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Advisors, Will You Lose Your Clients?

A recent issue of Investment News pointed out a shocking statistic: 66% of children fire their parents’ financial advisor after they receive an inheritance.

That news is particularly troubling given that, over the next 30 years, there is expected to be a $30 trillion wealth transfer. Some have predicted the wealth transfer to be over $40 trillion. As that wealth transfers, many financial advisors will see their hard-earned battles to acquire clients evaporate—if the children transfer their accounts elsewhere.

One key to avoid this attrition is simply to meet with the children. Get to know them, and build a relationship of trust. On the other hand, the next generation is technology savvy, and the ability to have online tools, training, and access is critical.

Engaging with the next generation in financial training is one piece of the puzzle. However, engaging with families in more complex, subjective areas is also critical. This includes helping families develop generational legacy plans—helping them think and plan multi-generationally. One of the keys to successful wealth transfer is helping families give together. A donor-advised fund as a rallying tool is a great way to convene.

Still other families are working on family mission, vision, and value statements. Those statements are powerful ways to give the family a vision for the future. The Center for Family Conversations is one place advisors turn to for advice and consulting with clients in this arena. Taking this a step further, some advisors are working with clients on documenting their family story through video, written stories, and even books via companies like FamilyArc.

Each of these ideas helps make the relationship sticky, where the children want to stay long after their parents are gone. Equally powerful, the advisors will find that their relationships with clients will deepen and grow as well.

Related articles:
4 Big Reasons Financial Advisors Should Encourage Charitable Giving
Don’t Give Your Kids Money
How the Aging Population Will Affect Giving

About Bill High

Bill is CEO of the Signatry: A Global Christian Foundation. He works with families, individual givers, and financial advisers to share the foundation’s message regarding biblical generosity and charitable giving. » Learn More. He is the co-author with David Green of Giving It All Away and Getting It All Back Again: The Way of Living Generously.

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