One thing to consider, Plaskett says, is the importance of respecting customers, even as you take measures to protect them. As they gradually recognize that they are not as sharp as they were before, clients can have a harder time processing, which means advisors should be sure to approach the situation with a fair amount of politeness.
“In this particular scenario, we said we were updating our files, and we want a trusted contact person we can have on file and reach out in case anything happens,” Plaskett says.
At that time, the client was not making regular changes to his financial plan and was not required to make any course corrections. But Plaskett notes that in cases where a client’s mind may fade and require significant changes to their financial plan, for example, having a trusted contact person or advisory colleague in the room needs to be more cautious. . He added that rigorous documentation and verification of recommendations would also be necessary.
Based on this and other similar experiences, Plaskett offers some takeaways for other advisors. “The first thing I always recommend is follow your gut. Your gut feeling isn’t lying to you,” he says. “If there’s something that tells you something is wrong, it’s a warning sign.”
He also emphasized that while review meetings are an important mechanism for maintaining a client’s overall financial plan, not all advisors should do so.