Why advisers need to do more to encourage clients to have open conversations about money

Financial advisers may be skilled at helping their clients make the most of their money, but it is just as important to help clients share their hopes and dreams not just with their adviser, but also with their loved ones, according to financial advice firm Continuum.

If advisers do not have the emotional and practical intelligence skills to help their clients open up about their dreams, it is much harder for them to put a financial plan in place to help them achieve them.

These softer skills are often more valued by clients than technical expertise.

When we asked over 2,000 Brits what is most important to them when it comes to choosing an adviser, 52% said trust and credibility and 32% said personalised advice and quality of service. This compares to just 26% who valued expertise and qualifications the most highly.

Martin Brown, Managing Partner at Continuum, said:

“Financial advisers are skilled at helping their clients make the most of their money, but without truly understanding the hopes and dreams of their clients, are they really doing all they can to help them achieve their goals?

“It is part of the role of a good adviser to help clients open up, so they can plan their finances to achieve their goals.

“Technical skills are absolutely essential, but I would argue soft skills are just as important. Developing and growing meaningful client relationships not only helps you understand what makes them tick and what behavioral biases they may have, but can also ensure that the long-term plans you put in place together reflect their dreams for their retirement.”

Talking about money can be very difficult but financial advisers are also in the perfect position to help their clients have sensitive conversations with their loved ones.

Martin continued: “Research shows that people who are able to talk about money make better financial decisions, feel more in control, have stronger personal relationships and help their children form good lifetime money habits.

“Finding a way to talk about money is important, but money talk can be incredibly frustrating and emotional.

“Advisers should help their clients talk about their dreams and fears with their nearest and dearest. At Continuum our advisers are always keen to help facilitate conversations around money with clients family members, and can help both their client and those they hold dear talk about their finances and their dreams for the future.”