According to Investopedia, “financial advisors help you make decisions about what to do with your money.” That includes services such as investment advice, financial planning and estate planning, among other things.
But sometimes, a client’s situation or request falls outside the boundaries of the traditional definition of what an advisor does. This requires either a referral to other services, or for the advisor to step into other roles (as much as they can.)
After all, “clients will consult with me regarding anything where money touches their lives and the lives of other people that they care about,” explains Al Faber, CFP, ChFC, CLU of Woodson Wealth Management. Money is involved in just about everything—from the kind of clothes a person wears to decisions about housing and end-of-life care.
The Multiple Hats of a Financial Advisor
As advisors build relationships with their clients, they can become that sounding board or support system. Alan Gorlick, chief executive officer of Gorlick Financial Strategies, has had clients become so comfortable with him that they reached out about topics not directly related to their finances. “Clients know they can call any time, not just business hours,” says Gorlick.
In their conversations with clients, advisors can encounter questions about many topics that are tangential to personal finance. Below are some examples of how Trust & Will-affiliated advisors have taken on expanded roles to assist their clients.
While financial planners may not anticipate becoming their clients’ trusted confidente, as a client encounters a difficult or emotionally challenging situation, their financial advisor is among the people a client can turn to. Some of our Financial Advisor Contributors share personal examples of when they've worn multiple hats in order to go above and beyond in supporting unique client needs.
Life Coach & Counselor
Vinee Mehta, CFP, AIF, founder of Truly Unbiased, recently experienced this when a family he was working with experienced a tragic and unexpected loss. The family needed to sell their business immediately, and also required the funds to replace lost income.
Mehta wore different hats to support this family during a difficult time. The first hat was donned when advising his clients on how to sell the family business. The second: mapping out how they would generate monthly income, as well as long-term financial impacts. Last but not least, the third hat is one that many advisors wear regularly, which is providing a “shoulder to lean on and someone to vent to.”
Money can be a topic wrought with emotion, or one that is wrapped up in emotional circumstance. Given that, it makes sense that from time to time, advisors encounter situations where they feel like a counselor or therapist.
There is a growing segment of the industry that represents advisors who have experience in therapy. These advisors are called financial therapists. They integrate their clients’ cognitive, emotional, and financial well-being into their practice. The Financial Therapy Association explains that its members consist of “psychologists, marriage & family therapists, social workers, financial planners, accountants, counselors & coaches, students, and academics.”
Social Worker
Some financial advisors step into a role akin to a social worker. Charles Thomas, CFP, founder of Intrepid Eagle Finance, fell into this kind of position when one of his clients couldn’t decide on an appropriate guardian for their children. After going back and forth for several months, Thomas sat down with the couple. Together, they made a list of the qualities that would be vital for this role.
“We talked about values, resources, and other traits for the potential guardians,” he said. “Eventually, they were able to make a decision they were at peace with and felt good about their choice.”
Faber recently experienced the social worker role as well. His clients, a couple, shared their concerns about the wife’s grandmother. The grandmother was living in a home in disrepair, plus was potentially being exploited by other family members. Faber’s clients didn’t live near her, so he referred them to counseling resources and social services for further assistance; he will also be following up on this situation in future meetings.
“While dealing with this type of issue is not typically part of a financial planning engagement, it was clear based on our conversations that this was not just an important issue from the personal financial planning perspective,” said Faber. “They wanted to be able to provide financial support but it was also a health and safety issue for the grandmother.”
Interior Decorator
Advisors are called upon for their financial planning opinions, and sometimes even their opinions on non-financial topics are sought after. On one occasion, Thomas even provided some interior design advice. He helped a family save for their home remodel and was surprised one day to be called from the construction site. Not only did Thomas deliver the financial news the clients needed to hear, but he was also asked about paint colors for the new space.
This is another demonstration that advisors never know what kind of a situation they will come upon when speaking with clients; they must be as well prepared as they can be for just about anything.
Client Trust: A Bridge that Broadens an Advisor's Scope... and Hat Collection
As clients come to trust their financial advisor, they often unveil more of their personal and financial lives, including the messy and the complicated. For instance, Gorlick has been called upon to weigh in on medical decisions. While these are not necessarily things advisors prepare for, it can become a part of the job.
So, even though the Investopedia definition of a financial advisor doesn’t include interior decorator, therapist, or social worker, advisors who build strong relationships with their clients can find themselves as a crucial piece to how their clients navigate money and the often emotional aspects of it.
Advisors – what role have you found most interesting or rewarding to tackle with your clients? We’d love to hear your thoughts.
Interested in partnering with Trust & Will to enhance your own clients’ estate planning needs? Learn more about how you can join over 10,000 financial advisors and firms who are delivering peace of mind to their clients by offering a comprehensive estate planning solution. Schedule a free demo today.
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