When we again looked at the biggest inheritors, they were even more likely to bring aboard a money manager and invest in the higher-end products (Exhibit 5). At the same time, they were even less likely to put money in mutual funds than those inheriting less, though they were somewhat more positive about specific stocks.
By Hannah Shaw Grove and Russ Alan Prince
Based on this data, as well as the exhibits in last month's column, we can conclude that there are four solid strategies to consider for advisors who want to count inheritors among their clientele:
1. Build relationships with estate lawyers and accountants who are positioned to refer you to inheritors,
2. Be prepared to demonstrate that you are adept and experienced when it comes to working with wealthy investors,
3. Understand, promote and have access to higher-end financial products and services, and
4. Be empathetic to the emotional toll of becoming wealthy and assemble the resources to help inheritors deal with the changes.
These four strategies may not help you keep your current clients when they become rich-our research shows that little can-but they can go a long way toward helping you cultivate new relationships.
Hannah Shaw Grove is managing director and chief marketing officer of Merrill Lynch Investment Managers. Russ Alan Prince is president of the consulting firm Prince & Associates.