As a financial advisor or life insurance agent, you may want to expand what you offer clients by becoming more holistic, which includes offering clients a variety of investment strategies and products.
As investment markets can experience volatility, though, it’s important for you to demonstrate calm, consistency and knowledge with clients. One of the most effective ways to discuss this with clients is to share how investments benefit them and are another tool to help them reach their goals.
Understand client goals
Most client objectives fall into two categories:
- Wealth protection
- Managing risks such as death, disability or critical illness, which is usually through insurance products
- Wealth accumulation
- Building assets strategically to support long‑term aspirations, which can be achieved with investment products
When investments are the right solution for a client, the next step is choosing what type of investments best align with their needs.
Selecting the right investment approach
Advisors may guide clients through options such as
- Structured savings plans
- Diversified portfolios
- Managed funds
- Individual securities
Furthermore, learn about a client’s behavioral profile, so you know what behavioral biases they may have. This allows you to better coach them through market volatility and help them make rational investment decisions. A structured process helps clients stay grounded and offers consistency.
In addition, as you expand what you offer clients, commit to continuous learning and expanding your knowledge base. Investments fluctuate, but your guidance and professionalism are what help clients stay the course.
Huan Ching Danny Lee is a nine-year MDRT member. He’s also a Court of the Table member. See more about the four-step process behind his results in his video, “Mastering the client portfolio expansion.” (MDRT member-exclusive content)
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