Ross Levin
Ross Levin
FINANCIAL LIFE PLANNING
We have to be secure enough to make the relationship totally about them rather than worrying about how we ’ re perceived by them .
cussed gifts the couple could make directly to their kids for the kids ’ personal needs — such as for education or housing — rather than giving the kids gifts outright they could use any way they wanted .
Treating their kids equally was important to the couple as well , so we discussed mechanisms to divide things more equitably between their childless kids and those with children . The couple wanted to use some of their lifetime gift exclusion for this , though they still wanted to know that they had enough for themselves . So we discussed using a spousal lifetime access trust as a beneficiary , a vehicle that would provide some financial security for the more anxious spouse .
The plan in the future is to have a family meeting where the couple will discuss the role of charity in their lives and lay out their estate plan to the children , who will get 90 % while the other 10 % goes to charity . The couple wondered whether their kids would understand why they weren ’ t getting 100 % of the estate . We explained to them that between estate taxes and the income taxes beneficiaries must pay on plan distributions , the children weren ’ t going to get 100 % anyway . It ’ s by using the retirement plans for charity that the plan almost mirrors the couple ’ s current after-tax giving objectives .
The way we articulated this was also important — specifically we avoided talking about “ foundations ” and just used the word “ charity .” The concept of a foundation may seem huge to kids , whereas “ giving to charity ” is more palatable .
As you can see , it took technical skills here so we could both go through some reasonable alternatives and creatively solve a problem together . And these techniques had to be communicated in an accessible way .
Relationships
Next , let ’ s talk about relationships . Our employees should be able to understand our clients with deep listening , by being empathetic , and by being personable and nonjudgmental . If we have these qualities , our clients will feel completely comfortable discussing the things that matter most to them . We have to be secure enough to make the relationship totally about them rather than worrying about how we ’ re perceived by them . These are little things and big things .
We have several clients with second homes in Florida who were affected by Hurricane Milton . Our strongest relationship managers read about the impending storms and reached out to the clients before the storms hit land . Calling clients right away was the next best thing . If we just pick up the phone when our clients call us , we ’ re living up to a certain promised level of service , but it ’ s not the same thing as having a relationship , which usually means anticipating what clients need and acting on it .
One of our client couples recently called to talk about how they should handle their 35-year-old adult son who is working on his master ’ s degree and is still not independent . They were not really calling about the money aspect ; they wanted counsel . We talked about their kids and what they hoped for them . We talked about how parenting is never over . We also discussed some requirements they could put on their child , such as his need to find a counselor that the parents have vetted , and discussed how they could use a matching program , giving him a financial incentive to work part time . And we talked about how it is important for the parents to get counseling so they could turn toward each other rather than turn on each other .
Money was in the background . Relationships can blur the line between being an advisor and being a friend , but I suspect most successful advisors are viewed as more than a wealth manager .
Details
Attention to detail means following through on the promises you make . It is making sure that all aspects of a client ’ s plan are being appropriately covered .
In our firm , we have a variety of tools that we use to make sure this is happening . One is what we call the “ Wealth Management Index ,” which helps us make sure each financial planning area is being regularly reviewed . We use our CRM to alert us about money coming in so it can be timely invested , or to ensure that all clients ’ required minimum distributions are carried out . But databases and programs are only good if they are used consistently . And that takes attention to detail .
One of our clients had specific requests for how much of their estate was going to go to their children and how much to charity . We talked about it in a meeting , but we neglected to make the change . Fortunately , we discovered our mistake a year later as we went through our Wealth Management Index . We had to let the client know that our follow-through was lacking . They pointed out what a big issue this could have been had they passed away . It took a long time before we gained back their confidence .
If you perform an honest self-assessment , you can determine which areas you are particularly good at and which of the three traits — technical skills , relationships and details — you may need additional help with . But rather than feel as if you have to be good at everything , remember , two out of three ain ’ t bad .
ROSS LEVIN is co-founder of Accredited Investors Wealth Management in Edina , Minn .
24 | FINANCIAL ADVISOR MAGAZINE | DECEMBER 2024 WWW . FA-MAG . COM