Did you miss part 1 of this blog? Click here to read it. If you already read Part 1, read on for Phil’s solution.

How Could This Information Have Helped Phil?

We can’t know how Phil’s doctor client would have reacted to the idea of succession planning.  (After all, even doctors can be squeamish about facing up to their own morality.)

But we do know that — by discussing the future, and creating a multi-generational dialogue — Phil would have stood a much better chance of retaining this account when his client died.

Here are 4 tips to help you create succession plans that will keep your clients’ assets in-house, across several generations:

1. Do Your Homework

First, identify your client’s generation.  He or she may be a Baby Boomer, or a “Traditionalist” who fought in World War II.

Now find out who the successor is, and what generation they belong to:  Are they from nose-to-the-grindstone Gen X?  Or from environmentally conscious Gen Y?  Are they a legacy-oriented Boomer?  Or a conserving Traditionalist?

The answer will give you a surprising level of insight into their priorities.

2. Meet the Successor — and Make It Social

Now it’s time to begin establishing a relationship with your client’s successor — and, even in today’s digital age, the strongest relationships grow from face-to-face interactions.

So based on your client’s and the successor’s interests, invite the family to an elegant dinner, or a show, or a casual community event.  Eventually you’ll want to have an intergenerational meeting that leads to a succession plan.  For now, though, plan to keep things strictly social; bonds of trust will develop with time.

3. Prepare to Meet with Both Client and Successor

Let’s imagine your client is Marie and her son, the successor, is Marc. You may need to meet Marc socially a few times, before he agrees to a financial business meeting. At the actual meeting, it is your duty to make recommendations based on what is in Marie’s best interests…or at least make sure she knows what is and isn’t in her best interest and let her decide from there.  One of her goals might be to preserve as much of the nest egg as possible for Marc, in which case their interests would be aligned.  However, if her goal differs from Marc’s on estate gifting strategies, they can be in conflict. In addition, Marc may not be interested in learning about Marie’s financial details. Alternatively, Marie may not want Marc and the other relatives to know all her financial details. Family wealth can be challenging to discuss, so be patient and take your time before inviting Marc and Marie to an intergenerational financial meeting.

Once you’ve scheduled this multi-generational meeting, add one more task to your usual preparation:  Review your product offerings — and your client’s existing portfolio — in light of each generation’s values, priorities and investment time frame.

Ask yourself things like:  Will 36-year-old, Gen X Marc want to discuss retirement options?  And what’s most important to a Marie, as a Baby Boomer who may be thinking about her legacy?

Write down and practice specific phrases, stories or value propositions that speak to each of these generations’ concerns. Be sure that you understand which argument or supporting evidence works best for each generation.

4. Hold the Intergenerational Financial Meeting

When you meet with Marie and Marc, areas to discuss will include assets, inheritance plans, timing, and long-term health care.

Even when presenting basic financial information, you may find it necessary to state things differently to each of them.  You may even need to make certain points twice — once, with regards to the concerns of Marie, and once with a focus on what’s most important to Marc.  By speaking to each generation on its own terms, you’ll build the trust and credibility that allows everyone to reach their goals.

Mastering a New Approach

Mastering these ideas may seem like a large mental shift, but you don’t have to do it all at once!  This week, take 15 minutes to learn about the generations. Next week, ask 2 of your clients about their successors.  By the end of 6 weeks, you’ll be far along in creating succession plans for your clients…   in building cross-generational relationships…   and in meeting your goal of retaining assets.

Ready to learn more about the generations? Feel free to contact me at anne@anneloehr.com for my generations ‘cheat sheet’, which will help you learn the key words to use with each generation.