15 Casual Comments That Reveal Hidden Client Needs

2. “My son and daughter-in-law are having their first child.”

This is great news! Your client or prospect is going to become a grandparent! They are excited! According to ABC News, the average cost of raising a child to age 18 is about $310,605.

There will be a need to start saving for college as soon as possible. After the baby is born (and they get a Social Security number) you can make the case why there should be a college savings plan or similar account set up for the child.

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3. “We are having lots of people over for a family reunion.”

Your intuitive sales assistant asked the client who just called what they are doing over the holiday weekend. They learned the client is having dozens of relatives over to the house for a family reunion. Your inspired assistant asks if their (grown) children living on the coast have ever met the advisor. The client says no.

Your assistant makes the case, “Their names are all over your accounts. They will meet someday. Wouldn’t it be good to have the first meeting under pleasant circumstances?” The seed has been planted.

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4. “I just made that last tuition payment.”

Your client or prospect is thrilled! College costs a lot more than back in the day when they graduated. Thanks to their decision to study engineering or something connected to IT, they had a job waiting and were in a good financial position to help their children through college.

Your client might now have extra cash flow they can put to work. How are they doing on saving for their own retirement?

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5. “My company just announced a reorganization.”

That must be the most demoralizing news in the world. That often means downsizing and a sudden case of job insecurity. There is usually some lead time. This is a good moment to do some “what if” planning.

They will need a cash reserve. This is not the time to start that kitchen renovation project. There might be a rollover of retirement plan assets on the horizon.

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6. “I cannot stand my job.”

This scenario happened when I was an advisor. We were meeting for a scheduled portfolio review. I did some analysis and said, “If we make some changes and moved your money around, you could quit your job tomorrow and retire.” She did, although she waited a few weeks before giving notice.

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7. “My brother has no interest in personal finances whatsoever.”

One of my gym buddies said something along these lines to me once. He explained why he is thankful to have an old school friend as his financial advisor and how he leaves all the investment-related decision-making to them.

If your client has a relative who fits into the same situation, you could probably make a positive difference in their life.

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8. “Our daughter just moved back home.”

This is a case of the boomerang generation. According to CNBC, the pandemic increased this phenomenon, and as of 2022, 67% of children who returned home to live with their parents during COVID are still living at home.

They might need some job-hunting help. Their parents need someone to talk to about how to establish parameters without alienating their children.

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9. “Our son is getting a divorce.”

This is often tragic, although sometimes the parents are thankful their child has gotten out of a bad situation. There are many emotional factors to consider, but finances are a big concern.

It’s unlikely the separating couple will want to keep sharing the same financial advisor. One will likely be looking for another advisory situation.

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10. “My parents are coming to live with us.”

Is this a good thing? Are they eager to provide care for your children? Many grandparents love the idea. Are they moving in for financial reasons? Are they lonely? Are there medical issues, meaning they cannot live on their own? According to the Pew Research Center, about 18% of U.S. households are multigenerational.

You will need to learn more. There might be money to be invested for income if the parents are selling their home to simplify their lives.

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11. “I don’t think I can ever retire.”

This comment often comes later in life. It speaks to a need for retirement planning. The client needs to understand the concept of catch-up retirement plan contributions. However, it might be a budgeting conversation or a longer-reaching one introducing concepts like downsizing. A need for financial planning has been revealed.

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12. “Everything is getting much more expensive.”

This is a comment everyone is making. Inflation may be slowing, but prices still seem to be going up. They might have been living a lifestyle anchored by cheap credit, which is not cheap anymore. They may need practical financial planning help to determine if they know where their money is going and if they are overspending in certain areas.

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13. “Our neighbor got a pool. Now my husband wants one.”

This is called “keeping up with the Joneses.” Considering the recent rises in interest rates, these home improvement projects have gotten a lot more expensive. Does a pool or the other home improvement they are considering add to a home’s value? What is their plan for repaying the debt they incur?

This is another financial planning conversation starter. They do not need to keep up with everyone in every category. They will go broke trying to have the biggest house, best car and most lavish vacations. Pick one category and be the leader others want to emulate.

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14. “I’m worried I might die before my spouse.”

There are still couples following the “one person earns the money” model while the other runs the household. The breadwinner might worry their spouse needs a paycheck coming in because they have no experience with portfolio management.

This is where you need to reinforce your role as a trusted advisor. They can rearrange some of their investments to produce income on a regular basis, simulating a paycheck.

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15. “My remaining parent is not doing well.”

This can mean they need skilled nursing care, if they are not already getting it. There is also an emotional component to this issue. They need to spend quality time together, saying everything that needs to be said.

There may also be estate settlement issues in the future, along with an inheritance flowing to the next generation, which includes your client and their siblings.

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