Grow and Retain Assets: The Power of Multi-Generational Relationships

Nurture Relationships Now

“There’s no time like the present.” It’s a common saying, and in the financial industry, it’s absolutely true. Just like the value of compound interest, there’s exponentially more value in compounding relationships.

There are as many ways to build a relationship with a client as there are clients. Each person and situation is unique, and financial advisors should take this into consideration as they begin to dive in and work toward deeper client relationship building. However, there are a few common denominators that are helpful to remember in every situation.

The number one thing?
You have to demonstrate care about more than just the finances.

A Financial Professional’s Experience

When her mother passed away, Anne Sinno and her siblings were tasked with helping their father through the grieving process, as well as to sort out the financial paperwork a life transition like this requires. Sinno is the western regional director for the MEMBERS® Insurance & Investments, so she was a little more prepared than most to help her father make this transition. She and her siblings did a significant amount of research and picked a few people to go interview.

The first individual met all of the requirements—on paper at least. He was experienced, had all the proper letters behind his name, and a stellar website. He even billed himself as a family wealth planner. But when they met in person, the advisor merely helped them change the names on the beneficiary forms and repeated over and over how wonderful his policies were. He didn’t acknowledge their loss in a heartfelt way.

Their second interview was completely different. “She asked a lot of good questions,” says Sinno. “Right away, she let us know that we would need to continue taking out the Required Minimum Distributions from mom’s IRA that she had. She even asked ‘How are your finances for the funeral? Do you have what you need, or would you like some cash right away?’ She asked the right questions.” Ultimately, Sinno’s father ended up consolidating all of his assets with the second advisor. Two of her siblings even moved their financial portfolios to this woman’s practice, and all because of the way she handled their needs in a tough moment of grief. Sinno says this should be a natural part of the advisor’s business—being a caretaker of the family and its assets, not just for those with the name on the paperwork.

Sinno’s advice for financial advisors when their client is hurting? “Ask if you can help, and in what way. They need someone they can trust, and you can be that person.”

Get the full story.

Succession Planning for Financial Advisors

More than a third of financial advisors will retire over the next 10 years. Are your succession plans in order?

Medicare and Social Security

New client service standards require financial advisors to understand government programs' impact on clients.

The Changing Retirement Landscape

Retirement planning now needs to go beyond asset accumulation, as the majority of the population soon won't be able to rely on pensions and Social Security supplements.