Your Clients Don’t Have Investment Problems

Amar Pandit , CFA , CFP

Amar Pandit

A respected entrepreneur with 25+ years of Experience, Amar Pandit is the Founder of several companies that are making a Happy difference in the lives of people. He is currently the Founder of Happyness Factory, a world-class online investment & goal-based financial planning platform through which he aims to help every Indian family save and invest wisely. He is very passionate about spreading financial literacy and is the author of 4 bestselling books (+ 2 more to release in 2020), 8 Sketch Books, Board Game and 700 + columns.

I was listening to a podcast recently and a seasoned financial advisor in the US said, “I don’t have clients with investment problems. I have investments with client problems.”

While it was not a new concept for me, the way it was articulated was simply mind blowing. I heard it a few times.

Think about the difference.

When we believe clients have investment problems, our instinct is to improve the portfolio. We search for better funds, better asset allocation, better products and better returns. The investment quietly becomes the center of the conversation.

But what if the investment was never the problem?

What if the real challenge is that the client is anxious about retirement, worried about a child with special needs, struggling to let go of a family business, navigating a difficult marriage, caring for ageing parents or simply unable to sleep peacefully despite having more money than they will ever need?

The portfolio hasn’t changed… The person has.

The most important point is when the person changes, the investment must serve that new reality.

That is why I strongly believe that our profession is not really in the business of managing money. We are in the business of understanding people.

Investments are simply one of the many tools we use to help them build better lives.

The irony is that the more deeply we understand the client, the simpler the investment solution often becomes. It is only when we don’t fully understand the person that we begin compensating with increasingly complicated portfolios.

If you want to move from being a product expert to becoming a trusted wealth professional.

Stop asking, “What’s wrong with this portfolio?”

Start asking, “What has changed in this person’s life that this portfolio now needs to serve?”

Clients rarely have investment problems. More often, investments are simply trying to solve human ones.