A 20-year veteran of advisor training program development, Beck is a fan of new online tools, but sees immense value in practical, low-tech tools on which advisors have been trained. “A good example is the Life Priorities Discovery program from Cannon Financial Institute. It’s simple and easy. An advisor hands a stack of index cards to a couple during an in-person meeting. You ask them to pick their top three priorities for their life, then select the bottom three. It’s ideal to get both members of a couple to do with together, in front of you. The key is to get spouses/partners talking. You sit back and listen. Then you look for the common themes, as well as the disconnect—understanding those dynamics can help drive the client conversation forward,” explains Beck.
It Takes A Village And A Team Approach
According to Evamarie Schoenborn, president and CEO of Northwestern Mutual Wealth Management Company in Milwaukee, it takes a village to service clients in wealth management these days. “Teams are incredibly important to meeting and exceeding client expectations across the spectrum, but particularly HNW clients,” says Schoenborn. “Teams are best positioned to provide holistic advice and a high standard of client care for households with sophisticated needs.”
She adds, “When they function at their best, teams operate not only to support the advisor, but to demonstrate to the client all the firm can do to assist them. Great teams are aligned in serving clients with empathy and emotional intelligence. They understand how to listen deeply, and they dig deep to understand each client’s unique background and goals.”
“Advisors frequently guide clients through trying, transitional events in their lives, like the death of a spouse,” said Schoenborn. “These moments of truth are when the reality of our business really comes alive. When each team member is trained and prepared to navigate clients through the specific steps of difficult life events, the family feels tremendous support. Our advisors really care about showing up for their clients in that way.”
“We strive for a deep understanding of client needs, wants, and dreams,” added Schoenborn. “When everyone on a team understands this and is working in concert toward successful client outcomes—that’s what winning looks like,” she explains.
The Emergence Of FinPsych
Sarah Stanley Fallaw, PhD, founder of DataPoints, Inc. in Marietta, Ga., has used her background as an industrial psychologist and the research of her late father, Dr. Thomas J. Stanley, author of The Millionaire Next Door, to develop a series of assessments that advisors can use with clients to better understand their motivations, hopes and fears.
Her research has been centered on helping advisors better understand how their client feel about financial management, where potential money-related disagreements exist between couples, and how deep-seated financial attitudes can impact decision-making—and then, determining the series of questions that should advisors ask to facilitate these important discussions.
According to Fallaw, the relatively new field has FinPsych has emerged because advisors recognize the need to understand client money mindset. FinPsych tools and assessments are designed to help advisors save time and money. “Our online assessments speed up the process of helping advisors getting to know clients—their traits, beliefs, and money personalities. For example, there are clients that want and expect a phone call during times of major market volatility—and those that don’t. An assessment can help you develop that priority list of clients to call,” says Fallaw.
According to Fallaw, some financial advisors are using the 10-minute DataPoints Financial Perspectives assessment during the onboarding process with couples to gain a quick, yet in-depth understanding of client financial attitudes in areas such as investing, budgeting and spending. Advisors can generate reports that can help guide client conversations and result in a positive and deeply captivating client experience. “With our couples comparison report, advisors will be able to communicate with each household member in a way that respects their unique perspective, thereby engaging both members of the household in the process,” explains Fallaw.
Fallaw’s work led to the creation of the building wealth assessment (see graphic), designed to be used with clients who are in the accumulation phase of life. Fallaw states that advisors use this assessment to uncover clients’ money-related experiences and identify areas to coach clients and improve their financial wellness. “Assessments can uncover client personality quickly and provide a detailed guide to communicate with clients in a way that demonstrates empathy and understanding of the client’s unique money-related experiences,” says Fallaw.
