Serving senior clients well means covering a set of issues specific to the needs of this group.
“[Senior] clients don’t necessarily want someone who is just trading investments for them,” says Patricia Domingo, investment and retirement planner with RBC Wealth Management in Toronto. “They want to make sure [you are] someone who cares about their well-being financially.”
Conversations about legacy planning, downsizing or renovating a home and long-term care are all vital conversations to have with your senior clients. But there are many other discussions to cover. Here are some important topics of conversation you should have with your older clients:
> Making things simple
Talk with senior clients about how they can streamline their lives, both on paper and in reality.
As people get older they prefer to move away from complex investments and toward less risk, says Bev Moir, a senior wealth advisor with ScotiaMcLeod Inc. When discussing how to streamline their assets, mention the importance of organizing or even downsizing possessions and documents to make things easier for their children or heirs after their death.
> Talking with family
You and your clients shouldn’t be the only ones talking about the future. Make sure your senior clients speak to their children about their wishes and plans.
“Ask if they’ve talked with their kids or whoever is going to be the beneficiary,” Moir says. Have they thought about how they are going to pass on the money? At what age or stage of the beneficiary’s life will they receive the assets?
As well, ensure your clients have informed their children or the heirs about where to find important documents, she says. If your clients have a safety deposit box, make sure their children know what is in it, where it is and where to find the key.
> Spending habits
Speak with your senior clients about their incomes and whether they are spending too much or not enough, says Moir.
For those clients who do not wish to spend all of their capital during their lifetime, she says, discuss the possibility gifting assets to children or grandchildren.
> Who to trust
Be aware of financial elder abuse and talk to your senior clients about it, Moir says.
Discuss the impact of strategies such as joint accounts and powers of attorney, she says. If your elderly clients are considering creating joint accounts with their children or other relatives, or appointing powers of attorney, ask how much they trust those involved.
> Opportunities and changes
Always let a client know about developments in the industry.
“It’s a lot of information for a client to keep on top of,” says Domingo. “There could be changes in legislation or changes in options when it comes to investing.”
Even if your client has used the same strategy for years, says Moir, don’t be afraid of mentioning new opportunities, such as tax-free savings accounts.
Next: How to frame the conversation
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