Editor’s note: David Leo is a longtime columnist with Rethinking65. Read more of his articles here.
“Most successful people are just an anxiety disorder harnessed for productivity.” – Andrew Wilkinson.
David Leo
Since writing the article “Use Maslow to Help Clients Reach the Top of the Pyramid” for Rethinking65, a question came up about how to identify clients by their needs and personality traits in order to better meet them on their turf.
In that earlier article, I hadn’t considered that wealthy families have the same concerns as the rest of us, though these concerns may reflect a bit differently. It may be important for the wealthy to achieve psychologist Abraham Maslow’s highest level of need, “self-actualization” (self-fulfillment), but the other levels are no less important to them.
In this article, I look at each level in Maslow’s hierarchy of needs and suggest how to more effectively engage with individuals based on their primary level of focus and their personality traits which often offer clues. Tailoring your communication, support and interactions to address each client’s priorities is important. Financial advisors who look deeper into their clients wants and needs can expand their relationships and provide more value.
Some wealthy individuals remain concerned about basic physiological needs for themselves and their family despite their financial resources. On the surface, their reasons may not seem rational, but that doesn’t matter because our focus should be what’s important to our clients.
Perhaps an individual has healthcare concerns based on family history or maybe psychological factors are at play, such as general anxiety. Perhaps a client fears another pandemic or is worried about the wars going on in other parts of the world. Maybe preserving wealth across generations is on their mind.
Whatever the reasons, humans have no shortage of fears, even if they have significant resources. Wealth managers need to be able to address these fears, no matter how clients express them or whether they are immediate or longer-term concerns. While your wealthy clients’ concerns may differ in scale or approach from those of the general population, the need to secure basic human essentials can still be relevant.
Individuals with physiological needs are often practical, survival-oriented, driven by necessity and a sense of urgency, and focused on the present. An example of how you might approach these individuals is, “Let’s focus on how we can secure what you need today. Here’s a list of resources that can help with your current situation.”
Safety Needs
Similarly, just because families are wealthy, or very wealthy, they are no less concerned about Maslow’s second level of needs: safety. Wealthy families may be targeted for many kinds of crimes including physical harm, legal harm and fraud (including cybersecurity fraud). They may also be concerned about safety with regard to environmental issues, their health and family dynamics. Their psychological and emotional states may also make them feel less safe.
As financial advisors, safety may be the area in which you can provide the most value, the highest set of benefits, and the most WOW opportunities. You can help wealthy individuals safeguard not only their assets but also their long-term wellbeing and legacy.
Individuals with safety needs may be security-seeking, risk-averse, orderly, protective and responsible. An example of how you might focus on these individuals is, “Here’s a plan that ensures you have financial (or other) stability for the next few years. Let’s look at how to secure a stable routine that minimizes uncertainty.”
Love and Belonging Needs
Wealth may provide certain advantages, but it doesn’t eliminate the desire for meaningful relationships and a sense of belonging. In fact, wealthy people may have a difficult time discerning between people who are attracted to them for them and not just for their wealth.
Wealth individuals may struggle to maintaining genuine connections and authentic relationships within and outside their family. After all, the distribution of wealth can create tension and financial pressure. Work-life balance, trust and genuine affection, in both romantic and non-romantic relationships and social circles, can be a most challenging issue for the wealthy. In some cases, it can deter relationships and result in loneliness.
Creating strong parental and generational bonds, including passing down values, can be incredibly important to wealthy clients. According to a Chinese proverb, wealth doesn’t exceed three generations. The first generation builds the wealth, the second generation is inspired to preserve the wealth by witnessing their parents’ hard work, and the third generation, having never witnessed the work that went into the creation of this wealth, squanders it.
It is easy to assume that a wealthy family has always been wealthy and will always be wealthy. But the truth is, around 70% of wealthy families lose their wealth by the second generation. More so, around 90% of families lose their wealth by the third generation.
Individuals who put a high priority on love and belonging needs are often affectionate, community-oriented, empathetic, relationship-focused and cooperative. An example of how you might focus on these individuals is, “I’d love to connect you with a community that shares your interests. Building meaningful relationships will help you feel more supported and connected.”
Esteem Needs
One might expect that the wealthy automatically have high self-esteem. But like every other group, human beings are human beings. Wealthy individuals, despite their financial security, may have concerns related to esteem needs in Maslow’s hierarchy. These needs can revolve around self-worth, respect from others, and personal achievement.
We all seek personal achievement beyond financial success. Many wealthy individuals also desire to accomplish significant goals in areas such as business, the arts, philanthropy or innovation. They may want to set and reach personal or professional goals to maintain a feeling of growth, accomplishment and purpose. And validation of success is important to many, whether internal or external.
Some individuals battle feelings of inadequacy or self-doubt despite their wealth and success. They may also struggle with achieving personal fulfillment, developing new talents, earning respect, maintaining self-respect and managing their reputation. Their concerns may include maintaining confidence in their abilities, overcoming self-doubt and managing their public image, especially in high-visibility environments.
Individuals for whom esteem needs are a top priority may be independent thinkers who take action and prioritize autonomy and self-worth. An example of how you might focus on these individuals is, “Your hard work hasn’t gone unnoticed. I believe you’re ready to take on a new project that will challenge you and highlight your strengths.”
Self-Actualization Needs
Wealth individuals are also likely to have a fervent desire to achieve the highest level of Maslow’s hierarchy, self-actualization. Self-actualization refers to the pursuit of personal growth, fulfillment, creativity and realizing one’s full potential. While wealth may alleviate many lower-level needs, the pursuit of self-actualization remains a universal human experience. No matter how much money they have, many wealthy individuals remain concerned about continuing to grow intellectually, emotionally and creatively. (Think Bill Gates and many other innovators).
Wealthy individuals may be motivated by a range of aspirations, whether it’s the desire to create innovative ideas, businesses, or products that add value to the world, or to find deeper purpose and leave a lasting legacy. They may also focus on how they can use their resources to achieve a meaningful and purpose-driven life.
High-net-worth individuals driven by a quest for self-actualization may seek to live in alignment with their core values and beliefs rather than merely conforming to societal expectations related to their wealth. Their pursuits might include spiritual and transcendental fulfillment, adventurous experiences, or engagement in social justice, environmental sustainability or global peace efforts.
As a financial advisor, it’s important to understand your clients’ interests so you can support them through tailored approaches that facilitate meaningful engagement and help them meet their goals. Some of the traits of individuals with self-actualization needs are creativity, self-awareness, open-mindedness, authenticity, curiosity and being growth oriented. An example of how you might focus on these individuals is, “Let’s focus on how you can use your talents to achieve something truly meaningful. How can we align your goals with the impact you want to make?”
In Summary
Maslow’s theory suggests that higher needs in the hierarchy emerge when people feel they have sufficiently satisfied the previous need. The reality is that wealthy individuals, like anyone, continue to have needs at every level of even if their wealth has alleviated many of their needs.
I am not an expert in Maslow’s hierarchy and I am also far from very wealthy, although I have met many of the needs within his hierarchy. Yet I understand wealthy individuals often have the same or similar human characteristics and needs that most of us have. I also know that it’s important for you to get a deeper understanding of your clients and that Maslow’s hierarchy can help.
I encourage you to consider the kinds of conversations you can have with clients that could help them reach their self-defined best selves. Perhaps you will discover how you can help enrich lives — theirs, yours and others. Many in our society have not been able to meet their lower-level needs. Perhaps by helping these individuals and their communities, some of your clients could fulfill their self-esteem and self-actualization needs.
If you did discover the deepest desires of your Top 10 clients, how might it impact your business? Make your curiosity your superpower.
David Leo is founder of Street Smart Research Group LLC. He is an author, speaker, coach, consultant, and trainer to financial professionals. David has worked in the financial services industry for decades, originally as a consultant with IBM and then with UBS/Paine Webber before starting his own firm. If you would like more information about his services, contact him at David@CoachDavidLeo.com or visit www.CoachDavidLeo.com.
