Bruce Fleming, CFP® Private Wealth Management
In the ever-evolving world of financial planning, the journey of gaining and maintaining clients’ trust has always been at the forefront of the industry.
With over 28 years in the financial sector, my experience has taught me the importance of adapting to changes, staying client-focused, and understanding the shifting landscape of financial planning.
Starting out as a legal advisor, my transition into financial planning was driven by the realisation that the industry needed a more client-centered approach. I began in financial planning around the year 2000, and back then, I quickly noticed that many financial advisors were more concerned with their commissions than with truly serving their clients. This realisation was a turning point for me and led me to pursue a different path, one that focused on lifestyle financial planning, which emphasised putting the client’s needs and goals first.
Lifestyle financial planning was a revolutionary concept at that time, and it became the core of how I approached my work. This method focused on understanding clients’ goals, dreams, and fears and aligning their finances to support their desired lifestyles.
Industry evolution – Over the years, the financial planning industry has undergone significant changes, most notably in legislation. The introduction of client-focused laws and regulations has been one of the most positive developments in our field. Although some might argue that this shift came later than it should have, it has undoubtedly improved the way advisors interact with and serve their clients.
Legislation now emphasises putting the client’s best interests first, which is something I’ve always believed in and practiced. It’s no longer just a buzzword; it’s an essential part of our profession. A financial advisor’s success is increasingly tied to how well they prioritise their clients’ needs and goals, ensuring that every action taken is in the best interest of the client.
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The concept of trust is foundational in building a successful financial planning practice. In my experience, there are three levels of trust:
- Initial Distrust – Sometimes, clients come into a meeting with inherent skepticism. They might be unsure about you or your intentions, and you need to work hard to overcome this initial barrier.
- Referred Trust – This occurs when a client has been referred by someone they trust. While this gives you a foot in the door, it’s not yet the full trust you need. You still have to earn it.
- Earned Trust – This is the most crucial form of trust, and it’s developed over time through consistent actions, transparency, and putting the client’s interests first. It’s the bedrock of any long-term client relationship.
Earning this trust requires a deep commitment to educating clients, helping them understand the financial planning process, and ensuring they feel comfortable with the decisions being made. When clients truly trust you, they can sleep soundly at night, knowing their finances are in good hands.
Challenges for New Advisors – One of the biggest challenges that new advisors face is building this trust with clients. Today, while entering the industry might be easier than it was in the past, establishing oneself as a credible and trustworthy advisor takes time and effort. It’s no longer enough to simply possess the necessary qualifications; you need to demonstrate empathy, confidence, and a genuine commitment to your clients’ well-being.
Furthermore, it’s essential to continuously educate clients. In the past, clients were often left uneducated about their finances, but today’s clients are more informed and expect their advisors to help them navigate the complexities of financial planning.
As a financial planner, having confidence in yourself and your process is vital. Clients can sense when you’re unsure or hesitant, which can erode trust. Therefore, it’s important to “eat what you sell” – meaning, the strategies and plans you recommend to clients should be the same ones you would use for yourself and your family. This authenticity not only builds trust but also reinforces your belief in the products and solutions you offer.
Products Then and Now – The financial products available today are vastly different from those two or three decades ago. In the past, the industry was driven by commission-based selling, where advisors often pushed products that offered the highest payouts rather than what was best for the client. Today, the focus has shifted toward providing tailored solutions that align with the client’s unique needs and goals.
I believe that financial products should be viewed as solutions that come at the end of a comprehensive financial planning process. It’s no longer about selling products but about crafting a solution that fits the client’s overall financial strategy and objectives.
Building a Lasting Practice – For those looking to build a successful financial planning practice, it’s imperative to place the client at the center of everything you do. Understand that this industry is about building relationships, earning trust, and providing value. Don’t be swayed by short-term gains or quick wins; instead, focus on creating long-term, sustainable relationships that benefit both you and your clients.
As the industry continues to evolve, the need for dedicated, client-centric financial planners has never been greater. By prioritising education, empathy, and genuine care for your clients, you can build a practice that stands the test of time.
The world of financial planning is more than just numbers and strategies; it’s about helping people achieve their life goals and dreams. For me, that’s the most rewarding part of this journey.
Every day is an opportunity to make a positive impact on someone’s financial health and well-being, and that’s something I never take for granted.