04Dec2024

Why Wealth Managers Must Think Ahead πŸ’Όβ³

Disclaimer: The views and opinions expressed in the vapa Swiss independent wealth management blog posts featured on this page are solely my own and do not necessarily represent the views of any institutions or organisations I may be associated with. These posts are intended to share personal insights and perspectives and should not be interpreted as official statements or positions of any affiliated entities.

Wealth managers and clients often share the same age. However, with rising life expectancy, clients may outlive their Relationship Manager’s career. So, what happens when the Relationship Manager retires, but the client’s financial journey continues? πŸ’­

As life expectancy rises, the scenario of a client outliving their Relationship Manager’s career is common. This poses a significant challenge: clients require long-term financial planning, but their Relationship Manager may not always be available to guide them. Without a clear plan, this could lead to disruptions, loss of trust, or clients needing to adapt to new advisors. The gap between a Relationship Manager’s retirement and the client’s ongoing needs can cause problems if not addressed early. But with foresight, this challenge becomes an opportunity.

Early planning is not just about avoiding disruptionsβ€”it’s about creating opportunities. Firms should prepare the next generation of Relationship Managers early or promote client advisors/assistants beforehand. This proactive approach helps build trust long before a transition happens. Trust is vital to a successful handover when a senior Relationship Manager steps aside. Similarly, the flexibility in employment models, such as offering part-time roles, mentorship, or consultancy options, not only benefits the Relationship Manager and the firm but also prepares the industry for future shifts. These strategies are not just about adapting to change, but about thriving in it.

Employment models also need to change. While life expectancy has grown, traditional retirement ages haven’t. However, wealth management is flexible.
Many Relationship Managers may not wantβ€”or needβ€”to fully retire. Offering part-time roles, mentorship, or consultancy options benefits the Relationship Manager and the firm, preparing the industry for future shifts. Flexibility is a strength that will future-proof the business. 🀝

Building multi-generational teams ensures stronger client retention. Younger Relationship Managers bring new energy, attract younger clients, and build trust with future heirs. 🌱

Early planning, flexibility, and a multi-generational strategy are the keys to long-term success. It’s not just about todayβ€”it’s about securing tomorrow’s relationships. ✨

d mindset, they’re manageable. Equip yourself with practical resources, keep learning, and deliver value that stands out in the global market.

Source: LinkedIn

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Two wealth managers discussing long-term financial plans in a modern office setting.

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