Don’t Repeat These Mistakes With Your Clients In 2022

This year has taught financial advisors many valuable lessons—lessons that should hopefully prepare them to handle the numerous opportunities and challenges that await them in 2022.

Ali Agha, director of development at New York Life, recently shared some of these lessons and offered a few suggestions advisors can use to enhance their client relationships and practices in 2022 and beyond.

First, virtual meetings are here to stay. “I think this was inevitable, but the pandemic accelerated this paradigm shift,” he said. However, virtual meeting fatigue is leaving certain prospects and clients craving personal interaction.

As a result, in-person prospecting and networking have become even more important in today’s environment than they were before. Also, advisors should still be meeting with clients in person, although they should be strategic about it and of course, follow any necessary health protocols.

2021 also heralded the rise of incredibly speculative investments (NFT’s, meme stocks, etc.), Agha added. This has created a surge of interest in younger people investing money into alternative asset classes. It is important for advisors to learn about what’s driving these trends.

'Risky Strategies'

Now more than ever, he said, advisors need to pick up the pace in terms of understanding consumer sentiment, especially when dealing with more tech-savvy generations like Gen Y and Gen Z.

“If we don’t keep up, we risk being perceived as irrelevant and out of touch, and without professional guidance, consumers will go into increasingly speculative and extremely risky strategies,” he said.

Given the continued uncertainty of the pandemic, it is also essential to keep discussing the importance of protection planning and insurance, Agha said.

“As advisors, we can’t afford to get swept up with the investment mania, and neglect to educate our prospects and clients about protecting those they love and their future. We must remind the general public that their income is the most important asset they have, and proper life, disability and extended care planning is essential for a successful financial strategy,” he added.

Applying The Lessons

With these lessons under their belts, Agha pointed out a few things that advisors can do to help enhance their financial practices.

First, he said, they should enhance their virtual presence. “Seek to educate and inspire others utilizing social media,” he said. Also, for virtual meetings, they should invest in better equipment so that they look professional.

Many advisors are sorely lacking when it comes to the quality of their video and sound, and that leaves a bad impression on potential clients, he said. Simple things like an O-ring light to better illuminate your face and a dedicated microphone to enhance audio can make a huge difference in the impression they make. “Small things can make a big difference,” Agha said.

In addition, advisors should seek to understand their consumers, especially Millennials and Gen Z. “Do some informal research on the internet to see what people are talking about and what kind of financial advice is being thrown out there,” he said.

There’s quite a lot of inaccurate information out there, but advisors need to see what’s being said so that they can intelligently talk about it and refute it. “Identify trends and paradigms so that you can offer more relevant and up-to-date knowledge to your prospects and clients,” he said. In addition, advisors should seek out ways to adapt their solutions to serve their markets better.

Constant Communication

Advisors should also be maintaining constant communication with prospects and clients about creating a proper investment and insurance strategy, Agha added.

As markets and continued economic uncertainty persist, and inflation concerns rattle the markets, it’s essential for advisors to assist prospects and clients in implementing solutions that can include a consideration of principal protection and guaranteed income, he added.

It is also important to keep track of any changes in the tax law. Conversations about tax diversification are essential, especially leading into 2022, he said.

Ayo Mseka has more than 30 years of experience reporting on the financial-services industry. She formerly served as Editor-In-Chief of NAIFA’s Advisor Today magazine. Contact her at [email protected].