“Show your clients how not to use the same password for 10 different websites,” Schoenbeck said. “Help your clients leverage the services that are available.”
The second commodity that is valuable to the client is time. Advisors should provide clients with as much information as possible digitally and don’t steep it in financial language.
“Talk in the language of your clients,” he added. “Help them understand what they have and what you, as an advisor, are doing.”
Although technology can be a time saver for all parties, “I am still a big believer that this is a relationship business,” Schoenbeck said. “Your clients need to know, like and trust you. A robo advisor cannot replace a meaningful, empathetic conversation with an advisor.”
Cohen told Financial Advisor magazine that enhancing the value proposition starts with the advisor doing the hard work of getting to know the client first and building on that. CD Wealth Management meets with new clients several times in the first year and then follows that up with four meetings in the second year. “Then the financial plan evolves each year,” he said.
CD Wealth Management advisors sign a fiduciary contract with clients to help assure clients they are working in the clients’ best interests. “The advisor also needs to be transparent about what the client will receive and how they are paying for it,” Cohen added.
A crucial piece of providing valuable assistance for clients today is planning for their longevity.
“Are you preparing your 58-year-old client to live actively until age 100?” Cohen asked. “Some clients may live more years in retirement than what they worked. Now clients may have to prepare for a 40-year retirement.”
“You have to be brutally honest with them if they are spending too much in early retirement and that can be an uncomfortable conversation,” he said. Advisors should explain the situation to clients and let them make the decisions.