Serving a Younger Generation with a New Service Model

This model is likely a new model you can set up to serve accumulators or children of current clients. The idea that one advisor has done is to leave his retirement model alone, but insert Elements into a model serving these younger clients who don’t have as many complexities and don’t need projections. 

Key considerations for serving younger clients who are earlier in their journey:

Facts:

• Younger clients don’t need retirement projections or Monte Carlo
• “Retirement” is too abstract as a concept
• Life is busy and they are focused on “right now” things, like careers, travel, etc.

An Elements Offering:

• Low flat fee (use AdvicePay for billing)
• Quarterly check-in with an insight
• Focus on key metrics (Lt, Sr, Dr)
• Encourage gradual improvement and build consistent habits

A standard process for serving younger accumulation stage clients:

• Step 1: After the agreement is signed, set the client up in your systems (CRM, save the signed agreement, etc.)
• Step 2: Schedule a “Financial Wellness Kickoff” meeting. This is a meeting to confirm data in Elements as well as create the client’s one-page plan.
• Step 3: Once the meeting is scheduled, onboard to Elements. Send the client an email explaining that they will need to link up accounts and enter data. Then invite them to Elements.
• Step 4: Send the client your risk tolerance questionnaire (RTQ) questionnaire RTQ to inform the conversation related to investments.
• Step 5: Create a draft Investment Policy Statement (IPS) based on the client’s RTQ
• Step 6: Request the client’s last 3 tax returns and enter data into Elements for Tax Rate.
• Step 7: Conduct the financial wellness kickoff meeting. During this meeting, the advisor focuses on 2 main things:
  • 1. Help the client get any remaining accounts connected. Also, confirm and double-check data.
  • 2. Create a one-page plan by asking questions to create the Statement of Financial Purpose as well as goals. Also, agree on the next actions and enter into Elements.
• Step 8: Following the meeting, perform some administrative tasks such as updating CRM with DOB and other information, setting up new accounts if you are managing investments, processing account transfers, etc.
• Step 9: Deliver the IPS via email.
• Step 10: Set up billing in whatever system you are using.
• Step 11: Set up a recurring to-do in your CRM to reach out to the client every quarter with a check-in or an insight.

Quarterly Check-Ins:

When reaching out every quarter, take a look at the client’s scorecard and look for opportunities to provide feedback. (You can use the Element Detailed View Screen to check what outliers you have.)

• Is their Savings rate low?
• Is their Tax Rate high?
• Is their Liquid Term low?
• High Debt Rate?
• What is one area that can be improved?

Comment on this and offer to discuss it with them. You don’t always have to meet live, but often sending an email or quick video letting them know you’ve reviewed information gives them enough peace of mind that someone is watching their finances. 

How much can I charge for this model?

A common range for this model of service can be anywhere from $1,500/year to $5,000/year. It could vary depending on whether you differentiate pricing based on single/couple or other added complexity such as business owners or equity comp.

Additional Resources:

For more information, you can review this: watch the webinar where an Elements advisor talks through his exact process for a tiered service model: https://vimeo.com/885379144/ccc8b987fe