When an advisor meets a new client and gets to know them, they have systems in place to learn about their relationship with money, financial literacy and situation. Step one of the six steps of the financial advice includes building the relationship between the financial planner and client and step two involves collecting information before any advice is given. If step one and two are not established well, then the client will less likely accept the advice as the trust would not have been established.
Trust is built when there is interest in the other person's story through discovery questions. The planner will have interest in the client's family history, relationship with money, current situation, work habits, and future goals through curiosity . The focus on the client's past, present and future story needs to happen before the focus on numbers. The planner needs to remain curious rather than assume the client's story. Curiosity is the process of not knowing, remaining interested and asking open ended questions. Structured questionnaires can be used together with non structured questions. Non structured questions gives space for the client to tell the story beyond questions in the questionnaire. The planner will facilitate the process by using their skill to guide the client. Trust will increase the planners ability to gather complete and accurate information where appropriate financial advice can be provided. Trust built through curious and genuine interest in the client's story will show the advisor cares. Trust can also be developed through empathic listening, listening to non-verbal cues, active listening, eye contact, micro communication, and giving the client the space to expand on short answers through 'tell me more' questions. These communication strategies can build connection and deepen understanding in the client's story. Trust will increase the client's motivation to implement the strategies in the Statement of Advice. Have a desire to listen, remain curious and ask questions with empathy as people's view about money is personal and connected to an emotional story that won't be disclosed unless trust is built. Through curiosity, empathy and a genuine interest in the client's story, a stronger relationship between client and advisor will develop. The client will feel heard and respected.
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