Love is in the air for one of your top clients, who has just announced his or her upcoming marriage. While your client has romance on the brain, says Bev Moir, a senior wealth advisor with ScotiaMcLeod Inc. in Toronto, you should be thinking about the implications to your client’s portfolio and financial plan, and what it means for your relationship.
Moir provides the following points to keep in mind when your client makes a wedding announcement:
> Protect your client’s interests
Looking out for your client involves bringing up sensitive but important topics that he or she may not have considered. These issues may be imperative to protecting your client’s financial health.
For example, you might discuss: the possibility of a prenuptial contract; whether your client will be taking on his or her future spouse’s credit history; the need to update wills; and revisiting the financial plan.
Present these topics in the form of a checklist, to indicate that talking about these issues is a standard procedure and your client should not take it personally.
Because these topics are sensitive, approach them in a private conversation with your client. If you are asked to have a meeting with the partner, Moir says, consider yourself a facilitator who can help both individuals prepare for this major step.
> Prepare for the possibility of losing the client
You cannot assume the future spouse will automatically become your client. He or she may have an advisor and, if the couple chooses to work with only one advisor, they will have to decide who is the better fit.
Be proactive, Moir says, and make your interest in continuing the relationship clear.
For example, you can tell the client: “I’m very happy you found a significant other. I hope it doesn’t mean any changes to our relationship. In fact, I would be happy to meet your partner and include him/her in our discussions.”
> Meet the partner
Try to develop a social rapport with your client and his or her future spouse. Invite the couple out for a dinner or a cultural or sporting event.
The purpose is to meet this special person and begin to form a relationship with him or her. Leave the business in the office and use this opportunity to have fun and let the spouse get to know you.
> Be open to new views
If your client and his or her new partner have decided to maintain the relationship, understand that the dynamic of the relationship has probably changed. Having two clients instead of one means a new perspective that might clash with earlier decisions made when your client was single.
For example, if your client has always had a “medium” risk profile and the spouse is talking about higher-risk securities, be willing to listen.
“The worst thing you can do is get defensive,” Moir says. “You have to take [the attitude that] this is to try to make things better.”
Have an honest conversation about the couple’s goals and the pros and cons of changing course.