Now, more than ever, our role as financial planners is to guide our clients and offer support through major life transitions like death, divorce, retrenchment or retirement, to name a few. It’s important to remember that change is external and can be forced upon us. However, transition is an internal process of dealing with emotions, beliefs and attitudes that need guidance to embrace change.

Life transitions can be challenging and clients may question their identity and view of the world around them. However, when managed effectively, it also presents an opportunity for positive change if they are willing to embrace these transitions and learn from them. William Bridges mentions three phases of transition in his book called Transitions: Making sense of life’s changes:

1. Ending, losing and letting go

This stage is often emotional as clients are forced to let go of something that they are comfortable with. Transition starts with talking to your clients about what is ending.

2. Neutral zone

This exploratory phase is the bridge between the old and the new. It can reflect great creativity and renewal. So don’t rush your clients through this.

3. New beginning

During this phase clients start to embrace the change. New beginnings happen when transition is over, not when change takes place. It's essential that you help them adapt to their new reality.

Ultimately, transitioning will impact investment decisions which could have significant and long-lasting personal and financial consequences. How does your financial planning process support and empower your clients through major life transitions?

For more information or support on helping your clients face transitions, speak to an Old Mutual Wealth financial planning coach.