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I posted this on the FB group but wanted to add it here too since so many people use this forum instead:
Can someone that works virtually with their clients please help me with some questions? I have a high net worth prospect that is wanting budgeting and bill pay and help with making sure cash flow is there to pay the bills to avoid late fees but is a little reluctant to hand over the info to their bank accounts which is understandable. Could someone please share their thoughts on what you would do in this case? I thought about setting a budget in a spreadsheet at first until they feel more comfortable with my help but what about paying bills and cash flow? I feel like I will definitely need access to a bank account for this or Quicken which is connected to the bank account. I thought that maybe using 1 credit card to pay the bills might help with cash flow and the bank account issue. Any thoughts on that?
On another note, I would also like to use a cloud-based product. Has anyone used YNAB? Any thoughts would be appreciated! Thank you.I am a person who hates to pay for apps, but in my opinion this one is worth the investment. I have been using YNAB personally for several months now, and I am constantly amazed by it’s versatility. The accounts stay connected, and I can change the categories easily on my phone (android).
I have also used Mint (accounts seem to be disconnected frequently) which is free and Every Dollar (paid version). I have only been working with Every Dollar a few weeks, but it seems cumbersome compared to YNAB for my purposes. So far, the accounts have stayed connected to Every Dollar. I like to try these apps myself so I understand how the operate compared to their cost, and then I can help my clients find the one that works best for them.
Thank you, Carol, for your comments. I’ve heard a lot of great things about YNAB and can’t wait to try it!
Debbie Gilster and I recently gave an AADMM webinar on working remotely with clients. The recorded version is available for a fee on the AADMM website. During the webinar, we said that not having access to bank accounts is a “no go” for us. There must be a certain level of trust there.
I’m not sure how you keep them from paying late fees without access so you can see where their money is going and help them budget/pay on time. I imagine that some of their problems stem from credit card usage. I’d recommend going with a bill pay checking account rather than another credit card. Besides services like the yard maintenance co, will probably not take a credit card.
Good luck, Heather!
I work remotely with high net worth clients, but I always get access to the accounts. It is too hard to be productive and provide value without access in my opinion. If he just wants you to basically pay bills and track expenses, you could set up a separate bill paying account and only access that account. All bills could be paid from there and it could be funded monthly with an automatic transfer sufficient to cover all expenses. But, then you are really just providing a bill paying service. It wouldn’t be a true budget or cash flow analysis because you would just be able to see what is happening in that one account. You would be paying credit cards, but couldn’t categorize those expenses because you wouldn’t have the log ins. You wouldn’t be able to check for fraud or errors.
Ladies, thank you for all of your advice!
Are there any books that may be helpful in learning more about the needs of high net worth clients that you would recommend?
One more question- how do you inquire about bills on behalf of clients? Do you get a written letter of authorization for each bill or do you have to call in with the client on the line to get their permission to inquire about their accounts? Thanks!
If you are still talking about that high net worth client and not a fiduciary situation…
I find that every company is a little different. Usually it takes having the client on the phone to give them permission to discuss something with me. They can also permanently add your name to an account if it is something that involves repeated calls.
I find it is rare that a call is needed for most bills, so I usually wait until there is an issue and then get my client on a conference call to give permission. Sometimes all it takes is saying I am their DMM, and they will talk with me.
Heather, you can find lots of resources on the AADMM website – books and webinars galore. You can also join the virtual group if there is not an AADMM group near you. If so, join that. You can come to conference in Savannah. Best money you’ll ever spend. And finally meet with every DMM close to you and get to know them. They will support you and you will support them. You might even find someone to mentor you for a bit.
And if high net worth is your cup of tea, then by all means, stick with that plan. But if you are not used to HNW clients, then start with ones that are a little less well off. Things might be a bit simpler and it might be easier to figure it out what to do.
P.S. If you haven’t, take the Business Basics class. It’s offered the day before conference and as a recorded webinar.
I ditto what Lynn said. If you are interested in growing your high net worth business as you get more seasoned, you may want to consider fiduciary work. You will at very least want to understand what trusts are and how they work, understand basics of estate planning. Very often those types of clients have S corps or LLCs that hold real estate or other investments. You want to understand household payrolls, if you will be involved with that at all, even if it is just outsourced you want to get how it works. Often their lives operate like businesses do with multiple properties, investments, cars, staff, etc.
Lynn, does the business class cover working with high net worth clients or only how to run your DMM business?
Caitlin, thank you for pointing out some of the things high net worth clients would need. That is the info I am looking for as well as other resources that would help me help them. I do know some about how trusts work and estate planning as I previously worked with financial advisors for about 16 years. I guess I don’t know what I don’t know and would like to get some guidance on resources and anything else that would be helpful. Thank you!
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