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kindness and generosity have a cascading effect , enhancing an advisor ’ s ability to earn a greater share of wallet , to keep more clients and to develop what we call “ customer lifetime value .” Furthermore , by cultivating a practice of compassion and understanding , advisors often see more client referrals . These things offer tangible business metrics that help the bottom line . I refer to this effect as “ return on relationship ,” a powerful leverage that can amplify the success of any financial practice .
Here are five suggestions to boost that return and build strong bonds with clients during trying times when they are facing things like health crises or medical emergencies :
1 . Send a personal , handwritten card and a care package . A random act of kindness need not be lavish or expensive , but it does need to be personal . You should spend an extra five minutes personally writing a heartfelt message , such as , “ Dear Client , our thoughts are with you , sending abundant strength and positivity . Please let us know if there is anything we can do to assist you and your family at this time . Get well soon , Tina .” Combine your note with a thoughtful care package : Websites like Etsy . com and SpoonfulofComfort . com offer a variety of choices .
2 . Check on clients periodically with calls and texts . While I was recovering from surgery and chemo , many people checked in with a call or text . One friend took pictures of the flowers in her yard and sent them to me with a kind note . I ’ ll attest that such simple gestures leave a lasting impression on your clients . Not only that , but they will also remember you for it . It ’ s also essential to check on the caregiver to see how you can help .
3 . Volunteer to assist with complex medical claims and conversations with the client ’ s insurance company . The additional costs of hospitalization , surgery and medications can be costly and include out-of-pocket expenses . In such scenarios , financial advisors can provide invaluable support to their clients by assisting with medical claims , addressing queries and navigating disputes . Given the complexity of the medical system , individuals who are ill might find it overwhelming to manage these concerns on their own . I know I did . Financial advisors thus serve as a vital resource , ensuring clients can focus on their recovery without the added stress of financial and administrative burdens .
4 . Ensure client accounts are in good order and have correct beneficiary designations . It ’ s a fundamental aspect of good business to maintain the accuracy of client accounts . This involves periodic reviews to ensure all accounts are in good standing and updated with the correct beneficiary designations . Advisors should also check the titling and ownership of accounts and other relevant documentation . By proactively managing these things , you can safeguard the interests of your clients and foster a relationship built on trust , ensuring that their financial legacies are well protected and aligned with their wishes .
5 . Evaluate existing healthcare proxies and living wills . Another critical component of patient advocacy is evaluating and managing healthcare proxies and living wills . Hospitals invariably require these documents , which are pivotal in guiding medical decisions when patients cannot communicate their wishes . Advisors need to approach these discussions with patience and respect but with an intent to understand their clients ’ perspectives and individual challenges . Through this approach , you can offer comprehensive support beyond traditional boundaries , showing genuine commitment to your clients ’ well-being .
Looking back on my own life experience of fighting cancer and now being cancer-free , I am reminded that difficult circumstances bring out the best in people . Financial advisors who use this time to be present for and support their clients will make a more significant impact than any investment strategy does — the client will never forget how the advisor was there for them and will remain loyal for life .
TINA POWELL is the chief of community at Intention . ly , a consulting and marketing agency .
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rate lending , but with one major caveat : The lending is based not on an investment ’ s cash flow but on its underlying assets .
Since most private credit is extended to companies based on existing or projected cash flow , if that dries up , so does the safety of the loans . So Sarti looks to something more tangible to bolster his confidence .
“ That might be inventory , critically necessary equipment , maybe a trucking fleet , maybe a piece of real estate ,” he says .
“ If something negative happens to the underlying cash flow of the company , even if it ’ s out of the company ’ s control like a recession , we have the backing of the assets to protect our loan .”
Not only does this add resiliency to the investment , but gives an advantage to those doing deeper analysis — pros who can separate the wheat from the chaff . That ’ s important in an area where there ’ s a lot of competition . Lenders who judge a company on its cash flow only have to look at the financial returns and talk with management , he says . When investors are looking at asset-based loans , they must make company visits to examine the inventory or equipment or the trucking fleet and then assess their value .
The complexity pays off for smart investors in two ways , Sarti says .
“ First and foremost , we love that protection . Again , cash flow can go away very quickly . Assets cannot ,” he says . “ But secondly , you don ’ t have a ton of lenders competing for the same loan , which will drive down the yields . Yields have remained higher because there ’ s less lending competition for these asset type of loans .”
58 | FINANCIAL ADVISOR MAGAZINE | JANUARY / FEBRUARY 2024 WWW . FA-MAG . COM