There are many artists who’ve been made to feel like financial planning isn’t for them, for instance. LGBTQ2S+ (Lesbian, Gay, Bisexual, Transgender, Queer or Questioning, and Two-Spirit) clients may hesitate to share their personal lives with a stranger. A long history of being unwelcome in mainstream financial institutions makes their services intimidating to access for some in the Indigenous community.

Advisors who make a point of serving these communities say getting to know your clientele takes on a whole new meaning – it is an essential part of providing good advice. Don’t make assumptions, they say, and ask a lot of open-ended questions.

Chris Enns, certified financial planner (CFP) and founder of Rags to Reasonable, says advisors have an opportunity to expand their understanding if they consider a few things when presented with a client who isn’t typical of those usually being served by their practice. “What can I learn from this situation? Where are the holes in my practice? What questions are being asked and are (they) different from how I would think about asking? How do I need to shift things in order to connect better?” he asks.

Enns’ comments were part of the panel Planning to Diverse Clientele, held at the FP Canada Financial Planning Week virtual conference. In it, the panelists, including Sun Life Financial Planner Jeffrey Wu who is president of Hao Wu Financial Solutions, Johanne Plamondon, CFP and financial advisor with Raymond James, and session moderator, CFP, personal financial expert and author, Alexandra Macqueen discussed ways to get to know the communities advisors would like to serve and some of the fundamental differences in planning that are required.

“What is financial planning to this person? Ask those open-ended questions to get to know them,” says Enns. 

Talking about their personal lives 

For some clients, talking extensively about their personal lives is a real barrier to engagement with a financial planner – which in turn can be a barrier to achieving their financial goals or overall financial well-being.

“When people fear sharing who they are with strangers, a lot of times they will simply choose not to engage and flee,” says Wu. This, he adds, is a barrier to informed decision making for a lot of individuals.

Enns says artists and creative types will have a different experience, but the barrier to informed decisions about their finances is similar in that circumstances and experience have taught them in some cases to disengage from situations where financial advice is being provided. Many will have experience applying for conventional mortgage products and being told that the variability in their income makes them ineligible, for example. In applying for long-term disability coverage an artist may well also be told they are uninsurable. “They hear ‘no’ and they walk away,” Enns says. “The thing I hear most is that ‘financial planning isn’t for me.’” 

For some Indigenous families, geographic access is an actual physical barrier, as some communities are remote with very limited access to financial services. Other communities enjoy greater access to resources. That said, even an urban centre’s population will be at something of a disadvantage given that financial literacy challenges – generally experienced across cultures – are exacerbated by the deliberate, systemic effort undertaken for decades to restrict resources and eliminate positive cultural role modelling. 

Geographic access 

“Financial planning is not something that is easily accessible. It requires a lot of privilege,” Plamondon points out. “The idea of helping your kids or creating intergenerational wealth for many is non-existent when you’re struggling to have a basic bank account or struggling to meet basic needs.” 

In other situations, estate planning takes on a new significance when couples are living in a common-law relationship, particularly in some provinces. Extraordinary expenses may also be part of the picture – Wu points out that adopting or having a surrogate help a family can be very expensive. The same is true of a lot of medical costs that are not covered by insurance firms. For the client with a less conventional career path, meanwhile, even the most basic cash flow assumptions you might otherwise use, may not apply.

Whatever the situation, the advisors gathered encouraged those attending the webinar to really listen to the questions being asked of them.

Start with the barriers 

“Start with the barriers,” Enns says. “There’s a reason that (the client doesn’t) feel like part of the conversation. What is that reason? What are the questions being asked?”

Volunteering in a community is another way to become more familiar for those who are motivated by a true desire to help. Offering education and services in a comfortable environment such as a community centre or Friendship Centre can build trust. Making services more understandable and accessible is also necessary. “What the heck is financial planning? I think a lot of people in general have a hard time with that,” Plamondon says. “We have to make it relevant.” 

Although it is not necessary to be a member of the community you wish to serve, it is important to be empathetic, Wu says. “Show interest in their stories. When you do financial plans, try to look beyond the numbers and cashflows and net worth. What is important to them? Listen to them and understand their aspirations and understand the complexities in their lives.” 

Beyond that, the advisors add that Google is another tool at your disposal in your quest for understanding. “Pick up the phone. Google is your friend. Go to the community. Attend events. See how you can help,” Macqueen says. “If you have a true desire to help, that is going to get you over any barrier that is in the way.”

Open-ended questions 

Finally, the panel says open-ended questions are an indispensable tool for understanding clients and their circumstances. “First start by not making assumptions,” Wu says.

Following that, they say it also helps to make your material representative and partner with those who are passionate about serving the clients in question.

“Canadian demography is changing rapidly. So should the profiles of the planners and the scope of advice (they provide),” Wu says. “Try to keep an open mind. Educate yourself constantly so you can add value to diverse clients’ life journeys.” 

This Advisor Coach article was first published in the April 2022 edition of the Insurance Journal