Weekend Content for New Planners

Weekend Content for New Financial Planners (February 25-26, 2023)

“Weekend Content for New Financial Planners” is a collection of articles, podcasts, videos, etc. that I’ve been consuming regarding breaking into financial planning, industry trends, career development, and more.

Wired Planning’s Brendan Frazier on how to position behavioral coaching in prospective client meetings, easy-to-implement and effective behavioral tactics, and more [Podcast]:

“That’s the first thing we need to realize: it’s not about what you want, what you want to tell them, and the value that you perceive. It’s about communicating the value and the results that they want and that they need… I get it because I’ve been there. Where you know how valuable this is. You just want to scream from the mountain tops and say ‘Hey, listen, I hear you, but here’s the real value in what I do.’

But that makes it about you, and not them. It’s their meeting; they have something on their mind. There’s a pain that needs to be resolved. An outcome that they want to reach. We have to remember that until we address what’s on their mind, they’re probably not going to hear you say anything else…”

Positioning Behavioral Coaching, Top 3 BeFi Ideas, And Introducing Values To Long-Time Clients [Brendan Frazier, The Human Side Of Money]

Bob Seawright on the all-important task of managing client expectations [Article]:

“For whatever reason, we humans tend to pick apart the pieces more than appreciate the whole. This problem relates to the fundamental attribution error — the error we make when we overweight the role of the individual and underweight the roles of chance and context when trying to explain successes and failures.

Every retail advisor has experienced the frustration of being able to report good performance overall but having the client fixate on those things that didn’t go so well. That frustration is difficult enough when the underperformance is real. But often the ‘problem’ is nothing of the sort — it’s simply a down period for a particular investment type or sector.”

Michelle Pfeiffer Needs Help? [Bob Seawright, The Better Letter]

3 considerations when choosing your client niche and how to think about a common objection to focusing on a niche [Video]:

How To Find Your Niche Client [Caleb Brown, New Planner Recruiting]

Kitces.com Lead Researcher Derek Tharp on a number of financial planning topics including alternative approaches (“risk-based guardrails“) to common in-retirement withdrawal strategies, the surprising results comparing one-time versus ongoing Monte Carlo analyses planning, and more [Podcast]:

“And the really striking finding—I have a Kitces article that talks about it specifically—but when we looked at comparing even a 20% probability of success as an ongoing target to a 95% probability of success as an ongoing target, the differences in maximum and minimum spending levels over a 30-year retirement period were nowhere near as big as I think most people, myself included, would have expected. So, it really turns out that if you are planning in a dynamic way, and you’re updating your plan on an ongoing basis, you’re really in a situation where using a higher or lower probability of success isn’t even at all really changing your risk of fully depleting a portfolio. It’s more like putting your thumb on the scale in favor of either current income, which would be a lower probability of success or legacy, which would be a higher probability of success.

But the metric doesn’t really make sense in the way that we like to think about it once you’re starting off planning knowing that you do intend to make adjustments. If you’re doing just a once and done Monte Carlo simulation and you were going to say, OK, I’m going to pick my probability of success level, I’m going to run my plan, and then I’m going to follow that spending plan blindly and just charge forward, then the probability of success metric that people focus on actually makes much more sense. And there I would probably aim for 95% to 100%.”

An Alternative Approach To Calculating In-Retirement Withdrawals [Christine Benz & Jeff Ptak, The Long View]

A Twitter thread of advisor-recommended books:

If you ever experience impostor syndrome or could practice more positive self-talk, Dr. Joy Lere on how to build your self-compassion (while maintaining accountability) [Article]:

“Compassion isn’t soft. It helps you be sturdy. Think: brave, strong, fair, and wise. It’s not a way to let yourself off the hook. It isn’t self-pity, self-indulgence, or making excuses for bad behavior. It’s not a Pollyanna mindset that ignores problems. Instead, compassion is recognizing strengths while identifying opportunities to improve. When you exercise compassion, you take ownership for your behavior while accepting yourself in your flawed humanity.”

Chatter. [Dr. Joy Lere, Finding Joy]

Which was your favorite takeaway? Comment below!

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