Most financial advisors will tell you they know their clients inside and out. But study after study finds significant gaps between an advisor’s assumptions and what clients say they are getting from their advisors.

Amy Mullen, president of Money Quotient, Inc. and vice president at MQ Research & Education, recently did a study in conjunction with the Financial Planning Association about developing and maintaining client trust and commitment in a rapidly changing environment.

Here are some key findings:

• Seven out of eight financial planners (87%) believe they are open to discussing what clients value most in life, but only half of the clients (50%) believe their advisors are open to discussing what they value most in life.
• Ninety percent of financial planners believe their recommendations are based on a client’s personal goals, needs, and priorities, but less than half of the clients (49%) feel that way.
• Eight out of 10 financial planners believe they communicate to clients the importance of incorporating all areas of life when creating a plan, but less than half of the clients (47%) feel their advisors are taking that approach.
• Seven out of eight (85%) financial planners say they contact clients regularly to see what life changes may be affecting their plan, but less than four in ten (39%) clients say their advisor contacts them regularly.

What this data tells us is that as professional service providers, we’re so focused on the numbers — and mathematical solutions — that we forget to ask clients about their most important values and life goals. As a result, we’re missing at least half of the puzzle pieces, sometimes more.

This same message can be applied to accountants and CPAs. I know it can feel like a full-time job just getting your clients’ books in order so you can get tax returns done on time and correctly. But do you have any idea what they want most out of life? Do you know how to put together a life plan? A life plan is a living document that can help you and your client regularly assess their satisfaction in all aspects of their lives, not just investments and taxes.

Why Life Planning Should Come First

Traditionally, people don’t start working with a planner until after they’ve had some sort of financial windfall, life-altering event (death, divorce, disability) or runup to retirement. But how many people’s lives could be transformed if you could help them get their ducks in a row before these life-changing events upend their lives? You may be thinking this is a job for wealth managers and estate planning attorneys. Don’t sell yourself short.

Accountants have long been the financial “first responders” in their clients’ lives. How many owners of small and midsize businesses could improve their businesses and sense of well-being by undergoing a comprehensive life plan early in their relationship with their CPA?

Values-based Planning 

Values-based financial planning is an approach to financial planning that takes into consideration an individual’s unique values, beliefs and goals — in addition to their financial situation — to create a customized, sustainable plan. Unlike traditional or goals-based financial planning, which may not fully consider the role of personal values when making financial decisions, values-based financial planning aligns a person’s financial plans with their life purpose and goals. 

“A large portion of our society doesn’t like goal setting,” Mullen told me recently. “The word ‘goal’ can have negative connotations either because society failed in the past to reach certain personal goals or they’re in a work setting in which rigid performance goals are pressed upon them.”

Advisors of all types, including CPAs, should try to give clients a fresh perspective on goal setting that gets them excited about engaging. The key is to help them set goals that are “aligned with their values.”

According to Mullen, clients shouldn’t just say: “Retirement is a goal” or “Funding college is a goal.” We want them to picture a “wonderful retirement with the people they love, doing the things they like to do.” Ask them: “Where will you be? Who are you with? What are you doing?” This, she said, is a really fun way to help people shift their perspective around goal setting. “You could say, ‘Let’s set up some benchmarks that we can celebrate along the way to make reaching this goal fun and rewarding,’” she added.

You also want to talk about the timeliness of the goal. One thing we don’t do enough of as advisors is to take the time to recognize when clients are overwhelmed because they already have too much on their plate already. By helping them prioritize small, manageable steps, they are more likely to stick to, and reach, their goals.

Next Best Action (NBA)

I’ve found the Next Best Action (NBA) approach can be very helpful for goal setting. Start with the “why” to establish a significant and meaningful vision, then shift to the “how” by becoming focused on the process.

Once your client has a goal in mind, the NBA becomes the actionable step that keeps them moving forward. For example, if your client’s ultimate goal is to run a marathon, the “why” might be to lead a healthier lifestyle. The “how” could be something as simple as running a mile or simply putting running shoes on and walking around the block to get them on the right path. NBA creates positive momentum and helps clients stay engaged with the process, even when the big picture feels daunting.

You’re great with the numbers and clients trust you immensely. Consider small, manageable steps to becoming a more comprehensive advisor and confidante in their life. Start building your ROR (Return on Relationship) or the human side of advice beyond the numbers today!

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