Lesson 5 | Planning Horizon® Overview and Role Play Demonstration (29:26 minutes)

Planning Horizon Overview

I want to spend a little time with you talking about the Planning Horizon that's used and leveraged in the approach talk section of this course. And to date, we have gone through and we've laid out the meeting plan, the structure, how to set and present yourself, and you get up to a point where you've now introduced the concept of the you, me and decisions, and so now it's time to transition into this approach talk using the Planning Horizon.

The powerful thing about the Planning Horizon, I'll walk you through some of those components, is this is a huge opportunity for you to differentiate yourself from all the competitors out there in the marketplace, all the people that are in your line of work, in your space, and furthermore, to be able to differentiate yourself from past experiences that this prospect, or maybe this is a long-standing client relationship that you're meeting with, it's a way to really differentiate and distinguish yourself apart from everybody else. And so, we'll talk about that a little bit. As I just said, this applies to looking at some of your prospective clients that you're getting introduced to and referred to, fantastic. You should be using this in every one of those meetings, and we really hope you will. That's why you're a part of this course.

But you also got to be thinking about some of your long-standing relationships, as I just said. You've got clients where you've done some maybe some investment work for or you've done some insurance work or some taxes, some legal work, but you have so much more that you can bring to that relationship, so much more that you can offer, and quite frankly, they maybe have the capacity and the need for more. And so, how do you have a different type of conversation? How do you move them from where they see you and how they see you today to being something else? Right? The Planning Horizon can be a really, really powerful tool in allowing you and helping you to be able to do that.

At this point in time, in the approach meeting we now are going to take an opportunity to introduce this concept of the Planning Horizon, and you'll later see this in live videos so you can see it play out live and in live situations, but at this point in time, we're segueing to create some context for the people that we're sitting with because we just walked through the meeting plan and so the starting point of that is we want them to talk about themselves. That's not always an easy thing. When people prepare to come to a meeting with a financial advisor or accountants or lawyers, they have some preconceived notions or idea of things that they're supposed to be asking or thinking or preparing for as they think about that meeting. But really, globally in general, people just don't know to act or prepare for those meetings. There's just no real framework for that, and so they're uncomfortable meetings, and oftentimes because of that, you see people showing up with stuff and behaving in weird ways because they think they're supposed to behave that way or bring these things to an interaction or meeting like this.

The powerful thing about the Planning Horizon is this allows you to create some context. Looking at the other course materials and things you've read to date, you've seen that the Planning Horizon is this really simple line that divides two very specific and different realms, both of which need to absolutely be considered if we're going to help and guide our clients in the right way, in the most powerful way. And so, there's areas that are below and those all relate to the various strategies, tactics and tools where a lot of your competencies as an advisor lie. You've got great competency in that realm, and up above represents the vision, the values, the goals. What's your client's vision for their future? What's this individual, this couple's, this business owner's, what's their vision for the future, right? What are the things that they value, and then the goals become the things that get them closer and closer to actually realizing that.

The reality is in an approach meeting like this, advisors inherently go to where they're confident, where they're comfortable, where they have strength, and that is a below the line type of conversation. Our industry has been trained and continues to operate from a standpoint where we want to solve. We want to show our expertise and knowledge, and we do that by being in a below the horizon conversation. Being different means you need to start at a different place, and that different place is up above that Planning Horizon, and that's what we're bringing to you in this approach, the ability to demonstrate the fact that you're different, that you start at a different place, that you care about and you engage around very different things than the typical advisor that they've dealt with, that they might be working with today. And so, when you talk about the fact that all these areas below the line are kind of table stakes in our business, right?

People that are good in this industry advising, they have to be good in these areas, and make sure that you talk about the fact that you're great in these areas. You and your team and your business, you've got all kinds of skills and talk about your areas of competency, but don't try and solve or don't try and recommend things that they need to do at this point in time because the reality is you don't know enough about where they've been and where they're trying to go to talk about things that they should do and consider doing, but that's the way our industry operates. That's what's going to make you different in delivering this Planning Horizon approach talk in these first meetings. Once you get the knack of this, you should be able to do this in five to seven minutes to really get this conversation out and spelled out so you can have a powerful conversation about it.

But again, as you see here, the introducing of the Planning Horizon, it's not necessarily about today getting at their vision, values and goals, but just stating the fact that you start at a different place, and it's about understanding the strategies, the tactics, the tools. What are the things that they're doing today? If their goals are around retirement or their concerns are around retirement, we want to understand, what are you doing around retirement today? Are you putting money away? How much money are you putting away? Do you have any sense of when you want to retire and how much money are you going to need to spend? How on track do you feel for that? And things of that nature. You know how to get at that information in conversation.We want to also know who are the people that are helping and guiding that advice today and your decision making today below that horizon, right? Who are the advisors that are guiding them and working with them today? We want to know all of that, and the key question that you want to know is, based upon all the advice you're getting today and all the things you're doing today, do you believe that that has you on track for the vision that you have for the future and the things that you value as an individual, as a family, as a business owner? That is going to create an entirely different experience. That is going to help you to win relationships over and over and over. That is going to allow you to go back to existing relationships where they have you in one of those buckets that are so difficult and challenging to get out of, it's going to allow you to move beyond the bucket that they have you in and for them to see you more as that global advisor that can be at the center of their financial lives, their financial decision making.I hope you enjoyed this. I hope this was helpful and have fun learning this approach talk and how it can allow you to build the most powerful relationships possible.

Role Play Demonstration

Hey Lynne and John, great to see you both. I appreciate that we get to be able to spend some time together today to talk about some of the things that are going on for you, see if we might be able to help you. As we talked about last time we got together to set up this appointment, we had talked about the fact that our firm really specializes in helping families and business owners like yourselves really retire on their own terms.

And I know that that was one of the things that was really important to you when we connected that time, and that's really the foundation of what we're here to talk about together today. In order for us to work through that conversation, we have a plan, we have a meeting plan for that so that we can have a really good, thoughtful conversation. We don't want to waste your time, we want to make sure it's thoughtful and on-point, and that you leave here today feeling better than you did before you walked in here. And that's really the primary goal here.

So kind of the meeting plan that we use is, we want to learn about you, and that's kind of the starting point. So we want to understand what's going on in your lives today? What are some of the things that are important to you, what are some of the things that you all are talking about? Who are some of the relationships that you have today that are advising you and guiding you around some of these things that are important related to retirement? So we want to start off by talking about you and learning about you.

The second part of this is, I want to take a few minutes to talk about me. You know a little bit about me and my business and things, but I want to expand on that a little bit, talk to you a little bit more about how we work. Talk about our team and some of the things that we're doing to really, really help our clients.

The final part of our time here together today is about decisions. The fact is we have some decisions to make. If our conversation goes good today and you're feeling really good about it, and I'm feeling good about it, we feel like it's ultimately a right fit, then we have some decisions to make about how do we go forward together, what are the ways in which we might be able to work together, and what does that look like? So that's really the framework for our time here together today. How does that sound to you? Does that make sense?

Alright, fantastic. So one of the ways I'd like to help us kind of get into that conversation and really kind of make some sense for you and kind of how do we begin is, I'd like to share a concept with you that I think will help provide kind of the context for why it's so important for you to, kind of the beginning with the talking and the sharing. Is it okay if I share that with you for a little bit here? Alright, fantastic.

I'm going to go over here to the white board and just kind of paint a picture for you. I'm a visual guy, and I like to be able to see things. So hopefully the picture and our discussion here will be helpful for you.

So I'm going to draw a line here just across the middle of the board, and this represents something that we call the Planning Horizon. The Planning Horizon is something that is really, really key to the work that we do, and ultimately how we help our clients achieve the things that are important and they're trying to achieve. The reason why it's so effective and why it's so important is that what it does is it separates two very distinct and different areas as it relates to the decisions that you have to make in your overall finances.

And so we're going to talk about each of these areas as what we call "above" and "below" the Planning Horizon. So areas that are above and below. So when we talk about areas that are below the Planning Horizon, this is where we want to start to begin to get an understanding around things that you're doing today. So potentially, how you're invested or what you're investing in. How you're insured and protected, what types of things you've done from a planning standpoint, things of that nature.

Now, fundamentally in our business when you're working with financial advisors, people in my world, these are kind of table stakes, right? This is where people are used to going, this is primarily where the majority of conversations happen. This is where advisors like me typically spend all of their time, and they're really trying to get a lay of the land of your current situation. And while we want to spend time here and we really want to talk about these things, there's a whole other conversation that we really want to embark on with you. But before we do, let me just further kind of explain this "below the horizon" area.

So some of the things that we're talking about and we want to understand down here relate to what we call How, Who, and When. So when we think about the how, the who, and the when, what we're talking about is what are some of the things, as I mentioned earlier, that you've done to date? How are you invested? How are you protected? What have you done from a planning standpoint? So we need to begin to get a lay of the land and really understand that to get the full picture of what's going on in your lives today.

The second thing is, as I mentioned, we want to understand who are the key and important relationships that you're working with today? It's important for us to understand the people that are on your team, the relationships that are close and impactful so that eventually, if we have the good fortune to work together, it's going to be important to understand who the other advisors are.

And then the last part of this, the when, is really hitting on the timelines, the timeframes. Today as I said, we specialize in helping families like you retire on your own terms. So we want to get into that conversation, what's the timeline around retirement? What are you thinking about that? So that's kind of the how, the who, and the when. And we talk about it from a standpoint of what are the different strategies that you might have going on today? What are the different tactics that you've done? And what are some of the tools and things that you've used and leveraged along the way maybe through the other advisors?

So again, as I said, this is a pretty typical conversation for people in financial services, and probably a conversation that you've had with lots of advisors over your lifetime and your professional careers. One of the things, again as I said, that really has made a difference for us, has really set us apart in the work that we do with our clients, however, is the fact that while this is all important, and while we have lots of competency here at our firm and helping our clients design investment plans to meet their retirement goals and make sure they're protected along the way and really doing that under the auspice of planning, we're great at those things. However, where we start is a very different, different place, and that's here up above this Planning Horizon where we talked about.

And so up above the Planning Horizon for us, it's really important that we're understanding a couple of key things here. Foundationally, what matters to you and why it's important. We need to understand this, right? At a foundational level, today we want to begin to start to understand what are some of the things that are important to you as you think about your family, as you think about your kids, as you think about retirement, right? We want to begin to start to understand that. And the way that we really do that with our clients long-term is where, through an exploration around their vision, the things that they value, and their goals. Okay? Their vision, their values, and their goals.

Let's talk about that for a little bit. The vision is, part of what we're going to talk about here today is about retirement. Now we won't be able to get all into this today, but the thing that we want to begin to start to hear, if we are going to be successful working together moving forward, is how do you want to see things play out in the future? How do you want things to be? And that's really looking at it from a global vision perspective.

The second thing is, we need to understand the things that you value along the way. What are the things that are so important to you as a couple, as a family, as you think about that vision you have for the future. And then finally, the goals really just fundamentally become the things that help you get closer and closer to that vision. Does that make sense? All right, great.

So part of what I thought I'd spend some time talking about here today is, number one, I want to create some context for you to really help you understand why is it important that we begin with this exploration and understand what's going on in your life, because as I said, we're very capable. Me, my team, my business, we're very capable in looking at various strategies, tactics, and tools, and things that you've maybe done and making some recommendations. But the reality is before we can start to talk about maybe things you oughta shift, or changing your investment portfolio design or the way things are invested or held, or whatever that might be, we really need to understand what matters most to you and why.

And so today we want to begin by getting a lay of the land of your current situation. Does that make sense? All right, great. So let's kind of switch gears, let's talk about a little bit now that we've got to get the context for this. Help me understand, you're both working and you've both got good jobs, so tell me a little bit about what's going on for you today. Lynne, you're working full-time, you're in the workforce and you've got a salary, obviously, for that job. So what are you getting paid for a salary today? All right, great. So you've got a salary of $165,000, okay. And John, how about yourself? You're working full-time as well, salesman, traveling, how about yourself? Where are you? Oh Lynne's actually, she's the breadwinner in the family? Alright, great. So don't feel bad about that, right? We see that actually a lot, okay?

So you're at about $125,000 typically of annual income. Alright, perfect. So together you guys are about $290,000 income for a year. Fantastic, that's a great earning for your guys' household, and fantastic. So talk to me a little bit about, what have you done in the way of investing, putting money away over the years? So tell me a little bit about that. Any investment accounts, okay? Alright great, so you've got an investment account with about $125,000? Okay. And what about 401Ks, things of that nature in businesses and all that stuff? Okay great, so you both got 401Ks. Lynne's 401K, about $225,000, 401K for Lynne. And John? About $180,000. All right, fantastic, that's great. 401Ks.

Any other investments, any other things? All right, small IRA with another $45,000 ... $45,000. All right, fantastic. What about from estate planning standpoint, you've got a couple of daughters. From estate planning standpoint, what have you done in that realm? Have you wills, trusts, have you worked with an attorney to create any of that? So we often see couples a lot of times that are in the situation where they've talked about, they know the importance of doing the will, but they just actually haven't gotten there. So do you have an attorney that you're working with today? Okay, that'd be one of the places where we'd be able to help you. We've got some amazing attorneys locally here in the marketplace.

So currently at this point in time you have, there's no will intact, no will in place. Okay, and what about insurance? Okay, alright. So you both have some insurance through work, John you've got a small personal policy. Alright so you've got a personal policy, insurance policy, $250,000 term policy, okay. $250K. And then you have some group policies through work. Okay great. So you've both together you've got another half a million in term through work. So you've got about a $1,250,000 in term life. Okay. Insurance, insurance. What else? What else is going on that I'm missing, anything else? Any other business interests, anything else that we kind of need to talk about or know about?

So that's pretty much the lay of the land. I mean, this gives us a really good starting point, a really good framework. So as you start to think about why we're here today and some of the things that were important to you, you talked about retirement was really key. You've got this goal and this desire to put the kids successfully through college, right? And so that's really, really important, right? So as you think about that, what have you done to date to start to put money away for the kids? So no 529 plans, nothing like that in place at this point in time? Okay, alright. So you've got a goal up here of education for your daughters, but there's no 529 plans, okay. So I'll have to look at that.

And so that was one of the big things you brought up, the other thing is talk a little bit about retirement and timeframes and how well on track do you feel like you are for that? Okay, so probably going to be working, both of you working for another 15 to 20 years, and as far as what you've done to date and through your investments, through your retirement accounts, how are you feeling as it relates to being prepared for that? You don't know, yeah?

Let me just help you sleep a little easy on that, the fact that this is a very common conversation. Lots of people that we have the fortune of working with and meeting have done a lot of things over their lifetime. The reality is is that they accumulate things over time, all different types of investment accounts and different vehicles. Sometimes we even see people that are doing a lot of job jumping, which you haven't, where they've got investment vehicles with multiple companies. You know, you can get really, really busy around that.

But the reality is, even though they've accumulated a lot of stuff, they don't really have the time or haven't taken the time, or they don't really have that advisor relationship that is really causing them to take a step back and look at the overall big picture here. And so this is a pretty common thing. The good news is, you've got a lot to work with. We need to understand your goals, obviously, at a much deeper level right? But we have a lot to work with.

So, let's switch gears a little bit, let me kind of talk about me, you've done a great job here sharing about yourself. And I want to talk a little bit about our firm and kind of how we work. So part of what I kind of shared with you in the beginning is that, you know, our time here together today is really trying to accomplish a couple fundamental things. Number one is we need to get an understanding of your overall situation. We need to make sure that we are a right fit for one another from a standpoint of the fact that we can actually help you accomplish what it is you're trying to accomplish. And that we're the type of firm that you really want representing you, and you want to be working with.

So we're really trying to get a lay of the land with that. And in order for us to do that, I'll talk to you a little bit about our process. So as I said, the big thing for us is that we start at a different place. When we look at all of these vehicles and all of these things, there's probably a lot of value that we could bring to the relationship down here, it's a lot of things, we'd want to look at all of this a lot deeper. But the real overarching thing is that before we would make any suggestions, any recommendations on the things you ought to do down here, we really need to spend the time up here getting clear on what is your vision for the future as it relates to the education, as it relates to retirement, right? Again, as I said, what are the values and what are the goals? And we've got a whole defined process for that.

One of the things I'd like to know, and I'm just going to ask you both and you can kind of respond and answer is, you've got people that are managing money for you today. You've got some relationships you've talked about, you don't have an attorney that you're working with but you've got some other investment advisors, you've got an accountant you've been working with for a number of years. But as it relates to the advice and the relationship you have with those advisors, and the things that you're doing, how on-track do you feel that retirement and your kids' education is going to go the way that you want to see it go? How confident do you actually feel about that? Yeah, I mean, I get it. It's a scary thing, it's, who knows?

And part of the reason why you probably don't know, why do you think that is? Part of the reason is the fact that exactly, you're right, is that you haven't had the conversation. Nobody's really explored that, and it's hard to take the time to explore this amongst yourselves and ask yourself those challenging questions. So part of what we would do if we were to work with you, is to really help you to explore that out, so further. So one of the things that we need to determine today, and I want to just check in with you and see where you are, is there's a couple of ways, if we were to work together, that we could potentially move forward. And that's kind of where we are in the conversation is we've talked about your situation, the fact of the matter is, is that we've got a process where we work with our clients and we make a real difference because we're starting at this different place and really helping you explore your vision, your values, your goals.

We've got a great team here at our firm, really caring team. And we've really done well by our clients for over 20 years now of being in business. And, you know, where I'm feeling we are in the discussion right now is there's two ways we can go. If you felt as though you had some immediate issues that needed to be addressed, right? Some immediate issues that were really rising themselves to the top, that is where we could move into a very specific engagement for us to be able to help you solve those types of issues.

On the other hand, if you feel as though there's a number of things that are going on for you, and a number of things that you're unclear about, the position would be for us to move into more of a planning-based engagement. And so I just want to check in with you and see where you're feeling like we are right now at this point in our discussion. Do you feel like there's some immediate things that you want to address, or do you feel like you would benefit from really a global, overall planning engagement and to really look at things more from a global perspective?

Great. I'd like to check in with you to see where you are in that, and that's really where my head's at, too. For me, the next step is it's really planning. We need to get a real understanding of everything that's going on down here for you. We really need to get a look at all the documentation, all the reporting, everything that you have as it relates to that. But more importantly, we really need to move into a conversation to really spend some time exploring with you around your vision, your values and goals, really doing what we like to call discovery and get connected with, as I said up here, what matters most to you and why.

And so the next step for us would be to really move forward in that engagement.

Listen to the Planning Horizon(R) Overview

Listen to the Role Play Demonstration