October is Financial Planning month, and it serves as a timely reminder of the importance of planning. The fundamental purpose of financial planning is to help clients clearly understand their goals and make the best decisions to move towards those goals. With uncertainty in the markets, clients can lose focus and feel compelled to make moves that are not aligned with their goals.
The stock market is uncertain; account values fluctuate. Investment performance, government programs, careers, health, etc., will likely change significantly with time. Goals and priorities will change as well. While clients might fear changing variables in their plan, it’s important for them to know financial planning is a process. Plans change, but the purpose of planning to help clients take the next best steps to support their goals remains the same.
With a focus on planning, advisors can direct clients’ attention to what they can control, and ease concerns about what they cannot. While the market falls outside of client control, their investment strategy does not. Planning serves as a powerful reminder to clients that their investment strategy is designed to support their goals and a powerful motivator for your clients to take the next best steps towards a successful future.
