A New Localization Model for Client Reluctance

Abstract

Why do clients stop communicating with financial advisors? This paper seeks to answer this question by combining the Gantt Chart of project management with the Transtheoretical Model (TTM) of Change—a framework whereby advisors illicit client responses in an effort to reinforce positive behaviors and curb negative ones through the issuance of narrowly-focused tasks. This new client localization model identifies the client’s current position on the TTM spectrum and discusses the benefits for financial advisors to use this model in helping clients reach their financial goals.

Keywords: Gantt Chart, Transtheoretical Model of Change, financial advisor, personal finance, financial planning, client reluctance

JEL Classification: G02, H31, I12