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By CUSO Financial Services, L.P.
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.
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.
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.
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.
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.
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 sponsored content article is provided to the credit union community for shared insights and knowledge from a recognized solutions provider in the industry. Please note that the views and opinions offered here do not reflect those of Callahan & Associates, and Callahan does not endorse vendors or the solutions they offer.
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July 18, 2016
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