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Whether is strategizing to help clients accrue savings to buy a house or fund a college education, retirement planning or long-term care planning, advisors spend ample time engaging with clients in various planning pursuits.
Experienced advisors know that there are some elements of planning that are uniform and applicable from one client to the next. Others are not and as such, advisors need a credible plan of attack when to bolstering planning services offered to clients.
Fortunately, these are simple strategies and include familiar points such as getting to know a client’s family, taking the drag out of the onboarding process and prioritizing a client’s time. Other ideas include prioritizing ongoing delivery of value and leveraging experts to bolster the value-add proposition.
Family Matters, Time Considerations
It should be intuitive and the great wealth transfer provides a compelling reason to do this, advisors should truly take the time to get to know the client’s family. It’s the right thing to do and could lead to longer-lasting, cross-generational relationships.
“Leverage a values assessment tool across the family to gain a better understanding of their perspectives on money. Start first with spouses, then extend out to heirs. You can position yourself as a trusted collaborator in helping them identify similarities, differences, and opportunities to align,” according to Fidelity.
Fidelity also highlights the value of respecting a client’s time and that can manifest itself in various ways, including the onboarding process. This part of the relationship can be onerous for advisors and clients alike, but those burdens can be ameliorated. Advisors can implement effective, easy-to-deploy strategies that could ensure relationships start on the right foot.
“Gather as much information as you can in your first meeting: income, expenses, age, family, health factors. This can also provide an early indicator of the client’s financial awareness and organization skills,” adds Fidelity. “Break down their work into bite-size chunks. If their primary goals center on retirement, perhaps start with 401(k) and investment statements at the first meeting. If they express concerns about debt, start with loan statements and bank account information.”
Value for the Long-Term
Earning business is one thing. Keep that client (and their family) around for the long-term is another ballgame and one that cannot be taken for granted. The good news is that it’s a relatively easy goal to accomplish. Advisors can add value in a variety of ways, including helping clients identify issues with self-discipline and ability to stick to solid financial plans.
Likewise, advisors’ roles as part-time financial psychologists should not be diminished because when wearing that hat, advisors learn more about how clients view money and related behaviors – all of which are instructive in building more fruitful relationships.
“Conversations around money are often paired with fears. Ask clients direct questions about their fears, and help them understand how they may limit their perspectives and reduce action,” concludes Fidelity.
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