Whether you’re new to the world of financial advising of if you’ve been in it for a while, there’s one thing that’s going to change how you do your job: technology. Maybe you’ve already seen it happen or maybe you hit the ground running with the latest tech, but the speed at which these tools evolve means that everyone will need to stay on top of this dynamic field.

Why embracing technology is critical

You may like to keep things simple and avoid more tech or you may be an early adopter and be ready to go all in on it. But regardless of how you feel about the world of technology, one thing is for certain: you need to utilize it for your clients sake.

Even if your clients aren’t big into the world of technology, that doesn’t mean they can’t benefit from its innovations. Everything from bookkeeping to birthday reminders on your calendar can help you build a strong and trusted relationship with your clients. Likewise, solutions such as Genivity’s HALO assessment can give you a leg up on advising your clients without them having to wade into the world of tech on their own. Technological advancements can be invisible to the client, yet highly effective, saving your tech-adverse clients time and money all while delivering the results and products they are expecting.

Using technology to set yourself apart

For your technology-oriented clients, showing that you’re on the cutting edge can be a huge win for setting yourself apart from the competition. Sending electronic meeting notices, sharing files over secure web tools, and even simple things like video chats can make building trust a lot easier. The convenience that comes with using some of these solutions shows that you’re thinking about the client first.

Todd Gentry, a CFP from Synergy Wealth Solutions, makes it clear that thinking about the client first and building trust is key to growth and survival in this industry.

This is a relationship business,  FinTech should serve to enhance the existing relationship and quality of advice to create a robust client experience. It will allow you to be absolutely referable and be the highest value advisor relationship your client has. Established producers/firms should consider connecting with “early adopters”, this serves to build out your continuity plan as well as enhance the value of your business, guard against lost clients to tech savvy practitioners, and make clients into advocates for your firm and the team.

Regardless of how you utilize technology in your practice today, it’s clear that it will continue to play a more prevalent role in the future. You should be researching ways that you can make your practice more tech-friendly and look for ways to implement new solutions in the future. Your clients will be expecting it and your drive to provide them with the best solutions available will build trust and stregthen your client relationships. 

At some point in the last year, you’ve probably read an article on Social Security. Whether it’s a politician’s plan to “fix” it, or a wealth guru’s take on what’s going to happen to it in the coming year, the message is clear, Social Security isn’t as reliable as it once was. As a financial advisor, it’s critical that you communicate to your clients that Social Security alone won’t be enough, especially with the shift from retirement planning to longevity planning. 

Social Security woes

Social Security, while great in theory, is facing problems from all different angles. One of the most significant is the payer/recipient ratio. In 1940 it was roughly 159:1, in 2013 it was about 3:1. With population on the decline in the U.S., it’s likely only to get worse. There are other problems as well and as a financial advisor, you’re in the know about a lot of aspects of retirement, but have you communicated those to your clients?

Many retirees are planning on using Social Security as the main pillar of their retirement financing, however, it probably won’t be enough. This is especially true given the changing landscape of healthcare costs and implementations.

How to solve for your clients’ Social Security deficit

Genivity’s HALO assessment can help mitigate some of the concerns around the shortfalls of Social Security. If a client can have a better expectation of what kind of care and how much said care will cost, they can plan around those expenses while taking their fixed Social Security income into account. 

The HALO assessment gives clients advanced knowledge allowing them to potentially purchase insurance policies around things like long term care or paying for in-home care. It also allows them to make preparation to their living spaces and care network while their still mobile and relatively healthy, mitigating the need to spend their Social Security on maintenance issues.

The old adage “knowledge is power” couldn’t be more true when it comes to talking about the state of your clients’ longevity plan. Having conversations now and making preparations for all sources of income will give them the best chance of enjoying their retirement and finishing out life on their terms. 

We often times see retirement portrayed as a relaxing, care-free period of one’s life. Commercials show jovial retirees sitting in bathtubs on mountains, going on cruises, or spending time with family. While this certainly can be a reality (minus the bathtubs) for some people, the reality of retirement for the majority of Americans is starkly different.

What do your clients want their retirement to look like?

While it’s certainly an exciting time for your clients, you need to convey preparedness and expectations given their financial situation. The question is: how exactly do you do that?

There are a few tips you can give your clients on how to retire with confidence. The main one being “save early and save often.” However, even the best intentioned clients may not be putting enough away to retire. Spending habits are often hard to break if they’re already accustomed to a certain lifestyle. This is fine if they have a proper understanding of what their retirement will entail. The tough clients are the ones who want to spend now and have it all in retirement.

When the reality is tougher than expected

One Redditor posted her experience with parents who failed to save enough. Her account is a sobering purview into many American’s lives who are nearing retirement. Baby Boomers who failed to save enough for retirement are now hooked on a lifestyle they cannot afford. Does this remind you of any of your clients? Hopefully not, but its not unreasonable to think that someone with a skewed view of their golden years will walk through your doors before you yourself retire.

It’s important, as always, to treat these people with dignity. Often times they are simply following a societal outline of how to live their life. They think they are doing the right thing or are spending in accordance with what’s expected of them. Addressing their finances for retirement can be a very unpleasant wake up call.

Keep in mind that most of them often have no way to rectify the situation, either. Work with them to come up with a realistic plan of what their retirement will look like and try to convince them that some retirement (even if a lifestyle adjustment is necessary) is better than none at all.

There will be a glut of retirees facing this reality in the coming years. Your job is simply to work with them inside of the financial confines they have put themselves in and help them plan accordingly. Giving people a path to retirement should be a rewarding experience in and of itself, even if it’s difficult.