Financial planning is about imagining a stable financial future and forecasting how to meet those goals in the present. In many circumstances, people investing in their future take current or future family members into consideration for those plans. Therefore, through our research we found the third most effective element to establishing long-term client relationships was approaching each client with the aim of making them multigenerational – i.e. growing their investments to include future planning with other family members in mind.
In our previous blog on getting to know your client, we suggested that learning a client’s family history and life philosophy was necessary to becoming an effective advisor. With this personal knowledge of your client, building a relationship which extends to future generations would appear to be the next natural step.
With this knowledge of key issues specific to that client, and a willingness to plan ahead and forecast their investments, you can begin to build relationships with multiple family members. Having knowledge of and experience with personal aspects of your client’s history will encourage other family members to trust in your advice and services. Handling personal matters, such as wills, inheritance, and tax payments demonstrates your commitment to their family and life philosophy.
Establishing this personal connection will help you navigate complicated interpersonal relationships. If you can establish a specialty in generational wealth planning, you will be able to encourage clients to continue to keep their business with your firm. By offering services on a multigenerational platform, you demonstrate your long-term commitment to providing financial stability for your client.
These three blogs were intended to present industry insider insights into aspects of long-term relationships in financial planning. We aim to continue this feature by examining other fields where long-term relationships are vital to industry success. Abbey Research will continue to explore methods of best practice as we continue our commitment to our clients and their research needs!
And if you're left now with the question of "how well am I doing any of this?!", contact Dr. Donnelly for your free consultation on exactly how we can answer that question for you.