Four ways advisors can earn trust of LGBTQ clients

Lindsey Young, founder of Quiet Wealth, outlines four public steps financial advisors can take to build trust with LGBTQ prospects: post a clear website statement, create a dedicated webpage, support local LGBTQ nonprofits and designate or hire advisors who focus on the community.

Young says LGBTQ households often have the same basic planning needs as other clients but also face distinct issues that affect retirement, estate and cash-flow decisions. Many LGBTQ households do not have children and therefore plan for long-term care and retirement without relying on heirs. High-net-worth clients without heirs may seek help creating a plan for wealth and legacy that reflects their priorities.

Nontraditional family arrangements remain common and can complicate how assets are held, how benefits are coordinated and how tax and legal strategies are implemented. Advisors should be familiar with family-building costs and timelines: intrauterine insemination, in vitro fertilization, surrogacy and adoption involve expenses that can affect short- and long-term plans. For transgender clients, planning can include forecasting medical expenses, preparing for possible job changes or income disruptions during transition and contingency planning for potential legal or marital outcomes.

Young recommends a concise, visible statement on a firm’s website that notes the firm works with LGBTQ clients and understands their concerns. She advises firms to avoid leaving that question unanswered on public materials, since prospective clients often move on when a firm does not state a position or show relevant experience.

A dedicated webpage can explain common issues for LGBTQ households and present anonymized case studies or planning scenarios the firm has handled. Public support of local LGBTQ nonprofits through donations or volunteer work and visible participation in Pride events provide examples of community engagement that some prospects look for.

Larger practices can designate or hire an advisor who focuses on LGBTQ clients and promote that specialist as a clear point of contact. With Pride Month in June, Young encourages firms to use the month as a prompt to add or update public materials that describe their experience and support for LGBTQ clients.

Young argues the financial planning industry serves fewer LGBTQ households than it could and calls for clearer public signals of experience and support to connect clients with advisors who address their specific legal and financial issues.