Never Over Look These Financial Personality Factors at Play With Every Client

You spend a lot of time developing a trusting relationship so you can create a customized portfolio and financial plan for your clients. But it could all unravel in the blink of an eye!

There are three often over-looked financial personality factors at play with each of your clients and these are often hidden deep beneath the surface:

  • Emotionally driven
  • Determination
  • Desire to spend
  • How do you know which of your clients is more susceptible to the financial talk shows, the evening news or the negative financial headlines in newspapers and magazines? Some of your clients are more easily “dragged down” by this negativity and actually start believing it! Others can look at a headline or “sound byte”, not read much of the article but come to their own inaccurate conclusion.

    Now imagine a couple arriving together for their first annual review with you. The one is extremely concerned that the markets are fluctuating a lot. And, since it is so close to retirement he worries that if you continue with the portfolio you have designed it will mean major cutbacks in lifestyle spending. The other feels comfortable with the portfolio but she is concerned about your fee structure given all the recent press on advisors charging too much and damaging returns on retirement plans.

    Of course, prior to your meeting, you don’t know any of this is happening with your clients. So you have to spend your time “re-selling” this couple on your strategy so they don’t loose faith in you or the commitment to the plan.

    What if you could identify in the on boarding meeting with your clients those that are more emotional or whether they are attracted to the headlines? Your entire approach would change to be more client centered to engage that client on their terms.


    Your staff could produce a list of those clients who were more emotionally affected by market swings so a quick phone call from you would be the perfect strategy. Perhaps your newsletter could be tailored to headlines and bullet points to get more clients to read it. Most importantly, you could prepare for your annual meetings knowing in advance the emotional state of your clients.

    Don’t react. Be proactive and become a behaviorally smart advisor to build trusting relationships that will keep your “susceptible” clients engaged for life.