WE TRANSFORM BUSINESS NEEDS INTO SOLUTIONS THAT GROW WITH YOUR BUSINESS.
Partner for Life: Guiding Clients Through Financial Milestones
Throughout life, we cultivate many relationships that influence our journey. Whether personal or professional, the most impactful are those that are mutually beneficial. This notion is something that financial professionals should keep in mind when growing their client portfolio. The relationship with clients in an advisory setting goes beyond managing assets. Instead, it should be viewed as building and maintaining a relationship. Trust in the financial professional’s expertise to help make significant decisions for their clients’ lives and the lives of their families is key. It’s a responsibility that should not be taken lightly. But with the proper understanding and care in this professional relationship, becoming a partner for life can benefit clients and financial professionals equally.
Think about interactions with clients. When they ask to adjust their portfolio or other requests, what are they really asking for help with? Often, these requests come when the client is looking to fund a major life milestone. Though this can present a challenge depending on the state of the portfolio, it should also be met with mutual excitement or, at the very least, attention to the happenings of the client’s life. By giving the correct amount of care to the relationship with the client, financial professionals can deepen that relationship and even grow their practice through client referrals or reviews.
Through our Institutional Banking business, The Bancorp works with financial professionals to offer clients unique banking solutions that help provide financial flexibility and keep their wealth management goals on track. From our experience, here are some of the life changes that should be on the radar when establishing an authentic life partnership with clients:
Though many clients establish their relationship with financial professionals when they are preparing for retirement, before that happens, major career changes are a life milestone that should still be regarded. For high-net-worth individuals, their career holds incredible importance, and changes can be daunting. Beyond salary adjustments, clients may seek a financial professional’s guidance on managing other assets they earned in their previous roles, including pension plans, stock options, or vested interest in a company. Guidance in managing this significant transition can help financial professionals establish a trusted relationship with a client early and continue to build upon it for years to come.
Another milestone that clients may face before retirement is changes to their family dynamic. Whether these changes come in the form of marriage, divorce, or having a new child, these events can significantly alter expenses. These milestones can often bring substantial anxiety to the client and can be a perfect opportunity for a financial professional to instill confidence and become a valuable resource of assurance during a nerve-wracking experience.
Planning for retirement is when many client relationships are established. It’s a milestone that clients have worked toward throughout their life, and because of that, they may be selective about who they work with to navigate a plan that helps them enjoy the rest of their lives. If handled correctly and with a detailed level of attention to client goals, this could be the starting point of a life partnership between the financial advisor and the client and may lead to helping manage the assets of other family members down the line.
Though some clients may look for financial guidance when buying their first home, a client’s second home, vacation, or investment property is often funded with a financial professional’s advice. When considering this significant purchase, clients should be offered options regarding financing–especially when home costs and interest rates are both extremely high. Traditional real estate lending may not be the right fit, and there may be an opportunity for clients to leverage other assets, such as securities or a whole-life insurance policy, to help finance their new property.
When it comes time for clients to think about the future of their estate, hopefully, there is already a well-established relationship with a financial professional who can adequately prepare a legacy plan for the client. Having a trusted advisor during this period can make conversations with next of kin more manageable, and the financial professional can help answer any questions regarding legacy planning aspects such as estate taxes.
Whichever stage of life a client partnership starts, financial professionals will be entrusted to help provide the guidance that helps the client and their family reach their life goals. To provide clients with best-in-class service, it’s important to approach their wealth management strategy holistically and provide financing options that support their assets and portfolio.
At The Bancorp, our Institutional Banking team equips independent financial professionals with innovative lending and deposit products that provide clients new avenues to manage wealth. With unique solutions like an Insurance-Backed Line of Credit (IBLOC) or Securities-Backed Line of Credit (SBLOC) that can seamlessly integrate into strategies, our team establishes long-term relationships with financial professionals to become a banking partner for life as they assist their clients throughout their journeys.
Interested in learning more about Institutional Banking at The Bancorp? See what we have to offer and get in touch by clicking here.