Help Clients Assign Meaning To Financial Information

The human mind is driven towards problem solving and goal achievement. Both are instinctive and if you watch a four-year-old left to their owns devices you will see that play out.

Many adults have lost the instinct because they drew the wrong message from missteps, gave in to complexity,  or tried things believing that they were easy when they were not. Over the past week or so I have talked about the fundamentals of financial literacy and how beginning with a more complete strategic look makes it fit together in a way you can implement. That is the foundation of financial planning.

Financial planning is the heart of financial success. Know where you are going. Know your resources. You have more than money. Seek help with how. It’s too complex to learn and the hidden flaws add up. Keep track and when things become wrong, amend you plan or its execution. Not so hard.

Planning gives you durable advantages.

  1. It anticipates both problems and opportunities.
  2. It allocates problems and resources in time.
  3. It provides a template for comparison. It enlists help as needed.
  4. It helps balance life plan goals against the money limit.
  5. It is efficient and effective.
  6. Planning coordinates information in ways that create meaning.

Keep this thought in mind.

There is a profound difference between information and meaning.

Warren Bennis

Focus on information until it turns into knowledge and eventually meaning.

I spent five hours driving yesterday and one of the things that occurred to me was no one who understood financial literacy in terms of goal seeking and problem solving would fail to do a plan and nurture it over their lifetime. It helps them reach their life goal by getting the optimal value from the stack of resources they bring.

Advisors who help people think strategically rather than tactically will have a better chance to have clients take their advice. The advice will make sense in context of desired outcomes. Clients question price when they cannot see or understand value. Clients will pay for things they value, so it becomes important to help them understand where the value comes from and why they have chosen as they have.

Help them focus on process, meaning and context.

Everyone is more comfortable then.

Don Shaughnessy arranges life insurance for people who understand the value of a life insured estate. He can be reached at The Protectors Group, a large insurance, employee benefits, and investment agency in Peterborough, Ontario.  In previous careers, he has been a partner in a large international public accounting firm, CEO of a software start-up, a partner in an energy management system importer, and briefly in the restaurant business.

Please be in touch if I can help you.  don@moneyfyi.com  866-285-7772

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