We created The Walters Way in response to what we saw as a glaring unmet need in the financial services sector. In my first 10 years as a tax planner, I came to realize how difficult it is for high-net-worth individuals to find solid advice. The main issue: financial advisors are rarely trained to solve the real problems that pop up in the higher income brackets. If you are trying to swim upstream and work with more affluent clientele, learning to master the following 9 questions is a great foundation from which to start.
1. Tell me about your background.
Every advisor can talk about asset allocation or portfolio rebalancing, or claim to help clients achieve their financial goals. That kind of language sends the signal that you only work with middle-income clients. If you’re not leading the conversation with tax strategy, you’re doing it wrong. Specifically, you need to emphasize your ability to manage capital gains tax and business taxes because they are two separate areas—and both come up often for wealthy clients.
2. What do you know about ______ [type of asset]?
90% of wealthy people have money in real estate. (1) A prospect may also have money invested in insurance policies, equity holdings, Qualified Opportunity Zones, oil or gas wells, solar energy, or any number of alternative investments. You need to be able to quickly demonstrate that you know how to combine strategies that factor in all the major asset classes, not just the handful that most advisors know about.
3. I keep hearing that people like Warren Buffet don’t pay taxes, but I still get a huge tax bill every year. What am I doing wrong?
Financial advisors are too quick to respond to questions like this by saying, “I know a great tax planner who can help with that. I’ll give you their info.” The client may hire the person you refer, but they will not hire you. A much better answer might sound like, “Have you looked into strategies A, B, and C?” If the answer is “no” and you uncover an opportunity that no one else has mentioned to the client, you gain a major credibility boost.
4. Why is it that no matter how much I pay attorneys and CPAs, I still end up owing more to the IRS than I expected?
This frustration stems from the frequent siloing of professionals. You commonly see scenarios where a client hires a tax attorney, an estate planning attorney, an ERISA attorney, a financial planner, a tax professional, and a handful of other professionals who never talk to each other or compare notes. If you can lead the conversation about tax strategy without needing to lean on someone else, the client will rapidly gain confidence in you.
5. How do I know if the advice I’m getting is any good or not?
One characteristic of highly successful people: they don’t waste time trying to figure things out on their own. They tend to look for professionals who will read between the lines and answer the unasked questions. When you’re sitting down with a prospect, you need to zero in on the most relevant strategies and ask the questions that most other professionals don’t. Here again, I typically recommend answering the question with a question, such as “Have you evaluated strategies X, Y, and Z?”
6. What would you do for me?
Most CPAs don’t do tax planning, and most financial planners can’t give tax advice. One answer that will quickly set you apart and increase your chances of getting hired: “Why don’t we look at your last year’s tax return, and then we’ll come up with a solution together?” The key is to stay actively engaged in the tax conversation, which is precisely what most advisors will not do.
7. What’s the most money you’ve ever managed?
If your wealthiest client makes $150,000 per year, it doesn’t preclude you from working with someone who has a lot more. We all have to start somewhere. The path to overcoming this objection begins with understanding that tax planning isn’t just for the uber-wealthy. Middle-income clients also miss out on opportunities to grow their wealth because they work with advisors who only know how to employ a narrow range of financial tools. If you focus on mastering the right strategies, you will gain the credibility you need.
8. What else should I be thinking about?
Questions of this nature are a good sign during the first conversation, as they indicate the client is engaged. When the door opens, it’s important to quickly paint a high-level picture of what is possible for the client. You don’t want to say, “I’ll research that and get back to you.” You don’t need to know all the answers on the spot, but you need to demonstrate your knowledge and insight into the client’s situation.
9. What areas can your team handle?
There is a night-and-day difference between having expertise under your own roof and referring an outside expert, no matter how close the working relationship might be. Having a list of qualified professionals to recommend is meaningless. You will soar above the competition if your team can execute tax planning in-house without the client needing to go elsewhere.
We Are Here to Help
Working with high-net-worth clients is not easy. There are many different tools you need in your toolbox—and even more moving parts. A lot of advisors say they want to work with wealthy clients, but they can’t handle the pressure when they get in front of one. No amount of theory can prepare you for the scenarios that will come up. That’s why we train our advisors “in the trenches.” We bring the credentialing and the expertise that enable you to offer tax planning and position yourself as the go-to expert. If you’d like to learn more about how to work with us, click below to schedule a consultation.
About Heath
Heath Walters is a strategic tax planning specialist who partners with financial planners to provide behind-the-scenes tax planning expertise for the high-net-worth clients of financial planning firms. With over 20 years of experience as a CPA and Certified Tax Coach, Heath helps financial planning firms set themselves apart to ideal clients through coaching and specialized services that complement traditional wealth management solutions. Heath’s proven process for client acquisition has led to many advisors doubling their book of business in as little as 24 months. Heath has both a bachelor’s degree in accounting and Master of Science in Accounting from Appalachian State University. When he’s not helping financial planners reach their firm’s goals, you can find him spending time with his wife, Nancy, and their three children, Allie, Brianna, and Cooper, or fishing, grilling, and tackling home remodeling projects. He’s an avid Roll Tide fan as well. To learn more about Heath, connect with him on LinkedIn.
