A New Client Service Model for High Net Worth Individuals and Business Owners
Hey everyone, Anthony Anderson here. In this video, I want to share something exciting for high-net-worth individuals and successful business owners. I’m going to compare the outdated client service model most are familiar with to a more modern and proactive approach that directly addresses the frustrations these clients face.
The Problem: The Outdated Service Model
A couple of years ago, I had a conversation with my friend Chad, a successful business owner, that highlights the issues with the old service model. During happy hour, Chad was bombarded with emails, phone calls, and texts from his CPA, financial advisor, insurance agent, and attorney.
Chad was frustrated with all the conflicting advice and questions following a recent property sale. Every time he made a major financial move, the same chaotic communication followed.
When I asked why he didn’t have them all talk to each other directly, Chad was surprised and wondered, "Can I do that?"
Introducing the Family Office Model
The answer is yes, and that is exactly what family offices do. If Chad had a $100 million net worth, he’d likely have a single-family office where these professionals worked solely for his family. But even with a lower net worth, say $10-15 million, he could still benefit from an approach where his advisors collaborate.
Here’s the outdated model Chad was dealing with:
- The client communicates separately with the CPA, attorney, advisor, insurance agent, and other professionals.
- Each professional provides their advice, but there is little to no communication between them, leaving Chad to decipher everything on his own.
The result? Unleveraged resources and scattered advice, leading to poor implementation of good advice. No wonder so many successful individuals end up with gaps in their planning, like the countless celebrities who pass away without an estate plan.
The Modern Approach: A Proactive Planning Team
Instead, Chad could implement a proactive planning team, similar to a Virtual Family Office (VFO). This model brings together professionals in an open, collaborative setting. Here’s how it works:
- Chad designates two primary contacts, typically a CPA and an advisor.
- These two professionals communicate openly and consistently, acting as the central hub for the rest of Chad’s team.
- They consult with other specialists, such as estate planning attorneys, tax specialists, and risk mitigation experts, to provide Chad with coordinated advice.
The 5 Key Disciplines in a Virtual Family Office
The Virtual Family Office (VFO) framework includes professionals from five key disciplines:
- Risk Mitigation: Including life insurance, property and casualty insurance, and strategies like captive insurance.
- Wealth Management: Covering investments, retirement accounts, and financial planning.
- Legal Services: Estate planning, wills, trusts, entity creation, and buy-sell agreements.
- Tax Planning and Compliance: Including tax returns and proactive tax minimization strategies.
- Business Advisory Services: Helping business owners with KPIs, company culture, leadership, and exit strategies.
How This Benefits the Client
With all these professionals working together, Chad wouldn’t be bombarded with individual advice. Instead, they would collaborate to provide proactive, coordinated planning. For example:
- When Chad plans to sell a property, the entire team would meet to discuss tax implications, capital gains strategies, and post-sale investments, ensuring he makes the best decisions for his financial future.
This leveraged approach leads to better outcomes, more sophisticated planning, and a higher level of service for successful business owners and high-net-worth clients.
Conclusion: Transforming Client Service
This modern proactive planning team model offers a better alternative to the outdated service model. By coordinating efforts and working together, advisors and CPAs can provide higher-level advice and help clients like Chad make smarter, more informed financial decisions.
If you found this video helpful, please give it a thumbs up and leave a comment below. Let me know if you have any questions or would like more details on any part of this model. And if you like this type of content, don’t forget to subscribe to the channel for more free insights on proactive planning and the Virtual Family Office experience.
