Worried About the Coming Wealth Transfer? Retain Clients in Three Simple Steps

With $84 trillion poised to be transferred over the next 25 years,¹ financial professionals could lose significant business. Building solid relationships with those set to inherit those funds is necessary to successfully retain assets. However, it would be impossible to develop meaningful connections in short order with the partner and children of all your clients.

Identifying key at-risk accounts is essential, after which you can set engagement targets and use your understanding of family dynamics to connect with the clients’ families. 

The following three steps can help you start insulating your practice from the risk of wealth transfer. If you can show your value to family members today, it’s likely that they’ll retain your services when they inherit wealth. You won’t just be their parents’ financial professional anymore—you’ll be a trusted source of advice for them too. 

• Who are your “top” clients, aged 70 or older?
• Of these top clients, note how often you’ve engaged with their spouse/partner and children in the last 12 months.
• Based on your answers to the previous two questions, identify three to five client families you’d like to commit to strengthening relationships with. Choose top clients with no-to-low family engagement and commit to strengthening relationships with their spouses and children over the next 12 months.

Once you’ve identified priority clients, create a goal for engagements—meetings or phone calls where an individual talks with you about their financial needs or goals. Setting a goal for the number of engagements per year for each top client will help you stay on track.

If you’re unsure how many engagements you should strive for in a given year, start with three for the client’s spouse and two for each child. If that number is overwhelming, prioritize the spouse first, then the eldest child, since they’re most likely to be involved in the wealth transfer. Finally, ensure that the spouse and children are in your customer relationship management (CRM) system. Capture as many personal details as possible to help you identify opportunities to engage.

Once you have your list of priority clients and set your engagement targets, it’s time to begin building deep connections with a client’s family, starting with understanding the family dynamics. Use the Step-by-Step Guide to help you better understand each family member’s money habits, values, and communication style, as well as see where you can find opportunities to connect.

If you’re looking for inspiration about how to best connect, take a look at our “Quarterly Ideas to Engage the Client’s Family” resource. Our financial checklists—on topics such as buying a home, having a baby, or getting married—are also useful for engaging with this younger cohort. Keep in mind that it’s important to address the financial concerns of the next generation, which are often very different from the concerns of your primary client.

A considerable wealth transfer is certain to happen in the coming years. With the right approach—building trusted relationships with a client’s family—you can maintain your book and help future generations benefit from your financial wisdom for years to come.