By Ron Bradley
With their significant wealth and hands-on financial needs, high-net-worth individuals (HNWIs) are a hot segment in the financial advisory market. To start working with these types of clients, financial advisors must adopt a strategic approach that checks all the boxes they’re looking for without coming off as high-pressure or desperate. Success attracts more success, and HNWIs want the best of the best.
Understanding High-Net-Worth Clients
High-net-worth (HNW) investors are individuals with a minimum of $1 million in investable assets. These clients often seek long-term wealth management relationships that can provide them with access to exclusive investment opportunities and sophisticated financial planning.
HNWIs typically have diverse backgrounds, including successful entrepreneurs, corporate executives, and families with inherited wealth. They value personalized service, confidentiality, and proactive communication from their financial advisors. Understanding their lifestyles, which often include extensive travel, philanthropic activities, and complex financial portfolios, is the top priority.
HNW clients look for financial advisors who can offer personalized service, proficiency in complex financial products, and a high degree of confidentiality. They expect advisors to understand their financial behaviors and provide proactive communication tailored to their specific needs.
Winning High-Net-Worth Clients
1. Building a Strong Value Proposition
- HNW clients expect their advisors to have specialized knowledge and professional certifications such as CFP®, CFA®, and ChFC®. These credentials attest to the advisor’s skills and commitment to providing high-quality service. Be sure to convey these specialties early and often.
- HNWIs are on the lookout for bespoke financial planning and investment strategies that address their distinctive needs. Advisors must offer customized solutions that go beyond standard investment advice, incorporating elements like tax mitigation, wealth preservation, and asset protection.
2. Networking and Referrals
- Encourage current HNW clients to provide referrals. Satisfied clients can be a powerful source of new business, especially within their affluent networks.
- Join exclusive clubs, attend high-profile events, and collaborate with other professionals such as lawyers and accountants who serve HNWIs. Building strong connections with these professionals can lead to mutual referrals and elevated credibility.
3. Marketing Strategies
- Create valuable content that addresses the unique concerns of HNWIs, such as wealth preservation, estate planning, and philanthropic giving. Demonstrate that you understand the world they operate in. Publish articles, whitepapers, and blog posts that showcase your expertise in these areas.
- Maintain a professional and informative online presence, including a polished website and active social media profiles. A sophisticated brand image can impact a potential client’s first impression and appeal to HNW prospects.
4. Personalized Approach
- Conduct thorough discovery meetings to understand clients’ personal and financial goals. The key is making them feel heard and understood: show genuine interest and listen carefully to build trust.
- Offer a high level of personalized service and regular face-to-face meetings. HNWIs appreciate advisors who are readily available and responsive to their needs.
Retaining High-Net-Worth Clients
1. Exceptional Client Service
- Keep clients informed about market conditions, investment performance, and any changes in their financial plan. Regular updates demonstrate your commitment to their financial well-being.
- Be readily available for client inquiries and concerns. HNWIs are willing to pay more for white-glove service and they value advisors who are accessible and responsive.
2. Ongoing Education and Engagement
- Provide regular updates and educational resources about financial markets and investment strategies. Educated clients are more likely to appreciate the value you provide, and HNWIs are often time-starved and appreciate any useful, actionable insight you can provide.
- Host seminars, webinars, and exclusive events for clients to engage with industry experts and network with peers. These events can reinforce your proficiency and strengthen client relationships.
3. Performance and Transparency
- Focus on delivering consistent and strong investment performance. HNW clients expect their advisors to produce tangible results.
- Be up-front about fees and provide clear, detailed performance reports. Transparent fee structures build trust and differentiate you from competitors.
4. Holistic Financial Planning
- Offer a wide range of services, including tax planning, estate planning, retirement planning, and risk management. A holistic approach addresses all aspects of a HNW client’s financial life.
- Adapt financial plans as clients’ needs evolve over different life stages. Flexibility and foresight are crucial in maintaining long-term client relationships.
5. Building Trust and Long-Term Relationships
- Maintain the highest ethical standards and fiduciary responsibility. Trust is the foundation of any successful client-advisor relationship.
- Build genuine relationships by understanding clients’ personal interests and family dynamics. A personal touch can create a lasting bond and encourage client loyalty.
Looking for a Consistent Way to Pursue HNW Families?
At Auxani Advisors, Inc., our skill set lies in supporting financial advisors as they pursue the clients that best suit them—whether that’s high-net-worth individuals, entrepreneurs, pre-retirees, or another demographic.
By positioning yourself and your firm as an experienced, reliable option, you can skip the learning curve and start setting up meetings with prospective clients faster. To get in touch, call 978-880-8763 or email ron@auxani.com.
About Ron
Ron Bradley is Founder and CEO of Auxani Advisors, an entrepreneurial-minded company committed to building businesses and financial success. Ron began his 40-year career as a producer for MetLife, where he was quickly promoted to Regional Director. Though his esteemed career led him to become one of the founding IMOs at Life USA (now Allianz Life Insurance Company) and to serve on the board of directors of a number of leading insurance companies, Ron felt a calling to do more. In 1982, he had a vision of strategically coaching financial professionals to help them grow their businesses. This entrepreneurial spirit prompted Ron to create Auxani Advisors, which now serves those advisors looking for the next generation of retirement products and concepts to meet their clients’ needs.
Ron’s passion for coaching has taken him all over the country conducting workshops, trainings, and seminars to share his knowledge with a variety of financial advisors and firms. To learn more about Ron, connect with him on LinkedIn.
