Pareto’s Revenge: Embrace the Middle
Savvy advisors and their firms are indeed on to these issues. We call those people “winners” because they look at the market realities and take action – and take advantage. GM vs. Toyota and BMW – how’d that turn out? Why is it that separate organizations of very smart people can “see” completely different future paths? Is it just their love of current success? One clue has always been to see not how the best clients are doing – or feeling or saying – but to look at the middle. How does the average client, the typical client, the median client fare in your current state? Too much focus on the top avoids the reality check of your depth and breadth. Even in a single advisory book. Retirement is a complex array of dates and needs that are defying many advisors’ ability to keep up. That’s trouble for sure – and a historic opportunity for growth minded professionals who are prepared to offer an alternative.
One Upping the Boomers
Destruction is only bad if the object of destruction is worth retaining. The 1965 song called out Vietnam, the draft, the threat of nuclear war, discrimination, Middle East conflict – nothing good according to most everyone of any age. 76 million American Baby Boomers would now add their fear of aging poorly and poor. But take note – the rising cohort of Millennials is actually bigger than the Boomers and has its own list of complaints including climate change and diversity. They will shape the world as their parents have with impacts already visible in banking, electronics and retailing. And they are the new growing power in financial services.
Where Boomers and their Millennial kids are joining forces today is around simplicity of process and the assurance of better outcomes. The Boomers pressed for change like ATMs and toll free telephone numbers while their offspring double down on access and ease with mobile apps and simpler products. What Boomer expected brokerage commissions of zero and ability to send your own wire transfer? Millennials expecting both are also asking why can’t results be guaranteed? Every generation sees injustice in the current state and first finds its voice sharing its frustration with its parents. Demand more, they say – and they are right to expect better. Retirement increasingly is a family affair, and the Millennials will be riding shotgun for their parents and deciding which advisors and firms will be their choices when they have more assets. Top advisors seeking growth for years to come are including these important consumers into the plans of their current clients and have the lead for retention and future growth. Follow another winning consumer formula – simplicity and ease of use – and see how Apple products appeal to both generations or how easy both find the Minute Clinic at CVS.
JOIN US February 21 in Brooklyn as we take on Investing, Growth and Leadership at Retirement on the Eve of Disruption, presented by Next Chapter and Financial Advisor.
Steve Gresham is on a mission to improve longevity and “retirement.” He leads an industry initiative, Next Chapter, and is CEO of the Execution Project LLC, a consulting firm. He is also senior educational advisor to the Alliance for Lifetime Income.