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Writer's picturebkadelski

The 3-Legged Stool of Financial Planning

SCENARIO


When clients think about financial planning, they most often think about retirement planning. Early in your engagement, it is critical that you explain the importance of risk management.


TALKING POINT


Advisor: "Dave, your financial plan is like a 3 legged stool. Each leg of the stool represents the 3 primary risks you have in your financial life. You can live too long, die too soon or become sick or hurt along the way".


If any leg of a stool breaks, the stool will topple over. We want to make sure that we take care of these 3 risks so your financial plan does not topple over.


RESULT


Your client now understands that they must focus on more than just retirement planning as they go through the financial planning process.

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