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How to customize life portfolios for your clients’ evolving needs

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unning a profitable business while doing what’s best for your clients may sound simple, but it’s not always easy to do. Many businesses today face a version of the same problem: meeting the increasing needs and expectations of consumers while keeping costs low. These two requirements are often at odds, especially for businesses that may not have the benefit of scale. Your clients are no different,

expecting more of you than in years past—and this trend is not likely to change in the future.

As your client relationships continue to evolve, you’ve likely already taken on a much larger role, expanding your offerings beyond portfolio management. Clients today are asking more questions, expecting a more hands-on approach, and looking for guidance in every element of their financial situation. Instead of delivering advice for clients’ investment portfolios, you’re now tasked with managing their “life portfolios.”

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T HE E VOLV ING CONSUMER MODELPersonalization, access, options, and an emphasis on experience are just a few of the attributes today’s consumer expects. People are seeking more authentic relationships in all aspects of their lives. Meeting these expectations extends beyond making a sale or convincing someone that the features of a certain product are exactly what they’re looking for.

In many cases, when people are looking to make a purchase today, they’re already informed. They read reviews, study the competition, and carefully narrow down their options. They don’t need someone to give them the basic information, because they already have it. What they want is a partner to help them decide what’s best for their situation.

Consider, for example, purchasing a new car. Can you imagine showing

up to a dealership without knowing the features, safety and quality ratings, consumer opinions, and side-by-side comparisons of cars? You probably arrive knowing exactly what make and model you want, or maybe you’ve narrowed it down, but more than likely you walk into that dealership armed with all you need to make a purchase that’s well researched.

Delivering financial advice is more sophisticated than selling a car, but this concept of the informed consumer still applies. Financial advisors are no longer the gatekeepers of all the information. Clients can access financial and market news 24/7, check their accounts online, and conduct their own research on the latest investment trends—and risks—they should consider.

So, where do you add value?

” Financial advisors are no longer the gatekeepers of all the information.”

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M A K E A M AT ERI A L DIFFERENCE W I T H LIFE P OR T F OLIOSTaking a holistic approach to your clients’ financial situation while building lasting relationships is where you can offer significant value. This requires thinking beyond asset levels or retirement accounts, and reframing the entire client conversation. Relationships between financial advisors and their clients have always focused on performance. But in today’s environment, relying on performance may not sustain lasting relationships.

Although your clients still want to discuss their quarterly or annual performance, you can benefit by taking the lead and reframing the conversation away from a strictly performance-focused discussion. Instead, it’s important to encourage clients to look beyond near-term performance and consider their overall financial health. Emphasize the importance of assessing their financial picture now and for the future. This is your opportunity to demonstrate greater value by showing your clients how you’re going to help them improve that overall picture and get them where they want to be. Continuing to position the performance conversation in this framework, and away from short-term returns or performance against a benchmark, will help reshape how clients view their portfolios.

As we noted earlier, you’re no longer the gatekeeper of all the information, but clients need you to tell them how an investment strategy aligns with their values and how it will get them closer to their personal goals. At the core of this shift is a focus on life events, not market events. Instead of talking about markets hitting all-time highs and how your client’s portfolio performed, you can discuss what goals they’ve attained, what life events they’ve celebrated as a result of their financial success, and what’s next.

This shift creates a much larger responsibility for the advisor, but with that comes great opportunity. And the first step to meeting these heightened client expectations is simple: knowing what’s important to your client. ■ What are their personal values? What

political and social beliefs may influence them? Many investors today care more about where their money is going, and the trend toward incorporating ESG (environmental, social, and governance) funds and the continued growth of sustainable investing techniques appears likely to continue.

■ Are they looking for growth or protection? What are the demands of their family that must be considered? For some clients, their investment objectives may revolve around unique needs and circumstances that extend beyond an expected risk profile based on their age and proximity to retirement.

■ Are there any other personal goals they might currently list as “dreams” and not as “must haves”? Drawing this information out of your clients shows them you’re as committed to their happiness and financial success as they are, and you can help them realize that some of their dreams may become realties.

Knowing all of this information will put additional context around the specific goals your client may have highlighted initially. Or, in some cases, clients may also have a hard time articulating their goals. Asking the right questions may be a way to guide some clients toward realizing what they ultimately want. Serving your clients’ needs—even those they haven’t realized yet—and showing them all the ways they are working toward their goals is how you demonstrate your true value as a financial advisor, a confidante, and a source of continuous encouragement and support.

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DESIGNING A L ONG -T ERM EMO T ION A L CONNEC T IONOnce you know the separate elements that make up a client’s life portfolio, you can be more creative and more personal in how you connect and the stories you tell. Consider your client’s motivations, concerns, short-term goals, and long-term dreams, and tailor your approach.

The added benefit of taking this holistic view is that you’re not only building a solid business relationship, but also a personal one. Instead of talking strictly about returns, risk, or market volatility, you’re helping your clients focus on what all of that represents to them, specifically. And when you’re discussing investment goals in terms of life goals, you naturally become an integral part of your client’s reaching those milestones.

Being a part of those achievements is what makes you a true partner to your clients and their families. So when your clients buy that vacation home they always dreamed of, you’re one of the first calls they make to share their excitement. Or when they’re able to make a large, meaningful contribution to a charitable fund, you also experience their sense of pride. And when their first child

graduates from their college of choice, thanks to the funds you helped them set up all those years ago, you may attend the graduation ceremony and join in the celebration.

These are just a few examples of the many ways you can be a part of your clients’ successes, because you helped them get there. You listened to their needs, crafted a plan to fit their objectives, celebrated those achievements along the way, and helped them stay focused on those long-term goals. Beyond market events or portfolio returns, you helped them keep their eye on the big picture. Their success becomes your success.

Looking ahead, this holistic approach also benefits the longevity of your practice. As you become more integrated with your clients’ lives, you may evolve into being known as the trusted advisor of the entire family, including future generations. Establishing yourself—and your practice as a whole—in this position, as the trusted source of financial advice and planning for the future, is an optimal outcome for you and your clients.

“ Consider your client’s motivations, concerns, short-term goals, and long-term dreams, and tailor your approach.”

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FI T T ING I T IN T O PR AC T ICEDeveloping deeper relationships, becoming an integral part of your clients’ lives, and devoting more energy into your clients’ life goals may all sound great in theory, but how do you make it happen on a practical level? How do you find the time to give each client the attention and dedication needed to elevate your role?

A key first step may be to carefully evaluate how you currently divide your time—among clients and among tasks. With this information in hand, you may also find the need to change certain elements of your business. For example, you may want to consider outsourcing your investment

management services altogether, so that you can dedicate more time and resources to your value as a financial planner. Or you may be able to identify certain clients who would benefit from a more digital experience and consider offering them access to a digital platform. This not only helps save you time, but also appeals to many new and tech-savvy investors.

In addition to investment management support, you may also consider outsourcing administrative duties, potentially freeing up valuable time that you could dedicate to more in-depth conversations with your clients.

A R E Y O U E V O LV I N G W I T H Y O U R C L I E N TS ?

In a McKinsey study on what the consumer sector may look like 15 years from now, the authors posed five questions for companies to consider. Ask yourself how each of these questions could apply to your business as an independent financial advisor now, and for the future.

What makes us distinctive?Your clients have plenty of options when it comes to finding financial advice. More than performance returns or access to investment products, your personal relationship is what will set you apart from the competition.

How can we engage consumers (or clients) in an ongoing dialogue?This goes hand in hand with building a relationship. You’re always going to be there for your clients during the market downturns and heightened volatility—but you don’t want to be there only during those times. Whether it’s through social media, newsletters, birthday cards, or the occasional face-to-face meeting, you want to create enough touchpoints with your clients so they feel you’re always present, connected to their goals, and listening to their changing needs.

Are we set up to reallocate resources swiftly and at scale?The changing regulatory environment has already impacted many advisors’ business models, and we don’t know what the next big change could be. Evaluate your business periodically, consider what your succession plan may be, and stay on top of the latest trends to ensure you’re building the talent and resources to stay ahead in a rapidly changing environment.

What strategic relationships should we seek out and nurture?Financial advisors taking a more holistic approach may benefit from forming relationships with other professionals, such as attorneys, CPAs, or other investment managers, which could lead to referrals or present an option to outsource a part of your business. Nurturing relationships with your clients’ family members, especially their children, is also a vital step to retaining clients for the future.

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LPL Financial, for example, offers a great deal of marketing support. See if there are ways you can streamline your marketing efforts, without sacrificing your brand or outreach. Even small changes will give you more time to make the most out of every experience you have with your clients.

Devoting more time to thinking about your clients’ life portfolios puts you in a position to sit side by side with them and work toward their evolving goals, cultivating lasting, successful relationships for the long term that are tailor made to add value.

There’s clearly an opportunity if you’re looking to increase your value and grow your business by deepening client relationships. In order to do so, you need to maximize your time and make every minute count.

As a leader in the industry, LPL offers the support, resources, and fully integrated technology platforms to empower you and your staff to focus on delivering personalized client service at scale.

Find out what LPL can do for you and your clients at www.JoinLPL.com or call (866) 435-3438.

To discuss your options, get in touch with your local recruiter at www.JoinLPL.com or call (866) 435-3438.

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company under ticker symbol LPLA. The firm’s mission is rooted in the belief that objective financial

guidance is a fundamental need for everyone. LPL does not offer proprietary investment products

or engage in investment banking activities; this means advisors affiliated with LPL are not pressured

or influenced by LPL to sell its products. Thousands of financial advisors nationwide are able to rely

on the firm’s tools and resources to help them provide financial guidance and recommendations to

address their clients’ needs. For more information about LPL Financial, visit www.lpl.com.

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