Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here.
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Dear Bev,
I read an article you had written about anxiety and depression at the holidays. I deal with a number of clients who are very wealthy but are miserable around the holidays. Some are older and don’t have family members who see them, others are miserly and don’t feel they should use their money for gifts for people they don’t like. The conversation actually comes up with many of them every year, and I want to be prepared this year. Any ideas or tips?
Gregory T, New York
Dear Gregory,
Are you asking how you can support and encourage the clients, or whether you should provide ideas for holiday gifts? I always have ideas for gifting! Check out www.Cloud9Living.com – one of my favorite sites for unique gifts.
On a more serious note, this is a significant problem for many people – even those with a great deal of money. Holidays bring up many emotional feelings and connections, and the holiday period can prove emotionally debilitating over many weeks. Some people have significant anxiety and depression. If you are interacting with clients whom you suspect of having either or both, you could definitely take some steps to help them.
First of all, make sure you manage your own reactions. Take stock of whether the holidays bring up any bad feelings for you. To help a client through, you need to be emotionally healthy.
If you have noticed a pattern in a client’s behavior, don’t shy away from bringing it up. Say something like, “In the past, I’ve noticed (or you have expressed) negative feelings around the holidays – can we talk about this year before the holidays come? I have some ideas for some better ways to help you through.” You are showing the client that you recognize their pain and you care about them as a human being.
Talk to your clients about positive action steps they could take. Are they gifting money to a worthy cause? Could they donate a bit of time to a local shelter to help wrap donated gifts? Are there churches or synagogues in their area that they could spend a holiday at? It might help to brainstorm with them, in advance of this holiday season, how to work through it in better emotional health.
If it is appropriate, perhaps invite them to a holiday party your office is having – or consider throwing an event for your clients. Or if your office is involved in some volunteer effort, like donating to Toys for Tots or helping out at a homeless shelter, involve the clients who need a distraction. You might be able to proactively help spread the holiday cheer.
Dear Bev,
I think the trend toward providing clients with more and more services is troubling. When I started in this business, the investment professional focused on investments, the insurance person on insurance and the accountant on taxes. Now the lines are so blurred that clients don’t know what they are paying us for. I know the trend is to “holistic” offering, but I think we are doing our industry a disservice. That said, I am having a hard time explaining to my clients why I continue to be “just” an investment professional. Twenty-six years of dedication to investing isn’t abandoned easily. How do I carve out a niche and prove to clients that I am worth the fee they are paying, which they think it is similar to these holistic professionals?
Mark, Central U.S.
Dear Mark:
I call this “standing out in a crowded market.” It’s difficult when everyone – the banker, the broker, the insurance agent and the investment professional — are all under the moniker of “financial advisor.” You are right to be asking how you can define yourself differently, and also how you can confirm value to your clients.
Because the trend is toward more holistic management, as you call it, or overall wealth management, you may have an opportunity to define your brand as the investment expert, specifically. When everyone seems to be doing one thing, being counter-trend can be helpful just because it is different!
You might want to develop strategic alliances with others who offer the services that can round out your offering. Keep your focus on why you are the best investment “guru” for the clients and be specific in your target marketing. There are investors who just want investment expertise. It is important to show clearly that you have this expertise, compared to others out there.
In fact, you could take the position that the other firms aren’t as clear in their mission and are diluting their efforts, while you are staying true to what you know and are good at.
The fee issue should be relative to value. Show your clients the complexity of your investment process and give them information about your background and why you are so good at what you do.
Sell value and believe in the value you offer.
Beverly Flaxington co-founded The Collaborative, a consulting firm devoted to business building for the financial services industry in 1995; in 2008 she co-founded Advisors Trusted Advisor to offer dedicated practice management resources to advisors, planners and wealth managers. She is currently an adjunct professor at Suffolk University teaching undergraduate students Leadership & Social Responsibility. Beverly is a Certified Professional Behavioral Analyst (CPBA) and Certified Professional Values Analyst (CPVA).
She has spent over 25 years in the investment industry and has been featured in Selling Power Magazine and quoted in hundreds of media outlets, including the Wall Street Journal, MSNBC.com, Investment News and Solutions Magazine for the FPA. She speaks frequently at investment industry conferences and is a speaker for the CFA Institute.
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