In short, crowdfunding allows individuals and companies to offer shares of unregistered securities to regular, everyday people. There are some proposed rules that are likely to be put in place to protect consumers, but even with them, the potential for fraud is huge. Therefore, investors who decide to go it alone and don’t, or are unable, to do the necessary due diligence may see some of their life savings vanish. On the positive side, skilled advisors will find themselves in front of more prospects and clients looking for professional guidance in this area.
Retirement Wellness
One of my core beliefs is that traditional retirement planning is a lot like an iceberg, where 90 percent of what takes place in everyday life lies below the surface and out of mainstream conversations and planning. Earlier, I noted that this is changing as a result of boomers. Therefore, advisors need to be prepared to develop skills and resources to help clients deal with major, but perhaps hidden, concerns.
Yes, advisors still need to maintain core centers of influence, such as CPAs and attorneys and know how trusts work and the tax implications of various investments, but they also need a handle on the new, more personal aspects of retirement wellness. They need tools, resources and alliances with professionals who can help clients deal with the mental, social and physical aspects of retirement including how to:
• Prepare their marriage for retirement.
• Empathize with clients facing a life changing medical diagnosis.
• Stay mentally and physically active.
• Acquire new skills and knowledge.
• Help “launch” their adult children out of their households and retirement savings.
Without trying to turn you into a therapist or asking you to be everything to every client, I simply suggest as these trends continue to reshape traditional retirement, and as new and deeper conversations take place with clients, that advisors collect and build resources to help raise awareness of these issues.
I recently wrote an entertaining letter that parents could send to their kids letting them know they aren’t going to be receiving any more money. I based it on a well-known response to a letter sent home by a college student to mask her failing grades. Now, I don’t expect any client to actually use it, but it’s a simple way to lend some humor and perspective to a challenging topic. Whether a humorous letter like this ends up in a newsletter or brochure in your office, it’s a simple way to let clients know you’re familiar with the situation, that they aren’t alone, and that, over and above this funny stuff, you can provide professional contacts and resources to help ensure their needy kids don’t ruin their retirement.
Considering all of this, I believe our industry will be seeing fewer and fewer client appreciation events where someone like a well-known economist is the draw. In place of these more traditional (and dare I say outdated) marketing tactics, more advisors will be organizing groups of boomers interested in learning how to write a book, mend their relationships, cook healthier, start or fund a business, or invest as a group.
As the new wave of emerging retirement trends continue to reshape our industry, advisors who are willing and prepared to adapt to client situations and needs will stand out among the group, prosper, and chart a path for future advisors.
P.S. let me know what you think of the article by leaving a comment or e-mailing me. Also, be sure to check out my previous articles at FA here.
Follow Robert Laura on Twitter @robertlaura. He is the president of SYNEGOS Financial group, co-founder of RetirementProject.org, and author of Naked Retirement. He can be reached at [email protected].