How intergenerational advice can be harnessed when exiting clients

As businesses mature, advisers may choose to discontinue the annual retainer of lower-value clients who do not require their services every year or would not receive the full benefit of their minimum fee.

However, advisers who can improve their client service by offering an as-needed basis or referring them to other professionals are now confronted with the task of filling the revenue gap that will be created, Viskovic explains.

On the back of the insights she offered when taking pen to paper for ifa recently, in a recent conversation with ifa, Ms Viskovic pointed to intergenerational advice strategies as a valuable asset when attracting new clients and streamlining a practice’s client base.

Ms Viskovic pointed out that an older client in their 70s is likely to have children in their 50s who are beginning to pay off their mortgages and have some extra disposable income as their own children leave home.

“It’s usually this age bracket where they are likely to seek some advice as they start to think about their future financial needs into retirement, and if ageing parents have got estates that they are passing on to them, the need for advice is heightened,” Ms Viskovic added.

Servicing whole families can also secure an ongoing relationship with multiple clients, which she noted is important when looking to replace revenue within a firm.

“If advisers get a client in their 50s, that’s potentially a 20 to 30 year advice relationship. Over time, it’s just an ongoing cycle.”

Ms Viskovic emphasised the importance of meeting the distinct financial requirements of both older clients and their adult children, as well as the enduring value that financial practices can provide to entire families if they can navigate these variations effectively.

Specifically, she said, advisers who serve retirees can create an avatar for pre-retirees, as this is frequently when individuals begin to require financial planning. As such, both groups can be served simultaneously.

“Having an offering that serves both is not actually counterintuitive — it’s a better way to create new relationships with clients that absolutely suit their target market,” she said.

However, Ms Viskovic also warned advisers against being “all things to all people”. While sympathising with the desire to quickly rebuild a client base, she highlighted the importance of advisers understanding their specific client market, particularly in the pursuit of offering more specialised services.

“Once advisers are selective about the type of clients they deal with, they absolutely get better at the quality of advice they deliver,” she explained.

“As people get trained and develop their skills in the technical elements of advice that are most relevant to their clients, they really can develop great specialisations that solve complex problems.”

Ultimately, Ms Viskovic said that stepping away from the “inch-deep, mile-wide” approach while exiting clients can facilitate growth within a practice and allow advisers to hone their expertise.

"Supporting clients with their estate planning needs is not only a very important service to provide, it's also the perfect opportunity to build a relationship with the next generation of a family. Where a couple has multiple children, it can be a significant opportunity to grow the firm quickly."

“Provided that they are in growth mode, it’s a really powerful strategy … it’s also much easier to market to unique challenges and talk to people’s needs, when they’re very clear about what those needs are,” she concluded.