Do you know your average client’s age?
Don’t guess. You either know it or you don’t. Find out. Go ahead…I’ll wait.
Let’s assume it’s 66.
Now, what’s your age?
I’m 53. This means that, on average, I will lose my clients to death by the time I reach age 67.
That’s a problem.
Now, I’m well aware they won’t all be dead by age 80. But possibly half will. The other half, on average, won’t be too far away.
Obtaining younger clients is a good solution, especially those with money.
How do we find them?
How about the children of your existing clients?
A profit based practice utilizes a system that converts the future heirs of its clients into clients themselves by addressing a topic that parents dread having with their children. It’s a talk almost as unpleasant as the one about the facts of life: Death.
Every year advisors in my Advisor Architect program invite a select group of clients to organize a family meeting. The matriarchs and patriarchs invite their children to attend a full day workshop with their advisor to learn their planning strategy and how it will impact them later in life when they inherit the assets. Often this is the first time they’ve seen how much their parents are worth.
They learn how the planning strategy meets their needs, the steps taken to protect them against the cost of custodial care, the tax plans that are in place, and the role each family member will play when it is time to pass the assets to the next generation.
Following that, Advisor Architect members conduct one- on-one consultations with each adult child. In advance of the meeting, the children submit fact finders, enabling the advisor to complete an analysis similar to what’s been done for their parents.
This service, for which there is a charge, establishes an incredible connection between the children and the advisor. They now know who to call when their parents reach their decline in life. Even more so, they have started the basis of what is usually a long-term relationship. The advisor is now positioned to make the adult child a client as well, usually with very little effort.
The implementation of an estate plan can be a very arduous and painful process. Grieving family members must deal with numerous time-consuming issues: wealth transfer, income and federal estate taxes, insurance claims, outstanding debts, new responsibilities, the re-titling of property and guardianship.
Too often, heirs are unaware of these issues and how they will impact them personally. Generations is a comprehensive program designed to educate the heirs of our clients on the estate planning program that their parents/grandparents created. It articulates clearly how this plan will personally affect each heir, allowing the opportunity to make adjustments if necessary.
Remember…Death is undefeated.
Don’t allow the life of your business to be based on the mortality of your clients.