One of the core challenges of financial planning is that it requires both in-depth technical knowledge and the ability to connect those technical skills to a client’s personal, long-term goals. There are many tools to assist with the technical side, but far fewer to support the personal side – which often represents the deeper motivation behind a client’s decisions and goals, and the greatest opportunity for advisors to do meaningful work for the client. Yet it takes considerable skill and care to begin these conversations in a productive way.
In this 175th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss how Carl’s upcoming book, “Your Money: Reimagining Wealth In 101 Simple Sketches”, can serve as a powerful propellant for conversations about what money really means to clients. In this episode, Carl shares several of his illustrations, including the following:
“Real Financial Planning”: a Venn diagram of “Your Money” and “Your Life”, with the overlap labeled “real financial planning”. Financial advisors often help clients navigate money questions through the lens of life questions. Because money and life aren’t either/or issues – they are constantly in conversation with each other, from decisions around careers to decisions about spending. The challenge – and opportunity – for advisors is learning how to navigate both conversations at once.
“Money Isn’t Just Math”: contrasting advice from an algorithm (a straight line) with real life (a scrawled mess). While the math behind what a client should do may be (relatively) straightforward, the reality is often more complex. For example, retirement planning doesn’t just mean running the numbers; it also involves navigating complex family situations, evaluating long-term priorities, and balancing the tension between enjoying wealth and preserving it for heirs.
“Range Of Outcomes”: showing “Now” as a singular point and “The Future” as many diverging paths. While advisors plan for various contingencies, it’s impossible to predict what will happen between now and the future. Unexpected market changes or life events can alter priorities and plans. One of the core values of good financial advice is that, when change happens, the advisor has helped clients prepare for it – and can help them adapt.
Ultimately, the sketches from Your Money can create an open space for reflection, vulnerability, and connection between clients and their advisors. Used thoughtfully, they can serve as powerful visual aids, gentle encouragement, or simple conversation starters. Most importantly, they invite conversations not just about money itself, but about how it shapes the emotional and practical corners of a client’s life – helping deepen the advisor-client relationship and bringing greater clarity to both money and purpose!
