Becoming a trusted key resource is one of the best ways for advisors to develop strong relationships with high net-worth (HNW) clients, according to Carolyn Seaforth, vice president of business development, Ontario, with Calgary-based Pinnacle Wealth Brokers, who spoke at the National Exempt Market Association’s first annual conference in Toronto on Thursday.
Although HNW clients may come from a variety of backgrounds, there’s one thing most have in common: they don’t have a lot of time, Seaforth says: “They’re looking for a single point of contact that they trust who can help in multiple areas of wealth building.”
HNW clients also want to know they can access a carefully selected suite of wealth-management solutions easily, she adds: “They don’t have the time or expertise to do that heavy lifting.”
In general, older, mature HNW clients will be more preoccupied with preserving their wealth and generating reasonable returns, she says. In comparison, younger HNW investors are more inclined to be chasing higher returns with a more aggressive risk profile — especially if they’ve just recovered from the 2008 stock market crash.
When serving both demographics, it’s an advisor’s obligation to fully understand these clients’ unique needs, she says. This can sometimes be challenging if clients think you’re asking for too much information, but they will likely be amenable if you explain your reasoning clearly.
Adds Lloyd Macdonald, vice president of business development with Pinnacle Wealth Brokers, who also spoke on the panel discussion: “Although HNW investors might not always be forthcoming with information, its incumbent on the people who work in our industry to draw that information out of them to make sure that we’re creating the right types of balanced solutions for them.”
For more insight on helping affluent clients, read HNW Guide 2017, IE’s first guide to serving the needs of high net-worth clients, from getting into their mindset to developing the top level service they demand.
Photo copyright: gaudilab/123RF