Face to Face

The Key to Success? Creating a Culture of Connection―Part II

by Tony DiLeonardi

In this post, I am going to pick up on our discussion on the four trends every advisor needs to understand if they are going to create value and connection.  We looked at the move towards working in teams and the benefits it may offer.  

The next two trends are demographically based:

Trend #2: The Aging Population
As the average age of the world's population increases, advisors need to understand and address the factors that impact this client segment.  As a whole, these investors will experience the longest retirement periods in history in the face of low savings rates, declining pension plans and a questionable future for Social Security. As a result, they will need advisors that not only do they trust, but ones that may help them coordinate the broad range of services their situations may require.

Trend #3: The Greatest Transfer of Wealth

While an aging population naturally presents us with this next trend, the statistics are staggering on the number of investors receiving generational wealth that select another advisor to manage the wealth. 
This really needs to be our wakeup call!  Through our own myopia, we are letting assets simply walk out the door rather than trying to keep the assets already entrusted to us!  Have we forgotten the basic lesson that it is easier to retain existing assets than attract new assets?  Take the time and identify your clients with generational connections and build those relationships.

The other side of this trend is being prepared to service high-net-worth (HNW) assets.  To date, countless studies have been done on the complex needs of HNW individuals.  Despite this plethora of information, we continue to disregard the message and focus on pushing products to our HNW clients when what they really want (and need) is wealth management. This demand/need takes us back to the discussion on building your network of professionals as effective wealth management simply can't be achieved without help.

In the next post, we'll wrap up our discussion on the four trends by concluding with creating value for the female investor.