What More Do HNW Clients Want from their Advisors?Submitted by American Endowment Foundation on June 30th, 2015
By Eric Kinaitis
A recent survey of 640 wealthy investors with investable assets of $3 million or more indicated that nearly two-thirds felt that their advisors were not discussing with them strategies that help achieve important family goals.
The survey indicated that most advisors were focused on tactical topics instead of deeper discussions about family legacy and family financial values. Chris Heilmann, a chief fiduciary officer, was quoted in a article about the survey:" . . . clients want more – they want to delve deeper into important personal and family matters – such as philanthropy . . . There is a huge opportunity and necessity for advisors to broaden the conversation and better communicate with their clients to help them truly achieve their goals."
The study indicated that nearly 90% of those surveyed felt that donating to charity was an “essential part of their lives.” Traditional philanthropy predominated, but the concept of impact investing grew as a topic of interest. Nearly 50% of Millennial investors either owned or expressed interest in impact investing.
The 2015 World Wealth Report indicated a similar finding; over 90% of HNW individuals indicated that driving social impact was important.
How to Woo the Richest Clients
What can a financial advisor do to gain the richest level of clients? The surveys indicated the importance of being able to understand and discuss the charitable interests of HNW individuals and the ways that they can make a social impact. Learning how to start that charitable discussion and the questions to ask are the first step.
The next step is understanding if a donor advised fund (DAF) can play a role in helping an HNW individual make a social impact. Additional steps involve evaluating the different DAFs and determining the best choice available for the unique circumstances of that HNW individual. Some of the points that need to be considered include:
- What affiliations does the donor advised fund have?
- What kind of contributions can be made to the DAF?
- What investment choices are permitted?
- Are there any restrictions on how grants can be made?
- What are the succession options for the donor advised fund?
- Is there online access to the DAF account?
- What costs exist?
Ready to woo richer clients? Contact or call us at 1-888-660-4508 and let us discuss how American Endowment Foundation can aid you in delving deeper into the interests of current and prospective clients by understanding their desire to make a social impact.