1. Lack of Assets and Expense of Service
Many people feel they have too little money to plan for their future, or that they cannot afford professional advice. Others resist paying a fee for planning services until they see evidence that the benefits will exceed the cost. Planners need to value their time and the quality of their services and show how this value benefits their clients. For families just starting out who cannot afford formal planning, there are financial planners who can provide creative planning services, such as seminars and free or low-cost financial organizer kits.
2. Fear of Planning
People fear financial planning for both logical and illogical reasons. Some people fear planning because they think it will reduce the money they can spend now. A young couple may not want to talk about life insurance because they fear thinking about death. Other people fear that planning will expose past mistakes or uncover personal problems. Logical fears should be susceptible to logical arguments, but illogical fears may not. Here is an area where a good deal of sensitivity is called for.
3. Fear of Loss of Confidentiality
Some people avoid financial planning because they have compellling personal reasons to keep their financial affairs private. For example, an employee who is considering changing careers may not want his or her employer to know of that objective; a customer experiencing financial difficulties may not wish to expose the situation to a lender. Some people are embarrased about poor financial decisions in the past and do not want to be reminded of them. Again, a good financial planner will establish a level of trust with clients that will allay these particular fears.
4. Procrastination
People procrastinate for a variety of reasons. Some people lack financial goals or fear they can never reach their goals. Some are too busy or postpone facing financial realities until they are compelled by a death, divorce, or bankruptcy. Other people fail to seek financial advice because they have a psychological fear of planning or have difficulty understanding financial terminology and institutions. A good planner will help clients establish reasonable goals and show them how to achieve those goals through easily understood planning techniques.
5. Unable to Find Reliable Adviser
The public reads horror stories about fraudulent planners, and some have actually had poor experiences with so -called planners. For these reasons, many people are afraid of becoming involved with someone who may not put their best interests first.