Matt Linnert says that as far as clients are concerned, “value” is about so much more than just money.
As we move along this path of fee for service, the question arises as to what are the most valuable elements of a service. It seems much of this talk of value is more adviser-centric than attached to the deeper, values-based needs of clients.
My adviser has no idea of what I value, and has never asked, but he can still roll out his “value” proposition. His advice is accurate and appropriate for the facts of my situation; but from a human perspective, a whole-of-client perspective, the advice and value of it are rather shallow.
The adviser doesn’t take into account my interest in possibility and new industries. He doesn’t take into account my distaste for the lack of fair financial distribution across the globe; and he doesn’t take into consideration that my self-interest in material gain is not that high.
Take this last point. This doesn’t mean that I don’t want to earn very good income levels and build a large asset base. But doing so for the sake of it means little to me; in fact it means nothing to me.
Importantly, the advice provided makes sense. It’s rationally correct and logical. But it leaves me empty, wondering if this planner even really wants to know whom he’s dealing with. I see the value of the advice, but I don’t feel it.
It’s like seeing a car that ticks all the boxes except the “I really like this car” box. You may even buy such a car, but you never really own it.
It serves a purpose, but it doesn’t have purpose.
I don’t blame the adviser. It’s not his fault. He is well trained on financial markets and the technical aspects. He is a polite, honest and pleasant guy. He’s full of integrity.
He knows his stuff, but he doesn’t know me. His client exploration is driven by finding out the facts, not the feelings. Many planners can provide the correct advice. But what I’ve discovered is that I want more than that! I want the conversation. I want my adviser to know me philosophically as well as practically.
Our dealings are practical and rational. We have practical conversations and arrive at sensible outcomes. It all makes sense to my head, but my heart is wandering like the loyal partner who stays in the relationship but has emotionally checked out – or in other words, disengaged.
Relationships involve much more than the rational mind. They involve emotion and energy. They are deepened by inquisitive conversation, pregnant pauses, confusion, clarity, anxiety and relief.
Perhaps planners would benefit with a bit of training in psychology – not to psychoanalyse their clients, but to understand the client in a different way.
Money, emotion and psychological trauma go hand in hand. Even those with bucket loads of money have psychological difficulties around fear of loss, or their worthiness of having the money in the first place. The planner who can assist clients to develop their self-awareness of financial beliefs and unconscious financial behaviour builds a relationship of significant depth.
By doing so, we go beyond the need to sell value propositions, and instead help clients understand what their values hierarchy is. The client can then learn that what they see as valuable may or may not be beneficial to them at this stage of life.
While the industry continues to beat the drum about providing valuable advice and demonstrating value, clients are sitting on the outside wondering when you’re going to find a way to have a meaningful conversation about what they value and how this supports and/or detracts from their financial success prospects.
If you want to serve the best interests of clients, sometimes we need to provide advice that they don’t like and don’t value. The safest time to do this is after enabling the clients to identify and articulate their values, strengths and weaknesses themselves.
With adequate client self-awareness, it’s possible to provide advice that satisfies some of their values, yet contradicts the others, while the client lovingly and gratefully accepts such advice.
I value flexibility and freedom, but I know some order is very healthy for me and for my finances. If my adviser could discuss this one point, then he would be delivering the highest value proposition – that he knows me!
Matt Linnert is a co-founder of www.moneypersonality.com.au and www.innergi.com.au
