Post on 26-Jun-2020
For broker/dealer use only. Not for use with the public.
INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
For broker/dealer use only. Not for use with the public.
1. It is critical for you to develop meaningful
relationships with your most valued clients’ families,
loved ones or heirs
2. Many tell you to connect with the next generation,
but few tell you how – we will tell you how and
provide you with valuable tools and resources
3. The family meeting is an ideal format for you to
facilitate effective dialogue and get to know those
closest to your clients
KEY TAKEAWAYS
For broker/dealer use only. Not for use with the public.
• The “Great Transfer” will involve over $12 trillion in
assets shifting between the Greatest Generation to
the Baby Boomers1
• There is an even larger transfer estimated to occur between the
Baby Boomer generation and Generations X and Y1
• Connecting, engaging, planning and communicating
with your clients’ families or loved ones will be
essential to you retaining assets upon wealth
transfer
THE CHALLENGE
1. Accenture, “The ‘Greater’ Wealth Transfer, Capitalizing on the Intergenerational Shift in Wealth,” 2012.
For broker/dealer use only. Not for use with the public.
• By building relationships with your clients’ families,
loved ones or heirs, you will increase the potential of
maintaining those assets, and may become the
trusted advisor for other family members.
• You may differentiate yourself by creating a strategy
to specifically connect with the most likely inheritors:
• Women (the spouses)
• Millennials (the children)
THE OPPORTUNITY
For broker/dealer use only. Not for use with the public.
• Legg Mason has built a comprehensive program
with tools and resources for you and your clients on
this important topic.
• We will offer you tactical ideas for forging the gap
and becoming an advisor to your clients’ families for
many generations to come.
HOW LEGG MASON CAN HELP
CLICK TO EDIT MASTER TITLE STYLE
Today’s agenda Women: Not a niche market
Millennials: The next big thing
Family meetings: Facilitating dialogue
Steps to take today
For broker/dealer use only. Not for use with the public.
WOMEN: NOT A NICHE MARKET
Women are due to inherit approximately 70% or $28.7 trillion in
intergenerational wealth transfers over the next several decades1
Women-owned businesses contribute $2.8 trillion annually to the economy1
Women make 80% of family household buying decisions, including those
related to banking and financial services1
Women comprise two-thirds of the U.S. workforce2
More than half of married women with business-related degrees out-earn
their husbands2
40% of American households with children under 18 now include a mother
who is either the sole or primary breadwinner3
WOMEN: NOT A NICHE MARKET
8
Women investors have long been viewed as a secondary or niche
market to be served by specialists. Significant social and economic
trends are changing this.
Overall, women in the class of 2013 earned 140 college degrees at all levels
for every 100 men4
Women will account for a growing proportion of high net worth clients ($1-
$20 million in wealth)5
Women control 33% of wealth in North America and represent 37% of high
net worth investors6
Women “are more dissatisfied with the financial services industry” than any
other industry that affects their daily lives7
90% of women know they need to become more involved in their financial
affairs and 62% expressed a strong interest in learning more8
WOMEN: NOT A NICHE MARKET
9
Women investors should be considered as a business opportunity
and as an avenue to gain access to the rest of the family network
(i.e., children/heirs).
10
You should make an effort to get to know your clients’ spouses
and/or develop a strategy to prospect for female clients
(underserved/unsatisfied).
WOMEN: NOT A NICHE MARKET
Key considerations:
How much information do you have on your
female clients (e.g., background, education,
employment, business ownership)?
Do you believe that you have a strong
relationship with both the husband and wife –
particularly in the over 65 age group?
When working with female clients, do you go
beyond investment discussions to delve into
broader topics of long-term life goals and the
financial success of their family?
Action Steps/Tips:
Request that both parties be present at
meetings (male and female) and include both
in your ongoing correspondence
Maintain eye contact with female clients
Treat women as equal partners and listen to
their questions or concerns
Take your time providing status updates –
make sure everyone understands what you
are saying (e.g., financial terms)
Offer educational information, as needed
MILLENNIALS: THE NEXT BIG THING
There are currently 77 million Millennials in the U.S. (24% of population) – equal to
Baby Boomers9
Millennials will be roughly 50% of the U.S. workforce in 2020 and 75% of the global
workforce by 203010
Millennials are the most ethnically and racially diverse generation to date11
They are highly educated compared to previous generations – at least 34% have a
Bachelor’s degree11
They witnessed the Great Recession, are concerned about investing and are less
trusting of financial institutions12
Millennials are increasingly adopting a global mindset with factors such as social
responsibility and the environment frequently playing a key role in how they invest12
MILLENNIALS: THE NEXT BIG THING (AGES 18-34)
12
Millennials are a DIY generation and are more likely to use online
trading and internet banking. They are frequently on the web (via
social media) and value the use of technology to obtain, verify and
track information.
Millennials confront a higher unemployment rate than previous generations at every
education level13
More than half of Millennials state debt is “their biggest financial concern,”14 yet only half
have ever ordered a credit report15
Nearly 70% surveyed have not begun saving for retirement16
Millennials are delaying marriage, buying a home, having children and investing
aggressively (e.g., not planning for the longer-term)17
Referred to as an “Economically Lost” generation18
Accenture estimates that $30 trillion in assets will pass from Baby Boomers to
Millennials over the next 30 years19
MILLENNIALS: THE NEXT BIG THING
13
Millennials typically want to remain in control of their investments and
describe themselves as “self-directed” and “conservative.” However,
given their general financial status and lack of long-term planning, they
could benefit from input and guidance on their finances.
14
It is imperative to build relationships with the next generation
of heirs. Those who don’t may find themselves left in the cold...
Key considerations:
Do you currently have relationships with the next
generation of your wealthiest clients? How close are
those relationships?
Do you have a plan in place to build new or stronger
connections? Have you used client segmentation to
identify potential target opportunities?
What kind of processes and communications do you
have to appeal to this generation?
What online tools can you leverage at your firm to
illustrate to Millennials the need to save/invest and
how to develop a path towards their specific goals
(short and long-term)?
Action Steps/Tips:
Coordinate in-person family meetings with your
current clients and their children
Leverage social media to develop an online
presence
Evaluate your current team structure and/or
succession plan. Do you have (or can you recruit)
younger partners that are effective in communicating
with Millennials or leveraging technology?
Leverage technology during in-person meetings as a
visual aid and to emphasize points raised
MILLENNIALS: THE NEXT BIG THING
FAMILY MEETINGS: FACILITATING DIALOGUE
FAMILY MEETINGS – WHY A FAMILY MEETING?
For broker/dealer use only. Not for use with the public.
• As a key adviser, you hold a crucial, but potentially unseen
role to the family members in the next generation
• In order for the family to get a sense of the older generation’s
regard for your counsel, you need to meet them
• You have a prominent role in facilitating the meeting, and in
helping family members connect on matters that are critically
important to their futures
FAMILY MEETINGS – POSITIONING THE FAMILY MEETING
For broker/dealer use only. Not for use with the public.
• In a conversation with your client, position the family meeting
as an essential step to getting everyone on the same page
• Your goal is to gather their loved ones to talk about issues
and topics of consequence
• Your clients should introduce you as their trusted adviser
• You and your clients will field any questions the family
members and/or loved ones will have as the topic(s) is
discussed
FAMILY MEETINGS – RAISING THE TOPIC OF THE FAMILY MEETING
For broker/dealer use only. Not for use with the public.
Sample script #1
When it comes to making decisions and plans about the future that impact you and
your loved ones, communication is key. Gathering your loved ones around a table or
in the same room is the best way to communicate directly with them about the plans
you’ve made. They can hear your perspective, learn of the decisions you have
made, ask any questions, and raise concerns they may have right away. In this
setting, you can address any family dynamics and get everyone on the same page
about your intentions.
This is also a good way for me (as your Financial Professional) to meet the family
members I haven’t met and get to know them. This will be invaluable should we
need work together on your behalf in the future. I can facilitate the meeting, prepare
the agenda and keep us on track. Then we can open the floor for discussion and
continue the conversation over a meal. If you like the way this initial meeting goes,
we can discuss doing other meetings around topics that matter most to you and
your family. I have some ideas of other items that you may want to address in the
near future.
SAMPLE FAMILY MEETINGS
Discussion of plans, intentions, and roles and
responsibilities
SAMPLE FAMILY MEETING #1
Purpose/Description
The purpose of this family meeting is for your clients to communicate to their family and
heirs their plans and intentions around the distribution of their assets. A vital part of this will
be defining the roles and responsibilities of the various heirs as well as general instructions,
including location of key documents, burial wishes and intentions for tangible personal
property.
For broker/dealer use only. Not for use with the public.
Discussion of plans, intentions, and roles and
responsibilities
SAMPLE FAMILY MEETING #1
For broker/dealer use only. Not for use with the public.
Sample agenda
Introduction
Overview of plans and intentions
Specific roles and responsibilities
Generation instructions • Location of key documents (personal information checklist and
emergency contact information, wills, trusts, power of attorney, etc.)
• Burial wishes and preferences
• Intentions for tangible personal property (including pets)
Open dialogue and Q&A
Guidelines for ongoing communication • Frequency of family meetings
• Frequency of document updates
LEGG MASON TOOLS & RESOURCES
For broker/dealer use only. Not for use with the public.
Preparing for the Future:
Your Records and Roles Organizer
Personal Information
• Personal information checklist
• Beneficiary audit worksheet
• Emergency contact information
LEGG MASON TOOLS & RESOURCES
For broker/dealer use only. Not for use with the public.
Preparing for the Future:
Your Records and Roles Organizer
Roles and Responsibilities
o Role of the executor
o Role of the trustee
o Role of the corporate trustee
o Role of the power of attorney
o Role of the advance health care directive
o Role of the guardian
Discussion of plans around aging and future housing
decisions
SAMPLE FAMILY MEETING #2
Purpose/Description
The purpose of this family meeting is for your clients to communicate to their family and heirs their plans
around how and where they will live as they age. This discussion assumes that you have engaged (or
plan to engage) in this level of planning with your clients. In this meeting, the discussion could include
reviewing the current housing options available, the pros/cons of each option, and how to factor the costs
of housing into financial plans. You could call this meeting after your clients have determined where they
would like to age, or you could structure this family meeting as a brainstorming session regarding future
housing needs.
For broker/dealer use only. Not for use with the public.
SAMPLE FAMILY MEETING #2
For broker/dealer use only. Not for use with the public.
Sample agenda 1
Introduction
Overview of the issue of aging and housing choices
Discussion of client’s housing choices
(for each selection, cover the following)
• Define housing choice
• Cover rationale
• Review costs and financial implications
Conversation around family member support • What are the specific needs?
• How much time will it take to manage those needs?
• Who in the family is willing and able to handle these needs?
• Will there be any damage to family dynamics due to unequal responsibilities?
Open dialogue and Q&A
Determine action steps (if needed)
Assuming decisions have been made
I
II
III
IV
V
VI
SAMPLE FAMILY MEETING #2
For broker/dealer use only. Not for use with the public.
Sample agenda 2
Introduction
Overview of the issue of aging and housing choices
Discussion of the most popular housing options and their associated costs
• Aging in place
• 55+ Independent Living Communities
• Continuing Care Retirement Communities (CCRCs)
• Assisted Living Facilities
• Skilled Nursing Facilities
Conversation around family member support • What are the specific needs?
• How much time will it take to manage those needs?
• Who in the family is willing and able to handle these needs?
• Will there be any damage to family dynamics due to unequal responsibilities?
Open dialogue and Q&A
Determine action steps (if needed)
Assuming clients want to brainstorm with loved ones before making
decisions
I
II
III
IV
V
VI
Discussion of plans around aging and future housing
decisions
SAMPLE FAMILY MEETING #2
For broker/dealer use only. Not for use with the public.
Facilitation Tips
Any discussion around the family home and where people live can be fraught
with emotion. Therefore, you will need to position this topic well, and set the
stage appropriately.
Each of these agendas have a significant amount of material to cover, so make
sure you are organized and concise in prepping for this discussion and that you
have cohesive materials to share.
1
2
TOOLS & RESOURCES
Aging and It’s Financial Implications: Planning for Housing
• Comprehensive client-approved
booklet with tools, worksheets
and resources
• Videos
• Podcasts
• Fully-scripted client seminar
• Prospecting letter
• Press outreach
28
A family meeting is the ideal opportunity to be introduced
to the family members, loved ones or heirs of your most
valued clients.
FINAL THOUGHTS ON THE FAMILY MEETING
For broker/dealer use only. Not for use with the public.
• Flexibility and diplomacy are essential in a family meeting
• Encourage everyone to participate
• Be patient
• Your role is to facilitate the discussion, build family ties and serve as a
neutral and knowledgeable sounding board
STEPS TO TAKE TODAY
STEPS TO TAKE TODAY
For broker/dealer use only. Not for use with the public.
• Be proactive – help your clients plan for the future and develop a bond
with the entire family network
• Carefully review the Legg Mason tools (client brochure/workbook and
advisor brochure)
• Analyze/segment your book to determine which clients are appropriate
candidates for the family meeting process
• Systematize the family meeting process for your practice by leveraging
our sample agendas, facilitation tips and sample opening scripts
• Streamline the steps so it becomes easier for you to host these meetings
with your clients
• Call on your Legg Mason wholesaler for additional resources and insights
For broker/dealer use only. Not for use with the public.
“Before you go and criticize
the younger generation,
just remember who raised
them.” – Antoine De Saint-Exupery
All investments involve risk, including loss of principal.
For broker/dealer use only. Not for use with the public.
© 2016 Legg Mason Investor Services, LLC. Member FINRA, SIPC. Legg Mason Investor Services, LLC is a subsidiary
of Legg Mason, Inc. 5/16
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