The seriously wealthy are busy people. When they are not running for president of the United States, they're overseeing their multinational corporations, engaging in charitable works or vacationing around the world on their terms. Managing their finances can be outsourced.
Your wealthy senior executive or dot.com billionaire has plenty of choices when it comes to financial planners and advisers. Jeanne Robinson, president and chief executive of the Marshall Financial Group, shared several observations based on her experience of working with higher-ups in the pharmaceutical field. She began by noting the seriously wealthy may be seeking either a solution or an experience.
• Supply a solution: They are seeing you because at that moment, their life involves a transition brought about by a divorce, loss of spouse or a sudden influx of wealth thanks to an option exercise.
Action Step: They need help in solving that problem. Let current clients and those likely to refer you know that you have helped others in similar circumstances;
• Deliver an experience: Perhaps their wealth is sudden. Now they want to be accepted among the moneyed elite in their city. This might involve starting a foundation and dispensing sizeable charitable contributions, ultimately landing on the board of a major hospital or cultural institution. Now they are peers with the great and the good.
Action Step: Since the initial introduction to a financial professional may originate from a friend already established in these circles, let people know that because of your personal involvement, you know the ropes. They can tell their friend: “This planner or adviser has the road map.”
• Lifestyle-specific advice: With the Supreme Court's ruling regarding gay marriage, some wealthy prospects might want advice from financial professionals who have long been advising gay and lesbian couples. Or the person who understands and appreciates yoga may be seeking a similarly holistic approach to their finances.
Action Step: You may be experienced in one or several niches. Ask those you have helped to share their story with people in similar circumstances. Attending and supporting gatherings of like-minded people communicates an understanding of the relevant issues.
WHAT IF I DON'T HAVE A NICHE?
What if you haven't built your practice serving either niche? What else do the wealthy want?
• Act, don't react: The busy CEO is putting out enough fires in their business life. They prefer to minimize them in their personal life. They want proactive and strategic guidance, taking the long view and measuring actual vs. targeted results.
Action Step: Speak their language.
• Quarterbacking: On average, the wealthy work with more than three financial advisers. They seek coordination among their advisers similar to the role their chief operating officer provides. CPAs and attorneys also fit into the picture.
Action Step: Demonstrate the skills necessary to be that primary point of contact.
• Simplified and concise reporting: Your firm can provide aggregated statements that also account for assets held away. Can you provide this information online in real-time (or almost real-time) reporting? This type of client is used to getting answers immediately.
Action Step: Walk them through the capabilities of your reporting.
• Access to opportunities: Certain investments come with suitability requirements limiting them to clients with substantial liquidity. They've been there and done that. The wealthy client may have money, but their day is still 24 hours long. They will pay for services that save them time. Concierge medicine is a good example. Clients have children who need career advice so their future plan isn't inherit and spend. Wealthy clients are eligible to collect
Social Security, just like other Americans. They need advice to optimize their decisions regarding when and how to collect on their benefits.
Action Step: Explain what you offer clients in addition to traditional
financial planning and investment advice.
Let's add a few other observations. Your wealthy clients know they will outlive their money. The sum they leave behind will be their legacy. Some might focus on keeping the money in the family. Others might take the Giving Pledge, intending to donate half their wealth to charity. They need to work with advisers skilled in this area. They seek advisers with a succession plan in place, since they anticipate the money will flow though several generations.
You are well-placed to help the seriously wealthy. Find a way to tell your story in a way that relates to their specific needs.
Bryce Sanders is president of Perceptive Business Solutions Inc.
