Do you go to your financial planner, ask for advice, and then don’t follow his or her advice? Do you wonder why is it that you just can’t reach your financial goals?

I have come to the realization as financial planners, we should treat our clients like psychiatrists treat their patient. We must provide advice that clients can follow. Offer interventions that’ll be respected. Plan with our clients until the desired result is achieved. And follow up to ensure everything is going as planned.

Whose fault is it anyway

Out of every hundred patients getting medicine prescribed, a 1/3rd of them won’t even fill their prescription. The remaining 75% who fill the prescription, will either take their medicine incorrectly, forget to take it entirely or they’ll stop taking it before it runs out. Now, who’s at fault – many doctors and pharmacists would argue it is only the patient’s fault.

When it comes to financial advice, I believe we should take a more hands-on approach to our client’s success of outcomes. I would argue that many clients fail to reach their goals because we fail to provide advice that is appropriate to a client’s unique and changing circumstances.

The right advice for you

I have found this even in my own finances, sometimes my goals are just not realistically achievable, and it is not always that it can’t be done, but most of us often succumb to life’s temptations. It is understandable because we live in a society where we are constantly tempted to spend, buy, and borrow. It truly takes a herculean effort of the mind to stick to a financial goal in the 21st century. Therefore, I prefer advice that clients are able to follow and goals that are achievable. 

So how do we determine what is achievable? You should start by being realistic. If you want to save for a dream holiday in 12 months but you have kids at school, debt to pay off and zero funds saved for an emergency, then perhaps the dream holiday should wait a couple of years. Take a shorter vacation – save a little money for a longer period. I know it’s difficult but wait to take that dream trip to the Amalfi Coast in 5 years. Push yourself but look at your budget, leave room for unforeseen expenses and adjust your goal as you go along.

You’re not Tiger

Tiger spent an unbelievable amount of time and effort on getting good at golf, he showed grit and perseverance where others would have given up. So, when he came back after injury to win another major, that was in large part due to the many years of effort he put in long before his remarkable comeback.

You might want to stop working at 55 with enough money to afford you a comfortable life after retirement. But if you didn’t start saving early enough, you might not be able to retire at 55. The strategy your financial advisor offers must suit your ability and means. There is no point in setting a financial goal if you aren’t really able to achieve it. Now, this does not mean your goal can’t be reached but understand drastic decisions might be necessary. You would need to spend less, save more, increase your income, or adjust your goal.

My point merely is, bring your expectations in line with your ability or raise your ability to reach your expectation.

Teamwork makes the dream work

Now you have a goal, you have a plan and know how to achieve it, you are finally halfway there. To take it back to my original analogy of people following their prescriptions correctly. We know what is wrong, you have the prescription, you got the medicine, and now comes to the tough part, actually taking your medication as prescribed.

Implementation of your plan is not just up to you, yes you have to do the heavy lifting and the hard work, but your financial planner needs to be involved to ensure you reach the desired result. The reason for this is, your circumstances or even needs might change. A financial plan is not a once-off document but a work-in-progress. Many internal and external influences and unknowns can have an effect on your ability to reach your goal. There is no better example than COVID-19, we could not foresee something like this happening. COVID had and will continue to have a massive impact on the world economy for many years. This is where your financial planner should be your first call, you must assess your current plan, adjust if necessary and implement a new plan.

Follow-up is the key

What I’ve seen over the years is that following up with my clients is essential to ensure everything is going as correctly and according to plan. Depending on your specifics need this might mean you have to meet with your planner at least once per year, but definitely not less than that. These days this can be an online meeting, but what is essential is that you touch base and follow-up to see if you are still on track to meet your goals. I see too often people change jobs, have children or buy houses and not inform their financial planner. Big financial decisions could add risk to your portfolio or decrease your ability to stick to your long-term goals.

Should you only remember one thing from this article, may it be to inform your planner of any significant financial decisions you make. The success of your current goals depends on following up, and part thereof is telling your planner of changes in your personal circumstances.