For Mothers Day, 9 Tips for Female Clients
May 9, 2013 2:56 PM
For Mother’s Day, 9 Tips for Female Clients
With Mothers Day just around the corner, millions of Americans are shopping for flowers and gifts. But some advisors may want to offer female clients something more substantive: financial security.
Ann Rieder, managing director and partner of the Lerner Group at HighTower, and Michael Fein, managing partner at CIC Wealth Management, offered a series of things that advisors can do to improve the planning experience for female clients.
Ann Rieder, managing director and partner of the Lerner Group at HighTower, and Michael Fein, managing partner at CIC Wealth Management, offered a series of things that advisors can do to improve the planning experience for female clients.
<b>Educate Your Clients</b>
Women often want to understand how investing can help them specifically, Rieder says. The best way to do that is to proactively educate them about the markets. Sometimes women dont look as closely as they should at their account statements. Make a point to sit down and go through each page of their statement -- and make sure they have a clear picture of what they own and why they own it. ... If they understand their statements, theyll be more confident and theyll be able to communicate with me in a more specific manner.
<b>Get Organized</b>
Develop an action plan from the beginning, Rieder suggests. Before actually going through the details of planning, I like to lay out the first six months or so, so that they have a picture of what its like working with me, Rieder says. By doing this, well be able to set the pace, so they can anticipate an organized approach to financial plan. Most importantly, it gives them confidence in how [the process] works.
<b>Communicate Broadly</b>
Some advisors tend to communicate primarily with a husband, ignoring a wife. Needless to say, this is a bad idea. When couples come into your office, its important to recognize that the family as a whole is the client -- not just one partner, says Rieder. Throughout the meeting, continue to engage both parties. Do whatever we can to make parties comfortable. It all comes down to old-fashioned relationship building. Continue to make them feel comfortable, and be sure to talk about whats important to them.
<b>Understand Different Styles</b>
When working with a couple, you may need to speak differently about your investing strategy. Women tend to be more value focused, and come in with a sense of things they want to accomplish, Fein says. They dont seem to be enamored by beating the market benchmark. Men, on the other hand, tend to seek more immediate gratification, and want to know whats in it for them now.
<b>Drop Your Bias</b>
From personal experience, when a couple comes in together, the majority of the time, the woman might have goals in her mind, but I wouldnt know, because she doesnt say anything, says Fein. Men, on the other hand, want to be heard and make sure we know theyre intelligent investors, and that the only reason theyre not doing it is because they dont have the time.
You may need to ask more questions of a female client, to create a balance between the clients needs
so that the whole family can benefit.
This emotion-skewed advice seeking has to change, according to Fein. He says there needs to be a balance between the male and female counterparts.
Its not brain surgery, but we need to remove the emotion, he says, so that both clients can optimally benefit from advice given by their planner.
You may need to ask more questions of a female client, to create a balance between the clients needs
so that the whole family can benefit.
This emotion-skewed advice seeking has to change, according to Fein. He says there needs to be a balance between the male and female counterparts.
Its not brain surgery, but we need to remove the emotion, he says, so that both clients can optimally benefit from advice given by their planner.
<b>Encourage Skepticism</b>
You may need to encourage female clients to do some due diligence before working with you (or a competitor). Sometimes women hear from their friends that so-and-so is a great advisor, and they move their money to that person because of what they hear, Fein says.
Any potential client should be prepared to ask some questions, Fein says -- Where is the money held? Are there any complaints against you? What kind of licensing do you have? How do you get compensated? and you should be prepared to answer them. These are the things that need to go through the smell test as women conduct their due diligence, says Fein.
Any potential client should be prepared to ask some questions, Fein says -- Where is the money held? Are there any complaints against you? What kind of licensing do you have? How do you get compensated? and you should be prepared to answer them. These are the things that need to go through the smell test as women conduct their due diligence, says Fein.
<b>Tell Clients: Be Wary</b>
A prospective client can indeed be too enthusiastic. Fein recalls a time when a new female client walked into his office. They talked for about 25 minutes, and she immediately wrote him a $1.5 million check. I asked her, Why are you writing this for me? he says. I appreciate that she wanted to give me business, but I insisted she should be more careful.
Women are more trusting than men from my experience, he adds. Men tend to be more confrontational than women, and are looking for ways they are getting screwed over.
Women are more trusting than men from my experience, he adds. Men tend to be more confrontational than women, and are looking for ways they are getting screwed over.
<b>Build Confidence</b>
Make sure your female clients are confident enough to articulate their own goals. When women first engage with an advisor, they feel like they arent educated enough, Rieder says. They assume they dont know as much as they should know -- when in fact, women tend not to give themselves enough credit. Women should approach the planning process with confidence and ... discuss with their advisor what it is they want to do. They should make sure to not waver from that.
<b>Encourage Questions</b>
Rieder also offers advice directly to female clients. Dont be afraid to ask questions, she says. If something isnt clear, maybe its not being explained very well. Dont be afraid to engage, because the advisor is there to serve the client. Once you find an advisor that you click well with, chances are that youll have a prosperous financial advisory relationship.
