Key Takeaways
- Distrust of financial professionals is often earned by the industry
- Defending your profession creates more resistance
- Curiosity about their bad experiences builds trust
"I Don't Trust Financial Advisors"
"The best way to build trust is to understand why it was lost."
Many people have had bad experiences with financial professionals—or know someone who has. They've seen:
- Advisors who pushed products for commissions
- Hidden fees that ate into their returns
- Losses that weren't properly explained
- Promises that weren't kept
Their skepticism is often justified. The worst thing you can do is dismiss it.
What NOT to Do
| Defensive Response | Why It Fails |
|---|---|
| "I'm different from those advisors." | Everyone says that |
| "I'm a fiduciary." | They don't know what that means |
| "I only get paid if you're happy." | Sounds like a sales pitch |
| "Let me show you my credentials." | Doesn't address their emotional concern |
What TO Do
Get genuinely curious about their experience.
The person who hurt them? That wasn't you. But their pain is real. When you show genuine interest in understanding what happened, you're already demonstrating you're different.
Curiosity Questions for Trust Issues
| Question | What It Does |
|---|---|
| "That sounds frustrating. What happened?" | Shows you care about their story |
| "What did that advisor do that bothered you?" | Gets specifics you can address |
| "What would have made that experience better?" | Reveals what they actually want |
| "What would it take for you to trust a financial professional?" | Direct question about earning trust |
| "What concerns you most about working with someone like me?" | Invites them to voice specific fears |
Acknowledging Industry Problems
It's okay—even powerful—to acknowledge that the financial industry has trust issues:
"You know, you're not alone in feeling that way. A lot of people have been burned by financial professionals who were more interested in their own commission than their client's wellbeing. I can't speak for them, but I'd like to understand what happened so I can be different."
Building Trust Takes Time
Some people won't trust you in one meeting. That's okay. Trust is built through consistent, honest behavior over time. Your job in the first meeting is just to crack the door open.
The Burned Investor
Someone who lost money with a previous advisor
Setup
A referral reluctantly agrees to meet with you. Their previous financial advisor put them in aggressive investments that lost 40% of their retirement savings in 2022. They're angry and scared.
Client says:
“I'm only here because my sister won't stop talking about you. My last "financial advisor" cost me hundreds of thousands of dollars. He put me in all these aggressive funds right before the market tanked. Said it was a "buying opportunity." Now I'm 55 and I've lost almost half my retirement. Why should I trust anyone with my money again?”
Practice Objectives
- 1Do NOT immediately defend yourself or the industry
- 2Show genuine empathy for their loss (it's real and significant)
- 3Get curious about what specifically happened
- 4Understand what the previous advisor did wrong
- 5Explore what would need to be different for them to trust again
- 6Don't promise to "make it back" or guarantee anything
The Skeptical Millennial
A young professional who thinks financial advisors are unnecessary
Setup
A 30-year-old tech worker is meeting with you because their new employer offers free financial planning sessions. They're polite but clearly skeptical that you can offer anything they can't learn from podcasts and Reddit.
Client says:
“So my company is paying for this, so I figured why not. But honestly, I've been managing my own investments for years. I use low-cost index funds, I max out my 401k, I've got an emergency fund. I listen to a lot of finance podcasts. What can you tell me that I don't already know?”
Practice Objectives
- 1Don't be defensive about their self-education (it's admirable)
- 2Get curious about what they've learned and what they do
- 3Explore areas they might not have considered
- 4Acknowledge that for simple situations, DIY can work
- 5Find where complexity might benefit from professional guidance
- 6Don't try to "prove your value" by finding problems
When a client says "I don't trust financial advisors," the best first response is: