HNW Clients
What High-Net-Worth Clients Really Want
By Mark Purnell, PMC-LLC Coach
“Clients want advisors to simplify the complicated and treat them as an individual.”
About 25 years ago, a wealthy couple, Bob and Shirley Greenhouse, with three children were positioned to inherit substantial assets from her family. The attorney involved offered the idea of disclaiming the assets to their children to avoid creating a taxable estate at their eventual deaths. Their concern was that the children had little experience handling investments.
I shared the vision that I would:
Work with each of the children, advise, and guide them using the same prudent family strategies that had been successfully employed in previous generations:
1. Coordinate joint meetings with the parents on occasion, as needed, or desired, so they could see the progress the children were making or not making, and
2. Ensure the annual gifting program we were contemplating would contribute to the portfolios growing even faster.
The plan has worked just as we had envisioned, and we have had over 100 meetings over the last 25 years. The children have learned and experienced handling investments through all types of market conditions, under the observation and guidance of a now 90-year-old parent. We have started the process with the grandchildren.
High potential clients desire these “out of the box” or “avoid the herd” approaches to solve problems. This was all accomplished because I made the “client’s vision” my vision. I helped realize multigenerational planning with their external team of professional advisors and expanded the avenue to promote the family tradition of investing, growing capital, and transitioning it to the next generation.
Top advisors can understand the client’s vision and make it their own.
Now, I want to add that we all have “blind spots” and the high-net-worth client likes to be educated about new ideas/concepts and enjoy “AHA” moments that are not condescending but can be discovered through queries and conclusions reached collaboratively.
Subsequently, these clients will look to you as a sounding board regularly. You become someone who gives them a sense of clarity and peace of mind about questions they have, or questions people have of them. They might be CEOs; they might be high-profile entertainers or athletes. You can trust they’re approached all the time about money topics.
As you can imagine, doing all the above involves quite some time, energy, and effort. But that’s also exactly what high-net-worth individuals (HNWI)s and families want.
Consider yourself a financial tour guide. When I take a trip to New York City, I would like my guide to tell me what is coming next. I like them to anticipate and help me to anticipate the attractions. If I were going to the Statue of Liberty, I would love to hear the tour guide make this statement in advance:
“As we approach the Statue of Liberty, it’s going to be on your right side and available to view for only 30 seconds out your window. If you want to take a picture, you should move to that side of the bus and have your camera ready. We’re going to arrive in five minutes, so think about what you want to do and be prepared to act accordingly.”
When I say, “tour guide,” I mean your client is looking for someone who can stay abreast of changing market conditions and laws that apply to them as a high-net-worth individual. They want to know how those two components will impact their lives. They don’t like surprises.
Therefore, high-net-worth clients look for evidence that the advisor can anticipate their needs often—before they’ll realize they need it for themselves.
Here’s what this all boils down to.
Clients want something I call “Client-Centered and Coordinated Strategies.”
Clients want the basic components in terms of service descriptions such as an investment plan, an asset allocation strategy, risk management and disaster planning, global diversification, etc.
However, what they really want, is to have all their affairs and interests coordinated. They want to know the gears in their machine mesh and work together, that they have a team of aligned advisors who are advocating for the ongoing realization of their highest aspirations.
That’s what they want you to do. Clients love to see their advisors collaborating and making sure that strategies are being implemented across their portfolio. It is one of the biggest ways you can generate trust and thrill your clients.
For now, understand the extent you can ensure their affairs are coordinated, is the extent you are perceived to be of value to the family. They cannot afford a family office, but as a top advisor, you become their “virtual family office.”
You are an advisor they can confidently refer to other people and families in their networks. Subsequently, you gain more clients without spending a fortune. You also eliminate the competition. You get more done in less time. Subsequently, this positions you as the Gatekeeper for all your clients’ affairs.
You make their lives easier. Upon seeing your elevated professionalism, the client’s other advisors will also become your advocates and marketing partners. This becomes valuable when you need a second set of eyes or a complimentary review for a special client or prospect. This is the power of advocacy.
High-net-worth individuals and families want the “things” you can do for them that they can’t do for themselves. Period.
