3 Tips From Top Investment Advisors

by: True-Bearing.com


Demographic changes and trends.

Finding ways to connect with clients.

Non-financial shocks that impact a client's finances.

From our conversations with advisors there is one demographic trend that is at the forefront for investment advisors who manage retirement accounts for small businesses and high net worth clients. It is the Baby Boomers. Baby Boomers are retiring at a rate of nearly 10,000 per day. To put this into perspective, 13 percent of Americans are currently age 65 years or older, and that percentage will jump to 18 percent by 2030. Based on conversations with advisors, we have found that the major issue they face is getting retirees to become their clients once they have left their employer sponsored retirement plan and choose to invest their retirement savings.

So how do advisors get and maintain their client base in the current climate of increased transparency, legislation and competition from low cost online providers? We have identified three viable solutions that take a holistic approach to advising. This week we will discuss the first:

#1 Specialization

If someone is fortunate enough to make it to retirement, they still face the risk of the 3 D's - Divorce, Disease, Death. These are the primary causes of most financial problems and bankruptcies in the United States.

Divorce happens. More than two million North Americans will divorce this year -- about 50% of all marriages in the US end in divorce. Nearly one hundred percent of divorces involve financial settlements. Many lawyers, mediators, and separated individuals are now seeking the services of a divorce financial analyst -- trained to handle this specific life event. A Certified Divorce Financial Analyst (CDFA) is a valuable resource to individuals and professionals involved in the divorce process. The designation can be completed in under a year and costs less than one thousand dollars. You can learn more here.

Unfortunately, sickness and disease often come along with age. Heart disease, cancer and chronic lower respiratory diseases are the leading causes of illness and death in Americans. Two of the three diseases are very preventable but most people don't know how to follow through with a plan to avoid them. An advisory firm that has relationships with practitioners who aid individuals in preventing and treating these illnesses can go a long way with clients who have spent years knowingly or unknowingly neglecting their health. Better health can increase the lifespan of your client which in turn potentially lengthens your relationship as their advisor.

Aids to better health are fitness, nutrition, and healthy lifestyle choices. When it comes to general fitness, one can find a qualified provider with the CSCS (Certified Strength and Conditioning Specialist) designation. It requires a 4-year degree, a successful completion of a 4-hour exam, and annual continuing education. These professionals are most often sought out by clients who want to be coached by a professional.

The best source of nutritional guidance is a Registered Dietitian Nutritionist. These trained professionals have a bachelor degree, complete post collegiate coursework and a 1,200 hour supervised internship, pass the Registration Examination for Dietitians, and completion of annual continuing education. You can find a Registered Dietitian Nutritionist here.

Healthy lifestyle choices include avoiding habits that are deadly. Although tobacco use is on the decline in the United States, many people are still smoking. By quitting smoking a person can improve their health and increase their life expectancy. There are healthcare professionals who specialize in helping people quit smoking; you can find one here.

Sad to say, no matter how well one maintains their health, death is inevitable, but the resulting financial burden to survivors does not have to be. Life insurance guidance has to be a part of your practice; and if you don't have it, you must have good referrals for your clients to consider. If you are an RIA, you will be amazed at the quality of service you will receive from the independent life insurance broker community -- the best ones will only accept clients by referral.

Taking a proactive, holistic approach and preemptively addressing your client's needs outside of their finances will benefit the client and aid you when trying to defend the assets inside of their portfolio. Next time we will discuss the second area of this broad view approach to attaining and maintaining the growing Baby Boomer client base.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.