Exploring Financial Opportunities for Clients Embarking on Parenthood

When a baby joins the family, it’s a monumental life event that often triggers the need for wealth planning. As a financial advisor, this presents a prime opportunity to demonstrate your value, showing your clients that you’re attentive and caring. Millennials, in particular, value proactive advisors who understand and acknowledge their life milestones.

The challenge lies in adding value efficiently. As their trusted advisor, your role is to raise awareness about crucial wealth planning matters and motivate your clients to take action.

Here are the key wealth planning opportunities that emerge when clients welcome their first child:

  1. Will Planning: Determining guardianship for their children is a vital aspect of will planning. While some clients may already have a will, others may need encouragement, especially with the birth of their first child. Leveraging technology can streamline the client relationship in this process.
  2. Life Insurance: With dependents now relying on their income, ensuring income replacement in case of unforeseen circumstances becomes essential. Highlighting the importance of life insurance can motivate clients to safeguard their loved ones’ financial security.
  3. Registered Education Savings Plan (RESP): Assisting clients in opening an RESP can directly contribute to their child’s future education. Educating them about the Canada Education Savings Grants and the implications of not pursuing post-secondary education can be beneficial.

Now, onto the how:

Avoid spending excessive time on this stage. You can reach out via phone call, email, or schedule a web meeting, but keep the information concise as detailed discussions might overwhelm them at this stage. Your aim should be to plant a seed for future planning. Sending educational content, such as infographics or videos from HeyAdvisor’s dedicated ‘Having a Baby’ section, personalized with congratulatory messages, can engage clients effectively. Follow up in a week or two to maintain momentum.

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