Talking about medical bills,
divorces, college funds, and past money mistakes can help an adviser and client
connect.
Recently, a prospective client of financial adviser Robert
Wyrick Jr. wanted to know exactly how Wyrick, of MFA Capital Advisors in
Houston, wasn’t fazed; he had plenty to say. Seven years after spending more
than $1 million for his wife’s costly and ultimately losing battle against
ovarian cancer, he still had managed to start his own company and make sure his
two kids had enough money for college. He felt confident he could share the bad
and the good, so he answered the prospect’s questions, even sharing screenshot
of his investments. And Wyrick won the client’s business.
It can be tricky for an adviser to introduce his or her own
point of view and experiences into the conversation — after all, the focus
needs to remain on the client — but advisers say dropping a veil or two goes a
long way to building trust and the client relationship.
The key is making the conversation about the client, and
picking up on cues. Some clients may want to know everything, down to the last
mutual fund sale, while others may just want to hear that they are understood.
Of course, it’s easier to share financial successes, such as
fully funded college accounts, than it is financial missteps, but Rick
Kahler of Kahler Financial Group in Rapid City, S.D., has learned to be
open even about those. He often emphasizes to his clients that most
millionaires have more financial failures than less wealthy people.
“I tell my clients, ‘My job is to make every mistake I can
possibly make, so you don’t have to,'” he said. Kahler, who’s 59 and been in
the business over 30 years, said he used to think it would be bad to admit
missteps to clients, but he’s changed his mind. “Now I’ve done a 360. It comes
with the gray hair.”
Emily Sanders, a managing director at United Capital in
Atlanta, has also found that sometimes, sharing a personal story can help a
client avoid a misstep.
When she was married to her ex-husband, for example, Sanders
contributed less to her 401(k) than her husband did to his, because she of
course did not guess the marriage wouldn’t last. When she sees women making the
same mistake, she gently refers to her own experience and suggests a more
practical course. Relating her own experience makes it a friendly conversation,
not a scold, Sanders said.
“It comes down to being a genuine person,” Sanders said.
“Even though I’m a financial adviser, I’m not perfect.”
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here for the original article from Time.