3 common questions from high-net-worth prospects

January 29, 2018 by Dylan Amick

About the author

Dylan Amick

Marketing intern

Dylan is a senior at UW-Milwaukee, double majoring in Marketing & Supply Chain and Operations Management. During his internship, he will be working closely with Salesforce. Dylan is passionate about diversity marketing and customer advocacy.

Financial advisors act as the linchpin in the decisions of their high-net-worth (HNW) clients. HNW clients have a vast range of different assets that require specific management techniques, and with managing those assets comes a high level of risk.

Having someone hold those responsibilities and managing that risk can be daunting for HNW individuals, especially if they do not carefully assess their situation. More often than not, HNW individuals will have three main questions before picking the financial professional that is right for them. Advisors must be prepared to answer the following questions when working to convert prospects into long-term clients.

“What is my holistic financial picture?”

It may be obvious to financial professionals, but understanding the prospects assets, income, and expenses will set you up for success. Knowing the full financial picture of the prospect’s life and communicating that to them will give them an idea of what value you can bring them. Working with the prospect, you will craft a roadmap to lay out their obligations and how they affect their financial life.

For HNW individuals, the roadmap will be larger and more complex. When crafting a roadmap, you can convey to the prospect where their assets should end up, how much they should be saving in liquid assets, and what their annual tax obligations will be.

“How have you helped similar clients in the past?”

This is an integral question for HNW prospects, as they are going to be interested in knowing how you have assisted clients in the past. You need to make the prospect aware of your approach to managing a variety of assets in an efficient manner.

One tactic you could use to show that past clients have been satisfied is to offer anonymous surveys to current clients. Then, share those surveys with the prospects to give them a sense of how you operate your business. You could also administer benchmark assessments and share the results with prospects to show a valid evaluation of portfolio risk and return.

“Are you the right advisor for me?”

Ultimately, this is the main question your potential prospect wants answered — will your services align with what the client is seeking in a wealth manager? One of the biggest concerns for the client is to understand how much your services will cost them. A higher cost will not necessarily matter to the client if you can offer a higher value proposition and make your services stand out. You could also offer a suitability assessment. This suitability assessment can pinpoint exactly what your potential prospect wants, needs, and expects in hiring you to manage their assets.

To learn how Advicent technology can empower you to convert HNW prospects to clients, click here.