Want to Retain Next-Gen Clients? Start Building Those Relationships Today!

By IndexIQ via Iris.xyz

It’s a challenge for every advisor. You’ve fostered a client relationship over years, sometimes even decades, working with the client side by side to grow their portfolio—and grow your AUM. But when your client dies and the next generation takes over, you lose more than a valued client. You lose their portfolio as well.

What’s the answer? How can you retain those assets without having to prove your worth over and over again? The key to retaining next-gen clients is instilling a new level of relationship building across your business, and it begins long before the transfer of wealth actually takes place. Here are 6 tips to help you start building stronger, more valued relationships with your clients’ heirs today:

1. Talk to your client about where they want their assets to go—and why.

No one likes to talk about death. And yet, as an advisor, part of your job is to help create a thoughtful, tax-efficient plan for the transfer of wealth. The good news is that the conversation doesn’t need to be all doom and gloom. Open the conversation by asking what your client wants to do with their wealth after they die. Help them understand the dollar amount that is likely to be available as an inheritance, and then walk them through the process of choosing who will receive what portion of their wealth. Discuss the motivation behind each choice and identify the next-generation family members who will take control of the assets.

2. Review and discuss current beneficiaries.

Next, conduct a beneficiary review to be sure the beneficiaries listed are aligned with your client’s current wishes.

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