Welcome to MutualFunds.com. Please help us personalize your experience.

Select the one that best describes you

Your personalized experience is almost ready.

Join other Individual Investors receiving FREE personalized market updates and research. Join other Institutional Investors receiving FREE personalized market updates and research. Join other Financial Advisors receiving FREE personalized market updates and research.

Thank you!

Check your email and confirm your subscription to complete your personalized experience.

Thank you for your submission, we hope you enjoy your experience

children of wealthy clients

Practice Management

What You Need to Know About The Children of Your Wealthy Clients

Kristan Wojnar, RCC™ Apr 15, 2019



We’ve seen the statistics. Once the adult children inherit their parents’ assets, they chose a different advisor to manage the money. Ninety-eight percent of adult children who inherit wealth leave their parents’ financial advisor. Said another way, only 2% keep the assets they have inherited with their parents’ advisor.

Be sure to visit the Practice Management to learn about more ways of growing your advisory practice.


They Don’t Know You


While they don’t know you, they need you and they do see the value of working with you. The same study revealed that 88% believed having regular formal meetings to discuss finances would be valuable to them.


Ask for the Introduction


If you do not know the children of your clients personally, it isn’t wise to hold back. Ask for the introduction to the children (and grandchildren). Some advisors fear asking for the introduction as intrusive. It shouldn’t come off as intrusive if you have a solid relationship with the parents.

Talking about your clients’ children and grandchildren should already be part of your conversations, so it shouldn’t seem out of the ordinary to take the next step and ask to meet them. It should feel natural to ask for the introduction. Explain to your clients that the key to successful wealth transfers is strong family communication. Establishing a relationship with your clients’ children by hosting family meetings will help you facilitate family discussions.

While some parents may not want to discuss the specifics of their wealth transfer with their children, it isn’t necessary to discuss specific dollar amounts. Instead, encourage family meetings to discuss the family’s legacy on a deeper level.


Values Matter to Them


The study from Wells Fargo Private Bank found intangible values matter the most to children of millionaires. 90% of those surveyed said the most important piece of their parents’ legacy was their parents’ values, not their assets. Research showed that eighty-four percent indicated they want to build on their family’s legacy.

This provides you with a tremendous opportunity to differentiate yourself and build a meaningful relationship with your children. Help them build on their family’s legacy. Introduce meaningful legacy conversations at the family meetings. Suggest both the parents and the children write legacy letters to each other so that their values, personals stories, life lessons and beliefs will live on after they are gone.


Having a Philanthropic Voice Matters to Them


This is another way to provide value and deepen your relationship with your children by helping with their strategy for charitable planning. This is maybe an ideal engagement opportunity.

There may also likely be an overlap with the families’ values and their charitable wishes. Their core values may drive what causes and issues they are the most passionate about. Uncover what their motivator is for charitable giving and what is near and dear to their hearts.


Every Family is Different


Be sure to personalize your approach and look for common interests. Uncovering your clients’ core values and charitable wishes might be the key to personalizing your approach in a truly meaningful way.


The Bottom Line


Although it sounds morbid, meeting the children at their parents’ funeral is too late. Establishing a solid rapport now will help you build and transfer their family legacy in a profound way, while allowing you to keep the family assets instead of losing them.

Don’t forget to visit the news section to stay up-to-date with the latest news from the mutual fund investing world.

Download Our Free Report

Why 30 trillion is invested in mutual funds book