Summer used to mean down time in wealth management with many clients on vacation. However, nowadays even when clients travel, they remain one click away with their smart phones in hand.
Below are some typical wealth planning issues that occur during the summer months:
Travel inspired expenses. Many high-net-worth clients consider major purchases while on vacation. Imagine how many of your clients pick up the real estate section of the local paper curious about how much a beach house or villa might cost. Others are ambling down the pier, checking “for sale” signs on boats or strolling through local art fairs and galleries (where nearly half of the high-net-worth buy their art).
35% of high-net-worth individuals are active in the art and collectibles market and dealers made 46% of their sales at art fairs in 2017*
Divorce. According to a study conducted by researchers at the University of Washington, March and August are peak divorce-filing months. Many suggest the August timing results from the stress of family travel and failed last ditch efforts at reconciliation during summer vacation. And, most high-net-worth individuals say they don’t have a financial plan in place for divorce.
College incidentals. Although many high-net-worth parents of college-aged kids have put aside funds for tuition, room and board, they may not have foreseen the additional and often significant added expenses of college. For example, Greek life can be very expensive, and some kids are surprised to find they need a car on campus (to get to an internship, for example). So, when college students head to school at the end of August, there may be unplanned additional expenses.
Stay in touch with clients this summer
If your business is providing advice or guidance to high-net-worth individuals, stay top of mind this summer. Email clients thought leadership addressing topical issues, add timely resources to your website and post entertaining social media reminding clients you’re available to help wherever they may be, because you’re only one click away.
* Source: The Art Market 2018: An Art Basel and UBS Report