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Written by: Molly Rimes, CFP® | Modera Wealth Management, LLC
Building and leveraging a strong network is important for many careers, but it is integral for an advisor. Not only can it be helpful for finding clients, but it can also lead to lasting reciprocal relationships with centers of influence (COIs). A good COI serves as a resource for your clients, and a great COI is a partner in your business’ growth.
#1 The Accountant
A comment that comes up in many of my conversations with clients is, “I think I need a new accountant.” It’s a well-known problem in the industry that there are more accountants leaving the profession than joining it. Finding an accountant who is not only taking on new clients, but who is also responsive and willing to have a collaborative relationship can be like winning the jackpot, and your clients will appreciate it, too.
#2 The Estate Attorney
Convincing a client to draft or update their estate documents can feel like a Herculean task at times, but a great estate attorney can put your clients at ease and get them over the finish line. Sometimes attorneys can seem intimidating, especially when they speak in “legalese.” Having their advisor in the room with them during these conversations with estate attorneys can help clients keep their estate planning goals on track. The cherry on top is when the estate attorney collaborates with you on the implementation of the plan, too.
#3 The Insurance Agent
Property and casualty insurance agents may be the ones your clients are most familiar with, and they certainly have their place in this lineup, especially as the space has changed so much over the past few years. But looking beyond property and casualty, there’s a world of insurance agents out there for your clients. A good life and disability insurance agent prescreens your clients and shops them to insurance companies that view their medical history favorably or tells them upfront if they will not qualify for coverage, saving them the hassle of underwriting. An insurance specialist or broker involved in health insurance is extremely valuable, too. With the FIRE (Financial Independence Retire Early) movement growing, one of the big questions is, “What do I do about health insurance before Medicare?” Making an introduction to the right professional, who evaluates both the marketplace options and any COBRA options they may have, can alleviate one of the most stressful parts of the transition to retirement. Once clients qualify for Medicare, the cycle begins again. Similar to reviewing property and casualty insurance on a regular basis, Medicare coverage is also something that needs to be reevaluated to ensure that the coverage is still appropriate for your client’s changing medical needs.
#4 The Real Estate Agent
Whether the client is looking to sell their home and purchase another, or is thinking about a second home, a real estate agent can be an invaluable partner for your client. They can also help you, as the planner, understand the costs involved in the process and how much to reasonably account for in a sale.
#5 The Business Coach
Small business owners are the bread and butter of many advisors’ practices. A business coach can take your client’s business to the next level or help them develop a succession plan so they can retire comfortably.
I’m also adding in a bonus COI – The Financial Planner Friend. Each firm is different and we all service clients in particular ways. This can lead to a mutually beneficial relationship from an educational and practice management standpoint, but it can also be a great referral source, especially if you are a new advisor looking to rapidly grow your business. Many established firms have assets under management (AUM) minimums and may not be able to take on clients who are first starting out, or who just have fewer assets saved but still need quality financial advice and education. From the perspective of the advisor referring the prospect, it’s reassuring to have somewhere to send someone in their time of need, knowing that they will receive quality advice.
Where to find these individuals? Oftentimes, looking in your own backyard is the best starting place. Who are the professionals your clients currently work with that you enjoy collaborating with? Do they know the value you provide to your clients? Chances are, they may have a financial advisor on their list of essential COIs, too.
Related: A Financial Planner’s Guide To Staying Grounded in Volatile Markets
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