What advisors must know about working with LGBTQ2+ clients.
Updated: 7 hours ago
Original article by:
Leo Almazora
WEALTH PROFESSIONAL
June 15, 2022
📰 Read the ORIGINAL ARTICLE here.
I spoke with Wealth Professional about what advisors need to understand to serve LGBTQ2+ clients well. Here are the highlights and my contributions.
Key Takeaways
Even as LGBTQ2+ people are increasingly recognized as consumers and clients, representation within the financial services industry is still thin.
With the average advisor in their 50s or 60s, many younger LGBTQ2+ clients feel judged and may hold back details that affect their finances.
LGBTQ2+ clients can face distinct costs, including mental health care, higher urban living expenses, fertility treatment, surrogacy or adoption, and gender-affirming care that isn't fully covered.
Advisors don't have to be part of the community, but they do need empathy, inclusive language (like confirming pronouns) and a non-judgmental approach.
Without trust, a client may not mention a same-sex spouse, leaving gaps in insurance, beneficiary designations, pensions and group benefits.
My Perspective
Many of my clients come to me after struggling to find an advisor they feel comfortable talking to, someone they don't have to hold information back from.
"Usually, clients come to me with a sense of relief."
My clients' lived realities often shape their finances. Some weren't raised in accepting households and had to become independent early, before they could build a financial buffer. Many spend more on mental health care, and choose to live in progressive, more expensive cities where they feel at home.
"You can have your community online, but I think part of it is also being able to walk around and see others like you very visibly out there."
Trust is what makes complete planning possible. If a client doesn't feel safe telling their advisor about a same-sex spouse, that advisor can't help with insurance, beneficiary designations on registered accounts and pensions, or group benefits.
"It just boils down to the client being able to get comfortable talking with their advisor, or they risk suffering financially because they miss out on the opportunities for good planning."
Originally published in Wealth Professional by Leo Almazora on June 15, 2022. Use the link at the top of this post to read the full article.
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