This is the time of year when many of you are finalizing all the last-minute planning left over from 2023 (or still recovering from it). If you’re like most advisors, not every client agreed to all of your recommendations, and some got cold feet at the last minute. I know it’s frustrating. But now isn’t the time to lose your composure and do or say something you’ll regret.
Clients and prospects don’t waste your time intentionally. They simply want assurance that they’re not rushing into a hasty decision that they’ll live to regret. Again, complex financial planning isn’t their area of expertise. Embrace their hesitation as an opportunity to bond with your client and their other advisors. Remind them of all the problems and anxiety that your plan could alleviate for them.
Whether it’s estate planning, business exit planning, charitable giving, cash flow planning or a complex life insurance policy, your client is seeking the optimum solution. We sometimes forget these are complex decisions for clients to make, and they must live with the outcome for a long time. Obviously, they need your help, or they wouldn’t keep speaking with you. But for some reason, they’re not moving forward – or at least not as fast as you’d like them to.
When you’ve gone through a complete analysis of their situation and established their goals and objectives, you’ve earned the right to be forceful and assertive in your recommendations. Your clients are looking for leadership from you, and that means getting all their advisors (and sometimes family member advisors) involved in the planning process.
Real World Example
One of our longtime clients saw our planning come to fruition when his mother died at age 89. When we first met our client 10 years earlier, he held a small stake in the family business, a gift from his father. He asked us to work with his mother and her advisors. We included his advisors as well, assembling a plan that would put the mother in a minority ownership position.
Once we came to an agreement, we helped implement the transition. Some stock went directly to our client, and some went into trust for his children. In the process, we saved the family millions of dollars in estate and income taxes. More importantly, the plan gave our client the ability to build the family company into a very substantial enterprise worth tens of millions of dollars.
After the smoke cleared, both our client and his advisors went out of their way to thank my team and me for saving them so much in taxes and for passing so much wealth to the heirs. That client is still thankful today and has been the source of many excellent referrals.
Again, I had to step up and be a leader. I had to push the agenda aggressively and show the benefits of the plan and make it happen despite the initial resistance. There was no one else to assume this role. Always remember, we’re clients’ advocates, and we must be sensitive, yet firm. This is why we ask questions. Try to discover why a client’s earlier needs or concerns may have morphed. You must frequently reaffirm their objectives and timetable to keep them on track. If the focus is on cost, the only way to re-center the discussion is to reinforce the price tag of their current solution and why it’s not working.
It would be pretty strange for your client to go through this entire process, get down to the finish line and then say, “No I can’t do this, I have to talk to my wife or attorney/CPA” or “I can’t afford it,” etc. The best closing question here is: “Where do you want to go from here?” Now they’re more likely to feel in control.
If you’ve correctly walked your client through the process, gathered all the facts and designed an ethical, professional solution for them, they shouldn’t be reluctant to move forward. If for some reason they still have cold feet, don’t take it personally. Don’t make the situation worse by criticizing them or pressuring them to meet an arbitrary deadline you have set. Ask the client, “What do you see as the next step?” If they give you concrete next steps, then respect the timeline they’ve laid out. If they’re noncommittal, then let it go and set a firm time in your calendar to follow up with them.
Waiting a few months (or even years) to reconnect can often pay big dividends. I have followed this tactic numerous times in my career and often end up with far more business than I originally proposed. You never know where or when this person might pop up again.
All Hands on Deck
As any sales pro will tell you, “Everybody buys something.” Even if it’s nothing, it’s still a decision. So, after your initial presentation and the subsequent iterations are completed, give your prospect some space to ponder without pressure. Reconnect with them when the time is right, and patiently review the original recommendations and make sure they have no further questions.
Ask the client: “Do you have any final questions? Have there been any important changes in your life? Do you think we have hit the target?” Then suggest you get together with the client’s attorney and accountant to see if there are last minute adjustments needed before formulating an implementation plan.
You may have to bring the CPA and attorney up to date before the meeting, but they’ll appreciate being kept in the loop and could help close the sale. If you’ve done everything right, the client will usually pull the trigger in this meeting. Remember, most wealthy people find it very difficult to make these decisions alone because they’re intimidated by the complexity of your financial plan. That being said, they wouldn’t agree to an all hands on deck meeting unless they were committed to moving forward. Again, they just want reassurance.
If everything is moving forward smoothly, assume they’ll take action. If they’re still reluctant to sign off, ask: “What is the minimum you’re willing to do to start this process now?” For instance, your client may be hesitant to make gifts to their children but may put the insurance in force to protect them. Great. It’s a start. You’re in the door.
If you’ve remained patient and professional throughout the client’s buying journey, not only will the business eventually come your way, but also, your clients will tell their colleagues and family members how you helped them through the process. We need apostles, clients and influencers who will tell others of your skill and professionalism. You can’t buy advertising like that.
As the old proverb goes: “Patience is when you’re supposed to be mad and you choose to understand.”
Dr. Guy Baker, CFP, CEPA, MBA is the founder of Wealth Teams Alliance (Irvine, CA). He is ranked as a member of the Forbes 250 Top Financial Security Professionals and author of Maximize the RedZone, a guide for business owner transition as well as The Great Wealth Erosion, Manage Markets, Not Stocks and Investment Alchemy. He received the 2019 John Newton Russell Memorial Award for lifetime service achievement in the insurance industry.