The wealth management industry plays host to a goodly number of myths, half-truths and outdated old chestnuts, which our featured commentators, April Rudin of The Rudin Group and Will Trout of research and advisory firm Celent, are eager to dispel.
Let’s allow them to get going.
Will warns that many advisors think their clients want to hear all the down-and-dirty details about how they manage their portfolios. They most certainly do not, he warns. It might be exciting to you, regaling them about the time you bought low, sold high and then went for a filling lunch. Usually, they’d rather not know how sausages are made, as the saying goes. Tactical talk is for amateurs, he suggests.
Bragging about beating the yearly benchmark should be anathema, too, he counsels. Clients are happy when you perform, this much is true. However, they likely know how they did over the year and already feel pretty good about you – in effect, you scored the points, so there’s no need to spike the ball.
Educating clients is often touted as job one for keen financial advisors. In the real world, many clients don’t want to know. Focus less on improving their understanding of markets and products and concentrate on the customer’s financial goals. If that matter isn’t clear, take the logical steps.
April questions another golden chestnut: clients want face-to-face service. Not necessarily so, she says. Younger customers in particular are comfortable with digital meet-ups, and indeed might find invitations to your office an affront: why waste all that time traveling, looking for downtown parking and so on. Facetime and a host of other applications are there to serve without all the bother. Don’t forget what century we inhabit, she says.
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Mythbusting Wealth Management | Wealth Management