Investment Objections Flashcards
(12 cards)
“I don’t have enough money to invest.”
Objection Type: Perceived affordability / cash flow
Response Strategy:
Reframe as scalability: “You don’t need a lot to get started. Even small, consistent investments grow over time.”
Use examples: Show a simple compound interest example of $100/month.
Automate: Recommend automated contributions tied to payday.
Tie to goals: “What would future-you thank you for starting now?”
“I’m afraid of losing money.”
Objection Type: Fear of risk / loss aversion
Response Strategy:
Acknowledge fear: “That’s a valid concern — no one likes seeing their investments drop.”
Educate on time horizon and volatility: “Short-term dips are normal, but over time, markets trend upward.”
Use visual aids: Show charts of past recoveries after downturns.
Adjust risk tolerance: Offer lower-volatility options or phased exposure (e.g., dollar-cost averaging).
“I can do this myself.”
Objection Type: Overconfidence bias
Response Strategy:
Acknowledge DIY efforts: “It’s great that you’re engaged — most people don’t even take that step.”
Add value: “My role isn’t to replace your knowledge, but to add structure, discipline, and planning expertise that’s hard to maintain alone.”
Use analogies: “You could technically do your own taxes or cut your own hair too — but is that the best use of your time or energy?”
“Now’s not a good time — I’ll wait for the market to improve.”
Objection Type: Market timing fallacy / paralysis
Response Strategy:
Challenge timing logic: “Do you recall a time when it felt like the ‘perfect’ time to invest?”
Share data: Show how staying invested beats timing the market.
Introduce dollar-cost averaging: “We don’t need to go all in at once — we can phase in your money over time.”
“I don’t trust the market / advisors / the system.”
Objection Type: Trust deficit / past negative experience
Response Strategy:
Build rapport: “I completely understand — a lot of people feel that way.”
Transparency: Show your fiduciary duty, certifications, and how you’re compensated.
Small steps: Start with a no-pressure, low-risk plan to build trust.
Show alignment: Emphasize how your success depends on their success.
“I don’t really understand how investing works.”
Objection Type: Knowledge gap
Response Strategy:
Simplify the explanation: “Think of it like planting a tree. You won’t see results today, but one day, it’ll give you shade and fruit.”
Use visuals: Charts, analogies, and outcome-based scenarios.
Avoid jargon: Keep language conversational.
Offer education: “We’ll walk through this step-by-step. No pressure.”
“I’m already in debt — shouldn’t I pay that off first?”
Objection Type: Competing financial priorities
Response Strategy:
Audit their debt: “Let’s look at the interest rates — sometimes it makes sense to split strategies.”
Both/and approach: “We can design a plan that reduces debt and builds a foundation.”
Long-term view: “Delaying investing too long may put more pressure on your future finances.”
“I’m too old to start investing now.”
Objection Type: Time horizon limitation
Response Strategy:
Reframe: “It’s never too late to be strategic about your money.”
Focus on goals: “Let’s optimize what you do have.”
Emphasize safety and income: Tailor investments to preserve capital and provide income.
“I don’t know what I’m investing in.”
Objection Type: Uncertainty / lack of clarity
Response Strategy:
Demystify the plan: Break down the investment mix in simple terms.
Explain the “why”: Connect each investment to their life goals.
Provide transparency: Offer access to dashboards or regular review meetings.
“I had a bad experience before.”
Objection Type: Emotional baggage
Response Strategy:
Acknowledge pain: “That must’ve been frustrating.”
Reset expectations: “Let’s make this experience different — one based on partnership, clarity, and purpose.”
Rebuild confidence: Start with small, tangible wins.
“I need to think about it / talk to my spouse.”
Objection Type: Delay tactic / indecision
Response Strategy:
Respect the space: “Absolutely, it’s important to make financial decisions together.”
Offer follow-up: “Would it help if I sent a summary to review together?”
Set a date: “Can I follow up with you in a few days to answer any questions?”
BONUS: Behavioral Biases to Recognize
A. Bias B. Description C. Response
A. Loss aversion B. Fear of losing outweighs potential gain C. Show historical recovery data
A. Recency bias B. Recent events feel more significant than long-term patterns C. Zoom out and show long-term charts
A. Confirmation bias B. Only accepting info that confirms existing views C. Ask open-ended questions to explore concerns
A. Status quo bias B. Preference for doing nothing C. Show cost of inaction using opportunity cost
