The Five C’s We Expect From Our Advisors

Have you fretted over an unpredictable situation?  My anxiety increases when I have to face my fears and need to be honest with my family, friends, and sometimes clients.  I am concerned our relationship may be jeopardized.  Perhaps you face the same dilemma. 

When someone has a problem or a concern, they may ask for our advice.  We realize our answer might not be one they want to hear.  Potentially they may be upset that we even suggested such a preposterous solution. 

 

Take this situation from a different angle. Imagine a tough conversation with your advisor about budgeting, succession planning, or a major real estate purchase. You need financial direction. Because of your solid relationship, whatever advice your advisor offers, you would certainly consider. You wouldn’t expect your advisor to be shaking in their boots afraid of your response. After all, you are counting on their expertise to help you analyze the best option.  However, you have to evaluate their qualifications and it’s acceptable to do so.

My top five C’s are intermingled with a few minor C’s.  Feel free to pick through the entire list of attributes. 

  

Competent

Because our advisors possess the professional knowledge, we trust their judgment. We simply cannot know all the fine details about a specific topic. Take tax planning as an example. The Income Tax Act is complicated to understand.  Not all the pieces of the tax legislation apply to everyone; however, we still need to filter through the pieces pertaining to our unique situations.

Whether it’s tax planning, legal advice, or insurance analysis, we are presented with many possibilities which make our final decision more onerous. Choosing what is in our best interest needs to be interpreted by a professional   This leads us to the next skill our professional advisor must possess.

Communicators

Because our advisor communicates effectively, we recognize the reasons behind their recommendations. They talk at our level of understanding. Quite often the industry’s jargon will fly over our heads so any strategies must be explained in easy-to-understand language. Logic dictates that if we don’t understand the plan, we won’t understand the benefits. Communication is a two-way street.  Our professional advisor may possess all the textbook knowledge but the real skill is delivering the information so we get it.

Imagine your accountant saying, “We need to complete the Section 85 Rollover Form” versus “We need to complete the Do-Not-Tax-Me Form”. Notice the walls of the language barrier self-destruct. When our advisor takes down any language barriers, they are building trust in our relationship.  We automatically feel an ownership in the strategy because they communicated their reasons effectively.   

Candid

Because our advisor is candid, we can trust and believe their advice is in our best interest. As our relationship continues to build, we develop a strong connection.  This ideal chemistry allows our minds to be opened to tough conversations when we are told something with sincere honesty that our way isn’t foolproof.

   

     “That vehicle loan you think you need will financially drag you down. The debt servicing  calculation shows where you stand.” 

        

This takes us to the next quality we should expect from our advisor.

Courageous

Because our advisor is undeniably confident, we can expect them to be fearlessly courageous with us.  Sitting on the other side of the desk in their office or around our kitchen table, we should expect our advisors to be courageously upfront with us even though we may not initially appreciate what they have to say. 

     “It’s going to cost us how much?”

     “You are telling me this is what can happen if I don’t do that?” 

Certainly, the expectation is there’ll be some objections (or pushback) when an idea is first presented.  But here’s the reality, we don’t need someone to appease us.  When they understand our situation and have the courage to tell us, then we are given the right information to make a wise choice.  We don’t have to like what they are saying to understand what they are saying is for our benefit.   

For any business, the two most difficult topics are succession and estate planning.  When business decisions impact an entire family, that’s a different ball game than selling a business and retiring with the sale proceeds.  This is when we expect our advisors to step up to the plate and help create a financial plan for a family business.  

Committed

Because our advisor is 100% committed to us, we feel confident in our decisions.  They presented all the facts, they completed their homework, they developed potential solutions, they explained the benefits and consequences of actions.  They have given their all (skills, knowledge, and expertise). When they hand in the assignment we have given them, then we can grade them on their performance based on our satisfaction. Most likely, they achieve a high mark because of their commitment to us.  When we are at peace with their advice, we can rest knowing our affairs are in order.

It’s a known fact that people in any sales industry (banking, insurance, dealerships, investments, etc.) have sales targets. Advisors who put our interests before their own earn our respect.  Our appreciation grows for the advisor who sets aside the target in the interest of doing what’s best for us.  Knowing our needs matter tells us our advisor is completely committed to doing their best for us. 

Togetherness

The next time you pick up a coin, pay attention to both sides.  You would agree neither side contributes more to its value.  The value is determined in unison. This truth applies to the relationship between our advisors and us.  The value of our joint relationship determines our success in our personal, financial, and business lives.   Neither of us (the advisor or client) should fear honesty because we are afraid of jeopardizing the relationship.  (In fact, the opposite could happen when we are not truthful. Our relationship may be compromised.)

When intentions are sincere and the advice is solid, the outcome will always be positive.  Great advice is directed to help and not harm us.  Regardless whether you are the taker or deliverer of advice, your relationship is built on a foundation of trust and respect and no one should have anything to fear. 

Time for Review

I am certain you don’t need someone telling you how quickly time is passing.  One peek at the calendar shows just how close we are to the end of June which is a sign that half of 2016 has disappeared before our eyes. 

Like many corporate employees face mid-year performance reviews, this is a good time to review your New Year’s Resolutions. Remember the personal goals, dreams and aspirations you made at the beginning of the year.  Go ahead. Blow the dust off the list.  It’s time for review. 

It’s possible you didn’t get started or simply stalled on moving forward.  Now is the best time to reignite the spark. If you can’t find your list or can’t remember the things on your list, create a new one. If a corporation can set a different fiscal year-end so can you! Your personal fiscal year may run from July 1^st to June 30^th.  “New Year’s Resolutions” can be created any time.

Here are three ways to help motivate you into keeping your commitments. 

1.     Watch the video below, Start Saving Now.  You may recognize some do’s and don’ts to ensure you achieve your desired plans.

 

2.    Refer to the blog, The Five Strategies for Sticking with Your Financial New Year’s Resolutions for additional ideas.

 

3.    Lastly, repeat Step One and Two as necessary to charge your human battery so that you can create an everlasting commitment to follow through with your plans.
 

When the time comes for the next review, you will feel confident that you did your best.  You had a list; you created sound strategies; and you overcame obstacles. The best part will be that you achieved your dream, goal, or aspiration.  You can then expect the best performance review of your life.

 



Keeping Your Commitments

 

Making a commitment is similar to pounding a stake in the ground and taking a stand for something you firmly believe in and value. You vow to take action and follow through on your promise. 

In life, people make commitments to the ones they love by their actions:

* The husband who supports his wife while she endures chemotherapy.

* The wife who stays in a marriage even though her husband is an alcoholic.

* The single parent who remains committed to being the best parent in raising her children.

I was inspired to write about “keeping your commitments” as I prepared a presentation for our Toastmasters group.  Toastmasters is an organization which helps people develop their communication and leadership skills in a no-pressure, supportive, and safe environment.  The presentation about “Keeping Your Commitment” speaks about the importance of being faithful to the Toastmaster’s Promise.  When we make any commitment or promise, we vow to be responsible and dedicated to someone or something.

What does commitment mean to you?  Think seriously about your commitment to your spouse, family, employer, community, church or volunteer organizations.  Are you committed to support your environment or make the world a better place?  Now let’s switch gears, “What is the commitment to your financial well-being?”

Commitments: Ones that are fulfilled; ones that aren’t; ones that should be.

 

You may have underlying commitments without being aware that you have them.  You commit to earning money to pay the bills and support your family’s lifestyle.  You voluntarily fulfill your obligation because you see your role as the breadwinner.

Quite often it’s easier to keep your promise to someone else rather than to yourself. You know in your heart when you broke the promise to your goals and dreams, the times when you didn’t stick to your savings plan by spending more than you intended.  You sent your bank account spiraling into a negative territory or your credit card balance soaring.  You fell short of your commitment.

Then there are the commitments which are only thought about but haven’t been fulfilled.  These are the ones which you tell yourself, “Someday, I will.”   You may only see these commitments as things on your to-do list but they have far reaching consequences if they remain incomplete.   Click here to take a peek at the list, Ten Financial Items Every Canadian Should Have.  

These commitments mean protecting your family and you by:

·        Reviewing and updating your Will, Power of Attorney and Health Care Directive to ensure the information fulfills your wishes in the event of an untimely death or illness.  If you don’t have these documents, then you are strongly encouraged to make the commitment to contact an estate planner or a lawyer.

·        Reviewing your current life and disability insurance needs.  Have you done everything in your power to protect your family in the event of a sickness or death?  Make the commitment to check your coverage offered by your employer or insurance company.

·        Developing a financial plan so you know exactly where you are headed financially.  Committing to the plan ensures you are headed down the path to successfully completing your goals and dreams.

Coaching Your Way to Success

As a financial planner, I am curious why people remain unwilling to fulfill financial commitments.  Since I will not leave you stranded, I am offering to coach you to follow through with your commitments.  Once you determine the real “problem, issue or concern”, go the extra step and answer these straightforward questions which Thomas G. Crane presents in his book, The Heart of Coaching.  Behind each question is an underlying question to help understand its importance.   

     1.  What are you trying to achieve? {This casts vision}.

     2.  Why is this important to you? {This identifies priority}.

     3.  What have you tried so far? {This represents accountability}.

     4.  How has it worked/not worked? {This encourages reflectiveness}.

     5.  What options do you see going forward? {This develops creativity}.

     6.  What input would you like from me? {This shows openness}.

     7.  What is your “go forward” plan? {This initiates planning}.

     8.  How can I support you? {This creates a partnership.}

Listen to the whispers speaking to you.  Listen to the tiny voice inside your head saying, “It’s time to do something.”  Devise action steps:  pick up the phone; make the appointment; do the homework; get it done.  By doing so, you are putting a stake in the ground and keeping your commitments.