Here’s how to set the foundation for a successful 2023
The new year is often a time to reflect on past successes and challenges and set new goals for your business. With that in mind, we’re sharing tips to help you boost your financial planning practice for a successful and productive 2023.
1. Stay top of mind with clients.
While many financial professionals expect growth in assets under management to come from new clients, improving relationships with existing clients should be a priority in the new year. Maintaining regular contact with your clients has never been more important in today’s environment of high inflation, rising interest rates and a slowing economy.
The kind of contact will depend on the client. A call or in-person meeting may be best if your client is less comfortable with technology or needs more hands-on support. For other clients, personalized emails may be the preferred option. Virtual meetings are also growing in popularity.
Connecting through social media is also an effective way to strengthen relationships, reach new audiences and showcase your expertise. If your clients are older, Facebook may offer the most benefits to your business, as two-thirds of Canadians 55+ have a Facebook account, and almost 60% say they use it daily.
2. Practice active listening.
Whichever way you choose to connect with clients, remember that communication is a conversation. Listen closely to what your clients tell you, show empathy, and be responsive to their concerns. Today, almost 50% of Canadians say they are falling behind financially and can’t handle unexpected expenses. Older Canadians living on a fixed income are facing even tougher choices. Understanding these new realities is important to build trust with your clients.
A recent study found that planners greatly underestimated their clients’ financial anxiety. When surveyed, planners thought financial stress affected about half of their clients; in fact, more than 70% of them reported experiencing anxiety over money matters.
3. Share your expertise.
With so much happening in the world, share information and advice that educates your clients. Today, inflation is top of mind for many Canadians. Offer practical tips on dealing with your clients’ concerns and link to educational resources. For instance, show your clients how to establish or review their budgets to reduce discretionary expenses and find more cash flow. Help them learn the value of financial preparedness and the importance of building an emergency fund. Above all, let them know you’re available to talk them through their difficult financial choices. The more you can solve clients’ pain points, the more likely they will refer you to their networks.
4. Consider unique cash flow solutions.
One of the challenges facing Canadians 55+ is the lack of viable options to help them boost cash flow and maintain their standard of living. Some may be tempted to take on debt, but this can be stressful – especially in a rising interest-rate environment. And most loans and credit cards require monthly payments at a time when cash flow is tight. Another route for those in need of cash flow is to sell investments, but doing so in a volatile market can lock in losses and erode nest eggs.
That’s why the CHIP Reverse Mortgage by HomeEquity Bank is growing in popularity. This unique solution allows Canadian homeowners age 55+ to access up to 55% of their home’s value and turn it into tax-free cash. Plus, there are no monthly mortgage payments with a CHIP Reverse Mortgage. The full amount only becomes due when the home is sold, or clients move. Best of all, your clients get to stay in the home they love.
Because homeowners are unlocking home equity with a CHIP Reverse Mortgage, the funds are not added to their taxable income and do not affect government-tested benefits such as Old Age Security. Tapping into home equity also allows their registered investments to grow tax-free, giving homeowners time to wait out market volatility.
Contact a BDM today to learn how the CHIP Reverse Mortgage from HomeEquity Bank can be an ideal solution for your 55+ clients.
- Posted by ajoshi
- On January 13, 2023
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