If you're not listening to the Kitces and Carl podcast, you're missing out. These two giants of financial planning know-how never miss. Every episode has something to learn from.

Their most recent episode mirrors something I've long taught in class. Basically, if you prepare a client for a job loss or a serious disability, you've probably prepared them for most of the uncertain events life can throw at them. I'm sure none of you have a sufficiently functional crystal ball that, in 2018, you wrote a financial plan that contemplated a global pandemic.

But if you provided a client with a realistic look at how an illness in the family or an industry shakeup impacted them, they at least had the opportunity to consider whether they were spending in areas that didn't make sense for them, or whether they had sufficient cash reserves.

Give the episode a listen:

Kitces & Carl Podcast - Full Episode Archives
Historical episodes of the Kitces & Carl podcast by Michael Kitces of the Nerd’s Eye View blog and Carl Richards of Behavior Gap!
Nerd's Eye View | Kitces.comAdam Van Deusen

That's not my entire point, though. These are great tips for what we might consider 'playing defense'. And playing defense (spending less than you make, having good insurance, taking suitable risks with your investments) is great. But every defense breaks down eventually. If I'm 40 and a major shakeup destroys my entire industry, no amount of defense is getting me through the next 50-60 years, at least not in a way that brings joy into my life.

Playing Offense

I would like you to consider a complimentary approach. With due credit to Brian Portnoy, whose book "The Geometry of Wealth" I fear I may be slightly plagiarizing borrowing from here, let's consider that, as financial planners, we can prepare our clients to play offense at the right time.

I am going to suggest 6 ways that a financial planning client can 'future-proof' themselves. This means you, as the financial planner, can provide direction to get your clients thinking about how to prepare themselves for all the uncertainty that awaits. Some tips you might find a way to push to your clients:

  1. Lifelong learning. No matter what you learn in undergrad or technical school or your initial trades training, a good chunk of it will be rendered irrelevant or obsolete in the course of a normal career. A commitment to lifelong learning will ensure that you have skills to benefit you through a long career.
  2. Get paid what you're worth. Take a look at the job market from time to time. What would you make if you changed jobs? There is some evidence (and this one) that changing employers at your discretion results in higher wages being paid to you. Even if you don't want to change employers, knowing what the job market looks like can be an effective bargaining chip. (Assuming you've done other things on this list and continue to provide value for your employer.)
  3. Develop foundational skills. I'm constantly reminded that universal skills like problem-solving, sales, and leadership will always be in demand. This is true whether you're in financial services, plumbing, or engineering. Do whatever you can to develop these skills. Some of this will overlap with my first point, but some of it is as simple as 'volunteer for things.'
  4. Develop your family. We're all aware of 'the sandwich generation.' To some extent, those who came before you and those who follow you can present some degree of burden. That said, you can do things to reduce the impact of sandwich generation problems. Talk to your parents or grandparents. Understand their budget and estate plan. Make sure they are working with a financial planner. With your kids, start having money conversations early. Encourage them to take the steps on this list. Try to send your kids out into the world ready to fend for themselves financially.
  5. Encourage the entrepreneurial instinct. I get that not everybody can be an entrepreneur. But we can all benefit from being able to start and finish something. Nobody with a strong entrepreneurial instinct will go too long without figuring out how to solve their financial concerns.
  6. Build your network. Building genuine connections is probably the most valuable item on this list. Spend time with people from whom you learn. Bring value into the relationships in your life. Be good to people. Find ways to connect. When somebody in your life needs help, and it's within your abilities to do so, be a part of that help. When the time comes that you need help from others, you'll find people who are more than ready to help you.

I know these 6 things don't fit neatly into a financial plan. But you're all looking for ways to connect in deeper and more meaningful ways with your clients. And you want clients who will stay with you and your practice for the long term. Let's think about helping them to play offense.