Years ago it was possible to sign clients with one meeting. Today, due to market volatility and a general decrease in trust, a prospective client needs to hear about you, visit your website, and be convinced that you are the right advisor for them over a period of time. The key to attracting HNW clients is making them understand you are an expert on understanding and solving their issues by communicating to them in a consistent and educational way. We will tackle the topics you should address in this post and how to get your message out in the next few posts.
The top 4 issues that HNW investors face based on industry research and interviews I have done with HNW investors and the advisors that serve them are:
1.) Taking care of the Family: HNW investors want to make sure their family is taken care of- including children, parents, in-laws, and their spouse. This means more than just making sure their estate plan is up to date. It also means creating a relationship with their heirs and preparing them for the responsibility and challenges associated with inheriting wealth.
2.) Preserving and Protecting wealth: Most investors I have spoken to are much more concerned with preserving wealth than they are with creating more of it. The idea here is to write about ways that you will manage their risk and protect their wealth to give them peace of mind.
3.) Tax Mitigation: According to the study, “Cultivating Middle Class Millionaires”: mitigating income taxes is a concern for more than 90% of people with between $1-$3 million in net worth and is a concern for 75% of the respondents with between $3 -10 million. For those in the higher net-worth range, mitigating estate and capital gains taxes are also a major concern that you should address in your communications.
4.) Need for a True Partner: For HNW investors time is their most precious asset. They are looking for you to become a true partner in helping them reach their goals by giving them time back from having to worry about protecting their wealth
Design your communications to address these areas and you position yourself to attract and retain HNW clients. Stay tuned for the next post on how to create these communications for maximum effectiveness.
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What Do HNW Clients REALLY Want From Their Financial Advisors? (On-Demand Video)
Why Investors Hire & Fire Financial Advisors (National Survey Executive Summary)