10 problems advisors can help clients solve
You know about much more than retirement planning. Are your clients aware of that?
Are you pigeonholed by friends and clients?
Probably yes.
They see you as an expert in benefit plans or retirement planning and that’s it. They don’t know you can help handle other problems too. Meanwhile, they come up with problems that don’t fit neatly into anyone else’s pigeonhole either. Everyone needs help with something.
You know the right kind of insurance is often part of the solution for many of life’s problems. You are also licensed to provide investment products. You do financial planning too. Many friends and clients don’t know that. They need to know that you can help them with these 10 problems they might face:
1. Mortality approaching.
Your client comes from a traditional family. They were the breadwinner and their spouse raised the children and ran the household. Life has changed since then, but not under their roof! They handled the money matters for years. Their spouse either didn’t express an interest or was very happy in their assigned role. Recent medical issues have raised serious health questions for your client.
Problem: How will money be managed and bills get paid when they are no longer in the picture? How will their financially inexperienced spouse cope? If only they could get something similar to a regular paycheck. They hope an unscrupulous advisor won’t come along and put them into dubious investments.
Can you help? Of course you can.
2. Can you have too much wealth?
Your client is a farmer. They’ve been doing it for generations. The land has increased in value. Even with increased thresholds for federal estate taxes, they will still end up owing money. No one seems to talk about estate taxes on the state level where thresholds are much lower. They are land-rich but cash-poor.
Problem: They are concerned a significant amount of acreage will need to be sold someday to pay those tax bills. If so, then the farm might not be viable going forward. The family legacy ends there.
Can you help? Of course you can.
3. College expenses.
Your client owns a successful business. They also believe in large families. Those children are growing up fast! Some will go into the business, but others will need to make their way in the world. They are going to need the best college education they can get.
Problem: What does a college education cost today? In the future? How am I going to pay for it when the time comes? What are my options?
Can you help? Of course you can.
4. Advanced degrees.
Your client was positive those college bills would end when the twins graduated with their bachelor’s degrees. After all, that’s all your client needed to get started in the world of work.
Problem: Someone moved the goalposts! Now they need graduate degrees. How am I going to pay for that? Maybe the kids can carry that cost on their own…
Can you help? Of course you can.
5. Weddings.
Who would have thought we would have four daughters! Hopefully they will all get married down the road. We better start making preparations now.
Problem: What do weddings cost today? Do the bride’s parents still pick up the majority of the costs? We better be prepared just in case. How do we save for this future expense?
Can you help? Of course you can.
6. Leaving a legacy.
Your client has lived a good life. They credit their college with getting them on the road to success after success. Their spouse and children are provided for adequately. They want their name to be remembered for generations to come.
Problem: They want to make a big gift to their college, but not while they are still alive. Their school has other plans, of course. How can they fund and structure a generous gift?
Can you help? Of course you can.
7. Health insurance.
Your client was living the corporate life when one day their company was bought out. Restructuring followed. They landed on their feet as an industry consultant, but have discovered lots of things the company provided are now their responsibility.
Problem: They need to fund their own health insurance. They always liked the plan the company offered. How do I know if I’m getting the coverage I need? How do I shop around?
Can you help? Of course you can.
8. Planning for retirement.
One day they woke up to the realization Social Security isn’t going to replace the income they earn now. They have quite a bit of money put away, but it’s all over the place. Will I have enough? How much is enough?
Problem: They need a degree of comfort that comes from being adequately prepared for retirement. If they haven’t, they need help in getting caught up. They need a savings discipline.
Can you help? Of course you can.
9. What if I need long term care?
Your client thinks ahead. They do not want to be a burden to their children. Their kids aren’t keen on the idea either. They are still healthy without serious medical issues.
Problem: What if they developed a condition requiring ongoing specialized care? How would that be paid for? That’s a big unknown.
Can you help? Of course you can.
10. Their financial advisor is retiring.
You were pigeonholed, all right. You were always the insurance guy. They did their serious investing with their financial advisor at a major wirehouse firm now owned by a bank. They are tight with their advisor.
Problem: That great advisor is now retiring. Their account is being reassigned to someone they hadn’t met previously. She seems like a nice person, but it’s not the same. They aren’t convinced they should keep their account there. They are open to alternatives.
Can you help? Of course you can.
Your client doesn’t see the solution to many of these problems coming from their “insurance guy.” You probably can help anywhere from providing a turnkey solution to simply offering advice. Your client needs to understand how you can help. Everyone needs help with something.
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor” can be found on Amazon.