How to Increase Wallet Share with Held Away Assets

Many advisors struggle to see all of a client’s accounts, especially assets held away. Over half of investable assets may sit in outside client accounts like 401 k or other workplace retirement plans.

Understand Held Away Assets

Moving from the introduction, it is key to know what held away assets are. Held away assets include accounts that clients own but you do not directly manage. These can be employer sponsored retirement plans, individual trading accounts, private equity investments, cash balances in other banks, or life insurance policies outside your advisory platform.

Some clients also keep money market funds, CD accounts, trusts, and health savings accounts separate from their main advisor.

Financial advisors must track these outside financial accounts to see the client’s whole financial picture. You need this insight for better financial planning discussions and to give more holistic advice.

Gather client data using account aggregators with view only capabilities so you can understand all assets held across different institutions without needing login information. One study found that around 40% of a high-net-worth client's total portfolio may sit as held away assets at one time.

Using aggregated data helps create meaningful conversations about appropriate allocation or exploring investments that fit the client’s goals for every part of their finances.

Strategies to Increase Wallet Share

To grow wallet share, you need to know your client's full financial picture. Use smart tools and strategies to spot new chances for investment.

Emphasize Holistic Financial Planning

Advisors help clients by looking at the client’s financial picture as a whole. This means they do not focus on just brokerage assets or bank accounts. They also track assets held in trusts, private equity investments, individual retirement accounts, and treasuries.

By managing held away assets along with directly managed ones, advisors mold clients’ financial plans around their goals.

Clients have different needs for each part of their portfolio. Advisors review linked accounts periodically to gain insight into other third party or outside assets not considered previously.

This approach helps explore investments and manage all parts of a client's situation; from social media presence to transaction history across other financial accounts. Using holistic planning makes the client feel comfortable talking about every aspect of their finances during the client onboarding process and beyond.

Use Account Aggregation Tools

Account aggregation tools let you see all your client’s assets in one place. This includes held away account balances, such as individual retirement accounts or trusts with other firms.

These tools save valuable hours and help you manage client assets held outside your firm.

You can gain insight into a client's financial picture by using these tools. See brokerage assets held at different institutions along with private equity investments and treasuries.

Mold clients’ financial plans based on their complete portfolio, not just a slice of it. Gaining this view also helps identify gaps in a client’s financial situation for deeper planning or advice.

Next, use the data from aggregated accounts to spot new opportunities and grow wallet share.

Leverage Data to Identify Opportunities

Data is a powerful tool. It helps in spotting chances to increase wallet share with held away assets.

1. Analyze Client's Financial Situation, Evaluate the entire picture of each client's portfolio. Know their current assets and liabilities. This provides insight into their needs and goals.

2. Utilize Account Aggregation Tools, These tools gather all client's assets in one place. This makes it easier to see what they hold outside your management.

3. Identify Investment Gaps, Use data to see where clients may lack certain assets, such as private equity investments or individual retirement accounts. This allows for targeted advice.

4. Monitor Market Trends, Stay updated on market changes that affect treasuries and other investments. Share this information to advise clients better.

5. Customize Recommendations, Based on insights from data analysis, adjust financial plans for each client’s unique goals. This shows you care about their financial success.

6. Track Client Behavior, Observe how clients interact with their investments over time. Use this information to offer relevant advice that aligns with their interests.

7. Engage Clients Through Marketing Channels, Share valuable insights obtained from data via newsletters or social media posts. This keeps clients informed and builds rapport.

8. Provide Reports on Held Away Assets, Create easy-to-understand reports showing the benefits of managing held away assets alongside existing client portfolios. Show how this can improve their overall financial plan.

This approach boosts confidence and helps win more business from existing clients by addressing their financial needs effectively while minimizing liability concerns.

Building Trust and Client Relationships

Building trust is key for strong client relationships. Clients need to feel safe sharing their goals. Show your skills and help them understand their choices. Let them know you care about their success.

Want to know more? Read on!

Demonstrate Value Through Expertise

Clients want to feel secure about their financial choices. Show them your expertise to build confidence. Discuss trusts and private equity investments with assurance. Explain how individual retirement accounts and treasuries fit into their plans.

Clients need to know you understand held away assets benefits.

Give clients clear advice suited to their needs. Use data to help shape clients' financial plans. Offer insights that align with their goals; this proves your value as a reliable advisor.

The more knowledgeable you are, the more likely they will see you as an essential part of managing assets effectively.

Provide Transparent and Secure Solutions

Building on expertise helps gain trust. Transparent and secure solutions are key to strong client relationships. Using technology is essential for this. Account aggregation tools can track held away assets easily.

These tools show a clear picture of clients' financial plans.

Clients value security in their investments like trusts or individual retirement accounts. They want to know their data is safe while discussing private equity investments or treasuries.

A clear process minimizes liability and reassures them about asset management decisions. Being upfront builds comfort, allowing open discussions about unique goals and comprehensive services they need.

Conclusion

To increase wallet share with held away assets, focus on building strong relationships. Show your clients the value you can bring to their financial plans. Use tools that give insights into their goals and needs.

Trust earns loyalty, so keep communication open and clear. This approach will help you gain more business while meeting clients' expectations.