The views presented here do not necessarily represent those of Advisor Perspectives.
Sharing your personal story with clients obviously requires good timing and vulnerability. However, it also requires insight into the client’s specific financial goals and challenges, so you’re truly connecting with their needs.
Injecting your personal experiences into client service and marketing is a critical part of an advisor’s role, by nature of the business, says Grace Yung, founder and CEO of Midtown Financial Group.
“It is a personal business,” Yung shared. “As far as sharing [my personal story], you can always tell when speaking with someone, if they want to hear more or don’t. Generally, I feel I have to share about myself, so they are more comfortable and see where I am coming from. I’m not just trying to make a sale. It’s how do I protect your nest egg if something were to happen to you prematurely?”
Yung said she can better convey this message by sharing examples from her own life, in the right instances.
Personal Stories Can Give Vital Information
“I talk to them about when my father was terminal. Thank goodness we had long term care in place, but we often see that clients don’t have long term care,” she said.
“That’s a story I share with folks. And the reason for that is they’ve heard negative press about long-term care policies. But now they [offer] newer policies, where if you don’t use it, you can get your money back with a return of premium as an option or indemnity. There are ways to structure it, where if you don’t use [the coverage] you can get your money back,” Yung explained.
She notes that clients may have outdated knowledge about long-term care policies and think they have to seek reimbursement, with the insurance firm possibly disputing their claims.
“Indemnity allows that cash to go directly into your account without waiting for reimbursement,” Yung added. “Indemnity and return of premium riders are going to be more expensive, but having gone through what we went through as a family, I would pay that every time.”
An Example to Follow
She has also shared personal stories with clients about staying in investments through market fluctuations and balancing her investment portfolios.
“It’s not just about how much money they make when the market goes up, but how much they could lose when the market goes down. So I may share personal stories about that,” Yung said, noting that clients can come out better in the long run if their portfolios aren’t too reliant on huge market gains for returns.
“I may also share [information] about how I’m tax efficient. We look at tax loss harvesting throughout the year, versus just the last two months of the year, when many people may look at it. This is so you have more opportunities. This year, the market went down in March, but look where we are again. So if they wait until the end of the year they miss those opportunities,” Yung said.
“I tell my clients, I’m working and saving like you. I’m earning money and here’s what I do,” she added.
Connecting to the Unique Stories, Needs of Clients
Advisors, who have recently broken away to start their own shops, must learn to strike the right balance when getting personal with clients — and part of that requires data.
“First of all, when we come across a new client, we normally run a financial plan for the client,” Yung said. “I call it a ‘financial physical,’ like when you go to a doctor and they gather data on you. I analyze that and come to them with a plan of care (for their finances). What I see with clients is most have done a good job building their nest egg, but it’s usually scattered all around and they need someone to create a clearer plan,” she explained.
“That’s why we start with a financial plan, because everyone’s goals and challenges are going to be different,” Yung added.
Danielle Walker is a freelance journalist with 15 years of business reporting experience. She previously worked at Business Insider and Pensions & Investments, among other business publications. Her work has been published in the Financial Times, Barron’s and Chief Investment Officer. Danielle is currently based in Norfolk, Virginia.
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The views presented here do not necessarily represent those of Advisor Perspectives.