brilliant at the basics Archives - Page 2 of 9

How to Help Clients Through Their Financial Anxiety

November 20, 2023 / by Don Connelly / Managing the Relationship / 0 comments

Who among us has never had worries about money? You can expect that many of your clients have experienced money worries from time to time. We know that clients can become stressed during periods of increasing market volatility or economic distress. And we’ve shared how financial advisors can help clients deal with that stress and confront fears to prevent their emotions from controlling their decisions.

But what about financial anxiety? Not only is that different from stress, but it can be much more debilitating to the psyche, causing mental paralysis in the face of important financial decisions. While stress is typically caused by external factors, such as a crashing market or rising unemployment, anxiety tends to rise internally over fears or unhealthy attitudes about the world around us.

How to Write a Highly Effective LinkedIn Summary – Examples for Financial Advisors Included

November 6, 2023 / by Don Connelly / Marketing Yourself / 0 comments

It’s well established that LinkedIn is a vital platform for financial advisors to showcase their expertise and connect with potential clients. Advisors who use LinkedIn agree that the social media platform plays a key role in building connections and expanding their opportunities for finding potential prospects.

We’ve discussed LinkedIn’s important role in generating leads and how to use it effectively for prospecting. We also covered the five grave LinkedIn mistakes advisors make, including giving short shrift to their LinkedIn Summary. In fact, a poorly crafted LinkedIn Summary can render your profile unreadable, causing anyone looking for a financial advisor to move on to the next profile.

How to Attract Emerging Affluent Gen Z and Young Millennials in their 20s

October 23, 2023 / by Don Connelly / Marketing Yourself / 0 comments

Financial advisors with any ambitions of growing their practices in the next couple of decades can’t ignore the emergence of Gen Z as an economic force. Though the estimated $143 billion in assets held by Gen Z is dwarfed by the trillions held by millennials, Gen Z workers are expected to outearn millennials as soon as 2030. They will be more educated and more ambitious than their generational predecessors, and they will be starving for financial advice.

The challenge for financial advisors is that while even today, the members of Gen Z are looking for financial advice, most prefer to find it through social media, the internet, and their parents or friends, according to the FINRA Investor Education Foundation.

The good news for advisors is that the same study found that 71% of Gen Z investors are receptive to working with financial professionals, counting them among the most trustworthy sources of financial information, second only to their parents.

The critical issue for any financial advisor hoping to attract young clients is whether they are perceived as someone who can be trusted to serve them in the manner they expect.

Top 5 Critical Acquired Skills Financial Advisors Need for Success

October 16, 2023 / by Don Connelly / Best Practices / 0 comments

There was a time in the not-so-distant past when the only skill you needed to succeed in financial services was how to sell. The business of selling investments was almost entirely transactional, and all a financial advisor needed to do was shake the bushes for prospects and close them on a product sale. It was not easy by any means, and only the most tenacious advisors survived.

Certainly, that required some skill, but most were learned through memorizing scripts and drilling on closing techniques. The rest was all about persistence in dialing the phone.

Fast forward to today, and the game has changed drastically. With compensation coming largely from recurring revenue from assets under management or planning fees, advisors have had to develop an entirely new skill set. Tenaciousness, persistence, dogged determination, and knowing how to sell are still essential, but they take a back seat to more critical skills needed to succeed in the business today. Here are five such acquired skills you need to master.

Financial Advisor Branding—Elements to Focus On

October 9, 2023 / by Don Connelly / Marketing Yourself / 0 comments

One of the most significant challenges facing financial advisors trying to grow their practice is it takes time, resources, and a well-conceived marketing strategy to get their stories out to the right audiences. While it involves strategically utilizing digital marketing and producing targeted and relevant content, the path must be paved by building a solid brand and reputation.

How to Bring Back Face-to-Face Meetings with Clients

October 2, 2023 / by Don Connelly / Managing the Relationship / 0 comments

A survey by YCharts in December 2019 found that clients didn’t feel engaged and wanted more personalized communications. We’ve posted several times that, pre- and post-pandemic, the frequency and style of advisors’ communication directly impact client trust and confidence in their advisor, financial plan, and their likelihood of keeping their advisor.

A more recent report, post-pandemic, found that, though virtual meetings had taken hold as a viable form of communication for advisors forced to limit in-person meetings, it’s likely that the decrease in face-to-face contact contributed to client feelings of reduced communication. That’s a direct threat to the strength of the advisor-client relationship.

How to Regain the Trust of a Client After a Disagreement

September 18, 2023 / by Don Connelly / Managing the Relationship / 0 comments

Can you think of any relationship that has never experienced conflict—where two people with the best of intentions fail to see eye to eye on an issue? Such is the nature of relationships, even where there is a track record of trust. You expect it in a marriage and even among colleagues—so why not between a financial advisor and their client?

It happens more than you might think. Financial advisors are wired to be analytical, while clients are often driven by emotion, which sets the stage for many “reality vs. perception” standoffs.

Why Mediation Skills Matter for Financial Advisor Success

September 4, 2023 / by Don Connelly / Best Practices / 0 comments

When most people think of mediation and negotiation, it typically refers to lawyers or third parties who facilitate dialogue between two or more parties to help them reach an agreement. In practice, financial advisors sometimes find themselves in the same position, having to resolve conflicts between a client’s family members or within their advisory team, where it’s essential to find win-win solutions.

Disagreements about money are common among married couples. Money conflicts are often rooted more deeply in people’s attitudes and beliefs about money, or, in some cases, money is not even the primary issue. However, in almost all cases, it involves two or more people who don’t know how to engage in productive financial conversations.

Your Best Practices Checklist for Resolving Client Complaints

August 28, 2023 / by Don Connelly / Managing the Relationship / 0 comments

Client complaints—it happens to the best of us. Some financial advisors go for years without receiving a client complaint. But it will happen, and when it does, it can seemingly come out of left field. Most client complaints are unexpected, which is why advisors must be able to quickly shift into rapid response gear or risk losing a client.

We’ve posted in the past about the importance of having a systematic communications strategy in developing solid, trusted, and enduring client relationships. As part of that strategy, advisors need a well-conceived, written process for responding to client complaints. The hope is that you will never need to use it, the same way pilots hope never to have to execute emergency landing procedures—but they know the procedure inside and out.

While losing a client’s trust is not nearly as consequential, it can be avoided, even strengthened, if you adhere to your own procedural checklist of best practices for effectively handling your next client complaint.

The Significance of Ethical Practices in Maintaining Trust and Integrity

August 21, 2023 / by Don Connelly / Managing the Relationship / 0 comments

Most financial advisors consciously try to do the right thing always. However, most people are sometimes prone to error, which is only human. The reality is that advisors, through no fault of their own, sometimes find themselves in situations where conflicts between ethical principles, client interests, and regulatory requirements can create ethical dilemmas.

The challenge for advisors is that they have to overcome a huge trust deficit with clients and prospects. To earn and keep their trust, they must constantly be hyper-aware of their actions and how they may be perceived, whether an ethical breach is intentional or not. That requires having a conscious and deliberate strategy to resolve any potential conflict.

Here are the most common ethical dilemmas faced by financial advisors.

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