Most people want advice, yet only a few actually seek theservices of a professional advisor. Do they lack trust in advisors?Is it too expensive? Are they risk takers? While all of these mayindeed be valid reasons (or at least that's what they'll say if youask), the real answer is far more complex.

What people say and what people do are two very differentthings. When people decline assistance, look beyond the immediatereasons they give.

I was recently involved in a research project where we conductedblind, in-depth discussions with people about their relationshipwith money. Specifically, we wanted to find out what may trigger ormotivate a person to take action — to save for retirement, buyinsurance protection and, in the end, be more financially secure.The results were surprising.

• People can't focus on the long term when shorter termobligations, such as student debt or car payments are more real tothem. They'll think about long-term planning later…but, for many,later never comes.
• People view their future as abstract and it precludes them fromsetting tangible goals.
• People struggle to prioritize, confusing things they may wantwith things they actually need.
• People want to “do the right thing” but are so afraid of makingthe wrong decision that they make no decision at all.
• People relate to other “people like them” and, as such, don'twant to hear what someone not like them would recommend.

The end result? People become confused, paralyzed, demotivatedand indecisive. Hence, taking no action is the only smart action intheir mind. This illogical conclusion is heavily grounded in afield of study known as behavioral economics. And, no, I didn'tmake that up. It's very real and quite compelling.

Behavioral economics involves studying the economicdecision-making process of individuals. It explores why peoplesometimes make irrational decisions and how their behavior doesn'tfollow the predictions of traditional economic models.

Let's think a bit further about this. Insurance is complex andterminology is foreign. So, people want advice but they don't wanta sales job. They want specific details relevant to them, ratherthan generic education geared toward the mass population ofconsumers. People want simple.

As advisors, understanding a person's actual tendencies andbehavior can lead to more effective recommendations, guidance andcommunications. Sure, it takes more time. But, as you gain a betterunderstanding of who they are—their fears, goals and triggers — youcan prepare a recommendation that meets them at their particularstage in life. Overall, it'll benefit your client in all thefollowing ways:

• It will drive more confidence in their decision making;
• It will allow you to embrace “who they are” rather than who youthink they should be;
• It will generate a higher chance of driving meaningful actionbecause it will become more relevant to them;
• It will become tangible and resonate;
• It will reduce their fear of making bad choices.

Look up the term behavioral economics. It's a field that isabout to explode in our industry and it will become the key forunderstanding clients. So, get ahead of the game. Learn about itnow and incorporate it in your sales tactics. You'll differentiateyourself and, in doing so, become the trusted advisor who helpspeople become better prepared for a more secure future.