PRIVATE WEALTH JOHN J . BOWEN JR .
want their financial lives coordinated . Four out of five ( 80.3 %) believe that it is either extremely or somewhat important for their advisor , accountant , attorney and other financial professionals to communicate with one another about optimizing their financial situation ( see the chart ).
3 . They are worried about their heirs . Ultra-wealthy investors indicate that they intend to leave 56.4 % of assets to children and grandchildren when they die . But even though they ’ re leaving more than half their assets to kids or grandkids , most — 77.5 %— are worried that the next generation may waste that money .
Legacy planning services therefore represent a major way to attract and serve the ultra-wealthy . When you build relationships with the next generation , you management , particularly with younger clients . This means that while you can present options and recommendations , you should make decisions jointly with clients . Advisors who treat their clients like partners in decisions will develop stronger , more loyal client relationships .
2 . Go beyond investment management . Since no one person can be an expert in providing the myriad services the ultra-wealthy want and expect , work with your in-house experts or , if these are not available to you , create a network of professional advisors who together can meet the entire range of needs for the ultra-wealthy .
3 . Create a virtual family office . By coordinating a virtual network of specialists , you can emulate the expertise of
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In short , when it comes to both retaining wealthy clients and serving them well , one of your most powerful strategies is to engage members of the younger generation .
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increase the likelihood that they will continue to use your services after inheriting their parents ’ wealth . This helps you continue relationships with your wealthy client base , offering your practice long-term stability and growth . You ’ ll also have opportunities to offer additional services tailored to the needs of younger clients . When you serve multiple generations of a family , you position yourself as a trusted family advisor , leading to increased loyalty and yet deeper client relationships .
In short , when it comes to both retaining wealthy clients and serving them well , one of your most powerful strategies is to engage members of the younger generation .
Action Steps
The empirical research suggests there are several action steps you can take to attract and retain ultra-wealthy clients and , in doing so , significantly accelerate your organic growth .
1 . Make sure clients are involved . Adopt a collaborative approach to investment traditional family offices . This approach positions you attractively for the ultra-wealthy , especially those with more than $ 25 million , aligning your practice with their sophisticated needs and enhancing your appeal among the affluent .
4 . Open the door to the next generation . Foster relationships with clients ’ children and grandchildren by engaging them in conversations about issues that matter to multiple generations , such as efficient wealth transfer , philanthropic goals and business succession . For example , you might build these relationships while fostering family cohesion by organizing family meetings .
Ultimately , by understanding what the ultra-affluent want and need , and then by taking action , you ’ ll position yourself to play to win by fine-tuning the direction of your practice , innovating and setting yourself apart from competitors — all while bolstering your organic growth rate .
JOHN J . BOWEN JR . is the CEO and founder of CEG Worldwide and CEG Insights .
28 | FINANCIAL ADVISOR MAGAZINE | SEPTEMBER 2024 WWW . FA-MAG . COM