If you want to strike at the heart of investor concerns, just look to the Boomer generation. This generation has changed every life stage it has experienced. Just look at the changing nature of retirement. Retirement is a completely different experience than it was a couple of generations ago.
And, rather than being focused completely on financial matters in an investment advisory relationship, a recent Allianz study shows that for Boomers, the emotional elements of transferring a legacy is an integral part of being a wealth owner.
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Boomers are the current beneficiaries of the largest wealth transfer in history. The importance of family stories and life lessons as part of their parents’ legacy was primary to 86% of Boomers and to 74% of their Silent generation parents. This confirms an earlier study conducted in 2005 and shows that market and economic volatility only solidified that view.
This has also affected how Boomers and their parents view their advisors. In 2005, 74% of Boomers cited honesty and trustworthiness as imperatives in their choice of advisors. This view was shared by 67% of their parents. In 2012, those numbers jumped to 89% for Boomer and 91% for their parents.
The takeaway here is not to favor one aspect of advisor expertise over another; it is instead to realize that other components in addition to performance, service quality, and product availability are essential ingredients
that cannot and should not be overlooked.
It means we will do both ourselves and our clients a huge favor by directly connecting the emotional and family aspects of investing to the strategies we develop for them. The world could become our wealth management oyster.