How generational wealth planning builds lasting client relationships
Few things in life bring more fulfillment and comfort to an individual than financial security.
But, once obtained, financial security can be difficult to maintain and preserve throughout one’s lifetime. For a family, a lifetime of investing and accumulating wealth presents a unique set of opportunities to ensure long-term financial security, and it also bears a new set of responsibilities for each family member.
The creation of a comprehensive and personalized financial planning strategy goes hand in hand with achieving multigenerational financial goals.
Once a family has accumulated wealth, the discussion surrounding preserving and optimizing wealth for future generations becomes a vital component of financial prosperity. As a result, reassurance of an everlasting family fortune rises to the forefront of the family’s planning.
However, according to a recent multigenerational wealth management study conducted by AllianceBernstein, about 60% of wealthy families exhaust the greater part of their estates by the second generation, and by the third, nine of 10 family fortunes are gone.
This alarming statistic further reiterates the benefits of working with a trusted adviser who specializes in generational wealth planning to ensure a family’s ability to control their estate, and to build, maintain, and preserve the family legacy.
Generational wealth planning is an essential component to creating lasting financial relationships with clients.
In this model, there is greater opportunity for advisers and clients to create, develop and sustain holistic relationships that go well above and beyond the family’s investment situation and financial portfolio. These relationships help build a strong sense of trust for future generations, and this trust is the fuel that activates meaning and value to client/adviser relationships, helps boost client confidence and enhances the overall client experience.
In addition, a foundation of financial planning is the acknowledgement that each individual’s economic and life situation is unique. The definition of family is constantly changing, with many families facing additional layers of complexity regarding economic and emotional concerns when balancing the anxieties of affluence.
Ultimately, building generational wealth is about more than just money. Client relationships are the key to success in generational wealth planning and have tremendous power in transforming a wealth management practice.
In a generational wealth planning model, client-centric portfolios become the core focus in reflecting long-term financial goals and objectives. Advisers must act as reliable resources to protect clients’ futures and take their trust to heart.
The ability to proactively develop and implement a financial pathway that assists clients in their life journey to a comfortable retirement based upon their wants and needs as well as preserving and maintaining their wealth through generations can lead to long-term family visualization, stabilization and satisfaction.
This story is part of a 30-30 series on ways to upgrade your practice.