I’m a Financial Advisor: Here’s the First Thing I Tell New Clients To Do

Andrew Lisa   Mon, June 26, 2023

The most universally applicable piece of money advice is to work with someone who gives money advice for a living. Capable and experienced financial advisors often join family doctors and lawyers as the most trusted and indispensable professionals in the lives of the clients they serve.

They guide their clients through debt reduction, estate planning, taxes, investing, entrepreneurial endeavors and the basic day-to-day management of their personal finances. Perhaps most importantly, they cut through the clutter, confusion and conflicts of interest that bombard people every day with misinformation through their phones, laptops and social media feeds.

Although the best financial advisors tailor personalized strategies that are unique to the individuals they serve, some money advice is universal. To learn more about the money moves that experienced industry professionals think will have the biggest impact, GOBankingRates asked a trio of financial advisors what they tell their clients to do right out of the gate as step No. 1.

They offer a range of perspectives. One works with high-net-worth individuals, another serves older clients and the third guides the youngest adults who are just learning the ropes. Here’s their main money advice.

A Wealth Manager Concentrates on Cash Flow

John M. Jennings is the president and chief strategist of St. Louis Trust & Family Office, a $15 billion wealth management firm, and an adjunct professor at the Washington University Olin School of Business in St. Louis in its Wealth and Asset Management graduate program. Jennings is also a Forbes contributor and author of “The Uncertainty Solution: How to Invest with Confidence in the Face of the Unknown.”

The first thing we do with new clients is to dig into their cash flow,” said Jennings. “What money comes in and what goes out? Understanding cash flow is foundational to all other planning. You can’t effectively design a financial plan, an investment plan, or an estate plan without understanding cash flows — both recurring and extraordinary items. It’s not sexy work, but having a handle on money’s ins and outs is essential for planning for financial success.”

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