The Dispatch

Best Practices

How Advisors can Uncover Client Needs

Generally clients have a pretty good idea of their future planning needs – sufficient funds to cover the costs of their children’s education and any large items they may want to purchase, as well as projected living expenses for retirement.

As their financial advisor or planner, it’s often up to you to raise the questions they haven’t thought about – the ones that could uncover needs they hadn’t considered.

You can help your clients explore areas they may have overlooked by asking questions such as:

• Have you thought about…?
• What would happen if…?
• What if…?
• What else should we talk about?

These thought-provoking questions can help clients imagine possible situations far better than simply asking about their insurance coverage or emergency fund balance. You have to decide the appropriate set of questions for each client. The examples below are for a client who does not have excess savings or significant income to rely on.

Some examples that address the needs of their family:

• What would happen if you or your spouse had a serious illness or were to become disabled while your kids are still young?
• Have you thought about how you would manage if you lost your primary income for an extended period?
• What would happen if one of you were to die suddenly? How would your income be replaced? Who would take care of your children?
• What if you were sued and lost the case?
• Have you thought about what you would do if one or more of your parents needed financial help?

Some examples focused on retirement needs:

• Have you thought about how you will handle the expense of celebrating a special anniversary or other major occasion?
• What if you had to take care of major expenses for your home or car?
• What would happen if you wanted to downsize or needed to move into a senior- or assisted-living situation?
• What if one or more of your adult children needed major financial help – due to medical expenses, job loss, or the breakup of a marriage?
• Have you thought about what you would do if you faced a major medical expense for your pet?

You can probably think of many more scenarios that could have a major financial impact on your clients. In some cases, funds can be earmarked or insurance policies purchased now to cover unexpected events.

But before your clients are ready to make important but tough decisions that could reduce future income or increase future expenses, having a conversation with you that begins with “Have you ever thought about…?” or “What would happen if…?” may provide just the motivation your clients need to be prepared for those unexpected life events that can happen to any family.

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