The Importance of Getting Clients to Take Action

In this podcast episode, the hosts discuss the significance of getting clients to take action in financial planning. They highlight how financial planners often encounter the frustration of clients not moving forward with recommended actions, despite being paid to provide advice. The hosts explain that the topic of client action is a recurring issue in their work with advisors and firms. They approach this topic from two angles: how to motivate existing clients who are not making decisions and how to set up new clients for proactive action from the start. They introduce motivational interviewing as a framework for guiding clients towards adopting behaviors that are in their best interest. The hosts outline the six stages of the change process and emphasize the need for planners to be mindful of where clients are in these stages. They underscore the importance of avoiding confrontational approaches and giving advice aligned with clients' readiness for action.