Working with clients who have young families has its rewards – particularly over the long term.
Many advisors focus their attention on older, more established clients, says Cameron Sievert, a wealth advisor with ScotiaMcLeod Inc. in Toronto. But you can create a very loyal client base by helping those with young families get started in growing their assets. These relationships can lead to other opportunities and referrals down the road.
“It’s just another avenue to explore for growing your business,” Sievert says.
Here are five tips to keep in mind when working with clients with young families:
1. Adapt to their schedule
Be flexible about when and where you meet clients with new families. These clients are dealing with work and home schedules that don’t fit that “nine to five box,” Sievert says.
For instance, you may need to meet at a client’s home in the evening after the children have been put to bed.
2. Revisit the budget
Review your young clients’ budgets with them to ensure they are prepared for the expenses of a growing family.
“It’s a whole new budgeting experience,” Sievert says. “Cash-flow planning is usually at the heart of any discussion because [small children are] a new expense and budgets may need to be revisited and revised.”
Those budget discussions should touch on saving for emergencies and plans for big purchases, such as a house.
3. Cover the basics
Start with the essentials to get your clients — and their children — started out on the right financial foot, Sievert says.
Talk to your clients about taking advantage of the programs that are available to them. For example, you could help them decide whether a registered education savings plan is the best way for them to start saving for their children’s education.
Other programs to discuss may include RRSPs and the home buyers’ plan.
4. Take a big-picture view
Even young clients — especially those with children — need some estate planning. Ask your young clients whether they have a will. If not, recommend they have one prepared. If they do have a will, how recently has it been updated?
As well, now is a good time to talk with clients about insurance planning.
“Many new parents haven’t really discussed insurance,” Sievert says, because there hasn’t been a need.”
5. Bring in experts
Introduce these clients to your professional network.
Young clients’ needs may be different from those of older, more established clients, Sievert says. But they can still benefit from an introduction to professionals such as accountants and specialists in wills, estate planning and insurance.