I can remember a time when the bogeyman of investing was actually stocks—in the 1970s, when the Dow Jones index was around 800. Stockbrokers were selling munis at the time because investors were gun-shy after the 1973-74 equities crash. Somewhere between 800 and 29,000, that asset class has revived. Annuities and other income investments, on the other hand, are generally in the early innings with a long game to play.

It’s All Bespoke Now
Advisors must make a change. They must customize. They must match solutions to clients’ specific needs, preferences and fears. The good news is that those changes in their approach will help them stand out against their competitors. And to be good at customizing, advisors will need both technical expertise and emotional intelligence (especially empathy) to understand what their clients need.

That’s a lot of work, and it requires a lot of skill, and the advisors who bring both will be rewarded and well paid by clients who appreciate the difference. Advisors must also be able to discriminate between those clients who actually value the work they do and those who presume it’s all easy. The latter group will be better off buying a packaged solution “off the rack.” Let them do just that so we can focus more on those families who need and value our help.

We knew this day would come. It’s time now to rise to the occasion, fully confident there is a generation walking into retirement on tiptoes hoping help is available for what will be for most of them a very challenging and emotional time.     

Steve Gresham is the managing principal of the Execution Project, LLC, a consultant and investor in wealth management, as well as managing partner of Next Chapter, an industry initiative sponsored by Financial Advisor Magazine and the Money Management Institute. He is also chairman of Whealthcare Solutions Inc.

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