Opportunities Abound In Meeting Financial Needs Of Retired Men
To meet the financial needs of retired men, you must understand both their psychology and their individual financial circumstances.
The older man typically was his familys sole or primary breadwinner and, in retirement, he continues to have the breadwinner mentality. He wants to provide for his wife and children.
The older man may not see long-term care insurance or life insurance as a pressing need. Instead, hes vitally concerned with protecting his capital, earning a good return, generating cash flow and making sure his beneficiaries, not Uncle Sam, will inherit his money.
With the stock market diving, hes deeply concerned about his principal. He may have a portfolio of mutual funds and annuities that have turned in disappointing results. He may not know how to evaluate his funds. He may not realize that the funds and stocks he bought many years ago arent appropriate investments at this stage of life, but even if he does, he may not know how to go about choosing ones that are. He often doesnt know where to get good financial advice.
Surprisingly, many retired men, even those with sizable portfolios, have been abandoned by their stockbrokers, who avoid calling clients during down markets.
Heres a real-life example. My client was an executive with a big corporation. His company provided financial planning to its executives and set him up with an advisor at a wirehouse firm. Over the years, his investment advisor changed several times. Once he retired, he never heard from anyone again–even though his portfolio had climbed past the $1 million mark. When he came to me, he had incurred some big losses and was eager to talk to someone who would listen to him and provide good advice.
Admittedly, it is a lot easier to sell investment products when the markets booming. But the opportunities are just as great, if not greater, in the senior market today.
Many retired men are sitting on a lot of money, and often their money isnt working as hard for them as it could be. This gives you, the advisor, a chance to reposition the assets appropriately.
During your first meeting, find out what he sees as his most pressing concerns and take a look at his investments and tax situation. Get the facts and determine his risk tolerance. Youll often find big gaps in planning and some very basic mistakes that you will be able to rectify readily.
