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Advisors who once leaned heavily on selling their expertise as money managers are realizing the value of asking better questions instead. Rather than an investment experience rooted in performance, advisors who more deeply understand every investor's particular goals, values, interests, and behaviors can shape client portfolios around that understanding.
The data continues to suggest that investors want more than just an annual meeting and a portfolio statement when it comes to investing. They want a partner in their investing journey – an advisor who knows them, understands their goals, and shares meaningful insights about why they own the specific assets in their portfolios.
Meaningful mindsets: The change maker
At Seeds Investor, we've introduced advanced assessment tools that allow advisors to categorize clients into nine unique investor mindsets. This method not only aids in crafting personalized portfolios but offers valuable insights to bolster client interactions. Whereas the previous articles in this series delved into the "balanced believer" and “private investigator” mindsets, this final piece shines a light on the "change maker.”
Individuals with this mindset typically:
- Prefer a high-level understanding of their portfolio, rather than every minute detail;
- Care deeply about how their investments impact the world around them;
- Want to ensure their investments align with their personal and financial goals; and
- Show interest in the newest investment trends, mainly as they align with their values.
With this insight in mind, here's how advisors can optimally assist change makers in the following areas:
Values
Change makers are passionate about aligning their investments with their convictions. Reassure them that their portfolio steers clear of firms contradicting their core beliefs and values. Highlight inspiring stories from within their portfolio of companies championing positive change, particularly those that resonate with their deepest values. Change makers’ alignment of their investments with their values often outweighs mere returns.
Portfolio details
To a change maker, investments aren't just numbers; they are part of a bigger story. By offering a transparent, simplified view of how each investment choice aligns with their vision, advisors will foster a deeper trust. The narrative should be clear and concise, emphasizing the broader strategy without getting lost in technicalities.
Markets and economy
Change makers appreciate a pulse on market trends, especially those that reinforce their unique values. By focusing on developments like shifts towards sustainable energy or ethical business practices, and presenting them without jargon, advisors can engage change makers effectively, connecting global trends with individual beliefs.
Emerging trends
While change makers are keen to know about the latest in finance, it's crucial to tie these trends to their core values. Whether discussing environmental, social and governance (ESG) investing or the rise of blockchain, the emphasis should be on how these developments fit into a values-driven narrative, ensuring a holistic understanding of the investment landscape.
Investment strategies need to reflect the diversity of client goals and personalities. By placing personalization at the forefront, advisors make the financial journey more than just a series of transactions – it becomes a curated experience tailored to each client.
If this series resonates with your take on investing, let's keep the momentum going. Share your thoughts and insights with us at Seeds Investor. As we come together, we can continue to redefine the client-advisor relationship, making it richer and more collaborative.
Zach Conway is cofounder and CEO at Seeds Investor, a wealthtech platform on a mission to help independent advisors win the hearts and minds of the new generation of investors.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.