For the uninitiated, let’s have a spot of Advisory 101: discovery is the process of picking your client’s brain to learn everything about them that could affect the investment process.
Resources, temperament, risk appetite, investment horizon, family matters and more – all must be gleaned to assemble an effective financial strategy that meets the customer’s particular needs.
The advisor’s next step is called framing: this is the art of presenting all of your assembled numbers. Each client has a personal style that you need to match if you want their attention and approval. High-net-worth clients, in particular, fall into several categories, helpfully presented by our featured authors. Let’s examine a few, because effective communications are the key to success in our business.
Our authors introduce the concept of the high-net-work personality framework, declaring that wealthy clients fall into nine distinct personality profiles. Each category must be approached a little differently, but in all cases, stress testing the client is recommended and indeed is becoming the norm when working with wealthy clientele. This helps determine how they might behave in difficult market – and personal – circumstances. Learn the ropes and carefully explain the methodology to clients, our authors counsel.
Let’s examine the HNW personality types. First comes the Anonymous: they like to keep their affairs personal. The advisor needs to build this concern into the business plan and explain the detailed steps taken to assure security.
Next come Moguls: their foundational desire is power. They can be tricky: they don’t like to think they’re missed anything. Frame it like this: “prime movers like yourself don’t have time to consider mundane matters like tax moderation or pore over the financial papers for investment ideas. Here’s my recommendations.” Keep their healthy egos intact and they’ll listen.
For more information, please read:
he Art of Framing And Discovery | Financial Advisor Magazine