In initial discovery meetings, financial advisors face the challenge of eliciting specific goals from new clients – a crucial step for crafting a comprehensive financial plan. Asking direct queries may elicit vague responses like “I want to be on track for retirement”, which tends to lack the detail needed to plan effectively and spark the client’s motivation to actually accomplish those goals. Moreover, probing into a client’s financial aspirations might inadvertently lead to negative emotions if past failures are brought to light, potentially eliciting feelings like anxiety, guilt, and shame that could ultimately hinder the client’s ability to discuss their goals openly.
If a client struggles to discuss their goals, one way for a financial advisor to redirect the conversation in a more productive direction could be to reframe the question with a positive focus; rather than being reminded of their previous emotional baggage around money, the advisor encourages the client to imagine a more hopeful financial future. For example, they can ask the client: “Imagine you had a magic wand that could let you change anything about your current financial situation – what would you change, and why?”
Techniques like the ‘Magic Wand’ question are effective because they are solution-focused; they emphasize envisioning positive changes rather than recalling the anxiety or frustration that the client may be experiencing because of the issue. This approach encourages the client to separate their goal from any emotional pain associated with that goal, helping them to focus on the actions they are able to take without the emotional burden of past setbacks. Not only can Magic Wand questions be used as an effective way to recover a conversation veering into negative emotional territory by shifting the mood more positively, but they can also be used to proactively initiate positive brainstorming sessions about financial goals and needs. And for client couples, the Magic Wand question is a gentle way to help partners reveal their individual financial concerns with each other by keeping the conversation light-hearted and solution-focused, steering clear of blame and other negative emotions.
The key point is that in a society where financial status often reflects on personal character, financial difficulties can provoke feelings of guilt and shame – and it may be easy for people to focus on those negative feelings instead of actionable improvements. For financial advisors, having tools like the ‘Magic Wand’ question can be invaluable for steering clients away from the emotional turmoil of their current financial issues and towards clear, solution-focused strategies for achieving their goals!
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