There is no doubt that this year’s client annual reviews will be different. With the COVID-19 pandemic still causing both social and economic uncertainty, it will change the way we interact with our clients. Not only how we meet with them (e.g., virtually or using safety measures for in-person discussions) but also in the content and agenda for the review. While market performance, asset returns and financial goals are always key topics to discuss, the current environment has brought the importance of planning for uncertainty to the forefront. As a result, managing debt and planning for the future have never been more relevant and timely considerations.
While debt is a sensitive topic to discuss and no one can predict all of their future cash needs, there is value for both you and your clients when making them a part of your year-end review. This is not only from the perspective of the pandemic economy, but also because the industry is moving toward financial professionals being able to provide more holistic wealth management advice to their clients — advice that needs to consider both the asset and the liabilities side of a client’s balance sheet.
It is entirely possible that while you manage your client’s assets, you may not have a clear picture of their liabilities or their future cash needs. If you’ve never spoken to clients about these topics, below are some lead-in questions that can help you ease clients into the conversation:
Learning more about your client’s current debt and liquidity needs can go a long way toward strengthening your professional relationship. More importantly, it conveys to the clients both your interest and your ability to help them better manage all aspects of their finances and help them plan accordingly.
If your clients have outstanding debt or liquidity needs, The Bancorp can help. Our Securities Backed Line of Credit (SBLOC) and Insurance Backed Line of Credit (IBLOC) offer low-interest access to funding to help individuals, trusts or businesses consolidate debt, proactively plan for future expenses, and add flexibility to their wealth management strategy. With no application fees or closing costs clients can also apply for an SBLOC or IBLOC proactively to be ready for cash needs in the future.
While uncertainty may be the new normal for now, proactive wealth planning that includes both sides of a client’s balance sheet, can create added value that can be measured in dollars and sense.
The opinions, findings, or perspectives expressed in this content are those of the author and do not reflect the official policy or position of The Bancorp, Inc., its affiliates, or its or their employees.