Within the first minute, clients meeting with an Accredited In- vestors advisor know that this is going to be different than any other conversation they previously have had with a financial services pro- fessional. The stage is set with the very first question, and the inter- view is not complete until the advisor has plumbed the depths of what clients want out of life and what they want from their advisor.
Levin emphasizes the fact that asking the right questions is criti- cal to the process of letting clients know that you are serious about helping them get what they want out of life and in differentiating your services from what is commonly found in financial services. He states that the answer to one question in particular is a sure sign that the individual has moved from a prospect to a client.
Following are the five questions prospects at Accredited Investors are asked and the reasons for asking.
Question 1: Why are you here?
Reason for asking: To ascertain real issues.
Levin states that there are real, visceral reasons—that transcend simply building wealth—which motivate people to approach a finan- cial professional. Wealth is representative of deeper desires, hopes, and dreams for our lives and those close to us. For this part of the interview, Levin uses the values ladder approach, advocated by Bill Bacharach is his book Values Based Selling. In this model, if a client says she wants more money, the advisor responds by asking why she
wants more money. If the client responds that she wants more free- dom, the advisor responds by asking why she values freedom, and so on and so forth, until the advisor has aided the client in distilling her answer to the most basic level. The intent of this question is to move past what clients want financially to why they want it to happen.
Levin talks about how prospects might state that they want more money so that they can have more time with their families. Levin asks prospects to talk about the family members they want to spend more time with. When prospects mention a child, a spouse, or a parent, Levin then asks, “What kind of parent (or spouse, or child) do you want to be?” As you can see, Levin has no qualms about going right for the emotional base that is motivating the individual to seek out fi- nancial help. He informs us that prospects enjoy this sort of oppor- tunity to discuss the things that matter most to them.
Question 2: What is going on in your life and how do those events make you feel?
Reason for asking: To discern the client’s desired quality of life.
This question aims at uncovering what life events are arousing fi- nancial uncertainty. One scenario that illustrates this well is that of divorced women who are facing a great deal of uncertainty in life and with their finances. From their answers, the advisor can develop a financial plan that will work toward their goals, abate their fears, and remove the stress associated with having to orchestrate these af- fairs on their own.
People will talk about relationship problems, work problems, health problems, extended family problems, and any other issues that are interfering with their quality of life or events they suspect may be upsetting their contentment. It is not the event itself that brings clients to the advisor, but rather the feelings the event has forced to the front of their psyche. Fear, uncertainty, insecurity, or any other haunting emotion can easily rob clients of their life enjoyment until they address the issues necessary for resolution—and many of these issues are fiscal in nature. Levin believes in getting these life events and the related feelings on the table so clients can get a good grasp of their motives for seeking help.
Question 3: What money messages did you get growing up?
Reason for asking: To raise client awareness of the link between early messages and current financial behavior.
“We are creatures of our past,” says Levin, “so, this simple ques- tion allows people to discuss how their family background shaped their money profile. It’s amazing how frequently people will recog- 4 / Forming the New Partnership: A Business Transition Story 33
nize that many of their feelings surrounding money evolved around the dinner table.”
Some people have learned to treat money as if there may never be another dollar, while others have learned to act as if they had an orchard of money trees growing in their backyards. Some people have learned that money issues are private and should not be dis- cussed, while others avoid money conversations because they are al- ways filled with stress. Some have learned that to make money you have to take risks, and others have learned to never stray near the slightest risk. There is little doubt that people carry the internal money issues learned at home well into their adult lives. Many peo- ple do not fully understand why they think and/or behave the way they do until they reflect on this question.
Question # 4: If you were diagnosed with a terminal illness and you didn’t know how long you had to live, what would you want to do with your life?”
Reason for asking: To distill life to its most basic desires and motivations.
This question cuts to the soul of life satisfaction and arouses cli- ents to examine whether or not they are getting their money’s worth out of life. If an individual is running down a stressful occupational track, living a chaotic lifestyle, feeling displeased with the direction of his life, or shelving important life goals, this question will bring these emotions to the surface. Ross Levin informs us that this is a piv- otal query in the life-planning interview. “If they answer this question, there is a 99 percent chance that they mentally moved from being a prospect to a client.”
By asking this pointed and searching question, Levin communi- cates to prospects that he is serious about helping them get their lives on the right track. The fact that these prospects have money (all Ac- credited Investors must have $1 million in investable assets) by no means ensures that they have their lives and money on the perfect track. Because of their willingness to ask these pointed questions, Levin and associates have been able to guide their clients into mean- ingful transitions.
One client who had just sold a business expressed a desire to move into the venture capital arena. Ross was able to put him in touch with some board members of nonprofit organizations who were ven- ture capital veterans. Through this nonprofit involvement, Levin’s client became well acquainted with these individuals and consequently
segued into the venture capital business himself. Another client, quite successful in his field, was both rich and miserable. He voiced a de- sire to write a novel, and Levin helped him to arrange his financial affairs in a way that would afford him the opportunity. A doctor, whose husband was also a doctor, was feeling like she was missing too much of her young children’s early years. With Levin’s help, she de- cided to tack on a few earning years later in life and take advantage of the present to satisfy her need to be with her children.
When advisors ask these types of questions, they can and should expect clients to open up their storehouses of hopes, aspirations, and dreams for their lives. As clients articulate their dreams, the ad- visor becomes something akin to a personal CFO who manages the financial functions and technicalities that ultimately give life to these dreams.