If you were asked to give only one answer to the question, “What do you think is the most important quality in a healthy relationship?” what would you say?
Our answer: communication.
There are, no doubt, other important and necessary qualities in a healthy relationship, like trust, honesty, and commitment to a common goal or end. But it all boils down to the ability to communicate freely and openly. Good communication means being on the same page and working as a team, which in turn makes problem-solving less difficult – and maybe even fun.
Think about instances in your workplace or with your spouse/partner where strong communication made everyone happier, more confident, and more productive. There are probably a lot of breakthrough moments that come to mind! Why wouldn’t the same strengths of communication apply to financial planning? Well, they do.
3 Ways Open Communication Can Strengthen Your Financial Plan
- Customize a Plan Consistent with Your Life Goals – there’s a difference between telling your financial advisor you want “growth,” versus explaining to him or her that you want to retire in 8 years, purchase a second home in Colorado, pay for your grandchildren’s college costs in 16 years, and that you have a family history of health issues that makes you want to plan for the unexpected. A good advisor can design a financial plan that takes all of your needs into account, and should be able to show you specifically how each aspect of the plan addresses your stated objective.
- Create Accountability – open communication and a detailed financial plan means you will have more data points on which to measure the effectiveness of your investment plan and make adjustments accordingly. If you fall short of a goal that you did not share with your financial advisor, then it’s impossible to hold them accountable. Making your goals clear means creating real benchmarks to reach for.
- Avoid Conflicts – communication can also reach outside of your relationship with your advisor – to your spouse and family. It is often very helpful to talk to your family about how the financial plan is structured, what to expect in the event of an emergency, who to contact if there are any questions, and how the assets will be divided and handled pursuant to the estate plan. More information means fewer surprises, and oftentimes less hardship.
Build a Relationship with a Wealth Manager
At WrapManager, we value good communication as one of the core tenets of our business. We aim to get to know our clients as much as possible, to build an understanding of how we can help and how we can build a plan that addresses all of your goals and needs. Discover how WrapManager might be able to help you today by telling us more about your life goals. Call us at 1-800-541-7774 or send an email to wealth@wrapmanager.com to get started.
