Key Takeaways:

• Too many advisors today don’t know their clients’ full financial situations.
• Advisors who ask clients about their investments with other advisors set the stage to capture those assets.
• The right framing will differentiate you and position you as clients’ go-to advisor.

FACE THE FACTS

Research by CEG Insights finds that high-net-worth clients aren’t being asked about their total financial picture. Case in point:

• 83% of clients with $1 million to $5 million in investable assets say their advisor has not asked them about assets they may have with other advisors, or assessed the performance of those assets.
• Among clients with $5 million to $10 million, 68% say their advisor has not asked about assets managed elsewhere.
• Even among the wealthiest clients—$10 million to $25 million, and the ones most likely to have multiple advisors—more than half (55%) say their advisors haven’t asked about these issues.

The research also reveals why failing to ask about other assets can prove to be costly to advisors’ success.

• Depending on their level of investible assets, 19% to 35% of these affluent clients say they’re somewhat or very likely to transfer assets to an advisor who has reviewed the performance of money managed by other advisors.

INSIGHTS INTO ACTION

Clearly, these findings tell us there’s a substantial asset-gathering opportunity for you. By knowing about clients’ assets outside of your firm and how those investments are performing—and then including them in your discussions of your clients’ overall performance—you position yourself as the holistic advisor that affluent clients today want and expect.

1. Just ask. The obvious first step is to ask your clients to tell you about assets they have that you don’t currently manage. But as easy as that sounds, it’s so common to assume that clients don’t want to be asked about those assets, that they’ll be offended if you bring up the topic or that you’ll come across as pushy. Remember the research: Many clients who are asked about other assets are likely to move those assets to you.

2. Frame your discussion. Given all the uncertainty going on today, clients are very open to having an advisor who sees their full financial picture and can offer guidance on the whole package. Make it clear when you ask about other assets that you want to be able to offer clients comprehensive advice that reflects their entire situation and that it’s in their best interests to help you see that full picture. That will help position you over time as the primary advisor in their lives.

3. Don’t try to capture the assets immediately. Your initial goal is to show clients that by gaining a comprehensive understanding of their financial lives, you can provide them with the best advice possible. Asking clients to transfer assets the moment you hear about them can easily backfire by sending the message that you’re mainly looking out for your interests instead of theirs.

4. Update clients regularly on their big-picture performance. As part of your reviews, let clients know how they’re doing overall and how any pool of assets outside of your firm is behaving in terms of costs, tax efficiency and performance. Again, this will help position you as their go-to advisor, the one who is keeping tabs on all the other advisors and investments in their life. Depending on how that pool of assets is doing, these updates can also set the stage for asset transfer requests as you show clients how they might benefit by having you manage that money.

The upshot: Clients want you to give them the best possible advice. By showing them that you can do exactly that by knowing their entire financial picture, you move one big step closer to becoming the preeminent financial advisor in their lives.

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