Hidden Value: How to Put the Brakes on Out-of-Control Spenders

Lauren Laferla, PR & Content Marketing Manager
January 24, 2019


Hidden Value is a column in ThinkAdvisor where Joe Elsasser, CFP®, answers common questions with insights advisors and their clients may not have considered. This week he discusses clients who overspend. Clients who overspend are among the most difficult clients to work with, however they arguably need your advice the most. In this week's column, Joe takes a closer look at the early warning signs and the best ways to combat overspending. 

Here's an excerpt.

"Excessive spending is not good for the client or your practice. However, it is a crucial role of the advisor to help the big spenders see the long-term ramifications of their actions, and offer suggestions to minimize the impact. Ultimately, advisors should strive to collaborate with their clients, and empower them to make positive choices that will help them reach their goals."

The best way an advisor can combat overspending is by repeatedly showing the client the ramifications of overspending. At every meeting, show the impact of the client's spending habits with real numbers. Ultimately, you need to work together with the client to add value.

"Advisors should collaborate with their clients and show them alternatives that might be better aligned with their future goals. If your clients know that you will add value by helping them do what they want to do, then they will be more open to positive coaching when what they want to do could have disastrous long-term effects."

Read the article in its entirety.

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Posted by Lauren Laferla, PR & Content Marketing Manager
Lauren is a content marketing enthusiast with a love for storytelling - on camera, in writing, and through others. She has a robust communications background that includes: public relations, content creation, internal communications, digital marketing, and copy editing. Driven and motivated, Lauren holds a bachelor's degree in English and is an avid reader.