Financial planning has long been viewed as a static, one-time event—a snapshot of your financial life at a given moment. However, this traditional approach often leaves clients disengaged and disconnected from their financial futures. Enter the action planning effect, a dynamic approach that involves the client as the core.

Plans are typically presented in a meeting, discussed briefly, and then cast aside, rarely to be looked at again. Why? Because these plans are not designed for ongoing engagement. They are static, rigid, and do not reflect the complexities of real life and they don't allow the client to participate.

Advisors have goals too. Their engagement in the planning process is motivated by achieving their planning goal, or the reason why they are going through this process with somebody. I like to think it's to help the client down one of two paths. Either the client needs to walk away happy or the client needs to change some behavior. I believe the Action-Planning Effect is the achievement of this simple way of looking at an advisor's planning motivation.

The Action-Planning Effect

When all three aspects of Action-Planning Attitude are combined (Specificity + Advisor Showcasing + Client Empowerment), a powerful synergy I call the "Action-Planning Effect'' comes into play. I’ll break down this chain reaction:

1. Emotional Investment

The process begins with identifying and prioritizing the client's goals, the very reason they sought financial advice. Clients become emotionally invested in their financial plan when they see how it aligns with their aspirations.

2. Sense of Ownership

Clients actively participate in the plan-building process, putting their "skin in the game." By engaging hands-on with various scenarios, clients develop a sense of control and ownership.

3. Trust in process & methods

Trust gradually builds as clients start to see tangible progress toward their goals. Emotional investment and ownership are pivotal in forging this trust. Without them, clients may lack the commitment to place their faith in the advisor's expertise.

Why Trust Matters

The process of building trust through Action-Planning is what sets professional advisors apart from those who merely dispense instructions. Trust is the answer to why advisors don't just dictate decisions to clients. Trust is the foundation upon which a lasting client-advisor relationship is built. However, it must be earned through emotional investment and a sense of ownership. Clients who trust the process without these elements may lack loyalty and may easily believe that they can obtain similar services elsewhere.

Beyond the individual client-advisor relationship, Action-Planning also has a macro effect, influencing both how individuals perceive the planning process and how communities view the financial planning profession. Micro Effect is at the individual level, Action-Planning shapes how clients react to the planning process itself. It fosters a sense of empowerment and engagement. Macro Effect is a broader scale, meaning Action-Planning influences the perception of financial planning within communities. It underscores the importance of planning and organizing one's financial life. It reinforces the notion that advisors are skilled professionals.

The Way Forward

As professionals in the financial advisory field, we should not only be concerned with the success of our individual clients but also with the broader perception of our profession. The more clients understand the value of planning and recognize the expertise of advisors, the stronger our profession becomes.

Action-Planning, with its focus on specificity in scenario planning, showcasing advisor expertise, and empowering clients, is a pivotal tool in shaping these perceptions. It allows consumers to differentiate between a professional fiduciary and others.

​In conclusion, Action-Planning Attitude is more than just a strategy; it's a philosophy that drives success in the world of financial advisory. By fostering emotional investment, ownership, and trust, advisors can create lasting relationships with clients and enhance the reputation of their profession in the eyes of the community. In the end, it's a win-win for both advisors and their clients.