Can I stay in my home?
Clients aren’t sure about their financial ability to pay for their house, whether they can use any of the equity they’ve built, or what’s the best way to access that value. They are afraid they may have to move to a long-term-care facility and don’t want to.
How can I preserve my independence and not burden my family?
The clients aren’t sure how to do what they want without creating work for their children. They aren’t sure how to live where they want or how to leave something for the kids and grandkids. They fear they will need help at some point but don’t want to be a burden. They are also afraid of needing help and losing their ability to manage.
These questions might seem basic, but they aren’t, according to the clients. Just as we learned in the managed account journey, there is a good news/bad news story here. Keep in mind some practice management realities (and opportunities):
The clients in these surveys might not sound like yours, but they belong to somebody. This is a great moment in time for prospecting if you can use the questions here and be the one asking instead of the one receiving. Remember, the typical baby boomer retiree with money has four to six financial “relationships” and, again, they will consolidate.
Test yourself and your practice. If you think you’re in good shape, you should be able to send a note to each client during tax season, when everyone has to look at their finances, and say, “We’ve talked about these big questions of retirement planning, and if you have any concerns, please let us know when we can connect.”
The same message could be shared with any mailing list of prospective clients, posted on your website or included in an ad. “Your retirement questions answered. That’s what we do. Get our opinion.”
My final admonition is that the spoils are worth the effort. Managed accounts came from nowhere to encompass more than $7 trillion today. Don’t underestimate the potential of a trend that builds slowly and doesn’t feel obvious. The difference this time with the wave of retirees is that there is a lot more urgency to funding retirements that have already started. Start answering those questions—and asking them yourself.
Steve Gresham is CEO of the Execution Project LLC, providing tools and training to advisors and their companies to meet the needs of a retiring age wave. He is also a senior education advisor to the Alliance for Lifetime Income, and the former head of the private client group at Fidelity Investments. He is the author of The New Advisor for Life (Wiley). See more at theexecutionproject.com.