Podcast Episode 311: Let’s Have Some Awkward Financial Conversations

Part of being a good financial advisor is helping people navigate what can be awkward and uncomfortable situations in life related to their money. After working with hundreds of clients over the years, we’ve encountered quite a few of these situations. So how do we approach these moments? Let’s talk about what that looks like and what kind of conversations we’ve had for certain scenarios.

One situation that might require some difficult discussions is when a client wants to take a child off as the beneficiary to their account. There can be many different reasons for wanting to do this, but we’ve hopefully built a trusting relationship that allows people to feel like they can open up and have honest discussions that they might not want to have with others. These are conversations you need to have because every family is going to have different desires and needs for their children, and we always want you to remember that this is your money and it’s entirely your choice on how you distribute it.

Here’s another situation that happens from time to time. We have a couple we’ve been working with and they end up deciding to divorce. As you can imagine, that business relationship can become uncomfortable quickly and it’s up to the clients to decide what they want to do moving forward. They might want to continue working with the same advisor or get separation from the other party by finding someone else. No matter what you decide, make sure you have a plan because things are going to be a lot different when you’re single. And in many cases, it’s going to cost a lot more.

Another time when it might feel awkward for clients is when they get very emotional during a meeting with us. Usually, this occurs when someone has died and they’re thinking about the memories and those types of things. But money makes us all emotional and we have a lot of tough decisions to make during our lifetimes. What we want to provide is someone who you can trust, someone that will give you honest feedback on what you should do.

The last awkward situation we often encounter is when a client feels like they’ve made an embarrassingly bad financial decision. Maybe it was a bad investment or a dumb purchase or getting scammed. These things are going to happen so what we want to do is figure out where you are and what’s the best step to take next.

The bottom line is each of us is going to encounter some type of awkward situation in life related to finances. When you encounter those circumstances, it’s always great to have somebody there to coach you and provide you with the support you need. Our complimentary Money Map review is the best place to get started.

Here are some of the things we discuss in this episode:

0:51 – When a client wants to remove a child as a beneficiary.

2:47 – Working with a couple that is going through divorce.

5:50 – Dealing with someone who is very emotional during a meeting

7:41 – Client makes a very embarrassing financial decision.

12:45 –  Mythbusting with Matt: Shifting from stocks to bonds removes volatility

17:36 – Mailbag question on organizing finances after becoming a widow

19:23 – Mailbag question on 529 plans vs loans