FINANCIAL LIFE PLANNING

Mitch Anthony

It ’ s time to ask what money represents to people to get at what their values are .

N MY PREVIOUS ARTICLE IN APRIL , I INTRODUCED A NUMBER OF questions that advisors could ask their clients to get a sense of their personal principles when it comes to investing . Among the questions I asked in Part 1 of this story were :

• If I suggested buying 100 shares of Company XYZ , what would be the �irst three questions you would ask ?

• What are the guiding principles and philosophy that you follow with your money ? Who are your main sources of information ?

• Are there any investments you would avoid as a matter of principle ? As promised , Part 2 of this article will delve into two more questions you can ask to understand clients ’ investing principles : 1 . What does your money represent to you ? What price or sacri�ice was made to earn this money ? 2 . How would you de�ine “ true wealth ”? These questions go a layer deeper into the realm of your clients ’ emotions , trying to get at what this money really represents to them — both in terms of the price they paid to obtain it and what they hope the money will do for them in their lives .

Question 1 : What Does Money Represent To You ?

The next time someone lays a piece of paper or a check on your desk , try saying , “ You know , before I start making recommendations to you , I ’ d like to ask you a question : ‘ What does this money represent to you ?’” You might be fascinated with the responses you hear .

These questions go a layer deeper into the realm of your clients ’ emotions , trying to get at what this money really represents to them .

Years ago , my mother called to tell me that she had lost a sizable portion of the inheritance she got from her father , a farmer in North Dakota . She got tied up in an unadvisable investment recommended by a friend ( an advisor , as it happens ) and found herself involved in a couple of other naïve , self-directed investment moves .

After she described her missteps , I asked her , “ All total , how much have you lost , Mom ?”

Her answer sent a chill through me . Her voice breaking , she said , “ I have lost five years ’ of Daddy ’ s work .”

She had done the math and calculated the loss not in terms of money but rather in terms of life spent to create that wealth . Her answer was “ light from heaven ” in my soul , as it said something about the real nature of money in our lives and opened my eyes to the ways financial advisors can best judge their work . You will know you are a great advisor when you can measure your clients ’ money in the same way they do .

This is why people who are “ fanatically curious ” stand a much greater chance of becoming great advisors .

I ’ ve known an advisor in Minnesota for 35 years . His name is Marlin . He started asking this question of every one of his prospects when he talked about managing their money : “ What does this money represent to you ?”

He told me that one day a man came to his office with a check for almost half a

JUNE 2023 | FINANCIAL ADVISOR MAGAZINE | 25