4 Ways to Convince Retirees They Need a Professional Financial Advisor

Many Americans are not financially prepared for retirement. According to the Report on the Economic Well-Being of U.S. Households in 2013 published by the Board of Governors of the Federal Reserve System, approximately 31 percent of Americans who aren’t retired reported having zero retirement savings or pension.

Even individuals with savings may not be adequately prepared to manage finances throughout their retirement, especially with regards to addressing market changes, personal challenges, and new investment opportunities. Often with little or no financial expertise, retirees just don’t have the background or know-how to create or manage their portfolios successfully.

Financial knowledge is especially critical to the aging population and retirees as they move to living on reserved or fixed income. However, do-it-yourself investors, retirees with limited income, and sometimes even retirees with substantial assets often don’t understand the value of expert financial guidance. Here are four compelling things you can do to convince retirees why working with a financial expert is essential to preparing for retirement.

1) Build a Rapport

From the first meeting, develop a trusted relationship with clients. Financial experts, even those with the best intentions, who “hard-sell” their services without regard to an investor’s individual needs can come across as inauthentic or sneaky. This is not a promising way to begin conversations with retiring or retired prospects. Convey your passion for helping clients by exploring each investor’s unique situation and expectations. Attracting retired prospects should be an exercise in not only showcasing your expertise but also your commitment to building a lifelong relationship focused on helping enrich their lives.

Earning designations like the Retirement Income Certified Professional® (RICP®) establishes your credibility as a retirement expert and commitment to offering comprehensive retirement income solutions. Advisors with advanced training typically display more confidence, elevating an investor’s comfort level in asking questions and divulging critical personal information. Financial planning courses develop your skills in explaining complex retirement and investment concepts in more simple, understandable terms. Advanced training combined with your focus on establishing a strong rapport becomes the basis of a trusted relationship with retired prospects.

2) Talk About More than Money

Even financially savvy individuals preparing for retirement sometimes overlook important and ever-changing factors related to inflation, social security, medical expenses, the cost of health care, and more. What works in their retirement portfolio today might not be appropriate down the road. Keeping up to date with issues that have the potential to drastically impact their financial success during retirement can be daunting and overwhelming to retirees. Prospects need to know that you can be their lifeline, ensuring accumulated wealth and retirement income streams are safe, secure and sustainable.

Using knowledge and insights gained from a specialized designation like the Chartered Financial Consultant® (ChFC®) or RICP®, you can confidently approach prospective clients of all income and savings levels about establishing both short and long-term plans that accomplish their retirement goals and consider future scenarios. Advanced training empowers you to proactively advise on topics like the right time to retire, when to tap into Social Security and/or other savings, and which investment vehicles are best to sustain and maximize savings.

3) Offer Specialized Advice

Financial professionals with specialized designations are often better equipped to help clients navigate intricate areas such as elder-care, trusts, end-of-life preparations, retirement planning around Medicaid and maximizing veteran benefits. Show retired prospects that your expertise goes deeper than surface-level, “vanilla” recommendations. Help them understand that specialized training is a valuable asset in optimizing their financial strategy.

4) Discuss Your Commitment to Your Fiduciary Responsibility

Unfortunately, retirees — especially the eldest — are often perceived as easy marks by con artists. Unscrupulous individuals try to confuse the elderly with jargon, doubletalk, scare tactics, and promises of unrealistic return on investments. Focused only on self-gain, many pressure clients to sign documents before thoroughly reviewed, and leave little to no paper evidence behind.

Combat misperceptions or wariness prospects may have by openly discussing your fiduciary responsibilities as a trusted advisor, your commitment to ethical standards and concern for their best interest. These types of conversations, especially at the onset of a relationship, can help convince prospects you’ll be their advocate and strategic counselor. Walk the talk by providing true transparency in your advisory role and outlining all fees, requirements and payment schedules. Be an avid adopter of the new fiduciary rules outlined by the Department of Labor, and show retired prospects you truly have their best interest in mind.

If being an trusted resource to retirees is a priority for you, don’t underestimate the importance of earning an advanced financial designation like the RICP®. The Retirement Income Certified Professional® will sharpen your existing skills and help you develop deeper expertise and understanding of how to best advise this audience.

Find out more about how this in-demand designation is empowering advisors to confidently deliver retirement income guidance to clients by downloading The Guide to Being a Successful Retirement Income Planner.