Practice management
The empty chair
A practice management opportunity to retain your clients’ wealth
Imagine a scenario: You’re sitting across from a client who has entrusted you with their financial well-being for decades. You’ve guided them through thick and thin, helping them accumulate wealth and plan for retirement. But an unsettling fact looms over your profession like a dark cloud. When a client passes away, studies show their children will move the client’s assets to another advisor 80% of the time. It’s a haunting reality that can leave your practice vulnerable and your hard-earned relationships in jeopardy.
However, there’s an opportunity hidden in this stark statistic, an opportunity that very few advisors are taking advantage of – The Empty Chair. This empty chair symbolizes the seat you can fill, not just as a financial professional but also as a trusted advisor who understands the emotional and financial complexities that come with end-of-life planning.
Why so few advisors provide late life advice
The reluctance among financial professionals to provide late-life advice stems from several factors:
Avoidance of uncomfortable conversations: Discussing end-of-life matters can be emotionally taxing. Many advisors avoid these conversations altogether to sidestep the awkwardness of discussing issues they believe their clients would prefer to avoid.
Short-term focus: Advisors often prioritize short-term investment strategies and portfolio performance, leaving long-term planning on the back burner. This focus may accommodate the client’s needs initially but fails to address the more significant needs that come from late-life issues.
Lack of specific knowledge: End-of-life planning requires a different skill set and a deep understanding of elder care, estate planning, and family dynamics. Many financial professionals don’t believe they have the time to invest to become knowledgeable in these areas.
The opportunity for those who choose to participate
By embracing The Empty Chair philosophy, you open up a wealth of opportunities for both your clients and your practice:
Client retention: Committing to late-life advice increases your chances of retaining assets under management with surviving spouses and the next generation. Your clients’ families will value your holistic approach.
Increased trust: Initiating these conversations demonstrates your commitment to your clients’ long-term well-being, building trust that can extend to the next generation.
Value-added service: Becoming a comprehensive advisor in late-life planning elevates and distinguishes your practice, positioning you as an indispensable resource for your clients.
Starting the conversation early
To seize this practice management opportunity, you must initiate late life planning discussions well before your client enters that phase:
Educate yourself: Invest in acquiring the necessary knowledge and skills for late-life planning discussions with your client’s family and the other experts your client will need, including eldercare attorneys, Medicare and long-term care advisors,
Initiate conversations: Approach your clients gently, explaining the importance of preparing for end-of-life matters and the benefits of early comprehensive planning.
Include the children: Involve your client’s children in these conversations. This ensures everyone’s interests are considered and allows you to build relationships and trust long before your client’s passing.
Assess existing plans: Review your clients’ existing financial plans and make necessary adjustments to accommodate late life and legacy planning.
Getting started
Perhaps the simplest way to engage with your clients’ late-life planning is to establish relationships with a few eldercare attorneys and estate-planning attorneys specializing in this phase of their clients’ lives.
You have managed and helped grow your clients’ wealth for decades, helping to ensure they are financially well-prepared to enjoy long, rewarding retirements. Take the extra step to become their late-life financial professional and leverage new relationships with the professionals who already advise in this arena.
The Empty Chair is not just a seat; it’s an opportunity to make a lasting impact on your clients’ lives and secure your practice’s future. By embracing late life planning, you position yourself as a trusted financial professional who truly cares about your clients’ financial well-being, fostering relationships that extend beyond generations.
Seize the opportunity, fill that Empty Chair, and create a legacy of financial stability and trust for your clients and their families.
