Make your financial planning points with clients using a message that hits close to home.
Many Americans claim to exercise. Shape magazine reports how Timex surveyed 1,000 people and found 73% of Americans report working out one or more times a week. (1) The wealthier work out more. According to Popular Science , 11.8% of people living below the poverty level don’t exercise enough vs. 34.3% making 600% of that threshold. (2) Theoretically, it’s popular.
Meanwhile, according to the Center for Disease Control, only 23% of Americans get the recommended amount of exercise per week. That means 77% don’t. (1) CNBC reports , 78% of Americans are concerned about not having enough money for retirement. (3) Those numbers are amazingly close.
You know we live in a world built on immediate gratification. The ad on TV telling you to get your body “beach ready for summer” is followed by the Mercedes or Audi ad. We want to be buff. We want to be rich. We just don’t know how to get there. We see people who “Still have the first dollar they ever earned.” We see people in great shape. We want to be like them, so we get a personal trainer or talk to a financial advisor.
Related: Five “One Liners” When Advisors Attend Parties
Sixteen Analogies to Make Your Point
You’ve got a client who wants to build wealth . They likely work out too. These points should help getting them behind your strategies. Long Term Goals. At the gym , you know what you want to accomplish. You want to lose weight. Increase stamina. Look better. When building wealth you want a comfortable retirement or enough money to buy a house. You need help. At the gym, you hire a personal trainer. They keep you focused, working towards your long term goals. They help you maintain proper form. You commit. Buying their expertise costs money. When building wealth, you should get better results when you work with a financial advisor. They understand you and your goals. They put you on the right path. Buying their expertise costs money. Commitment. People have short attention spans. It’s easy to skip going to the gym if the sun is out and you want to goof off. You make the effort because your trainer is waiting for you. You are paying them. When building wealth it’s easy to say “I’ll skip putting money aside this month.” Your financial advisor helps hold you accountable. Pay yourself first. It makes sense to go to the gym first thing in the morning. Get it out of the way. When building wealth putting money aside for investment should be among the first bills you pay each month, not what you will do with anything left over. Routine. When going to the gym, it makes sense to have a routine. Go at the same time. You see familiar faces and encourage each other. When building wealth it makes sense to commit to putting money aside every month, not waiting until your bonus gets paid. No pain, no gain. You’ve seen those folks at the gym who walk at a sedate pace on the treadmill. They wonder why they don’t lose weight. You need to sweat and push yourself to get results. Your trainer reminds you. When building wealth , you quickly discover the lowest risk investments also deliver the lowest returns over time. Getting into the stock market involves taking on risk, but the potential for gains is greater. Measurement. With diet plans you are weighed regularly. At the gym you see your waist gets smaller and your clothes fit better. It’s encouraging. When building wealth it’s important to measure progress to goals often. Diet and exercise. Getting into shape isn’t just working out at the gym. It’s doing cardio, eating well and getting enough sleep too. When building wealth you might not be allocating time, but you are allocating assets. Fixed income and cash reserves complement stocks like diet and cardio complement weight training. Diversify. At the gym , you don’t just focus on one of two body parts. When building wealth , you aren’t focusing exclusively on one industry or even one asset class. Your advisor encourages diversification. Try new things. At the gym, exercise gets boring if you do the same thing every time. Your suggests other exercises that work different body parts. When building wealth, your advisor keeps current on sector rotation and other developments when a change looks like it will make sense. Hide your assets. At the gym, some people who are committed dress in baggy clothing. They don’t draw attention to themselves. They are there to exercise, not show off. When building wealth, resist the temptation to use investment assets to buy a flashy car or otherwise show off how much money you’ve got. Focus. Exercising regularly is a lifestyle choice. Many people at the gym are focused on getting their workout done, not just socializing. When building wealth you can’t decide since the stock market has done well, you can stop investing monthly or take profits to buy shiny new toys. Focusing on the goal and continuing to invest means you might reach your goal sooner. Encouragement. At the gym, people hit plateaus. Your trainer helps you power through. When building wealth, there are times when the market goes down and you feel like selling everything. That’s when your advisor talks about cycles and the importance of buying when others are selling. Persistence. At the gym, you can feel stuck in a rut. The routine has become, routine. You aren’t motivated to show up. Your trainer finds ways to make your workout interesting. They switch things up, but you are always doing the right amount of stretches, weights and cardio. When building wealth, the market might be going sideways. Maybe real estate or gold coins is a better alternative. Your financial advisor helps you consider the options while giving you reasons to stick to your plan. Fees paid. G ym memberships are often all inclusive. If you go every day on once a month, you pay the same fee. You are motivated to get your money’s worth. When building wealth, you might be using professional money management or asset based pricing. Your financial professional’s advice is included in the cost. You would be foolish not to ask questions, get your money’s worth and act on their suggestions. I don’t need you. Once you’ve achieved some success at the gym you might say, “I don’t need a trainer anymore. I don’t even need to go to the gym.” You slip backwards and get out of shape. When building wealth you might say: “I don’t need an advisor anymore. I’m ahead so I don’t need to save anymore, either.” You lose ground. You don’t act, but you react to events.
Lots of prospects and clients are gym regulars. These analogies should hit home and make the case for following your advice . https://www.shape.com/fitness/do-you-exercise-more-average-american https://www.popsci.com/american-exercise-guidelines-charts#page-2 https://www.cnbc.com/2018/08/27/1-in-3-americans-have-less-than-5000-dollars-saved-for-retirement.html