The first rule of financial planning is to understand your client’s personal and financial circumstances (says the CFP Board’s Standards of Conduct).This goes past looking over financial statements or cursory questions about investments. Clients want their financial advisors to understand what drives their desire to maximize wealth. They’re searching for a better experience and deeper relationship with an advisor who takes the time to listen.

Imagine this: You’re having a conversation with a client, but there’s a nagging feeling you’re missing something crucial. They might be polite, but a deeper understanding of their hopes, dreams, and underlying concerns feels elusive.

This scenario goes back to the first rule: truly understanding your clients. The key lies in uncovering what motivates them when it comes to their finances.

So how do you do that? Surveying your clients — in conversation and in an online format — can be the bridge to a deeper, more fulfilling relationship. By asking the right questions and actively listening to their responses, you gain invaluable insights into their financial goals, aspirations, and concerns. In this blog, we’ll dig into the key questions clients often wish their advisor would ask.

Getting to Know You

There are a number of different types of questions that will help you determine your client’s needs, these include:

• Specific questions: Focused questions used to determine facts. These questions will yield clear, detailed, concrete answers about your client’s financial situation.
• Implied questions: A question suggested by a statement. This type of question is a good way to restate something your client has mentioned.
• Swing questions: Close-ended questions using the words "will," "can," "would," "could," and "should." Swing questions can lead to deeper discussions and are best used in established relationships.
• Projective questions: Open-ended questions used to understand your client’s drivers or emotions. They unearth your client’s true opinions and help them see scenarios you may be presenting.
• Scaling questions: Solutions-focused questions used to assess levels. These questions help make judgment about level of concern and can help track progress.

Building Client Rapport

Asking the right questions puts financial advisors on the path to understanding a client’s risk tolerance as well as their emotional connection to investment, spending, saving, and cash flow. Speaking their language will go a long way toward guiding them to their financial goals.

Get your new client talking by asking specific, open-ended questions that encourage thoughtful responses. It’s not an interrogation and you don’t need a checklist; just begin a conversation and ask questions as openings appear. This is the time to ask them about their past financial behavior:

• What is your current financial situation?
• What are you worried about?
• What do you want to achieve financially?
• What are three financial things that are important to you?
• Do you have a household budget?
• Do you have life insurance? If not, why not?
• When do you want to retire?
• Have you worked with a financial advisor before? Was it a good experience?
• What can I do for you going forward?

It’s important to keep the conversations going with existing clients, too. These questions will focus on how they feel about you, your stewardship of their money, and what changes, if any, they want to make. These questions include:

• How do you feel about your financial situation?
• Have you had any significant life changes since we last talked?
• How frequently do you look at your portfolio?
• When was the last time you revisited your estate plan?
• Are you satisfied with your investments?

Money Matters

Establishing a relationship is the first step. Next up is moving past the open-ended, conversational questions to specific questions designed to better help you understand your client’s financial goals. This is where close-ended swing and implied questions can take the lead, along with projective and scaling questions.

Swing and implied questions are low-key invitations to share deeper feelings. For example, you’ve already asked about their current financial situation and received a simple answer: “I’m fine but I want more money.” Now it’s time to find out what your client’s risk tolerance is, or what they’re willing to do to achieve their financial goals. Start with “would you be willing to…” or “tell me more about…”

Projective and scaling questions can help clients better understand new ideas a financial advisor wants to present. “What if” projective questions allow the client to visualize the new opportunities in a way that is personal to them. Scaling questions, using a 1-10 comparison scale, allow the client to objectively assess where they are in their current financial plan and help to plan next steps.

Survey Says

Keeping the lines of communication open with clients requires time and effort. Developing the questions to ask doesn’t have to. By incorporating a well-designed survey alongside your in-person conversations, you gain a comprehensive understanding of their financial goals, anxieties, and aspirations.

The answers will help you create custom strategies for your clients. This level of personalization fosters trust, strengthens relationships, and drives long-term success for both you and your clients.

NEXA Insights empowers financial advisors to craft impactful surveys that get to the heart of client needs. Our software streamlines the process, allowing you to efficiently gather feedback and gain invaluable insights.

Ultimately, advisors who select the right questions, ask them in the right order, and review the answers will be able to implement an effective client-centered financial strategy that will yield a deeper, more satisfying relationship with their clients.

Contact us today to earn more info@nexainsights.com.