Joshua Galyon
Introduction And Opening Question
Asking these introductory questions serves as the foundation of your client meeting. Let us break down the rationale and benefits for you, both as an advisor and for your client.
1. Can you tell me a bit about yourself (and your family business)?
This question opens the conversation by focusing on the client – the most critical element of your work. Of particular importance: by asking about them and the people or business they value, you demonstrate that you genuinely care about your client’s story and are interested in their journey – remember, people, are more likely to trust and open up to someone who shows genuine interest in their lives. In a nutshell, this question sets the stage for a deeper connection and builds rapport.
2. Have you worked with a financial advisor before?
Understanding your client’s past experiences with financial advisors offers valuable insights into their expectations, concerns, and communication preferences. If their prior interactions were positive, you can incorporate those elements into your approach. If negative, you can make sure to avoid those pitfalls.
Discovery Questions
3. What led you to seek financial advice at this particular juncture?
When you ask this question, it sets the stage for an open and honest conversation. It explores the catalysts that brought your clients to your door. Whether it’s a significant life event, a career change, or a desire for more comprehensive financial planning, understanding their motivations allows you to address their immediate needs and lay the groundwork for a lasting advisory relationship.
Additionally…
It would help you manage client expectations. For instance, if they seek quick returns in the stock market, you can set realistic expectations about the inherent risks and the importance of long-term planning, all while discussing compensation for financial advisors. Managing expectations upfront minimizes potential disappointments down the road.
4. What are your short-term and long-term financial objectives? Are there any significant changes or milestones you anticipate, such as buying a home, starting a business, or planning for retirement?
Probe into the specifics of your clients’ financial objectives. Short-term goals may include purchasing a house or funding a child’s education, while long-term goals could involve building substantial wealth for retirement or leaving a legacy for future generations. Understanding the timeline and importance of these goals allows you to prioritize and strategize effectively.
5. What do you believe is the biggest obstacle standing between you and your goals?
Identify the barriers that hinder their progress and work together to develop actionable plans to overcome them. Show them that you are not just a financial advisor but also a partner in their journey to success.
6. What are the top three values you want your wealth to represent?
Beyond just accumulating money, what does their wealth signify? Understanding their core values will help you align their financial strategies with their deepest-held beliefs and ensure a meaningful purpose behind every investment.
7. On a scale of 1 to 10, with 1 being extremely conservative and 10 being extremely aggressive, how would you rate your risk tolerance?
Risk tolerance varies from person to person, and it’s crucial to gauge how your clients view and handle financial risks. Some may be more risk-averse, seeking stability and security, while others might be comfortable taking calculated risks to pursue higher returns. By grasping their risk temperament, you can tailor investment recommendations that align with their comfort level and financial objectives.
8. What keeps you up at night when it comes to your finances?
This question unveils their anxieties and fears. By addressing their concerns head-on, you demonstrate empathy and show that you genuinely care about safeguarding their financial well-being.
9. What would you like your financial advisor to do for you beyond traditional investment advice?
This question opens the door to personalized services that go above and beyond typical financial guidance. It helps you understand how you can add unique value to your client-advisor relationship.
Financial Analysis
10. Can you provide an overview of your current investment portfolio, including the types of assets you hold and their approximate values?
The information the clients provides allows you to assess whether their current portfolio aligns with their financial goals and risk appetite. Thats not all: by assessing their asset allocation, you can identify any overexposure to certain assets or sectors, mitigating potential risks and protecting their wealth from market fluctuations.
11. What outstanding debts, if any, do you have, and what are the interest rates on those debts?
Debt obligations can significantly impact their financial well-being and ability to reach their goals. Inquiring about the interest rates on these debts allows you to assess the cost of borrowing and identify potential strategies to optimize debt management.
Questions About Solution Recommendation
12. Based on our discussions today, what are the most important takeaways for you?
Summarizing the key points of your meeting puts the spotlight on your clients’ thoughts and emotions. It allows you to confirm your understanding of their goals, concerns, and preferences while addressing any misconceptions or doubts. This alignment is vital to ensure that your recommendations accurately reflect their aspirations and expectations.
Financial Recommendations
13. How do you feel about using insurance products, such as life insurance or long-term care insurance, to protect your financial interests?
Here is the thing:
When advisors ask clients about their feelings regarding insurance products (insert the product or services you offer), it serves a dual purpose. Firstly, it uncovers the client’s emotional relationship with risk and security, providing insights into their comfort levels with protection and contingencies. Secondly, this question opens the door to discussing the merits of your offerings, educating the client about potential risks, and the role of insurance as a safety net. Through this dialogue, the advisor builds trust and demonstrates expertise, ultimately fostering a deeper, more collaborative client-advisor relationship.
Addressing Concerns
14. How comfortable are you with the recommended level of risk for your investment portfolio (insert other solution)?
Tailoring the portfolio to match the client’s risk appetite, helps to alleviate anxieties and ensure the client feels confident and in control of their financial future. This personalized approach not only strengthens the client’s confidence in their (investment) decisions but also deepens the advisor’s understanding of the client’s preferences and goals, resulting in more effective and satisfactory outcomes.
15. Do you have any questions or concerns about (insert specific product or service) recommended?
Take heed: addressing questions and concerns is crucial for building trust and ensuring client satisfaction. Ask if the client has any questions or concerns about the recommended product or service, open communication, and demonstrate receptivity to the client’s thoughts and apprehensions. Adopting this approach fosters a collaborative environment where the client feels heard and valued, leading to a stronger partnership.
Closing
16. What additional information do you need from me to move forward confidently?
Inviting your clients to seek clarification or request more information empowers them to take an active role in their financial journey. It demonstrates your commitment to their understanding and comfort with the proposed plan. Addressing their inquiries promptly further solidifies the trust they place in your expertise.
17. How involved would you like to be in the decision-making process?
Establishing the level of involvement your clients desire is crucial for delivering a tailored service. Some clients prefer a hands-on approach and want to actively participate in decision-making, while others may prefer a more passive role, relying on your expertise to guide them. Respecting their preferences creates a harmonious dynamic and fosters trust in your advisory capabilities.
18. How do you define financial success, and what benchmarks do you use to measure it?
This question brings the conversation full circle, encouraging your clients to reflect on the bigger picture. Their response will encapsulate their values, aspirations, and definitions of success. Armed with this profound understanding, you can continuously tailor your services to help them achieve a genuinely fulfilling financial life.
Follow-up, Review, and Monitoring
19. How frequently would you prefer to have review meetings and what’s your most preferred means to stay in touch?
Regarding review meetings and communication preferences, inquiring about the frequency of reviews and the preferred means of communication allows the advisor to tailor their services to the client’s preferences. By understanding how often the client would like to have review meetings, you can strike the right balance between keeping the client informed and not overwhelming them with excessive meetings. Additionally, knowing the client’s preferred means of communication – whether it’s through phone calls, emails, or in-person meetings enables the advisor to stay in touch in a manner that is convenient and comfortable for the client. Here is the kicker: this level of flexibility and adaptability strengthens the client-advisor partnership and fosters a positive and efficient ongoing relationship.
20. Is there anything else you’d like to discuss or any additional questions you have after our meeting?
Just to reiterate: never assume – as much as possible, and at appropriate juncture prompt your clients to air their opinions and thought – this would not only save you from a lot of headaches down the road but it can be differences between a client that disappointedly walks away and one that signs the cheque. So, again, asking if there’s anything else the client would like to discuss or any additional questions they may have, the advisor demonstrates attentiveness and a commitment to addressing all client needs comprehensively. This open-ended question also encourages clients to voice any lingering concerns or curiosities, fostering a sense of comfort and trust.
In Conclusion
These questions are just examples, and the specific questions you ask will depend on the individual client’s circumstances and financial needs. Always be attentive to their responses and adapt your approach accordingly.
