4 Rules for Better Communication with Clients

Harold Evensky, the pioneering planner, stated that the investment management and tax planning are crucial but the most important feature of the practice of a financial planner is its communication with clients.

At the AICPA Personal Financial Planning Conference 2015, Evensky said that it is all about presenting to our potential clients what we believe in. It is more likely to retain the clients when you are more upfront and clear with what you believe in.

Evensky stated that he stresses on three factors when he makes communication with his clients: People, Processes and Philosophies. Additionally he gives importance to transparency and to educate his clients about the decisions he makes on their behalf.

Below are four suggestions to better communicate with clients:

1. Start General, Then Go Specific:

He made a suggestion to invite potential clients and simply ask them about themselves. He advised not to go for the details until and unless you have passed some time talking to them and once they commit to become client then only start collecting information and data.

2. Help Clients Prioritize:

Potential clients may include people who are buying new car, funding their grand children’s weddings or paying for their college fees etc. Evensky stated that the assisting your clients in aligning their priorities while talking with them is a great point to start and gather necessary information needed to complement the planning for the clients.

3. Talk Frankly about Your Investment Philosophy:

Evensky emphasized on importance of informing the clients about your planning-investment philosophies. He added that it is important that appropriate assumptions are established with the clients. Most importantly, the clients should continuously be communicated about your value especially when markets are volatile.

4. Don’t Run When Markets Shake:

Evensky advised that you must communicate more actively with the clients in the event when things have gone wrong. At bad times, your objective should be to call your clients instead of the clients calling you because that phone call could make a very strong statement that you are there for them.