Another key longevity problem, not broadly discussed, is that inheritances will be delayed as well. Even if older clients pass down large inheritances (after spending more in retirement) they may be transfering this money to impatiently waiting 60- and 70-year-olds rather than to family-forming 30- and 40-year-olds. (This will change succession planning at RIAs as well: The older generation has no plans to leave, and the up-and-coming associates are chafing—wondering whether and when there will be room at the top for them.)
Advisors who want to remain relevant for a long time will dedicate their efforts and resources to building and supporting a sustainable enterprise.
At our firm, we’re building out processes and adding capabilities in these key areas:
Discovery—and Decision-Making
To better apprehend our clients’ needs in the Age of Longevity, we’ve been engaged in formal studies with Jeff Belkora, a faculty member at the University of California, San Francisco School of Medicine, who has a Ph.D. in management science and engineering from Stanford University. His research career has focused on enhancing consumer engagement programs—particularly in the field of medicine. Working with Jeff, we’ve found that there are strong parallels between people with illnesses weighing the risks and benefits of medical treatment options and wealth management clients weighing their financial futures. In both cases, professionals have to hear a complete account of what the person faces.
Working with Jeff, we have begun using a client question and discovery process called “SLCT” (a health-care interview protocol that stands for “scribing, laddering, checking, triaging.”) The idea is to capture clients’ deeper, non-financial needs and aspirations—and to do so through a format that is usable by service team members. The process allows for quality control in the regions where we do business, and the results thus far have been very encouraging.
We’re optimistic that a tremendous side benefit of this process will be to see how it engages all team members early on—both to gain additional points of view and to help anchor the firm’s philosophy in all future interactions with clients.
Technology and Network Management
One of our key challenges in the Age of Longevity is (merely!) logistical: managing a network of professionals who can attend to the growing number of non-financial client needs. Such networks typically involve social workers, medical workers and other social services professionals. These are roles and responsibilities, in other words, that Halbert Hargrove personnel are not trained for and, typically, shouldn’t be performing.
We’re working on solutions to deliver these services, including case management, by using technology that helps us coordinate the work of professionals both inside and outside the firm. Technology links portals, which integrate decision making and service delivery, and make this all work in harmony. The goal is a user-friendly portal that securely aggregates data, shares information, serves as a gatekeeper for access and complies with HIPAA privacy regulations for electronic medical records.
Many questions remain. Who gets access? The client’s accountant? Kids? The questions are not trivial, particularly if your intention is to not lose money in the process.