Important Methods for Successful Excessive-Internet-Price Purchasers


Key Takeaways

  • The proportion of high-net-worth people is on the rise, resulting in an elevated want for monetary advisors who’re attuned to their wants.

  • To capitalize on this chance, you want to perceive the HNW market, who these people are, and what they want from advisors.

  • Get methods that can assist you not solely appeal to HNW shoppers but in addition deepen these relationships.


Is your agency in progress mode, wanting to draw high-net-worth (HNW) shoppers? There are easy-to-implement methods to draw and retain them. However first, let’s take a look at a snapshot of the HNW demographic and what these people are on the lookout for in an advisor.

HNW Purchasers: A Breakdown

Belongings Traits* Wants
  • HNW traders have not less than $5 million in liquid monetary belongings (e.g., money available or an asset that may be readily transformed to money)
  • Extremely-HNW traders have greater than $25 million in liquid monetary belongings
  • 94% are school graduates
  • The typical age is 65
  • 63% are retired
  • 28% work with advisors once they have a particular want, corresponding to retirement planning
  • 16% depend on advisors for all funding wants
  • Holistic funding administration experience
  • Understanding of their long-term imaginative and prescient 
  • Expanded providers to create extra of a “one-stop” relationship

* In keeping with a weblog publish from The Advisor Coach, citing analysis from the Spectrem Group

Whereas all shoppers have totally different desires, wants, and objectives for his or her cash and future, the quantity of wealth they maintain can affect what they worth most from a monetary advisor. Securing this demographic can considerably propel your agency’s progress trajectory, however the problem lies in successfully profitable these HNW shoppers.

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Successful HNW Purchasers

So, how do you set your self as much as appeal to and win high-net-worth shoppers? Listed here are 4 key steps to begin with:

Referrals, an necessary a part of any advisor’s progress technique, might play a fair better position in buying HNW shoppers. Leverage your community! Your present shopper base and different strategic partnerships and facilities of affect (COIs), corresponding to attorneys and CPAs, are very best contacts to achieve out to.

The easiest way by far to realize introductions to new potential shoppers is to ask present shoppers that you just like and belief in the event that they know anybody who may probably profit from working together with your agency.

Adam Spiegelman, CFP®, Spiegelman Wealth Administration

When you get referrals, inform them your story, together with what makes you the only option for them.

Commonwealth advisor Gail Simons, CFP®, of The Highbridge Monetary Group, begins the dialog by sharing why she selected the sector and what she hopes to assist her shoppers accomplish. Simons asks aspirational but focused questions and establishes herself because the “go-to particular person” and “an indispensable supply of recommendation.” Advisors seemingly know extra about their shoppers than nearly anybody however the shoppers’ docs, so it’s important to create that form of rapport.

If I may wave my magic wand and be the whole lot you’re on the lookout for in a monetary advisor, what would that be?

Gail Simons, CFP®, The Highbridge Monetary Group

For Spiegelman, this implies responding to shopper inquiries or requests inside a couple of hours. His agency takes on solely six to eight new shoppers per yr to keep up a staff-to-client ratio that’s low sufficient to permit them to offer such customized service.

Be ready to talk about the wealth administration companions and specialists you’ve gotten entry to. Simons typically offers with complicated property planning wants and tax-driven funding methods. Spiegelman typically refers his shoppers to property planners, CPAs, life coaches, mortgage brokers, and contractors. Different distinctive planning questions come up round enterprise transitions and the right way to be honest and equitable to shoppers’ heirs.

Commonwealth advisors know they’ll attain out to our specialists when mandatory. Simons typically leverages Commonwealth’s Funding Advisory Consulting crew for a second opinion. The Superior Planning and Insurance coverage and Annuities groups are lifelines as properly. Simons reassures her shoppers, saying, “If I don’t have the reply, I do know the right way to get it!”

To assist scale his apply, Spiegelman makes use of mannequin portfolios to handle investments. He depends on our Funding Administration and Analysis crew to offer product data on non-public fairness and nontraded REITs and our Superior Planning consultants for options to concentrated single-stock positions.

Retaining HNW Purchasers

As with most shopper relationships, communication is crucial to retaining HNW shoppers. They should know that you’re often monitoring their funds and are able to act when mandatory. Exhibiting you care on a private stage by recognizing anniversaries, birthdays, and different milestones additionally issues. “I name shoppers, particularly HNW shoppers, not less than 4 to 6 occasions per yr,” Simons acknowledged. “I additionally ship out communications Commonwealth gives after I discover them well timed and related.”

Spiegelman additionally calls shoppers often and meets face-to-face not less than as soon as per yr. He sends out a weekly e-newsletter, invitations shoppers to lunch or dinner, and hosts an open home every so often. And he will get inventive when recognizing particular occasions; he as soon as despatched an OSU Beavers bottle opener to a shopper’s son when he graduated from school. This gesture prompted the shoppers to achieve out, in the end resulting in a productive monetary planning dialogue.

Ship Worth to All Purchasers

Whether or not you attain your total HNW progress purpose or not, the methods you utilize to draw HNW shoppers are the identical as these that may enchantment to all potential traders who can carry great worth to your agency. Ultimately, being up entrance and direct with all of your shoppers is one of the best strategy, and this transparency will solidify their belief in you.

HNW Infographic - Cover Final

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7 Methods to Place Your self to Serve Excessive-Internet-Price Purchasers

Don’t miss your alternative to leverage HNW shoppers for progress. Study actionable steps you possibly can take to rise above the competitors.

Editor’s observe: This publish was initially revealed in August 2019, however we’ve up to date it to carry you extra related and well timed info.



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