Our Planning "Cost" is not the issue...your lack of urgency might be!

WRITTEN BY: Gideon Drucker, CFP® AIF® ECA

I love taking ‘Right Fit” Calls. On these 15-20 minute calls, I get to connect with prospective clients and get a better understanding of their financial situation, what they believe they need help with, what they’re motivated to do about it, and where they’re ultimately trying to go. On this call, we get to figure out, together, if my team might be the right fit to help them bridge the gap between their financial present and their future by providing them a true, comprehensive Financial Plan.

This call is introductory in nature. Sometimes, I share a few ideas with them before letting them know we may not be the right firm or that there are a few more basic strategies they should think about before we engage…In fact, more and more, I find myself saying this as we are not trying to be all things to all people. 

If, however, I do think we can deliver meaningful value & that we’d be a good fit, I will look to set up their Financial Discovery Meeting with one of our lead advisors. This is a 45–60-minute Zoom Meeting where we will do a deeper dive into their financial priorities and determine if we’re all 100% comfortable (and excited) to begin working together. 

In other words, after the discovery meeting (which we do not charge a fee for) it’s decision time. 

I would say that 80% of the clients that reach this discovery meeting are not concerned with the “cost” of working with us & our fee is not a determining factor in their decision to move forward or not. This 80% of prospective clients understand and appreciate our initial planning fee. 

They realize that they are receiving a comprehensive professional service and are comfortable paying us for the value of our time, our expertise, our objectivity, and the advice that we provide whether they ultimately hire us for “ongoing” wealth management & financial planning or not. 

For this majority of potential clients, whether they choose to enlist our help in their financial journey ultimately comes down to personal “fit” and if they’re confident in the value that we can provide them and their family. It comes down to (as it should) whether they like us, think we can provide meaningful value and believe we have their best interests at heart. I find myself respecting & understanding these prospective clients regardless of whether they ultimately hire us. 

It’s the other 20% of prospective clients that I meet that I’ll admit to being a bit puzzled by. They will admit feeling financially unorganized, or confused by their retirement account options, or unable to devise a budgeting/cash flow process that works for them (to name but a few) but then say that they can’t afford to work with us. They admit they have a leak in their boat that might be fatal over time but they aren’t willing to patch up the leak…even though the current course of (in)action is causing their boat to sink slowly over time. 

I’ll admit that this post is inspired by someone last week that mentioned feeling like they are “treading water” month to month but that spending “thousands of dollars” on their planning is “obviously not the solution.”

I mean…it seems more likely to help than what you’re currently (not) doing? 

My immediate thought was to ask rhetorically, “well, if you’re not willing to spend time & money to fix the problem…what’s going to change? How is continuing what you’re doing now going to get you over the hump that led YOU to reach out to US?” 

You're spending too much  money each month but the price of a service meant to SOLVE the problem is where you're choosing to draw the line?

Our fee cannot be the problem. It might be the solution to the problem you already have (a lack of financial coordination & proactivity) or maybe not…again, you need to determine “fit”…but I can promise you that being unwilling to commit resources towards addressing your financial health so you don’t have to pay “a fee” is throwing the baby out with the bathwater. 

This approach is comparable to KNOWING that your oven doesn’t work and hasn’t worked for years but that you’re not willing to pay to have it fixed…rather you’re just hoping the oven magically starts working again soon. 

Of course, fixing the oven may be expensive and it may even set you back a month…but it will also allow you to cook food in your home & eat out less…both of which will end up saving you money in the long run (to say nothing of improving your quality of life.) 

I guess what I’m asking you to think about: What are you willing to do to feel more in control of your financial future? 

I don’t say this to be callous. And I’d emphasize that I’m talking about people here that are making 6 figure incomes already…these are not people that literally don’t have the income to pay for financial planning advice…I would never begrudge someone with minimal income or opportunity. I’m speaking to people who are making healthy incomes that find themselves in a pattern they can’t get out of. 

To these people, I would caution, you just haven’t yet fully convinced yourself that this is a problem worth solving. You don’t yet have a sense of urgency required to address the problem & make the short term sacrifice necessary to get off the proverbial treadmill. 

I’ll end by trying to put this in real dollar terms. 

Most of the prospective clients that focus on our “cost” find themselves in the $3,500-$4,500 range (paid in two installments over 2-3 months of working together.) 

I’m wiling to venture that you spend more than that month-to-month. 

So, for less money than you will spend next month, you can start building a real plan & a tangible roadmap that will result in substantial & material changes to your financial health. 

What’s stopping you from finding out more? 

As always you can schedule a 15 minute "Right Fit" call here so we can figure out together if there's more you can be doing now in your financial world.