Financial professionals know that an educated client is an asset, not a liability. Being an attentive and skilled estate attorney means asking your clients the tough questions that they don't want to think about. Copyright © 2020 | The Advisor Coach LLC | All Rights Reserved. To start, here are three common questions consultant ask, yet often make a mistake in doing so… The Wrong Questions. 9 Most Important Questions to Ask a Potential Client image Joe ApfelbaumYou need to find out two things before working with a potential client: Is there a need for your product/service and, if yes, are they a good match for your company? Questions hold a special power of engagement which can help build rapport and trust between people. Sales 5 Great Questions You Should Ask Your Customers Speaking with customers is a great way to get insight into your business, but mediocre questions yield mediocre answers. Whatever it is, pay attention to the answer and make sure that you serve their needs. If there’s no budget, that should be one of the first items on the to-do list. You want to get a good overview of the client’s current financial life. This question is... 3. - Marc Zeitoun, CFA, Columbia Threadneedle Investments, I never assume someone perceives a strong cash flow or great performance the same way I do. - Jim Poolman, Indexed Annuity Leadership Council, 8. And this can have an invaluable impact on the client. Unless a financial advisor fully understands a client’s current situation, goals and challenges, they can’t create an effective financial plan for them. “Have you got any questions you’d like to ask me?” “What is important to you in finding a solution to this?” “What are your top 3 requirements that this solution just has to have?” “How soon would you like to move with this?” “What 3 key outcomes do you want from this?” “How does this look/sound/feel to you?” Specifically, what . You want to get a good overview of the client’s current financial life. We asked financial advisors Doug Nelson, Jeff Buckner, Jeff Troutner, Norm Mindel, Jerry Foster, Mike Davis, and Bob Swift about their message to clients during the coronavirus pandemic. For more questions like these, download our free guide, 50 Powerful Sales Questions. Your approach to someone with many years of in-depth investment experience will be different from someone with virtually no experience. By asking this question, you can find out what your client feels is his or her higher calling. It’s a basic question, but answers can reveal a lot. If they’ve worked with a financial advisor before but ended the relationship, find out why. ‘Why do you want to make that change?’, Clients often get nervous when markets dip, and it feels inadequate to do nothing. This question helps you get some insight into what they see in you and what they expect from you. Ask open-ended questions, such as, “If you don’t mind me asking, can you share any experiences you have had with a financial planner?” This will get the client talking and allow you the opportunity to ask what they liked most about the relationship. The answer to this question will let you know how hands-on your client is with his/her investments. What are your biggest money worries, and how do you hope I can solve them with you? Pros and Cons of Financial Advisor Coaching - Should Financial Advisors Hire a Coach? Dear Rich, Given that 2020 is an election year that has also brought a crippling health crisis, I’m not too surprised that many advisors are now fielding questions about impact investing, ESG, and biblically responsible investing (BRI). These notes will be … Forecasting life expectancy may seem morose, but it’s a crucial puzzle piece. We have a checklist for all types of events that we use with clients. This question is similar to the “What changes are you expecting to occur in the future?” question except this includes the client’s short-term goals as well. Motives matter, and fear is not a good motivator in most instances. If you know the changes that are on the horizon, you are in a much better position to plan and prepare for them. Wealth Advisor Interviews: Questions Clients Should Ask Financial planning is an essential component of estate planning. It also invites the client to share thoughts, feelings and concerns that might not have bubbled up if I had instead asked a question related to their investment portfolio. Extensive coverage and expert comment on important topics in the financial advisory industry. - Sandi Bragar, Aspiriant, 4. ‘What’s most important to you right now?’, My go-to question cuts to the meat of what they’re focused on right now and allows me to quickly assess how best I can jump in and help guide them. Capital gains?) If they are reaching their goals and everything seems to be on track, maybe they just need some reassurance, or perhaps they’re looking for someone who can offer additional information that they were unaware of before. 9 Elevator Speech Tips for Financial Advisors, A Day In The Life of a Financial Advisor: 7 Things You Can Expect, 7 Awesome Content Marketing Tips for Financial Services, Pros and Cons of Being a Financial Advisor: The Dirty Details Nobody Tells You, 8 Things Nobody Tells You About Being a Financial Advisor, 10 Things Financial Advisors Wish They Could Do Differently, 9 Awesome Content Marketing Tips for Financial Advisors, 12 Best Financial Planning Questions to Ask Clients, 5 Online Reputation Management Tips for Financial Advisors, Here's Why Clients Fire Financial Advisors, 5 Things Financial Advisors Should Never Do With Their Clients, 7 Tips for Avoiding Burnout as a Financial Advisor, 9 Tips for Creating a Financial Advisor Business Plan, 7 Must-Know Google Ads Tips for Financial Advisors, 7 Awesome Tech Tools for Financial Advisors, 10 Insurance Email Marketing Mistakes You Need to Avoid, 9 Facebook Marketing Tips for Financial Advisors, 3 Lessons From An Advisor Losing $1,000 Every Day, 7 Easy & Actionable Social Media Marketing Tips for Financial Advisors, 7 Door-to-Door and Cold Knocking Tips for Financial Advisors, 5 Things People Really Want From Financial Advisors, 5 Client Loyalty Strategies to Help You Retain More Clients, 7 Client Referral Ideas to Help You Get More Referrals, Top 10 Best Books for Insurance Agents (2020). Do I qualify? This question helps gauge their experience with the financial planning process, as well as gives you some insight into what their experience has been so far. ASK QUESTIONS. Questions About Products • Is this investment product regis-tered with the SEC and my state . Some people are meticulous savers and scrimp every penny, while others are lavish spenders. To some of you, this might seem like a trivial question but it’s extremely important. They generally start with phrases like “What if…” or “What would…” and can help clients envision and understand new possibilities that may make sense for their financial plans. ‘Have there been recent nonfinancial changes in your life?’, During our quarterly touch-base calls, we ask, “Have there been any nonfinancial changes in your life?” Financial advising is not all about the numbers. Otherwise, you’re just guessing as to what your main objective should be. Disciplined investment strategies are the foundation of a solid investment management process. To really succeed, you must understand that this is a RELATIONSHIP business. Before he questions his clients about their financial goals, Chad Hamilton poses a brainteaser. Ensure you and your client are using reliable metrics to determine probable longevity. All of these are major life events that can have major financial implications, but being prepared for them will help you steer your client in the right direction. Members of Forbes Finance Council share questions financial advisors should regularly ask their clients. It doesn’t matter what you think you look like - the only thing that matters is how your prospects see you. What are the two most important questions to ask a potential client? What percent loss in your overall investment portfolio would cause you … Knowing whether your client sees the glass as half full or half empty will help you tweak your approach for each individual client. Investment news and analysis for financial advisers. However, the devil is in the details, and smaller changes are often missed. Keep in mind that asking great questions is an oblique way to demonstrate to your prospect that you know what you are doing, you are experienced, and you are an authority on your topic. 3. If I Only Have a Small Amount of Money To Invest, Is It Even Worth It? We asked leaders at six top advisory firms about their message to clients during the coronavirus pandemic. ALSO READ: 9 Elevator Speech Tips for Financial Advisors, ALSO READ: The Secret Behind Awesome Financial Advisor Value Propositions, ALSO READ: A Day In The Life of a Financial Advisor, ALSO READ: The Top 15 Best Investing Books Of All Time, ALSO READ: How Financial Advisors Can Make A Phenomenal First Impression, ALSO READ: 7 Actionable Goal Setting Tips For Financial Advisors, ALSO READ: 7 Awesome Content Marketing Tips for Financial Services, ALSO READ: 11 Tips For Writing A Stellar Financial Advisor Bio (With Examples), How to Get Clients With LinkedIn: How Financial Advisors Can Set Appointments and Convert Prospects With LinkedIn, The James Pollard Inner Circle Newsletter. Asking about new life events helps keep things on track and inspires confidence. Interest? ‘Roughly how far away are you from your goals?’, This question should give you an approximate idea of the sense of urgency your client has. - Will Duffy ChFC, RICP, EA, WD Wealth Strategies, 13. There are a multitude of questions that you can ask your clients in different situations. Advisors should ideally be measuring progress against your defined financial goals within your timeline and risk tolerance rather than trying to beat the market. While retirement is a big part of one’s financial picture, it encompasses a lot more than that. Many people have no idea that financial advisors can help them navigate a home purchase, plan for starting a small business or go through a divorce. In addition to our investment professionals and specialists, you can always reach a licensed representative 24/7 via phone or online chat. If they feel that their financial goals are far away (i.e., more than 10 years), then you won’t need to put urgent solutions in place to help expedite their investment progress. 15 Financial Advisor Prospecting Ideas & Techniques That Work! Questions can be broken down according to two criteria, namely, questions that clarify perceptions of the current situation and questions that clarify perceptions of the future vision. The following answers are provided by the Young Entrepreneur Council (YEC), an invite-only organization comprised of the world’s most promising young entrepreneurs.In partnership with Citi, the YEC recently launched #StartupLab, a free virtual mentorship program that helps millions of entrepreneurs start and grow … Understanding what things keep our clients up at night will give us the ability to help them in a much deeper way than just purely financial advice. Some people feel like they have no clue what to do or where to begin - in this case, if they’re not reaching their financial goals, you know that you should have a strong, guiding presence. - Bill Keen, Keen Wealth Advisors, 10. One of the biggest competitive advantages you can possibly have as a financial advisor is the ability to listen and get to know your client. One of the reasons why it’s impossible to have a “one size fits all” financial plan is that we’re all different and our lives are constantly changing. • Does this investment match my investment goals? - Mia Erickson, Whitnell, 9. This may be... Risk Questions. Take the time to write down the questions you need to ask and make notes about the client’s response. Why is this in-vestment suitable for me? This question will give you a few clues as to why the client wants a financial advisor. Without both, it’s difficult to achieve a long-term relationship. Others might have the bulk of their financial plan in order but have a few intricate details that need to be worked out or gaps that need to be filled. How do other people see you? Now both you and the client know the problems. “Of course it is,” said Pauline Paquin,... 2. Sometimes things change—people pass away, divorces happen. He promptly helped her liquidate her investment so she wouldn’t hold a stake in any alcohol companies whatsoever. 1. Scott Page, LifeGuide Partners. (Dividends? Here are four questions that can help you win over even the iciest prospective clients: 1. All Rights Reserved. How to Become a Successful Financial Advisor: Your First Year, 7 Fatal Prospecting Mistakes You Can't Afford to Make, 5 Ways to Generate Leads Without Cold Calling, 5 Reasons Why You're Not Getting Referrals, 5 LinkedIn Tips for Financial Advisors (Plus 3 Things They Should Be Tracking...), How Financial Advisors Can Build Client Trust, 7 Reasons You'll Fail as a Financial Advisor, How Financial Advisors Can Make More Money, How Advisors Can Get Out of Their Comfort Zone, 5 Characteristics of Successful Insurance Agents. https://www.sagevestwealth.com/20-questions-for-financial-advisors These are questions that are open-ended, thought-provoking and help a person gain clarity as … This advisor pointed out that, through certain investment funds, the client was invested in alcohol companies.