 Issue 9, p57 

    The article outlines 13 steps on how financial advisors can avoid fumbling their first meeting with prospective clients. These steps include starting out personal, showing care for the prospect, creating rapport, focusing on the prospect, ensuring a fit, asking the right questions, and being...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics