Overcoming the age bias

From a young advisor’s standpoint, questions such as whether he or she can earn the respect, trust and confidence of older clients could come to mind, David says. Similarly, older clients might question a young advisor’s experience and depth of knowledge to provide suitable advice, as well as whether the advisor can appreciate the older client’s unique circumstances.

“The uncertainty is usually more psychological than real,” David says. But, she adds, inherent doubts can persist.

Young advisors should not let psychological fixations get in the way of their ambitions to grow their practices and take on the responsibility of serving older clients. In an age in which baby boomers are a large, lucrative market, advisors in their 20s and 30s probably will have to deal with clients who are much older than themselves.

– FIRST IMPRESSION

If you are a young advisor looking to build relationships with older clients, start by making a good first impression, says Larry Distillio, assistant vice president, practice management, with Mackenzie Financial Corp. in Toronto. The impression you make, Distillio says, is one thing you can control.

“People often make judgments based on their first impression,” says David. “Pay attention to the way you carry yourself, how you dress and your mannerisms. Because you’re young, you want to impress an older client with both your personality and your competence.”

If you have reason to believe that an older client might have doubts about working with you because of the difference in age, says George Hartman, CEO of Market Logics Inc. in Toronto, “bring up the subject in advance.”

For example, you could say to your clients: “You might be wondering how a young advisor can provide you with relevant advice. But I want to assure you that I have the training, education and qualifications to provide advice. I also have access to the most recent information to make the appropriate decisions and am in tune with new concepts, theories and ideas that can ensure a successful relationship.”

– TALK ABOUT SUPPORT SERVICES

Explain to your clients that you have access to more experienced people and resources, if required, including relationships with experts outside your firm.

Another strategy that could prepare you to meet the needs of older clients is to seek counsel and guidance from more experienced advisors or a mentor prior to meeting with these clients.

“The insights [experienced advisors and mentors] provide can be invaluable,” David says, as they could allow you to forgo any preconceived notions or beliefs you might have about these clients.”

– USE YOUR YOUTH AS AN ADVANTAGE

Try not to allow your lack of experience to become a limitation in working with older clients.

“Admit up front that you don’t have the depth of experience, but [add] that you have the training, skills and curiosity to provide [older clients] with the best possible advice,” Hartman says. “If necessary, borrow from the credibility of older advisors on your team.”

In fact, you even could use the age difference to your advantage, Hartman says. For example, you could point out that by having access to colleagues and associates, you can offer these clients a different perspective on their financial affairs.

Distillio agrees that youth can be a benefit. In particular, you could stress the longevity of the potential relationship with you. For example, make your older clients aware that they might need to work with an advisor for as long 30 years and, because of your age, “you’re not going anywhere, while chances are an older advisor will not be around [because he or she may retire].”

– YOUR PERSONALITY

Prem Malik, financial advisor with Queensbury Securities Inc. in Toronto, believes factors other than age should ultimately drive the client/advisor relationship.

“The personal traits of the advisor are critical to be successful with older clients,” he says. “These traits go beyond your skills and qualifications and are more associated with whom you are as an individual, and must be aligned with the expectations of your older clients.”

Malik’s experience with older clients has shown him that if a younger advisor is responsive to older clients’ needs and can provide these clients with “tender, loving care,” you can retain them for life.

One of the main keys to success, Hartman adds, is simply displaying confidence when speaking with older clients. “You must be confident that you can deliver value to them,” he says.

This means knowing your story well – a story that you can tell to anyone with confidence.

“If you’re not confident, it will show,” adds Distillio. He suggests that you conduct an assessment of your abilities and fill in any gaps, if necessary.

“You have to be your natural self when meeting older clients, just as you would be with someone younger,” David says. “Don’t be overcome by anxiety created by the age gap.”

– COMMUNICATE AND LISTEN

“Put yourself in the shoes of older clients,”David says, “and determine what you would like from your advisor.”

This thought process requires a flexible approach and a deep understanding of the values and attributes of older people, bearing in mind that a “one size fits all” approach will not work.

“Older individuals value process and quality,” Distillio says.

So, you must be able to demonstrate what you do and how you can help clients in a simple and clear manner without getting into unnecessary detail. The quality of information and advice you provide eventually are what will count.

“Be proactive rather than reactive in explaining who is on your team, both internally and externally,” Distillio adds. “Be sure to show that everyone you bring to the table can play a part in the success of the client.”

If you have partnerships with other firms in order to provide clients with advice and information on services that you may not provide – such as estate planning – make sure your clients understand how such partnerships fit into your process.

“Do not use complex charts and jargon to explain your process,” David says, “as you might only confuse an older client.”

Rather, you may wish to use case studies to demonstrate that you understand the needs of clients such as them, Distillio says, and how you’ve helped other clients put together a plan to achieve their goals.

Adds Malik: “Stories can enhance your credibility.”

Although your expertise and qualifications are important, your ability to listen to older clients’ stories and show them that you understand, empathize and care about their situation can have a far more profound effect on these clients’ decision to work with you, Malik says: “Older clients are looking to deal with advisors who are patient, listen to their stories and are empathetic.”

The mode of communication you use with older clients also can determine whether your relationship will be successful, David says: “As a young advisor, you might be more inclined to use social media and digital forms of communication.”

However, she points out, you must remember that most older clients either prefer face-to-face, telephone or even paper-based communication: “You must, therefore, be able to adapt to these clients’ needs instead of trying to get them to accept your methods of communication.”

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