Young advisors may feel – and face – an extra burden to prove their expertise to clients. After all, it can feel odd to create an estate plan that will impact a client’s grandchildren… when those grandchildren may be older than the advisor themselves! And while any advisor needs to determine how much detail to share when explaining strategic decisions, younger advisors may feel added pressure to prove their credibility. There is a definitive difference between actual and perceived capability, and young advisors may risk overcompensating by diving too deeply into the granular details of their recommendations.
In the 164th episode of Kitces and Carl, Michael Kitces and client communication expert Carl Richards discuss how young advisors can strike the right balance between complex explanations and simplicity as they build trust and social capital. Clients don’t just need to be accurately diagnosed – they need to feel accurately diagnosed. But walking through every page of a financial plan line by line could take up an entire afternoon and often isn’t necessary. So, how can advisors strike the balance of communicating competence without overwhelming clients?
A helpful approach may be to start with a simple, high-level summary, and then let the client guide the conversation from there. Then, when clients respond with their own follow-up questions, the advisor can elaborate, demonstrating the thoughtful analysis and care behind the recommendations. Along the way, regularly checking in (e.g., “Do you want more detail here?” or “Do you have any questions about what we’ve covered?”) ensures the advisor stays aligned with the client’s preferences and attention span.
Advisors can also offer the client options like, “Would you prefer to review the executive summary, or would you like to go through the full details?” This approach not only honors the client’s preferences but also signals that the advisor is prepared to explain the full scope if needed. For visual impact, advisors might also show a printed or onscreen version of a full-length plan, using it as a physical representation of the underlying work, even if the discussion focuses only on the highlights.
The reality is that a young advisor may be asked to explain their reasoning… at first. But with time and experience, those requests often decrease as credibility and trust naturally grow, and as clients internalize that the advisor is fully capable and competent. This reflects a broader truth in client communication: While technical knowledge is essential, the ability to adjust and simplify explanations based on the client’s needs becomes equally important over time. Knowing when to stop explaining – before overwhelming the client with more information than they need – can be just as important as knowing when to elaborate.
Ultimately, the key point is that deciding between complexity and simplicity is, itself, a complex and nuanced decision for young advisors. But by letting the client direct the questions and level of detail they want, advisors can showcase their competence while also building trust and credibility over the long term!
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