NEWPORT BEACH, Calif. -- Financial advisors who want to pursue high-net-worth clients should channel their inner teacher, says Darla Sipolt, regional director of Institutional Sales at TD Ameritrade.
The biggest opportunity to distinguish yourself from your peers and your competitors is how you teach your clients today, she told advisors at the Women Advisors Forum on Thursday.
Sipolt urged advisors to teach the children of their high-net-worth clients, saying that the matriarchs and patriarchs of wealthy families are worried because they know their children dont know how to handle the money theyre going to inherit.
A third of the Boomers who have $3 million or more do not believe their children are prepared to take on their wealth, she said.
She noted that Merrill Lynch offers children of wealthy families with more than $50 million in assets with the firm a three-day boot camp at Wharton or the University of Chicago. Advisors can find less extravagant options, however, by offering basic investment education to the heirs apparent, Sipolt said.
I challenge you to be creative and think outside-of-the-box, she said.
Sipolt suggested that advisors do a mock financial plan for some of the wealthy children and teach basic budgeting. Rich parents today are concerned that their children dont know the basics of budgeting, she said.
Chalk up this generational relationship development as your job security as 80% of heirs say they do not plan to keep their parents financial advisor, primarily because they dont know who they are, Sipolt said.
Theyre firing their parents advisors, she said.
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