Psychology of Financial Planning

CHAPTER 17Getting the Client to Take Action: Motivational Interviewing in Financial Planning

We all have clients who seem to get stuck at some stage in the financial planning process – perhaps a prospective client who disappears and who we do not hear from again, a client who won't adopt the financial plan, or a client who just doesn't follow our advice. In other cases, market fluctuations can cause our clients to get skittish about their investments and call us with a knee‐jerk reaction, wanting to make a change that goes against their best interests. There are two different scenarios here. The first is the client who starts their engagement with us. What can we do on the front end to keep them engaged, make decisions, and take action that is consistent with their plan? Second, what about the client who “ghosts” us or somehow strays from our plan for one reason or another? This chapter looks at both scenarios and how we can keep our clients on track, or get our clients back on track, to take action and move forward with their financial plan. One of the most powerful psychological techniques that has been adapted for use by financial planners to help their clients take action is motivational interviewing.

Motivational interviewing is a process used in a variety of patient‐ and client‐centered professions to help motivate individuals to adopt behaviors that are in their best interests [89]. Healthcare professionals, therapists, and educators have used this technique for decades, ...