Financial planning is inherently complex, especially when it comes to data gathering, analysis, and crafting well-reasoned recommendations. But delivering those recommendations in a way that clients can understand and act on is a separate skill. Advisors not only need to do the deep technical work, they also need to translate that complexity into clarity – a step that can be surprisingly time-consuming and cognitively demanding. And when an advisor is already managing a full schedule, carving out the time to make the message clear can be a real challenge. So how can advisors ensure that their advice is both comprehensive and simple enough to be truly actionable?
In this 165th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards explore how advisors can simplify the delivery of complex advice and why doing so is such a critical (and often underdeveloped) skill. While clients don’t necessarily need to understand the full depth of the analysis behind a recommendation, they do need to trust that the analysis has been done thoroughly and clearly understand what the advice is, why it matters, and what’s being asked of them. Because when advice is clear and comprehensible, clients are more likely to act on it and gain peace of mind from knowing there’s a well-considered strategy in place!
One way to simplify delivery is to build meetings around a single core takeaway. For example, if someone stopped a client in the parking lot after the meeting and asked what they talked about with their advisor, what would the advisor want them to say? That question can help clarify the central message and shape meetings around what matters most. From there, additional sub-points can be layered in, while reinforcing the main takeaway to ensure the client walks away with a clear understanding of what to do next.
Visual aids can also help advisors clarify complexity and reinforce key messages. Summary charts or graphics – especially for topics that come up repeatedly (e.g., investment strategies or tax planning) – can reduce cognitive overload for clients and keep meetings on track. And because these conversations tend to repeat across clients, visuals offer leverage: the upfront time spent finding or customizing a helpful chart can pay off many times over. Fortunately, advisors don’t need to start from scratch. A growing number of FinTech companies – like Holistiplan, Income Lab, fpPathfinder, and Clearnomics – offer ready-made illustrations to help make advice more understandable for clients.
Ultimately, the key point is that simplifying financial advice is not a simple task – but it is a skill that can be developed over time. The goal isn’t simplicity for its own sake, but clarity. By combining communication strategies with technology solutions and approaching each meeting with one clear takeaway in mind, advisors can deliver recommendations that aren’t just technically sound, but truly understandable and far easier for clients to act on!
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