At the first meeting I had with a client of mine, she brought her daughter. I was surprised because Sue hadn’t indicated that her daughter would be present.
I explained to Sue that the meeting would be pretty exhaustive. We would be talking about all kinds of personal financial details: her current portfolio, financial goals, and legacy plans. We would also be discussing her contributions, cash flow, expected returns, and more. That meant her daughter would be privy to all of those details.
Sue raised her eyebrow at me and said: “Well, yes. That’s the point.”
Sue was 67 at the time. She was (and still is!) in great shape, mentally and physically. But dementia runs in her family, and she was concerned that there may come a time when her memory might start to slip.
Sue wanted someone she trusted to have the full context behind her financial plan. She wanted this trusted person to feel confident in helping her make decisions down the road or remind her of decisions she already made. Including her daughter in all of our meetings and email chains meant she completely understood why her mother was making certain choices and could explain things to her mom if needed, whether today or down the road.
It made perfect sense.
Now, I recommend this strategy to many of my clients.
Why?
Imagine you are a client of mine.
We go through the 5-step Pulse Process where we develop a fantastic financial plan, and you are well on your way to achieving your financial goals. As part of the plan, say we decide to increase your contributions to a particular investment vehicle.
Six months later, you are reviewing your bank statements and see an increased withdrawal. You can’t remember agreeing to this. You look over your financial plan and see the increased contribution but still can’t remember why the decision was made.
You call your child, who was with you throughout the process, and they explain that the contribution was increased to take advantage of a tax break. They facilitate a meeting with me, and I explain that the increased refund will be re-invested – essentially, compounding your returns so that you can leave a larger legacy to a charity that has been close to your heart for your entire life.
A few years later, imagine you start to suffer from mild dementia. One of the first symptoms of dementia is confusion around finances. Many people change their minds or make financial decisions they wouldn’t have otherwise made. You call me and advise me to reduce your contribution to zero. You’d prefer the extra cash flow, you say, to invest in a business opportunity.
Your child can remind you of your motivation for compounding those returns: the sizeable donation to your beloved charity. Coming from me, your financial advisor, this reminder would hold little to no water. As your advisor, I am compelled to execute decisions as you direct me. But your child knows you, understands what your goals have been since the beginning, and can provide you with important context.
Your child can say:
“Remember the little girl you’ve supported for five years through the charity?”
“Remember the postcard she sent you last year thanking you for your support?”
“Are you sure you’d rather invest in this multi-level marketing business instead of increasing your estate like you’ve always planned to?”
I can’t say any of that.
Having a Trusted Financial Care Partner with you throughout the process of establishing your financial plan can mean the difference between complete understanding and peace of mind and disappointment and confusion.
I welcome the opportunity to work with my clients’ Trusted Financial Care Partner. Book a call with me, and we can get your trusted person up to speed.