Trust is an Underrated Financial Planning Element

Trust is an underrated financial planning element, but like wealth, it takes time to build, and is critical to the financial planning process.

According to the Certified Financial Planners Board, the financial planning process involves the following seven steps:

Following these steps is crucial for a client's success; however, none of them are effective without trust. If a client doesn't trust you, they are far less likely to implement your recommendations, which can lead to financial hardship for the client and frustration for you as a planner.

Although trust is essential, it cannot be built overnight. I define trust, as described in The Speed of Trust, as "confidence born of the character and competence of a person or an organization." In other words, you need to be capable of doing the job while also demonstrating a strong level of personal integrity. In terms of building trust, here are some strategies that I have found helpful with my clients:

• Honest and Authentic: I tend to overshare with my clients, but I’d rather they know too much about me than have no idea who I am.

  
  

• Certifications: Although I'm always striving to learn more, my clients feel confident in my knowledge based on my various certifications as well as our interactions.

  
  

• Fiduciary Responsibility: As a fiduciary, I'm legally required to act in the best interest of each client.

  
  

• Transparent Pricing and Expectations: My clients know the exact cost of the service upfront, along with clear expectations. Financial planning is challenging enough without confusing pricing. Walk You To Wealth charges a flat monthly fee, so clients know exactly what to expect.

  
  

• Consistent and Reliable: Financial decisions can be overwhelming, so having someone they can reliably contact for an objective opinion is invaluable. Recently, several clients emailed me about buying a home, one of the biggest purchases of their lives, and I was there to help guide them through the process.

  
  

The above steps are simple, but they are also uncommon in the world of financial planning. I often meet with potential clients who are apprehensive about working with a financial advisor, often due to a previous bad experience or being sold an expensive product that wasn't suitable for them. The Walk You To Wealth approach is different, by design!

Disclaimer: The information in this post is provided for your convenience only and is not intended to be treated as financial, investment, tax, or other advice. The information is intended to be educational and is not tailored to the investment needs of any specific individual.  It is also not intended to be relied upon as a forecast and is not an offer or solicitation to buy or sell any securities or to adopt any investment strategy.  The opinions expressed are those of the author.  Reliance upon the guidance and information in this presentation is at the sole discretion of the individual.