What Financial Questions Should You Ask Your Client?

1. Have you addressed financial planning? It has been said making money and managing your money are two different skills. You have heard the expression, "It's not how much you make, but how much you keep." Your firm might offer financial planning as a product. The end result might be a portable plan your client can implement at the financial services firm of their choosing. If you do not offer financial planning services for a fee, you might be able to refer them to a qualified financial planner.
2. Is your will in order? This sounds like the question the military officer asks before his team takes on a suicide mission behind enemy lines. According to the 2024 Caring.com Wills Survey, only 32% of Americans have a will. This implies 68% do not. Although the need for a will might be associated with great wealth in most people's minds, the purpose is also to see certain assets go to certain people upon your death. If they do not have a will, you can help them write one.
3. When was the last time you reviewed beneficiaries? You have heard the expressions "Set it and forget it" or "One and done." When people set up retirement accounts or buy life insurance, they designate beneficiaries. Life happens, things change, people move, divorces happen and friendships dissolve. As a lawyer, you know the named beneficiary still gets the life insurance payout, even if the couple divorced previously. Do the accounts and policies owned by your client reflect the beneficiaries they currently favor?
4. Do you have an estate plan? Wills are part of estate planning, yet studies show only 26% of Americans have an estate plan. Many people might feel the federal basic exclusion amount offers ample protection. Tax laws change over time. State tax laws are different from the Federal laws. Estate planning should be done far in advance, not at the last minute. Your firm might offer these services.
5. Do you have a plan to fund your children's college education? This sounds like an investment-related issue. It is. Children grow up fast. If your client has a child, they certainly consider education a priority. They might think of education costs in terms of what they paid years ago. Between 1980 and 2022, college costs have risen by 136%, after inflation is considered. College savings plans allow parents to receive favorable tax treatment. Do your clients know about them and how they work?
6. Have you planned to fund your retirement? You have seen the statistics. According to CNBC, 56% of Americans are not on track financially for retirement. And according to a survey from Bankrate, 22% have not put aside money for retirement in the previous year. Your client might own their own business or have a great job. They might think "I'll never retire" or their upward trajectory will last forever. They need to give this aspect of their life some attention. Their financial advisor is a good place to start.
7. Are there wedding bells in your children's future? When a child is born, you have plenty of time to plan for college funding. Weddings operate on a different timeline. Your child might not be seeing anyone seriously for a long time, then meet "the one" and announce they are getting married. The website com tracks the average cost of weddings, state-by-state. Note the word "average." This might range from backyard weddings to big city galas. The national average is $35,000, up $5,000 from 2023 figures. Utah is $17,000 while New Jersey is $55,000. This expense can come with a short lead time. Does your client have children of a marriageable age? Have they set aside money?
8. How will you repay your debt? Borrowing money is easy. It is also expensive. You have seen the average APR for new credit cardholders is 24.80%. Home Equity lines of credit (HELOC) might offer lover rates, but the amounts owed might be much larger. Does your client have a plan for paying down their consumer debt? If not, where can they get help?
9. Do you have a succession plan for your business? Many business owners have the majority of their wealth tied up in their company. Some intend to pass the business to the next generation. Others might intend to sell it. Your client needs to take steps, making the business as attractive as possible for future buyers, and establish a track record. This is not a last-minute decision.
10. Do you have a good financial advisor? As their lawyer, you can provide many services. Because of the fiduciary aspect of your relationship, some might be off the table and not provided by your firm. Is the client getting the advice they need? If not, can you provide several referrals, allowing them to interview them all and choose one?
11. Do you have a good accountant? If your client is wealthy, they probably already have an accountant. Some people might still file their own taxes. In your opinion, is your client getting the level of tax advice they require? If not, where can they get it? You might be able to provide a few referrals to get them started.

These questions might not directly lead to business. They do indicate you have your client's best interests as a priority and are seeking to build a long-term relationship.