What’s Your Story?
"When I was a little girl, I was a prisoner of war." When my client uttered this statement, I knew the meeting was going to be different. As a child of English-German parents, she was born in China, where her father (a German) was engaged in business. Forced to leave Shanghai, she and her family travelled by boat to Germany. Packed on a cattle car (yes, Americans used these too) they wound up in a POW camp in American-occupied Germany. The family was split up (men to one camp, women and young children to another) never knowing if they would see each other again. Other parts of her story were equally eye-opening. She staggered me with tales of her experiences. Yet by some miracle this family survived the experience. As she told the story, what might have been heartbreaking was in fact heartwarming.
I must admit that this client meeting turned out to be much different than I had anticipated. We were going to talk about her financial situation, more specifically her upcoming relocation. What could she afford? What would be her new expenses? How could we arrange a bridge loan if her home did not sell before she was required to pay for her new residence? I’ve been to many meetings where we discuss these type of financial choices. I’ve been to many more meetings where all we talk about are investment returns, market expectations, asset allocation, and various types of client goals and objectives. A meeting like this proves to me that asset allocation is NOT the single biggest influence on my client.
Where am I going with this? Why am I telling you about a particular client meeting? According to an industry publication, a recent Bain & Company report sponsored by Fidelity Investments is proposing a new way of thinking about client needs and priorities, and the value that an advisor like me brings to the table. Bain has suggested that a “hierarchy of needs” exists for investors, with clients placing greater importance on the higher level needs. Bain exports Maslow’s hierarchy of needs (basically a treatise on what drives human motivations) to the investment arena. I think Bain is onto something.
My client meeting went beyond the “functional value” (making money, reducing risk, simplifying life), right past the “fundamental value” (asset allocation, income generation strategies, etc.), and finally past the “emotional value” level of the pyramid (retirement planning, education funding, and estate planning). What we discussed was her legacy, her transformational story of historical significance that needs to be recorded and shared with others. I was honored to be part of this experience and I will assist my client in making sure “her story” becomes something of lasting value.
Ralph McDevittJuly 17, 2017
