Preparing your clients for the certainty of uncertainty

October 19, 2016 by Steph Kotlarek

A stressed woman after an unexpected life event that affects her financial plan

About the author

Steph Kotlarek

Business development representative

Steph began her career at Advicent as a mid-market business development representative after returning from the Peace Corps in Costa Rica. Steph is passionate about FinTech and developing her career in the financial industry.

You have created what appears to be the perfect plan for your client – then something unexpected happens. Something that neither you nor your client could have expected has thrown their plan out of whack. Whether it be the death of a spouse, the loss of a job, a car accident, or another unexpected event, it is important that your clients be prepared to financially handle the unexpected.

Expecting the unexpected

When working with a client on a financial plan, the focus for the client is typically structured around the question of, “How do I build and maintain wealth to secure myself through retirement and make sure my children are provided for?” But is that enough?

By creating a comprehensive plan, the advisor and client can begin to have more transparent conversations and identify the goals and priorities of the client. As the advisor, you can utilize tools and technology to see the whole picture and empower your client to achieve those goals – and also help to plan for the unexpected.

As priorities are identified, the last thing that anyone wants is something unforeseen jeopardizing financial goals. It is also important to remember that not every client has the same priorities.

As the advisor, creating that comprehensive plan is significant in being able understand the client’s goals. For example, being able to send kids to college may be higher on the list than saving for retirement for some individuals at a specific point in time.

Utilizing technology to put a game plan in place

Everyone’s circumstances are different, so working with each client to find a saving strategy that works best for them is important. Understanding each client’s resources and limitations is key in determining how the client can build their safety net and reach their goals.

Once that strategy is identified, it is a matter of keeping the client on track with a savings plan. Being able to easily communicate with the client to continually check progress will ensure bases are covered when the unexpected event takes place.

FinTech tools available today allow advisors to run different scenarios for financial plans to ensure clients are as prepared as possible for any unforeseen events. Advicent products arm advisors with technology to create comprehensive financial plan with easy-to-understand client reporting. Additionally, we provide our Advisor Briefcase® marketing communications tool to promote ongoing, continuous education and communication between advisors and clients to better prepare clients for the future.

Click here to see how the NaviPlan® financial planning software from Advicent can help advisors prepare clients for the unexpected through scenario analysis and industry-leading calculations.