Young advisers strive to gain clients’ trust

For young financial advisers looking to earn their stripes, a lack of gray hair and wrinkles could have some clients concerned about taking advice from someone as young as their child — or even grandchild. Although age may not always work to a fledgling adviser’s advantage, being able to build a relationship with a client at an early stage is key to success. When starting out, young advisers need to cement a relationship before they are able to exercise their strengths, said David R. Bergman, managing principal at David R. Bergman Group, a Marina del Rey, Calif., firm that manages $100 million. “Young advisers need to frame their questions to clients on the side of wanting to know more about the client rather than wanting to teach them,” said Mr. Bergman, who is an administrator of the personal financial planning internship program at the University of California, Los Angeles. “They need to focus more on building a relationship.” Young financial advisers need to understand how the segment of the population they are serving needs to be addressed and the sort of plans that are desired, Mr. Bergman said. Baby boomers are somewhat willing to place all of their financial matters in your hands, he added, while members of Generation X and Generation Y are looking for someone to hold their hand and take care of their needs. Something to Prove Returning from college to live in his hometown, Aaron Coates, 34, now a partner at Compass Wealth Advisors LLC in Elkhart, Ind., said he was able to gain his employers’ respect quickly, which adds credibility when it comes to a relationship with clients.
“I am able to step in to that role because of the respect that [the] partners have for me,” he said. “As a result from relationships, you need to get in the door and get clients to trust you.” Mr. Coates added that being established, being married and displaying his kids’ pictures on his desk tends to relax clients and make them feel as though he has settled down and is ready to forge a long-term relationship. Compass manages $150 million in assets. Although gaining credibility may come easily in some cases, some young advisers feel that their age places them at a disadvantage. “Once clients see that you are young, you already have a mark against you,” said Eddie W. Kramer, 25, a financial adviser at Abacus Planning Group Inc. in Columbia, S.C. “I have overcome that by making sure that I do what I say I am going to do in a timely matter and make sure that clients trust me even though I don’t have gray hair.” Abacus Planning Group manages $500 million in client assets. Building Trust Getting that vote of confidence from a senior adviser goes a long way in building trust with clients, said Joe Pitzl, 26, financial adviser at GEN Financial Management Inc. in Plymouth, Minn., which manages $55 million in assets. When a senior adviser works with a junior adviser, it shows there is a succession plan in place, demonstrating to the client that you will be around for a while and that the continuity will be there when you need it most, he said.
Steve Holdsworth, 36, director of client services and financial planning at Legacy Wealth Management Inc. in Memphis, Tenn., says that exposure to client interactions is the best way to gain experience and promote confidence. “Giving a new member of the firm an opportunity to sit in on a client [meeting], even though they are not getting a lead role, gives the client an opportunity to gain exposure to that person,” he said. “It also helps to make sure we ask a client upfront if they are comfortable with the new person sitting in on the meeting.” Legacy Wealth Management, which manages $550 million in assets, has three teams, each comprising three to four staff members, focused on serving every client. “We want clients to be fully exposed and comfortable with the new people on their service team,” Mr. Holdsworth added. “Setting expectations and getting new advisers involved is the right thing to do.”