Over the years, a few of Leslie T. Beck's clients have battled a serious disease. When they tell her about their grim diagnosis, she offers some practical advice.
"I always encourage them to seek out a second opinion from the best specialist they can find," said Beck, a certified financial planner at Compass Wealth Management in Rutherford, N.J.
Such input may stray from the traditional financial advice that advisors typically offer. But it's an example of how they dish out wise counsel in all aspects of a client's life.
"A good financial planner does more than talk about money," Beck said. "A good financial planner takes a holistic view of the whole person."
In urging clients to get a second opinion from a top doctor, Beck emphasizes the vast difference in medical outcomes between standard care and superior expertise. She assures clients that if they need to travel to a specialist or incur added expenses, it's worth it.
She has found that many patients, especially older adults, simply accept their primary care physician's diagnosis. If their doctor refers them to a specialist, they adopt the same mindset and take whatever they hear as gospel.
While prodding clients to get a second opinion can prove lifesaving, advisors might also suggest how parents can navigate a medical crisis that involves their college-age child.
Michael Resnick, a certified financial planner at Alera Group Wealth Services in Deerfield, Ill., advises clients whose kids are heading off to college to have them sign a health care power of attorney.
"Most parents do not realize that they have no access to their child's health care information after age 18," Resnick said.
Practical Advice: Stay A Step Ahead Of Adverse Events
Resnick started giving this advice after meeting a mother who got a call from her son's college roommate, telling her that her son was in the hospital with a high fever. The mother called the hospital and was told, "Your son is 19. We can't give you any information due to HIPAA," a federal law that protects a patient's health information from being disclosed without their consent.
"The health care power of attorney is a simple form to fill out," Resnick said. He adds that many estate planning attorneys will help parents and their kids complete the form as a free service. Once its properly signed, it enables a parent to find out their adult child's medical situation in a crisis.
Such advice can reinforce an advisor's value. Clients come away with an increased appreciation for their financial planner's knowledge in matters that transcend money.
In some cases, advisors share life lessons that convey more lofty truths. They move from the practical to the philosophical.
Vince Clanton, a certified financial planner at Chancellor Wealth Management in Atlanta, likes to tell an anecdote from his early years.
As a U.S. Navy Ensign, Clanton was on the bridge of a ship when the captain turned to him and said, "Don't let yourself be overtaken by events."
"His point was to take action to avoid an unpleasant outcome," Clanton said. "If you let yourself be overtaken by events, you can have a collision at sea."
When You Say Yes, You Say No To Something Else
Clanton applies this practical advice to challenges that his clients face. Adopting a proactive stance helps them address potential problems before they spiral out of control.
For example, a client was under financial strain while living in an expensive home. Clanton warned that they'd lose the home unless they took action.
He cites a Navy term, in extremist, that describes what happens if it's too late to escape a perilous situation. To protect his client from getting into deep trouble, he advised them to sell their home, take cash out to cover their debt and downsize.
"Within 12 or 18 months, someone else will be living in your house," he told them. "You get to determine how it'll happen," by controlling the transaction now or defaulting on the loan later.
Kevin Lum also likes to give practical advice that relates to making big, life-changing decisions. A certified financial planner at Los Angeles-based Foundry Financial, he often tells clients, "In order to say yes to something, we often have to say no to something else."
If a high earner in his 30s but with limited assets wants to buy a home, Lum might say, "To say yes to buying a home, you'll have to say no to the Tesla" and other costly goodies.
"A lot of times, there's a ripple effect in the decisions we make," Lum said. "So be mindful about your decisions and take time to decide what really matters to you in life."
