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When Clients Don't Follow the Plan: Techniques from Client Psychology

Overview

Every financial advisor has experienced the same frustrating scenario: after investing hours into developing a thoughtful, technically sound financial plan, a client leaves the meeting fully agreeing with every recommendation—only to return months later having taken little or no action.

During this webinar, Dr. Megan McCoy, Program Chair of the Personal Financial Planning Program at Kansas State University and one of the nation's leading researchers in financial therapy and client psychology, explored why this happens and, more importantly, what advisors can do about it.

Drawing from behavioral finance, psychology, marriage and family therapy, neuroscience, and financial planning research, Dr. McCoy challenged one of the profession's most common assumptions: clients are rarely "resistant" by nature. Instead, resistance is usually a symptom of something deeper—fear, anxiety, competing motivations, uncertainty, or a mismatch between where the advisor believes the client is and where the client actually is in the change process.

The presentation emphasized that technical knowledge alone rarely changes behavior. Advisors who understand client psychology, communicate with empathy, recognize financial anxiety, and help clients make incremental behavioral changes are significantly more likely to improve implementation, deepen trust, and strengthen long-term client relationships.

Key Topics and Expanded Insights

Financial Planning Is Becoming More Behavioral Than Technical

One of the webinar's central themes was that financial planning continues to evolve beyond investment selection and tax planning. As technology, artificial intelligence, and automated planning tools become increasingly sophisticated, advisors differentiate themselves less through calculations and more through relationships.

Dr. McCoy described financial therapy as the intersection of financial planning, behavioral finance, psychology, and counseling techniques. Rather than replacing financial planning, financial therapy helps advisors understand why clients make decisions that often appear irrational from a purely mathematical perspective.

Research discussed during the session suggests that clients increasingly expect advisors to provide guidance beyond portfolio management. Advisors frequently find themselves acting as educators, mediators, coaches, accountability partners, and trusted confidants during periods of financial uncertainty or major life transitions. 

Key Advisor Takeaways

• Behavioral coaching is becoming one of the profession's greatest competitive advantages. 
• Clients increasingly value empathy, communication, and trust alongside technical expertise. 
• Understanding how clients think often matters as much as understanding investments. 

Reframing Client Resistance

Perhaps the most important concept introduced during the webinar was Dr. McCoy's challenge to the traditional idea of the "resistant client."

Rather than labeling clients as stubborn, unmotivated, or unwilling to follow advice, she encouraged advisors to view resistance as valuable information.

Resistance often signals that:

• the client is not emotionally ready to change; 
• the advisor and client are pursuing different goals; 
• fear or uncertainty has not been fully addressed; 
• recommendations are moving faster than the client's comfort level; or 
• the client has underlying concerns that have not yet been discussed. 

This shift in mindset changes the advisor's role from persuading clients to becoming more curious about what may be preventing action.

Instead of asking, "Why won't this client follow my recommendations?" advisors should begin asking:

• What concern hasn't been addressed? 
• What emotional need is this behavior serving? 
• What does this client need before they feel comfortable taking action? 

Simply changing this perspective often produces more productive conversations and reduces frustration for both advisors and clients.

Understanding the Stages of Behavioral Change

Dr. McCoy introduced the Transtheoretical Change Model, one of the most widely recognized behavioral psychology frameworks for understanding how individuals adopt new behaviors.

The model recognizes that clients exist at different stages of readiness rather than being equally prepared for change.

The stages include:

Pre-Contemplation

The client does not yet believe change is necessary.

At this stage, advisors should focus on increasing awareness rather than recommending solutions.

Contemplation

The client recognizes there may be a problem but remains conflicted.

They understand the benefits of change while simultaneously fearing its consequences.

Preparation

Clients begin exploring possible actions but have not yet committed to implementation.

Action

The client begins making behavioral changes.

Maintenance

New habits become established over time.

One of Dr. McCoy's most practical observations was that advisors often begin their recommendations assuming clients are already in the Action stage when many are actually still contemplating whether change is necessary.

Trying to solve a problem before the client emotionally accepts it frequently creates resistance.

Practical Planning Implications

Rather than immediately explaining Roth conversions, retirement spending adjustments, or estate planning recommendations, advisors may first need to explore:

• What concerns the client has. 
• What motivates them. 
• What fears they associate with change. 
• What success looks like from their perspective. 

Matching advice to the client's readiness significantly increases implementation.

Every Financial Behavior Serves a Purpose

Another powerful concept presented during the webinar was the idea that nearly every financial behavior—even seemingly irrational behavior—serves some psychological function.

Examples discussed included parents who continue financially supporting adult children despite harming their own retirement security.

From a purely financial perspective, this behavior appears counterproductive.

From a psychological perspective, however, it may provide:

• emotional connection; 
• relief from guilt; 
• a sense of control; 
• family harmony; 
• identity as a provider; or 
• reassurance about the parent-child relationship. 

Until advisors understand what purpose the behavior serves, recommending that clients simply "stop" may unintentionally threaten an important emotional need.

The goal is not merely eliminating undesirable behaviors but replacing them with healthier ways to meet those same emotional needs.

Advisor Application

When clients repeatedly ignore recommendations, advisors should investigate what benefit the current behavior provides before suggesting alternatives.

Questions such as:

• "What concerns you most about making this change?" 
• "What would you lose if you stopped doing this?" 
• "What makes this decision difficult?" 

often uncover issues that technical planning alone cannot solve.

Financial Anxiety: The Hidden Barrier to Action

One of the webinar's most research-based discussions centered on financial anxiety.

Dr. McCoy distinguished financial anxiety from ordinary financial stress.

Financial Stress

Financial stress typically results from temporary external events, such as:

• job loss, 
• relocation, 
• divorce, 
• illness, 
• market declines, 
• major purchases. 

Stress generally subsides once circumstances improve.

Financial Anxiety

Financial anxiety is more persistent.

Even financially successful clients may experience ongoing worry despite objectively strong financial situations.

Research cited during the webinar found that approximately 70% of Americans report significant financial stress, and surprisingly, clients working with financial advisors often report anxiety levels similar to the general population. 

Perhaps even more important, advisors consistently underestimate how many of their clients experience meaningful financial anxiety.

How Anxiety Changes Client Decision-Making

Dr. McCoy explained that anxiety is not simply an emotional experience—it has measurable neurological effects.

When anxiety increases:

• cortisol and adrenaline rise; 
• logical thinking becomes more difficult; 
• memory declines; 
• attention narrows; 
• decision-making deteriorates. 

Clients experiencing significant anxiety may leave meetings unable to fully remember recommendations despite appearing attentive during the conversation.

The implication for advisors is significant.

When clients fail to implement recommendations, the issue may not be disagreement—it may simply be that anxiety prevented them from fully processing the discussion.

Finding the Right Level of Financial Anxiety

Interestingly, the webinar explained that too little anxiety can be just as problematic as too much.

Clients who feel no urgency may postpone important planning indefinitely.

Conversely, clients experiencing excessive anxiety often become overwhelmed and avoid making any decisions at all.

The ideal state lies somewhere in between.

Dr. McCoy described this productive level of motivation as eustress—a healthy amount of pressure that encourages action without becoming overwhelming.

Financial advisors can help clients achieve this balance by:

• breaking large projects into smaller steps; 
• focusing on progress rather than perfection; 
• reinforcing successful behaviors; 
• celebrating milestones; 
• reducing unnecessary complexity. 

Helping clients maintain this balance improves both trust and follow-through.

When Clients Don't Follow the Plan: Techniques from Client Psychology

Fact-Checked Webinar Summary (Part 2)

Building Trust: The Foundation for Client Action

Throughout the webinar, Dr. Megan McCoy emphasized that trust is not simply a desirable characteristic of the advisor-client relationship—it is one of the strongest predictors of whether clients will actually implement financial recommendations. Clients are far more likely to disclose concerns, ask questions, admit uncertainty, and follow through on agreed-upon action steps when they trust their advisor.

Trust is built over time through consistent communication, active listening, and demonstrating genuine concern for the client's goals and well-being. Advisors who focus exclusively on technical expertise while overlooking the emotional side of decision-making may unintentionally create barriers to implementation.

Dr. McCoy noted that trust also encourages clients to be more honest about their financial behaviors, including mistakes, fears, and competing priorities. This transparency allows advisors to provide more meaningful guidance and identify obstacles before they derail a financial plan.

Key Advisor Takeaways

• Clients are more likely to implement recommendations when they feel heard and understood. 
• Trust grows through curiosity, empathy, and consistency—not simply technical competence. 
• Advisors should view every meeting as an opportunity to strengthen the relationship, not just deliver recommendations. 

Helping Clients Manage Financial Anxiety

Because financial anxiety often interferes with decision-making, advisors can play an important role in helping clients regulate their emotions rather than simply providing more information.

Dr. McCoy introduced several practical strategies that advisors can discuss with clients.

Schedule "Worry Time"

Instead of allowing financial concerns to dominate every day, clients can intentionally set aside a specific time to think about their worries. Research suggests this approach helps reduce constant rumination while giving individuals permission to acknowledge their concerns in a structured way.

Focus on What Can Be Controlled

Many financial worries involve circumstances outside a client's control, such as market performance or economic conditions. Advisors can redirect attention toward actions clients can control, including savings habits, spending decisions, insurance coverage, estate planning, and investment discipline.

Normalize Financial Anxiety

Clients often assume they are alone in feeling anxious about money. Simply acknowledging that financial uncertainty is common can reduce shame and encourage more open conversations.

Practical Planning Implication

Rather than attempting to eliminate anxiety completely, advisors should help clients develop healthy ways to manage it while continuing to make thoughtful financial decisions.

Creating Emotionally Meaningful Goals

Another recurring theme was that logic alone rarely motivates lasting behavioral change.

Most financial plans are built around numerical goals:

• Retirement income targets 
• Savings rates 
• Investment returns 
• Estate values 

While these metrics are essential, they often fail to inspire action on their own.

Dr. McCoy encouraged advisors to help clients connect financial recommendations to deeply personal goals and values.

Examples include:

• Spending more time with grandchildren. 
• Traveling during retirement. 
• Supporting charitable causes. 
• Caring for aging parents. 
• Leaving a meaningful legacy. 
• Reducing stress and gaining peace of mind. 

When clients associate financial decisions with outcomes they genuinely value, implementation becomes much more likely.

Using Open-Ended Questions

The webinar referenced the importance of asking thoughtful questions that encourage clients to describe the life they hope to create rather than focusing exclusively on financial numbers.

These conversations often uncover motivations that make recommendations feel personally meaningful rather than merely financially appropriate.

Small Habits Create Lasting Change

Dr. McCoy also discussed research showing that large behavioral changes are often unsuccessful because they feel overwhelming.

Instead, she recommended helping clients develop small, manageable habits that gradually build momentum.

Examples might include:

• Increasing retirement savings by one percent. 
• Scheduling one estate planning appointment. 
• Reviewing one insurance policy each month. 
• Saving an additional fixed amount every paycheck. 
• Automating a monthly investment contribution. 

Small successes build confidence, reinforce positive behaviors, and reduce the anxiety associated with major life changes.

Celebrate Progress

One of the simplest yet most effective techniques discussed during the session was celebrating small accomplishments.

Recognizing progress—even modest progress—helps clients remain motivated and reinforces positive financial behaviors over time.

Improving Communication With Clients

Effective communication involves far more than explaining financial concepts clearly.

Dr. McCoy encouraged advisors to pay close attention to the language clients use when describing their financial concerns.

Matching a client's vocabulary, acknowledging emotions, and reflecting back what has been heard helps clients feel understood and strengthens engagement.

She cautioned against arguing with clients who appear resistant. Instead, advisors should explore the underlying reasons for hesitation.

Helpful questions include:

• "Tell me more about what's making this decision difficult." 
• "What concerns you most about this recommendation?" 
• "What would need to happen for you to feel comfortable moving forward?" 

These types of conversations often uncover issues that would otherwise remain hidden.

Working With Couples and Shared Financial Goals

Many financial decisions involve couples whose priorities, communication styles, and money experiences differ significantly.

Dr. McCoy emphasized that disagreements about money are often disagreements about values, experiences, or expectations—not simply numbers.

Rather than encouraging one partner to persuade the other, advisors should help couples develop shared goals that both individuals find meaningful.

When couples understand each other's motivations and feel included in the planning process, they are generally more committed to implementing financial recommendations together.

Practical Advisor Strategies

• Give both partners equal opportunity to speak. 
• Explore each person's financial history and experiences. 
• Focus on shared values before discussing specific recommendations. 
• Help couples define what financial success looks like together. 

Questions and Practical Applications

The webinar concluded with a discussion of common situations advisors encounter when clients struggle to follow through.

Several recurring themes emerged:

Anxiety Often Appears as Procrastination

Clients who continually postpone decisions may not lack motivation—they may simply feel overwhelmed.

Breaking recommendations into smaller action steps often improves implementation.

Resistance Is an Opportunity to Learn

Instead of viewing resistance as an obstacle, advisors can treat it as valuable feedback about the client's readiness, concerns, or emotional needs.

Behavioral Change Takes Time

Meaningful financial change rarely occurs after a single meeting.

Successful advisors recognize that coaching clients through gradual progress often produces better long-term results than attempting to solve every issue immediately.

Practical Advisor Takeaways

Dr. McCoy concluded with several practical lessons that advisors can immediately incorporate into their client meetings.

Shift Your Perspective

Instead of asking:

"Why won't this client follow my advice?"

Ask:

"What is preventing this client from taking action?"

This small change often leads to more productive conversations.

Focus on Curiosity Before Solutions

Take time to understand the client's concerns before offering recommendations.

Clients who feel understood are more likely to trust the planning process.

Reduce Complexity

Large financial goals become less intimidating when broken into manageable steps with clear timelines.

Reinforce Success

Celebrate progress regularly.

Positive reinforcement encourages clients to continue building healthy financial habits.

Integrate Psychology Into Financial Planning

Technical expertise remains essential, but long-term success increasingly depends on understanding human behavior.

Advisors who combine financial knowledge with empathy, communication skills, and behavioral coaching are better equipped to help clients achieve meaningful and lasting change.

External Reference Sources

Financial Therapy Association
https://financialtherapyassociation.org

Kansas State University – Personal Financial Planning Program
https://www.k-state.edu/pfp

CFP Board – Code of Ethics and Standards of Conduct
https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct

American Psychological Association – Stress Effects on Health and Decision Making
https://www.apa.org

National Institutes of Health – Behavioral Change Research
https://www.nih.gov

Prochaska, J. O., & Velicer, W. F. – The Transtheoretical Model of Behavior Change
https://pubmed.ncbi.nlm.nih.gov/10170434

BJ Fogg – Tiny Habits® Method
https://www.bjfogg.com

Consumer Financial Protection Bureau – Financial Well-Being Resources
https://www.consumerfinance.gov

Overall Advisor Takeaway

Dr. Megan McCoy's presentation challenged advisors to rethink one of the profession's most common frustrations: clients who fail to implement well-designed financial plans. Rather than viewing these clients as resistant or unmotivated, she encouraged advisors to recognize that behavior is shaped by emotions, anxiety, personal history, readiness for change, and deeply held values. By combining technical expertise with principles from financial therapy and behavioral psychology—such as building trust, reducing financial anxiety, aligning recommendations with clients' personal motivations, and encouraging small, sustainable habits—advisors can significantly improve client engagement, strengthen long-term relationships, and increase the likelihood that carefully developed financial plans are successfully put into action.