121: A Playbook To Master The Human Side of Advice with Michael Kitces

Sep 4, 2024

Michael Kitces, Head of Planning Strategy at Buckingham Wealth Partners and co-founder of XY Planning Network, shares invaluable insights into financial advising. He discusses the crucial skills needed to master the human side of advice, emphasizing the importance of empathy and understanding clients' true goals. Kitces reveals the reasons clients might not communicate their needs effectively and highlights the impact of branding choices—like his signature blue shirts—on professional identity. Learn how the three-year mark reshapes advisory practices and the delicate balance between technical knowledge and emotional intelligence.

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ANECDOTE

The Farmer's Heart Attack

Michael Kitces recounts a story from his EMT days about a farmer who downplayed a heart attack as a twisted ankle.
Kitces's follow-up questions revealed the farmer had fallen multiple times, leading to immediate, life-saving intervention.

INSIGHT

Uncovering True Goals

Clients rarely articulate their true financial goals initially, often presenting generic targets.
Advisors must delve deeper, questioning the 'why' behind stated goals to uncover underlying motivations and needs.

ADVICE

Marketing Behavioral Finance

Avoid marketing based on fixing client emotional errors.
It can be perceived negatively and implies clients are incapable of managing themselves.

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When you want to learn something about financial planning and advice, the ultimate source is Michael Kitces.

Most people know Michael is a spreadsheet-loving, technical wizard.

What most people don’t know is that he also fully believes in the human side.

In this episode, Michael explains the skills and processes advisors need to know on the path to mastering the human side of advice.

You’ll Learn:

What Michael says is the #1 skill for financial advisors
The drawbacks to marketing the human side to prospects
Why you can’t believe clients when they tell you their goals
Why Michael only wears blue shirts (and how many he owns)
The method Michael uses to uncover what clients really value
Why the 3-year mark changes everything for an advisory business

And more!

*To sign up for Brendan’s monthly newsletter focused on the human side of advice → Click Here

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About Our Guest:

Michael E. Kitces, MSFS, MTAX, CFP®, CLU, ChFC, RHU, REBC, CASL, is the Head of Planning Strategy for Buckingham Wealth Partners, a private wealth management firm located in St Louis, Missouri, that oversees approximately $50 billion of client assets. In addition, he is the co-founder of the XY Planning Network, AdvicePay, fpPathfinder, and New Planner Recruiting, former practitioner editor of the Journal of Financial Planning, and the publisher of the e-newsletter The Kitces Report and the popular financial planning industry blog Nerd’s Eye View through his website www.Kitces.com, dedicated to advancing knowledge in financial planning.

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