Asking questions is key for financial advisors to fact find critical information which might not surface should the questions be formulated differently.  

It is important that quality questions are asked to promote a safe space for clients to share their issues at hand. If phrased wrongly, questions could trigger a client’s fight-or-flight state, which we would want to avoid. 

There are times when clients may not be sure about what exactly they are looking for. Asking the right questions would help to uncover more information in the process of financial planning and guide them through the course of the client-advisor relationship. By breaking down the type of questions, it will help to structure the different areas of financial planning.  

In terms of the question structure, we should start with background information leading to financial situation and finally tailing with personal interests and goals. 

Easing clients into the process 

To get new prospects or clients to warm up to us, we can enquire about current situations, their short- and long-term goals, and at the same time, discover their comfort level when discussing financial topics. Finally, we can bring up a discussion on what they know about financial planning.  

Here are some questions which can help you get started. 

1. What are you looking to achieve from this meeting? 
2. Tell me about some of your goals in life. 
3. When it comes to your money, what are the top three most important things to you? 
4. Have you worked with any financial advisors in the past? If yes, any reasons why you have decided on me and what do you currently have in your portfolio? 
5. If there was only one goal that we would be able to achieve, which goal should we focus our priorities on? 
6. Is there anyone else who should be involved your financial planning? If so, who and what role do they play? 

These questions are essentially meant to identify their goals, focuses and personal experiences.     

Tackling the financial questions 

Talking about finances can be emotional and personal process for some. Establish a level of comfort with your clients before proceeding to deep dive into their current state of finances and find out more about why they have certain accounts or policies.  

With each story the client shares, it unravels valuable insights into how they think and how you would be able to better help them achieve their goals. These questions would include topics such as investments, family, legacy, and most importantly retirement planning. As Carol Kheng, ChFC, a 23-year MDRT member from Singapore, stated, “People are more afraid of not having money than they are of dying” due to growing life expectancies having the potential to drain finances. 

Consider asking your prospects or clients these financial-related questions: 

1. Do you have a plan in place if you get hurt or are unable to work? 
2. If you have or are planning to have kids, how would you want to be involved in your children’s and grandchildren’s lives? 
3. How many people are you financially responsible for? 
4. What do you intend to leave for your family and loved ones should anything happen to you? 
5. What do you have in mind for your retirement? 
6. At what age do you intend to retire and why is that important? 

These questions identify where the clients stand financially and any uncertainties they might have. With their answers and your industry knowledge, you can now help them identify the best plan to reach their goals and the numbers they would like to see.   

Closing with personal questions 

Now that you are more familiar with the client, we can ease into the personal questions to identify any gaps in the financial planning. Personal questions at the end would help them understand that you genuinely care for them. With these questions, you can gauge your client’s inclination toward their current health indication, health plans and overall plans.  

1. What do you enjoy doing to unwind? 
2. What makes you happy? 
3. If money wasn’t a worry, how would you be living your life differently? 
4. Are there mistakes that you have learnt from others that you want to avoid? 
5. Do you currently have any personal or family-related health concerns or issues? 
6. Do you foresee any requirement for long-term care? 

These are just some ideas of questions you could ask to get the information you need to serve your client well. A good note to make would be to avoid asking close-ended questions. You can’t get much out of a “yes” or “no” answer and your client might feel pressured to give the “right” answer. You will also need to have some follow-up questions when necessary.   

By asking strategic questions, you will be able to spark fruitful conversations with your clients and prospects to understand their needs. Carol Chin, AFT, ChFC from Singapore summed it up well when she said, “I strongly believe in the work that we do, people buy you first. People want to buy, they do not want to be sold. The key to unlocking the difference is – relationship.”  

Contact: MDRTeditorial@teamlewis.com