Financial planning and the economy

By Howard Allen Hopkinson II, FSS, FSCP

Your clients may be worried about what’s happening with the economy now, and especially how it’s going to affect them in the short and long term. However, this volatility is an opportunity for financial advisors to help clients focus on their financial plans and how to position them to win no matter if the stock market goes up or down.

None of us really knows what’s going to happen with the economy and politics. I follow experts on both sides of the political spectrum. The only consistency I see is the widespread range of opinions on both sides. I like to tell clients, “Here’s what we can do to strategize, to get you balanced and prepare you so that no matter what happens, you’re going to win.”

When clients are focused on a political side and want to base all of their investing and financial planning on that spectrum, I want to eliminate as much of that as possible. So, I ask them to focus on the four-letter word: math. The math doesn’t lie and has no political affiliation. I’ll tell clients, “Let’s do the math and figure out what’s best for you and your situation regardless of what’s going on around us or who believes what.” To me, that’s a more viable way to approach turbulence in the economy and politics and focus on what’s best for clients.

Work less, earn more, live better

By Sandy Schussel

The secret to skyrocketing your income from low- and mid-six figures to a million-plus is not working grueling 60-hour weeks. It’s a balanced, focused approach to both work and life.

It’s about earning more and working less. That sounds great, but how does one do that? The answer is the Pareto principle, or the 80/20 rule.

The Pareto principle

This principle says that roughly 80% of your results come from 20% of your clients and your efforts. I didn’t learn this until I was disabled for more than a year from colorectal cancer and the complications from treatment. At the time, I was a lawyer, and I thought the only way I could maintain my income was to work those 60-hour weeks. Because I could no longer work those long hours due to my health, I thought my only option was to change careers. That’s how I got into working with financial and insurance professionals and coaching. Here’s what I discovered along the way:

What works

Identify the vital tasks. There are a few vital tasks that always need to be done, and an overwhelming flow of the unimportant many. Figure out which tasks really move the needle for you. Stop the scattergun approach. What is required is precision.

Prioritize quality over quantity. Instead of trying to do everything, focus on doing the vital few exceptionally well.

Enjoy short but impactful workdays. Force yourself to make your days shorter — even consider taking an entire weekday off. While you’ll be working less time, your days will be packed with value. Stop just getting through the day. Instead, work at making the most out of every minute when you’re working.

Schedule priorities. Important tasks aren’t just “when I get to it.” They’re must-dos, so they must be in your calendar with the same importance as meetings with high-value clients.

Use systems to supercharge your results. Working less is good, but are you working on the right things? Over the years, I’ve helped financial advisors develop systems and strategies that have allowed them to turn their reduced hours into great, profitable practices. Among these are two that are great to focus on right now:

• Have a profitable niche
• Have a marketing system to attract only committed clients in that niche

The result?

By centering on your most impactful work, you won’t just be sustaining your business; you’ll experience exponential growth. Being intensely focused on that crucial 20% during work hours and intensely focused on precious nonwork time in the remaining hours, you could be there fully for your family, or work on your well-being, your faith, your hobbies, pursuing your next big dream or a combination of these.

What happens to ‘unimportant work’?

A question I’m often asked is, “What about the 80% of what you’re calling ‘unimportant’ that still needs to be done?” Part of your analysis will be to determine:

• Does it really need to be done?
• Is there someone else who can do it?
• How can it be done most quickly and easily?

You’ll need to work hard when you are working, but you’ll have a much better life.

Members and experts from around the world share how they step up their productivity, find inspiration, and balance life and work in the MDRT Blog. Get their insights sent to your email two to three times a week by scanning the QR code to subscribe or visit mdrtblog.org/subscribe.