How to give clients the perfect holiday presents

November 25, 2024 4:46 PM

Many wealth managers buy holiday gifts for their clients, but experts say choosing an appropriate present is tricky.

As the holidays approach, many financial advisors are shopping for presents — not just for friends and family, but for clients as well.

But choosing a gift for a client is a delicate balance. Advisors often buy all their investors the same thing, and that can backfire: Give something too generic, and it may come off as boring or thoughtless.

"My rule for giving is to make it memorable," said Edward Wildermuth, a financial advisor at Innovative Financial Solutions in Carmel, Indiana. "Try to avoid gifts that get lost in the crowd, like a water bottle, golf balls or a calendar. Clients appreciate the effort to give something that will be remembered and stand out."

On the other hand, if the gift is too specific, it may not suit every client — think charcuterie boards for vegans — and finding a personalized gift for each individual may be too much effort in an already stressful season.

In fact, the task is so tricky that some planners hire someone else to do it. Last year, LPL Financial announced that it was partnering with Client Giant, a California company that offers automated gift-giving services on behalf of advisors — without, the company promises, seeming impersonal.

"Financial advisors that leverage Client Giant's platform gain access to solutions that allow them to leverage automated gifting cadences while maintaining the human touch of a client relationship," LPL said in its announcement.

But what if a wealth manager doesn't want to outsource their holiday cheer? What are some presents that are both manageable and memorable? We asked advisors around the country what they're sending to brighten their clients' holidays. Here's what they recommend:

Homemade treats

Even if every client receives the same gift, it can still feel personal — if it's homemade.

That's according to Cynthia Luna, principal of Moonshot Financial Group in Waxahachie, Texas. For the past few holiday seasons, she's given clients an unusual treat: tamales baked by her own mother. Investors can choose between three fillings — chicken, pork or beans — and swing by the office to get them.

"On delivery day the clients would come to the office to pick up their orders, sometimes having a small conversation with my mom," Luna said. "This was a way to share our focus on serving family to family, a way for my clients to know me and my culture better."

Luna's gift is specific to her, but it also offers some universal lessons: As it should be, the present is tailored to her particular community — North Texas, where tamales are standard holiday fare — and to her clients, who get to choose their flavor. Even though it's made in bulk, the gift comes across as warm and personal because of the connection to Luna's family — and because the tamales are hot.

The gift of charity

Holidays like Christmas and Hanukkah are all about giving, and many clients enjoy the chance to be generous. With that in mind, some advisors make charitable donations in their clients' names — or leave the charity up to the clients.

One way to do that is through the gift Wildermuth sends his clients: TisBest cards. These cards, which are essentially gift certificates for charities, allow the advisor to choose a cash amount and the client to choose a worthy philanthropic organization.

Wildermuth says the gift is far more memorable than a water bottle or calendar, and it also gives him a window into his clients' values.

"The best part has been getting an email alert when the client has made their choice, so I get to see the organization chosen," he said. "I feel more connected to my clients from seeing where their heart and passions lead them."

The personal approach

Not every advisor buys the same present for all their clients. For those who have the time and bandwidth, giving a personalized gift to each investor can send a powerful message — most importantly, that the advisor is listening.

"The gift has to be relevant to them," said Noah Damsky, founder of Marina Wealth Advisors in Los Angeles. "Get the client who travels frequently a custom luggage tag in their favorite color, and get another client tickets to their favorite comedy show that's stopping by their town."

The best thing about such presents, Damsky said, is that they show the advisor is paying attention and remembering things the client said. In one example, he took inspiration from an investor's costly travel mishap.

"One summer, a client had their luggage mistakenly taken from baggage claim by another passenger who had an identical bag," Damsky recalled. "Since it wasted so much of his time and led to many days of stress, we got him a custom baggage tag so that mistake would never happen again."

A baggage tag can cost just a few dollars, but in this case it made a much deeper impression than company swag. And if it's too much work to buy every client a specific, thoughtful gift at the same time, then don't. In Damsky's view, it's fine to spread these gifts over the course of the year.

"We give gifts when the time is right, not just around the holidays," Damsky said.