Stay connected with the latest wealth management issues facing the industry today. Cannon’s Insights Articles keep you in the loop.
We should all have this problem. Then again, most of us do. A whopping sixty-seven percent of Americans have anxiety over money according to the findings of a recent poll issued by the American Psychiatric Association. Because the poll was taken between March 23rd – 25th, the findings appear paradoxical. 1 Although the economy is doing well, people report more anxiety over their finances than they did a year ago.
We talk a lot about good planning and how to do it, but sometimes it helps to learn lessons from the mistakes of others, and try not to fall into the same traps. History can be a great teacher, and those of us in the business hear lots of stories and see lots of examples of planning done well and poorly. Confidentiality dictates that we keep our client situations private so, fortunately for us, many celebrities lend their fortunes and families into the spotlight and can be used to identify common errors in planning.
Are you an outstanding FA? Of course, you are! Stay on top of the changes in our tax laws and the industry? Check. Constantly profile your clients? Check. Have taken the time necessary to get to know the heirs of your wealthy clients? Whoops. According to a study conducted by PriceWaterhouseCoopers Global Private Banking/Wealth Management, only two percent of heirs retain their parent’s advisory relationships, and seventy-five percent of clients say their advisor has never met their children.1
An in-depth conversation with Cannon EVP and Practice Management Expert, Linda Eaton.
You can’t place a value on the nurturing and love parents give their children. But if you are a single parent, you can and should and must place a value on all the tasks you perform. If you have a client, who is a single parent you are doing that client a disservice if you don’t bring up life insurance to him or her.
You are financially literate, or you wouldn’t be working as an FA, at least we hope so. Most of your clients don’t share your level of financial literacy and that’s one of the reasons they pay you and getting paid is a good thing. People with wealth usually know something about money or they wouldn’t have a lot of it. The more of it they have, the more they know.