Ultra-wealthy investors can put their investment advisers a little off-balance. Being around stratospheric wealth can bring up feelings of jealousy and insecurity, especially for people who didn’t grow up with money.
The best advisers can get along well with everyone, including the richest rich people. They remain true to themselves, radiate authenticity, and bring their “A game” to every meeting.
The ability to remain grounded amid extreme opulence requires a kind of detachment. If an investment expert is too easily awed by the trappings of the .01% —the upper-end of the upper crust — then it will be difficult to build rapport.
“The ultra-high-net-worth are on guard about feeling like they’re being sold to,” said Kristin Keffeler, a principal at Illumination 360, a consulting firm in Boulder, Colo. “They’ll notice if you’re coming on too quick or trying too hard.”
Advisers who win over the wealthy demonstrate unruffled professionalism. Aside from rarely acting flustered, they showcase their natural personality without any fakery.
“When you have lots of money, people circle around you,” Keffeler said. “So you’ll select an adviser who, rather than seeing you as an opportunity, connects with you as a human.”
Keffeler, who coaches advisers on how to appeal to ultra-wealthy clientele, says that first impressions make a big impact. She warns against bringing reams of promotional material about you and your firm to the first meeting.
Instead, arrive with a classy, personalized notepad and a high-quality pen. This minimalist approach shows that you’re ready to listen, learn, and take notes.
“There’s a time and place to share all the fancy things you can do and how smart you are,” she said. “First, you have to win their trust. You can make your recommendations later.”
Better yet, ask their permission to proceed to the next step. Gaining their consent allows them to wield control.
Keffeler suggests that an adviser end the initial meeting by saying, “I’d love to spend a little time on how I might work with you. Would you like me to follow up by sending my recommendations for you, along with information on our firm and what we have in place to support families like yours?”
Even after a great first-impression, the trick is to maintain your cool in subsequent interactions. Gushing about their displays of wealth can be a turn-off.
For example, Keffeler met clients on their private jet and simply expressed genuine admiration without carrying on. She struck just the right tone. “I wasn’t over-effusive,” she said. “I didn’t sit back and pretend this is mine.”
Another turn-off is spinelessness. If you’re too obsequious, you risk undermining your credibility. “Realize that you’re the expert regardless of how much wealth the client has,” said Michael Krol, a certified financial planner in Bridgeville, Pa. “They respect when somebody says, ‘You need to change what you’re doing and here’s why.’ Be strong in your viewpoints. And don’t back down if you see them doing something they shouldn’t do” — such as taking excess risk with their portfolio or resisting setting up a living will.
There’s also a subtle but important difference between being polite and reverent. If an adviser responds to a wealthy client’s every utterance as if it’s a precious gift, he’s on thin ice.
“Being overly deferential doesn’t engender respect back to you,” Keffeler cautioned. “You need that joint respect, and that comes from speaking truth to them.”
At the same time, it’s understandable to encounter jealousy. “I’ve watched advisers deal with envy,” Keffeler said. “There can be messy boundaries. They can get wooed by the lifestyle, over-identify with that lifestyle and think ‘I’m like them!’ But you can’t let your excitement overshadow the support and service that you’re there to provide.”
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