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How To Make Generational Wealth Transfer A Successful Part Of Your Investment Business

Establishing relationships across generations helps ensure future success for heirs and business for advisors.

It’s estimated that over the course of the next couple generations, up to $30 trillion is going to be passed along from generation to generation. There are common-sense best practices as well as helpful technology tools to make this generational wealth transfer a success for both advisors and clients alike.

Talk To Mom And Dad

The most important best practice is for advisors to have that conversation with their existing clients and discuss what they want to do with their assets should there be any remaining when they pass away. Ask the clients how, if at all, they want their kids to be involved, then help the clients communicate their desires to their children. It can be a sentimental, sensitive subject and clients are often hesitant to bring it up, which is why the advisor should broach the topic.

Develop A Relationship With Heirs

The latest research shows approximately two-thirds of heirs (along with their inherited assets) will leave the advisor when a client passes away. This is most often because the advisor failed to develop a solid relationship with the children. Advisors should have events, meetings, or educational opportunities to connect with the heirs, introduce themselves, and demonstrate their value.

Get Educated

Another important best practice is for advisors to get the education needed to feel comfortable having these conversations and making wealth transfer part of their overall service offering. Your broker-dealer should provide several educational opportunities ranging from monthly webinars, to small meetings, to large conferences. For example, the upcoming CFS/SPF Annual Conference will host multiple sessions on the topic including keynote speaker Cam Marston, founder of Generational Insights, and a workshop from the Institute for Preparing Heirs.

Use Technology To Make Connecting Easy

Connecting with the next generation is made easier by the plethora of financial tools available from your broker-dealer. Advisors should work with a company that offers remote delivery tools for every part of the investment continuum including the below key categories.

  • Prospecting: Engage with clients who are not coming into the branch to do their core banking.
  • Engagement: Move the old profiling form from the legal pad to an online environment prospects can engage with themselves.
  • Developing an investment plan: Use integrated online financial planning tools to work with clients, share ideas, and build an investment roadmap together.
  • Managing transactions: Look for mobile apps that facilitate easy document signing and sending for the client and reduce branch to branch travel for advisors.
  • Processing and servicing: Ensure all business and workflow can be processed electronically so advisors are never tied to a specific location. An easy, seamless online option is especially important for these steps because it directly affects advisors’ day-to-day workload.

Whether it’s prospecting, engaging, advising, transacting, processing, or servicing, look for online and mobile tools to connect with clients however they want to connect.

The dynamic between the client and the advisor is the foundational element that will allow individuals to make the most of their savings and potential inheritance. To preserve this wealth, the advisor and the client, as well as the client’s children, need to be on the same page. In terms of the generational wealth transfer, it’s about the advisors really taking ownership of having the conversation with their clients, then putting in place the right plan, and using the right tools so the advisor can make the client’s goals come true. It doesn’t just happen. Somebody has to start the conversation and execute on it.

See how CFS/SPF supports investment programs with the right training and technology to make wealth transfer a successful component of your advisors’ business. Contact us today. www.cusonet.com or 1-800-686-4724.

Steve Hollenbeck is senior vice president of marketing at CUSO Financial Services, LP and Sorrento Pacific Financial, LLC

CUSO Financial Services and Sorrento Pacific Financial

Sister broker-dealers CUSO Financial Services and Sorrento Pacific Financial help financial institutions build successful investment programs. We deliver flexible yet efficient planning, retirement, investment and insurance solutions to boost your financial growth and deepen relationships with your clients. Call 1-800-686-4724 or visit www.cusonet.com and www.sorrentopacific.com for more information.

This article is sponsored by a recognized solutions provider in the credit union industry. Callahan & Associates does not endorse vendors or the solutions they offer, and the views and opinions offered here might not reflect those of Callahan. If you are interested in contributing an article on CreditUnions.com, please contact the Callahan team at ads@creditunions.com or 1-800-446-7453.
July 18, 2016

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