12 Jun 2019

#HNWSERIES: Working with High Net Worth Clients

Have you been serving the mass market and mass affluent for a while now? Are you looking towards working with the high-net-worth individuals?

High-net-worth individuals do have more considerable financial assets to work with, but they are more particular compared to the mass market and mass affluent. These are also the people that will drop you if you do not achieve their standards. Even though it is harder to work with these high-net-worth clients, they are still high in demand by financial advisors. These clients present the potential of increasing profits, highly personal interactions and the chance to expand your referrals within the upper-class society.

Who are the high-net-worth individuals?

High-net-worth individuals are those with around RM3 million in liquid financial assets. They generally demand personalized services in property investing, REITs investing, tax planning, etc.

How to be the best advisor for these individuals?

You require both proficiency and expertise to manage the multidimensional facets of the HNW clients’ financial matters. To serve these clients productively, you cannot merely offer limited services and products. You will have to widen your knowledge to be able to cater to a broader need of clients. To work with high-net-worth clients, it is insufficient to merely know about investments. You will also have to be responsive towards business growth, real estate, tax planning, and more which we will discuss further down the article.

It is also vital to gain the trust of high-net-worth clients; you should be clear on articulating what you are going to accomplish and produce actual results for them. It is important to always be contactable at all times when your client faces a problem. They want an advisor with the ability to give guidance and solutions when they have questions. For example, a client is ready in purchasing a property, he needs advice on whether the property is worth investing. It is crucial that you have the knowledge on puchasing properties.

Personalization is also important in building trust with high-net-worth clients. It is arduous to personalize services without in-depth knowledge of your client. It is vital that you get to know your client on both financial and personal level. During the first appointment, we should find out who they are, what is their stance towards handling their finances, what are their goals and their worries.

What are your high-net-worth clients interested in?

According to the 2018 U.S. Trust Insights On Wealth and Worth study, which surveyed almost 900 respondents with $3 million or more financial assets. The topics high-net-worth individuals wanted to talk more with their advisors are as shown below:

The percentages refer to the number of advisors who are currently discussing with their high-net-worth clients about these topics. Less than 50% of advisors are actually talking to their clients about these topics, even though their clients wish to know more in these areas. A good financial advisor should make a link between what the high-net-worth clients are interested in and the actual conversations that happen. This will then position you as an advisor that recognizes their needs and thus helping you to get more referrals.

In conclusion, there may be a vast pool of wealthy clients in the country, but the number of financial advisors to choose from is also hefty. These advisors are also extremely fervent in approaching these wealthy clients. You need to possess distinctive services to offer to these potential clients. What will differentiate you from others? Fret not, PPP academy will be providing guidance for you, do sign up on the link below to join the High Net Worth Selling Secrets Inner Circle to receive exclusive video training, tips, strategies, and priority invites to future live events. There will also be future blogposts on the High Net Worth Series, so stay tuned!


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