| Rob Macdonald has held several senior positions in the investment industry. He is an independent consultant and coach who also develops and facilitates training programmes in behavioural coaching and practice management. Before joining the financial services industry, Macdonald was MBA director at the UCT Graduate School of Business. He is the author of the book The 7 Pillars of Financial Health and is co-author of Rethinking Leadership. Macdonald has a Master’s degree in Management Studies from Oxford University and is a CFP® Professional. |
In recent conversations financial planners have expressed bemusement with global events thanks to Trump 2.0. One planner expressed frustration that Trump 2.0 is causing lots of unnecessary work for clients. Another planner said that clients have asked for communication about what was going on, but he didn’t quite know what to say.
Neither of these comments is a surprise, given the drama that seems to unfold daily on the back of Trump 2.0, and the unpredictable nature of this drama. One day tariffs are on, the next they’re off. Or are they? I doubt the man in question knows the answer. It’s not worth speculating about. But the first quarter of 2025 highlights that global events impact client portfolios and client psyches. I guess few people are not unsettled by the unhinged proclamations and actions emanating from the largest economy in the world. So how can we prevent events like these from being an unnecessary distraction for both clients and financial planners alike?
Perhaps the best way is to remind ourselves (and clients) of Stephen Covey’s Circle of Influence model. It has three concentric circles with the outside circle labelled Circle of Concern. Herein lies conversations about Trump 2.0. We may enjoy having these conversations, but nobody not even Trump 2.0 has any idea what’s coming next, how the global economy will be impacted or how markets will react. You may still want to have these conversations to give a client the opportunity to “offload”. But even this has limited value because as a fan of reality TV, Trump 2.0 will ensure that for the next four years there will be no shortage of footage about which your clients will want to “offload”.
Who will forget the infamous Oval Office bullying episode with Ukrainian President Zelensky, during which Trump opined, “This will make for great TV”? So, if there is little point having a conversation about the leader of the free world’s latest antic, what does one talk to clients about?
Covey’s model suggests the only conversation that would be meaningful at this time, is one that deals with what you and your client have in your Circles of Control and Influence. Neither of you have any control or influence over global political events, economic policy decisions, investment market movements or unpredictable events that may happen in your client’s life. Any attempts at predicting any of these events are a waste of energy. Again, you can have a conversation about what you can’t control or influence, but what is the point? Rather, it would be more meaningful to focus on what is in your and your client’s control. Clients can adjust their spending habits, their savings rates and their plans about what they want from their money and life. Financial planners don’t have any control over any of those aspects of a client’s world, but they can play a crucial role in influencing the decisions clients make.
This is the essence of financial planning, helping clients make and implement decisions about their life and money.
As a financial planner, one thing you do have control over is how you communicate with clients, as well as the frequency and content. Research suggests that your approach to communication will have the greatest influence on your client’s experience of your advice, greater than your investment or product choice recommendations.
It is worth spending time on the activity you have the greatest control over. The more you have planned your communication and implemented it consistently, the more likely you will influence client behaviour. Focusing on your Circle of Control trumps getting caught up in your client’s Circle of Concern, no matter what’s going on in the world or even if your clients do want to have a conversation about Trump 2.0.
