Journal of Financial Planning: June 2020
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Working with clients can be stressful, even in the best of times. As financial professionals we want to do what’s best for them and when our “assumptions” don’t hold up, it’s easy to beat ourselves up if the plan goes awry.
When Crisis Strikes
Notice that I didn’t say “if” crisis strikes. Over the course of our lifetime, most of us will experience some type of crisis, and it’s likely we’ll have to help our clients stay grounded when the plan appears to be falling apart.
This shock to the system the two of you have created can destroy even the best of financial plans and possibly damage your relationship with the client. Their confidence in you and your ability to handle the situation can have a negative impact on your continued engagement. So, what can you do when life happens, and you and your client must navigate circumstances that go beyond what either of you could have anticipated?
Dealing with Emotions
Begin at the beginning. What is going on for you during this time? How have you prepared yourself for the situation at hand? If the situation is beyond what you could have imagined, consider what you have done in similar situations and reflect on what worked well and what you could have done differently.
The important thing here is to explore what is happening with you before you connect with your clients. Consider the relationships you have with them and how they perceive you and your role in their lives. You are their trusted adviser so before you act, think about what they need most from you at this crucial time.
A coach’s role is to embrace what is and focus our attention on what we want to create. Our main focus is to establish a safe and supportive space for the client to have their full range of emotions and pause to decide how to respond. Of course, this sounds great right up until the moment you are on the phone with them and everything seems overwhelming. What can you do when your client needs you and you are feeling stuck too?
Just stop. Just for a moment. Stop and take inventory of how you are thinking about the situation. If you are feeling overwhelmed, connect with someone who offers you the support you need to get back on track. Lean on the people you can trust to be a sounding board to express your fears and concerns. Take the time to explore your reactions and how you want to respond.
Remember your “why.” Reflect on the reason you do the work you do. What inspires you about working with clients? What impact do you have on the clients you serve? We know having a financial plan is important, and we also know that there are many options. What made them choose you? This simple exercise is valuable at any time because it reminds us of two important things: what is important to us, and what is important to our clients.
Be flexible. The only constant is change, so when crisis hits we can focus on ways to build our resilience to handle the unexpected. To support the client’s resilience the coach focuses on:
- Client empowerment: Use the clients’ strengths and personal power to develop or revise their plan. Invite them to reflect on a time that they faced uncertainty and met the challenge.
- Choice: Present options allowing clients to choose the option(s) they prefer. If the client is experiencing traumatic stress, choice can reduce their anxiety. Co-create the options by brainstorming together.
- Collaboration: Maximize a sense of collaboration. Partner with your client to determine the measure of success and what to do if things don’t go as you plan or expect. Embrace the uncertainty.
One of the strengths of a coaching approach is that we approach each situation as though it is a first-time encounter. This allows us to stay in the present moment and embrace the situation exactly as it is and hold focus on a better future.
Saundra Davis, APFC®, FBS®, is a U.S. Navy veteran, financial coach, educator, and consultant. She is nationally recognized as an expert in the financial coaching field and for her work with community-based organizations that focus on asset building for the working poor. She is the founder and executive director of Sage Financial Solutions, which develops comprehensive financial capability programs for low- and moderate-income communities.
This article appeared in the May issue of the FPA Next Generation Planner, for which Davis writes a regular coaching column. Email your coaching questions to Davis and she might answer them in her next column. Access the FPA Next Generation Planner via the FPA Publications app in the Apple App Store or Google Play.