Why Financial Planners Have to Become Relationship Builders?

In this economy, the word "financial planner" may be a bad word to some people. However, financial planners must be firm and understanding when dealing with their clients during these rough economic times.

The Relationship with Clients

Outside of dating, most people are willing to establish two types of committed relationships throughout life. First, an individual has a relationship with a doctor because he or she values the quality of his or her health. The second relationship involves an individual’s money. In most cases, an individual must feel connected to his or her accountant and/or banker. Basically, the average person does not trust just anyone with his or her money.

As a financial planner, you must not only be knowledgeable of estate planning, insurance and investments, but also you must be a relationship builder. You must focus on creating life long relationships with your clients; also, you need to become your clients’ trusted advisor. If you fail to connect with your individual clients, many of your clients will eventually find a new financial planner. Losing clients can definitely hurt your wallet, so work on your communication skills. A person wants to know that his or her financial planner cares about his or her individual account; the client does not want to be seen as a financial transaction.

How to Strengthen the Relationship with a Client?

After you gain a client, your job as a financial planner is just beginning. Do not be afraid to call your clients on a quarterly basis, and send a newsletter to your clients at least once a quarter. Even if your client has experienced a significant investment loss in the last quarter, be strong when calling that client. Some clients might need to be reminded why they chose their investments. On the other hand, you might suggest your client change his or her investments and asset allocation because of life changes, such as an early retirement. People do not want to feel neglected by their financial planner. In addition, you must make the effort to schedule an annual review with each client. Remember, every client deserves and needs to have an annual review, and many clients expect an annual review.

Analysis

Being a financial planner is more than making stock and insurance recommendations. As a financial professional, you have made a lifetime commitment to serve the planning needs of your clients. In order to create successful relationship with your clients, you must prove to be a trusted advisor. Therefore, most individual desire a financial planner that communicates with their clients several times throughout the year, including an annual review.