June is Pride Month, making it a great time to consider marketing your financial planning services to LGBTQ prospects.
The LGBTQ community constitutes an attractive demographic with a diverse and fun set of clients to work with. The question is: Are you reaching out to them with the right messaging?
For the most part, LGBTQ clients — from young families to experienced professionals to high net worth retirees — have the same financial planning needs as any other demographic. But
READ MORE:
LGBTQ clients have specific concerns
Childless households: The majority of LGBTQ households do not have children and therefore have concerns about attaining self-reliance and financial independence in retirement, especially in long-term health care scenarios. Additionally, high net worth clients without heirs often need help to create a vision for their wealth and legacy.
Nontraditional family structures. Despite marriage equality for same-sex couples, registered and non-registered domestic partnerships remain widespread in the LGBTQ+ community. Additionally, many married couples have separate finance arrangements, often creating more complicated planning and implementation for same-sex couples.
Family planning. Advisors should have a basic understanding of alternative family planning arrangements, including IUI/IVF, surrogacy and adoption.
Transgender-specific considerations. Clients considering or undergoing transition are likely to have
Feared loss of civil and legal rights. Many LGBTQ households are fearful of growing job discrimination risks and loss of access to health care. Planners need to be sensitive to these concerns as households consider major steps such as moving, changing jobs or adjusting retirement plans to adapt to the evolving civil rights environment.
How do we know this firm supports LGBTQ goals
LGBTQ prospects want more than good financial planning; they want a firm that supports their community's goals for civil rights and equality. Conversely, they want to avoid working with a planner who may secretly not approve of LGBTQ civil rights protections.
The challenge is that most financial planning websites do not take a position on whether they support the community, much less demonstrate experience working with its members.
When a firm says nothing about supporting or welcoming the community on their website, LGBTQ prospects typically move on and find a firm that does. That's a shame, because I know that there are many practitioners who would love to work with LGBTQ clients.
READ MORE:
Make yourself known to the LGBTQ community
Firms successful in attracting LGBTQ clients use a number of marketing tactics to demonstrate authority, competence and credibility.
- A statement on the website that demonstrates an interest in working with the LGBTQ community is a simple first step. It might say, "We also work with LGBTQ clients and have experience developing plans that address their specific financial planning needs."
- A dedicated webpage outlining issues the firm has encountered in working with LGBTQ clients, and case studies outlining LGBTQ households the firm has served is another effective way to demonstrate credibility.
- Highlight support for LGBTQ rights by announcing charitable giving to local LGBTQ nonprofits or participation in local Pride events.
- Larger practices may choose to hire or designate a planner who focuses specifically on working with the community. That individual could then be promoted as part of the firm's marketing, providing additional credibility to prospective clients.
The financial planning industry needs more practitioners who are actively seeking to serve LGBTQ clients. I hope more firms consider proactive steps to reach out to this client demographic. It's not just good business; it's also helping to empower a community that is always looking for true allies.
