September 2022

Written By Andy Hart

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The Power of Permission

Those of you who have children may know the experience of seeing the surprise in a child's eye when you respond to a bold request with the word "yes". They switch from uncertainty to delight instantly.

It's not too dissimilar to the reaction of a client who receives no pushback or caution after discussing a few different courses of action with us. Instead, we deliver a seemingly carefree response that they should feel comfortable proceeding with the "extravagant" option. A positive ‘yes’ if you will.

Like a child trained over time to hear the word "no", many clients are conditioned to expect words of caution, encouragement to practice frugality, or worse yet, a firm "no" from their financial adviser.

They are often taken aback when we reply to an exciting possibility with a confident affirmation. Granting permission in complex areas is a privilege we cannot take for granted. Once approval has been given, the client is now in a position where they have to take the discussed action. However, this is where humans automatically go into procrastination mode. Fear of the unknown kicks in, and they feel they are creeping out of their comfort zone and into their stretch zone.

The Power You Hold

Many of our clients have been conditioned by parents, society, and even our advice to associate spending with negative emotions. These money mindsets are embedded firmly in their psyche and often lead to them living much worse lives than they could be.

I've seen this be the cause of much inaction. Clients approach me with a decision they need to make, often giving away what it is they'd really like to do. Regardless, they become paralysed, unable to take action.

The stereotypical response is to suggest analysis, careful consideration, and a cautious approach that prioritises "tomorrow" over "today". But often, the correct course of action is evident to all parties, and while it may seem like an extravagant use of their money, what they're after is permission from a trusted, independent party.

So often, clients need nothing more than permission to live the lives they want to. Many of the families we help have more money than they'll ever need, and it becomes our privilege to nudge them towards a more meaningful life.

While these opportunities will often involve the spending of money, they may not always do. But armed with an understanding of this role, you'll notice these opportunities way more often.

Become A Permission Granter

I believe we are doing our clients a disservice if we don't fully appreciate our power over their lives. If we operate with the mindset that our role extends only as far as the technical advice we are qualified to dispense, we'd be selling ourselves short and reducing the impact we can have on the lives of the families under our care.

So often, all they need is our permission. I encourage you to remember this and be open to the opportunities to provide it when the time comes. When we do this, we do so not at the expense of sound technical advice but at the gain of seeing our clients live better, more fulfilled lives when they can afford to do so.

📰 Articles & Blogs

​​​​​​​​3 High-Value Questions that Turn into Valuable Conversations [3 minutes]. True value comes when one or both parties begin to take new actions.

​Why Clients Put Off Planning [4 minutes]. Temporal discounting is real and powerful. Overcoming it takes awareness and effort.

​Full U [4 minutes]. What it would look like to be more you?

​The Best Questions to Ask Prospects in a First Meeting [13 minutes]. An incredible and well-organised resource.

​Discover how to run magical client review meetings year after year [4 minutes]. How do you keep financial planning review meetings fresh, insightful, and inspiring, year after year?

​Should You Die With Zero? [5 minutes]. A fresh take on one of our profession's oldest questions.

🎧 Podcasts

​​The Advisor's Guide To Money And Behavior with Dr. Brad Klontz [99 minutes]. How to apply pyschology to real-life client scenarios.

​Gary Klein: Insights For Making Better Decisions [89 minutes]. How and why people make the decisions they do.

📚 Book Recommendations

​Dopamine Nation: Finding Balance in the Age of Indulgence by Dr Anna Lembke. Our world is addicted to fleeting distracting pleasures that get us nowhere. This book provides a clear way back to a balanced life.

Andy Hart
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