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More than just Money: getting "values-based" financial planning
By Richard Tanner, President and Founder of Ownership Advisors, Inc.
Found in: Money Magazine, More Than Money
01-20-2004
The affluent are very aware of the fact that other people want their time, attention and money. They are aware that what they say influences others. The average income person views the risk of referral in terms of their own situation which may be fairly simple. The biggest risk might be that someone buys a financial product that does not meet expectations.
With the wealthy, the planning solutions go far beyond financial products and involve complex relationships with family members and professional advisors therefore the risk is not just money but longstanding and important relationships.
Additionally, the amount of money involved in making a mistake is much greater with the wealthy. We capitalize on the influence of wealth holders by asking for introductions to people who share similar success criteria such as thrift, hard work, faith, philanthropy, family values etc.
Wealthy individuals are often part of a complex system of favors between friends and business associates who are in the same boat. They get many calls for money, charitable events, golf outings, fund raisers and the pressure to be involved in all of them is impossible. As a consequence, many are reluctant to refer because it means they will expect and have to accept corresponding referrals from others.
We appeal to the deeper values orientation of our clients and therefore find referrals are easier to get because our clients want others to enjoy the same experience they have had. Our process appeals to people motivated by love and need rather than fear and greed and as a result referrals often lead us to others with a similar orientation.
In spite of the considerable obstacles in working with the very affluent, we have found that referrals can be obtained with careful preparation and cultivation. We are careful to communicate the importance of introductions in our first client meeting and point out that the reason we are even working together now is because someone was willing to take a risk in arranging our introduction.
One way we uncover more opportunities is through a retreat we facilitate for our clients. We are able to build trust and spend time talking about important people who have had a significant impact on their lives. Many of these people become a source of future referrals. While few would admit to it, some wealthy people are reluctant to refer in part because they hope to keep their advisor relationships exclusive. The less affluent rarely would consider that line of reasoning.
Bio: Richard Tanner advises wealthy parents on aligning heart issues, priorities and passions with their financial plan - on paper and in the home. A proponent of values-based financial planning, he is president of Ownership Advisors, Inc. in Cleveland, and endorses a unique method for interviewing, videotaping and documenting family values as a critical component of the financial plan. His "Family Wealth Letter of Intent" is a living legacy that represents why you work, who and what you value, what causes you hold dear, and what you want your legacy to look like. Tanner is an authority on the use of Employee Stock Ownerships (ESOPs) in family held companies, and has written and lectured extensively on subjects related to charitable giving.
Richard Tanner may be reached by phone at 216-328-5538 or by
email at rtanner@ownershipadvisors.com.
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