Now’s the perfect time to champion your clients with a Financial Spring Cleaning and Important Document Cleanup
Ongoing communication between advisors and clients plays a vital role in client satisfaction and retention. As a result of the recent historic market downturn, your clients may be scared, confused, and unsure of what to do next. They require special attention from their advisors.
A recent study by YCharts showed that nearly two-thirds of financial advisors’ clients feel they’re hearing from their advisors too infrequently. Meanwhile, CNN Money’s Fear & Greed index confirms that investors are currently experiencing extreme fear. The CBOE Volatility Index is down some from its mid-March peak, but remains sky-high relative to historical norms, also indicating investor fear.
Given the screaming headlines engulfing world markets right now, that’s understandable. It’s clear that most, if not all, financial clients need extra care now more than ever.
Now’s your chance to stand out from the crowd of unresponsive advisors. Amid coronavirus and the resulting mayhem in world markets, your business can thrive if you put in the time and effort to strengthen your relationships with your clients.
It all starts by taking the time to listen to your clients’ concerns, wishes, and dreams. While your experience and sense of cool under pressure often serve you well, no one has all the answers — especially during times of crisis. Listen, then walk your clients through this tumultuous time. More than just making money for your clients, offering a sympathetic ear and an open mind can win their loyalty for a lifetime.
In that YCharts study, 85% of respondents cited both the frequency and style of advisors’ communication as being important factors in deciding whether or not to retain their advisors.
One highly effective communication style is to be proactive in your client care. By helping your clients address important matters before they even think of them, you’ll build a powerful sense of trust.
With that in mind, this is a great time to reassure your clients by going over the current state of financial markets. Rather than waiting for them to inundate you with panicked phone calls, this is an ideal moment for you to reach out to them. Clients appreciate both scheduled and ad hoc contact as a way to show that you truly care about their wellbeing.
Walk your clients through both their short-term and long-term investment goals. Check to make sure their current investment plan still works for them. If it needs tweaking, take the time to go over a plan that makes financial sense, while also giving them a sense of comfort they need.
More than just an overview of your clients’ stock portfolios, now’s also a great time to review all their financial affairs by walking them through a financial spring cleaning.
A good spring cleaning should include making sure they have all their financial affairs are in order so that they can ride out jittery markets while knowing that they’re prepared for anything. One way to ensure that happens is ensuring all of their financial documents are organized, easy to find, and up to date.
Financial Review – Spring Cleaning Important Financial Documents
Review current debts: With interest rates slashed to the bone, you can help advise your clients on everything from refinancing home loans to restructuring or consolidating other debts. This is a perfect time to review it all. You can then help them prioritize their money allocation and lower the financial and emotional burden of onerous debts.
Check current insurance plans: Are your clients’ life insurance policies up to date? Do they have enough coverage to give their families their own peace of mind? The current period of volatility offers a golden opportunity to help them plan for life’s many contingencies.
Check beneficiary designations: Many people make a will as soon as they have their first child. If your clients have children who are grown, it may have been decades since they last reviewed their list of beneficiaries, considered key items such as power of attorney, or even knew where to find a copy of their will.
Review the little things: In today’s digital age, it’s easy to automate virtually every payment. Make sure every bill from cable to mobile phones to power and heating bills are up to date, automated, and seamless. The less clients have to worry about, the better and easier their lives will be.
Clean out old documents that are no longer needed and import critical financial documents into a digital vault
One factor which can thrust all of those goals into jeopardy is clutter. Having too many papers strewn around the office, the house, and the garage can lead to documents becoming lost, or nearly impossible to find. A 2015 survey found that 54% of Americans felt overwhelmed by the amount of clutter they have; 78% had no idea how to handle all that clutter, so they avoided the problem and let it build up instead.
You know the expression, “a cluttered space is a cluttered mind?” That can apply to your clients. Being unable to organize their financial documents can leak over into other elements of their lives, causing stress that can affect their work, or even their family relationships.
That’s why it’s so important to be digital-savvy. As a financial advisor, ask yourself: Are your clients’ most important documents all stored in one place, in a secure digital vault? If not, what are you waiting for?
FutureVault is a leader in digital vault technology. Using cloud-based technology, artificial intelligence, and machine learning, FutureVault enables you to store all of your clients’ key financial documents in a way that’s 100% secure and easily accessible from anywhere, any time.
So if your clients haven’t already done so, this is a great time for them to go through their filing cabinets and old boxes. Have them shred the old documents they don’t need. For those vital documents they do need, your clients can upload them simply to their own digital safety deposit box – a digital vault powered by FutureVault.
Think back to the financial goals we mentioned earlier. Does everyone in your clients’ families know where to find vital documents such as wills, Power of Attorney letters, and insurance documents? These documents must be secure and accessible to family members or trusted professionals that need them. FutureVault enables end users to easily collaborate with their external network of trusted advisors, including wealth advisors, financial planners, accountants, lawyers, family members, assistants, colleagues, etc. All activities are tracked in a secure, fiduciary audit trail.
Drive Client Acquisition & Retention
Acquire and retain clients, members, and employees, while unlocking new and recurring revenue streams. FutureVault’s platform deepens and extends client relationships as the digital hub in clients’ lives.
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