PFP2504. What Your Clients Aren’t Telling You Can Hurt You (and Them)
Ever wonder why your clients make head-scratching financial decisions, often directly in opposition to their stated goals and plans? The answer lies in getting beyond their numbers-based goals and into the gray area of exercising your professional judgment.
In a world where technology has automated many technical tasks, personal finance professionals’ most valuable asset is their professional judgment, combined with the skills to effectively communicate their thoughts in a way that enables clients to understand and, most importantly, take action. Judgment transcends technical skills, requiring experience, ethical standards, and practical wisdom to address ambiguity, trade-offs, and complex ethical dilemmas in volatile and uncertain contexts.
This panel will explore the crucial intersection of communication dynamics and professional judgment. Drawing on insights from leading thinkers, we will examine decision-making's reflective and adaptive nature in uncertain environments. Judgmental errors—rooted in subjectivity and ambiguity—can have significant consequences, making developing skills that minimize their occurrence imperative. To succeed in this effort, we must understand clients’ genuine concerns, both spoken and unspoken, so we can contextualize our advice and align our professional recommendations with their distinct circumstances.
Learning Objectives:
- Understand the role of complexity in driving the need for professional judgment.
- Recognize how client narratives shape the context of professional judgment.
- Identify the risk posed by unspoken client concerns to professional judgment.
- Apply tools and techniques to increase client comfort and engagement, shifting conversations from the red zone (discomfort) to the blue zone (safe and welcoming).
