Nick HutchisonFounder and CEO, BookThinkers

“A good financial advisor is like a therapist.”

27 Dec 2023 · 1 min

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In this segment, the speaker addresses the common fear many people have about examining their personal finances. He explains that most of his wealthy clients are naturally frugal and therefore comfortable reviewing their spending, whereas clients who avoid looking at their expenses—especially high‑spending athletes—are not a good fit for his practice. He emphasizes the importance of getting into the details, putting numbers on paper, and confronting the fear zone. For those who struggle, he recommends hiring a financial advisor who can guide them through the granular process, likening a good advisor’s role to that of a therapist who helps clients work through emotional barriers to financial clarity.

Chapters

We talked about the fear a little bit. Do you have any tips for people or that you use with your clients who are afraid to like look at their finances? So fortunately for me, most of my clients who have become wealthy are in that mode where they don't spend, right? They're the millionaire next door. So they're not the type that are scared of it, right? Because onboarding with clients, I go over spending and I kind of make them look at it. And if I have a client who won't look at their spending, I don't want to work with them. Just not worth my time. Typically don't work with athletes. Why? Because they tend to spend everything and they don't really want to look at it granularly. But real Really, it's getting in the weeds, right? Putting the numbers down on paper. And don't be afraid, right? That's the biggest thing is trying to get out of that fear zone. And if you need someone to help you, hire an advisor, right, who can help you go through those details. A lot of time, a good financial advisor is like a therapist.