I believe there is an unwritten role for financial advisors. Some figure it out sooner than others and some are more accepting of it than others. As professionals, we ought to stand for much more than money. Just as professional athletes and entertainers are thrust into the position of role models, we insert ourselves into the lifeblood of others when we agree to help manage their savings, insurance needs and family legacies. In doing so, we must recognize and maximize our position of influence.
This dynamic reminds me of the story wherein two men, both seriously ill, occupied the same hospital room. One man’s bed was next to the room's only window. The other man had a bandage over his eyes following eye surgery. The men became friends and talked for hours on end. Much of their conversation centered on what the man in the bed by the window could see outside. The other patient began to live for all the activity and excitement he was told of the world outside.
According to his friend, the window overlooked a well-manicured park with a lovely lake, benches, and a walking path with a lane for bikes. Ducks and swans played on the water while children fished and sailed their boats. Young lovers walked hand-in-hand and the city skyline glistened in the distance. Whether it was a parade, a ball game or picnic, the man who couldn’t see loved to imagine the picturesque scenes as his friend described them.
Days turned into weeks and then months until one morning a nurse arrived to find the lifeless body of the man by the window. His roommate was saddened by the loss and, after some time, asked to be moved next to the window. His vision was now partially restored and so the nurse was happy to make the transfer, after which he was left alone.
As he strained for his first look at the world outside he was amused, laughing out loud when he realized it faced only a blank wall and rooftops.
This story reveals valuable lessons that advisors can use to make the most of their power and ability to influence others in a meaningful way.
We Have The Window Seat
As advisors, we have a responsibility to not only help people save and invest for retirement but also help them create a successful life during it. This is an important point because once we establish trust and demonstrate skill in managing their money and financial needs, the door opens to other, non-traditional topics that go beyond common questions we see and are trained to deal with such as whether to:
• Save for retirement or children's college expenses first.
• Take one pension option over another or use a qualified rollover.
• Pay off the house or invest their available funds.
I’m referring to more complicated matters such as a couple struggling with a moral dilemma between competing family responsibilities. They have an aging parent in one state who likely has only has a few years left, but children and grandchildren in another with whom they desire to spend time with and be a part of their lives. In both cases, the next few years are going to be precious. They’re not sure what to do and feel burdened by the mental and financial struggle of keeping both parties, as well as themselves, happy.
In another scenario, a client and personal friend craves financial success. He desperately desires to grow both his company and net worth but can’t figure out why stress is causing him regular chest pains. Ironically, he can’t see the strain that a divorce and three-hour move north is putting on his personal relationships including his daughter, girlfriend and siblings -- personal relationships that are slipping away as he serves the master of money and fosters an isolated and lonely retirement plan.
Clients' moral dilemmas and personal challenges surely will become an increasing topic of conversation for more and more advisors as their sphere of influence increases and retirement planning becomes more complex. Therefore, our industry needs to be prepared to offer clients words of encouragement, sympathy and experienceto help them weigh their options and consider alternatives. The fact is, we have built a level of trust and confidence with clients that makes them turn to us for help with others areas of their life. That means we need to help them see both the financial picture as well as the parade, the park benches the beautiful lake, and the city skyline throughout retirement and their relationships.
Retirement Is A Creative Process
I learned this lesson early in my career and it’s a major reason why I see retirement planning from a different perspective. I was doing a financial plan for a couple whose goal was to travel extensively in retirement. Right out of the gate, however, I was leery because of their lack of savings. She was retiring from an airline and he had just left the factory floor of an automotive company. While both had pensions and Social Security payments that would help them maintain a decent percentage of their pre-retirement lifestyle, they’re personal savings suggested “staycations” were more likely than extended vacations.
However, just as the man by the window was able to make the most of the situation for he and his friend, so too were they able to outshine my planning logic. As an airline retiree, she and her husband could fly anywhere for $50 per ticket. Additionally, she lined up a part-time job with a popular hotel chain, and he had begun working one day a week for a car rental company. By their calculations, a typical $2,000 - $3,000 vacation would only cost them $400 - $500 dollars.
I wish I could say it was the first and only time a client’s numbers didn’t support their retirement goals. But clients regularly demonstrate their ability to adapt and build a retirement lifestyle that moves beyond traditional calculations. Simply put, today’s advisor may need to put down the calculator and encourage creative thoughts and ideas like these in order to help them understand that retirement is not a one-time event or something that can only be obtained with a certain amount of money. It’s not always about what you see at first, but instead, the stories and experiences you build over time.
Helping People See It For Themselves
Just as the sightless man was eventually able to see outside the window for himself, the same holds true for advisor and client relationship. Right now, there’s an interesting trend taking place in retirement. Baby boomers don’t want to be told what to think or do. They want to be taught how to think, adapt and implement. They want to uncover truths and opportunities for themselves and not simply buy into the status quo. They want to be a player and feel like they’re part of the process, not simply an onlooker, watching from the stands. This change in philosophy and style is a major reason why traditional seminars are dying on the vine and virtual advisors and investment programs are increasing in numbers and success.
The new focus is on empowering clients and prospects to see solutions and opportunities for themselves. -- to adjust the concepts and methods of “Life Planning,” something we know and do as an industry, to “Retirement Wellness,” which is something they can apply in order to feel valuable, engaged and connected to us, their money, and the outside world.
The biggest benefit for advisors who adapt this new idea and methodology will be the change to our stereotypical role. Far too many advisors continue to dress, talk and act the part of the all-knowing investor -- someone who is above the rest and can predict market events. Reality is, that style and approach send an unrealistic message that not only frustrates clients and brand our industry in the wrong way, but it can also turn off the next generation of advisors and clients. On the other hand, working with clients as part of a team and process opens the door to more realistic goals and genuine communication for both their investment returns as well as their desired lifestyle in retirement.
This is one reason I started the RetirementProject.org and the Retirement Wellness Report. I believe that just as we have used topics like Social Security and estate planning to find and acquire new clients and assets, we can use the concept of caring and overall retirement wellness to empower clients to see and plan for more than a brick wall in retirement.
P.S. Let me know if you plan to attend FA’s Retirement Symposium in Las Vegas later this month. I’d love to hear what you think about this article and others I have written. I'd also like to hear about what’s going on with you, your clients, and practice.
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].