I am quoting from the book, Story Selling for Financial Advisors by Scott West and Mitch Anthony.

According to the authors some advisors purposely use complex language, thinking they elevate themselves in the eyes of the client.”Isn’t he intelligent?” is the thought they are hoping for, but what this approach often produces is intimidation and confusion. As a retired executive told the author after visiting a “real smart” advisor,”He intimidated me with all his industry jargon and complex strategies. I took my business elsewhere because I don’t feel comfortable entrusting my fate to people who intimidate me.”

Other advisors unwittingly confuse and intimidate clients by

  1. Using too much trade jargon
  2. Assuming clients understand more than they actually do (clients will often act as though they understand matters when they actually don’t). The author says he has often heard many client express their confusion after a meeting with an advisor. “What did she mean by that?””How does that work?” I didn’t quite get what he was trying to say there.” They did not say a word in the session because of the natural fear of appearing stupid or foolish.

Our research too proves the above with 139 IFAs saying that use of jargon and complex terms are needed while a much larger number of IFAs, 373 to be precise felt that there was no need to use jargon and complex terms.

My personal view too is to stay away from terms which are complex and use simple methods to explain investing.

Those of you who still believe that using jargon will impress their client are sadly mistaken. Please change your strategy from complex explanation to simple explanation. As an IFA we are not financial wizards. Our primary job is to educate and serve our customers. Keep it simple and straight.

  • Amit mahto
    Posted at 03:38h, 30 April Reply

    Very true

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