The Worst Way to Handle a Performance Question (And What to Do Instead)

It’s one of the most uncomfortable moments for advisors. A new prospect sits down, and before you’ve even had a chance to explain your process, they ask: “What’s your performance?” For many advisors, that question immediately creates tension. Do you redirect? Reframe? Defend? Disqualify? This episode breaks down how to handle one of the most common — and most misunderstood — questions in financial planning: how to respond when performance is the first thing a client cares about. James and Eden walk through the real mistake advisors make in these conversations — not the question itself, but how quickly we judge the client behind it. Because in many cases, performance isn’t the real question. It’s just the only question the client knows how to ask. You’ll learn how to identify the difference between a true “performance-only” client and someone who simply hasn’t yet seen the full value of planning. More importantly, you’ll learn a practical framework for responding: when to answer directly, when to go deeper, and how to earn the right to expand the conversation without creating defensiveness. The deeper takeaway is simple but powerful: great advisors don’t avoid hard questions — they answer them clearly, then guide clients toward better ones. If you’ve ever felt caught off guard by a performance question, or unsure how to balance investment conversations with planning value, this episode will give you the clarity and confidence to handle it the right way. Listen in to learn how to turn one of the most uncomfortable questions into one of your strongest opportunities to build trust. Submit a question for James here: https://rootreadypodcast.com/ ======================= Subscribe to James' YouTube →    / @rootfp   Connect with James on LinkedIn →   / jamesconole   Want to Work at Root? Check out our website → https://www.rootfinancial.com Check out Root's YouTube Channel →    / @root_financial   Follow Root Financial on LinkedIn →   / rootfinancial   Follow Root Finanical on Instagram →   / rootfinancialpartners   ⏱Timestamps:⏱ 00:00 – Intro: When Clients Ask About Performance First 00:40 – Real Example: A Prospect Focused Only on Investments 01:42 – Is Asking About Performance a Red Flag? 03:11 – Understanding the Client’s Perspective 04:21 – How Advisors Typically Respond (and Why It Can Fail) 05:20 – The Key Shift: What’s the Question Behind the Question? 08:29 – The Best Response: Answer Simply and Directly 12:30 – What Happens After You Answer? (The Decision Tree) 17:50 – Big Lesson: Earn the Right to Go Deeper 23:10 – Talking Performance with Existing Clients 25:04 – Explaining Underperformance the Right Way 27:26 – Why Diversification Works (Even When It Lags) 29:13 – Showing Clients You Care (Not Just That You’re Smart) ======================= Advisory services are offered through Root Financial Partners, LLC, an SEC-registered investment adviser. This content is intended for informational and educational purposes only and should not be considered personalized investment, tax, or legal advice. Viewing this content does not create an advisory relationship. We do not provide tax preparation or legal services. Always consult an investment, tax or legal professional regarding your specific situation. The strategies, case studies, and examples discussed may not be suitable for everyone. They are hypothetical and for illustrative and educational purposes only. They do not reflect actual client results and are not guarantees of future performance. All investments involve risk, including the potential loss of principal. Comments reflect the views of individual users and do not necessarily represent the views of Root Financial. They are not verified, may not be accurate, and should not be considered testimonials or endorsements Participation in the Retirement Planning Academy or Early Retirement Academy does not create an advisory relationship with Root Financial. These programs are educational in nature and are not a substitute for personalized financial advice. Advisory services are offered only under a written agreement with Root Financial.