With years of experience in product marketing and content generation in the financial services industry, Sean is committed to providing informative and impactful content to financial professionals and the clients they serve.
In a perfect world for a financial advisor, their book of business would contain many high-net-worth (HNW) clients. Unfortunately, this is often not the case. While it sounds ideal to have a book full of HNW clients, attracting and retaining them is an industry-wide struggle, as there is a competitive market for their business.
For advisors looking to attract HNW clients, it is vital that they have a plan set in place instead of hoping for them to walk through the door. One of the most important things an advisor can do to attain HNW clients is to differentiate themselves from their competition while delivering their value proposition to those potential clients and piquing their interest for a meeting.
Understanding their needs
Getting those clients intrigued is the first step in obtaining a HNW client, but the value you provide with your services is the next step to deliver what you sold them.
Once you realize that HNW clients have more complex needs than the normal mass affluent client, you have to provide these different levels of services for them. While it may not be standard at your firm, being able to customize your service offerings is key when trying to meet HNW client needs.
Advanced planning services
Providing advanced planning services for businesses, estates, and tax situations will appeal to HNW clients. For advisors, having a streamlined process when creating plans for their clients will only increase the possibility of obtaining these HNW clients.
By leveraging a streamlined process and robust financial planning tool, you are able to show multiple outcomes in very few key strokes. This is the differentiating factor that HNW clients are seeking when selecting an advisor.
Generational wealth transfer
While having a streamlined process in place is a major step in obtaining HNW clients, one of the biggest components of financial planning these clients want to focus on is legacy planning. This may be the biggest concern of HNW clients, as they are not only concerned with establishing an inheritance plan but also want to ensure that their heirs receive everything they need to manage the estate left to them.
According to a 2015 study from U.S. Trust, while 75 percent of wealth parents think it is important to leave an inheritance for their children, only 20 percent believe that the next generation is equipped to responsibly manage what they receive.
This is where as an advisor you are able to differentiate yourself from your competition by providing a digital experience through a robust financial planning tool. By having a comprehensive financial planning tool in place, you can reassure your HNW clients that their heirs are in safe hands through the estate planning and trust services you offer.
By not only providing a comprehensive financial plan but also a digital experience, you are able to assure your HNW clients that you are an advisor that can be a resource to both them and their heirs. Once the heirs take over the estate, you are able to provide them with a digital experience that they understand and prefer as this younger generation is very tech-savvy, and this will set you apart from your competition.
After you explain this added value to HNW clients, it is a good idea to encourage them to include their children in the planning process. This enables you to begin building a relationship with this next generation and demonstrate the digital experience they would have.