As we get ready for a new year, it’s the perfect time to make reflections on the year that’s nearly behind us. Reflection allows us to make conscience changes for our future. We all recognize the future is uncertain. Financial planners’ help others plan for their future. It is important that financial plans, like our life plans, are continually reflected upon and corrections are made when things are found to be veering off course.
This blog post, in The New York Times blog Bucks, does a great job of highlighting the inherent weakness of trying to project a client’s financial future, and steps you can take to help overcome that weakness. When clients ask you about the future, the response ‘I don’t know’, is not a bad answer, in fact, it’s often the only correct answer. I highly recommend taking a few minutes from your day to give this post a read.
The lesson all planners can take away from this article is to set clear expectations for your clients. Plans for the future are uncertain. One or two meetings to gather information to create a plan and a sit down to deliver and discuss a financial projection doesn’t mean the clients financial future is laid out in stone. Planning means constant evolution. The best plans continue to be adjusted based on new information, helping smooth the bumps and navigating the sharp turns found are unexpectedly found along the road to a successful financial future.