Chip Roame says the greatest opportunity in the financial services industry over the next 20 years will be the booming number of Baby Boomer retirees.
This Website Is For Financial Professionals Only
That group was also the hardest hit by the 2008 financial crisis, in both their assets and their trust in advisors.
The scandals that have come to view since the crisis have dragged the reputation of the financial services industry to its lowest point—worse than every other sector except tobacco and government.
Consumers also lost over $4 trillion during the crisis. The combination of losses has driven many
investors to go it alone. This means advisors will have to do a lot more than offer investment advice to woo them back.
Offering broader financial planning services as Boomers move into retirement is one option. A confluence of events accompanies retirement, often the sale of a business, downsizing the primary residence, and rolling over a 401(k).
Beefing up marketing and customer service should be the first two items on advisors’ list of priorities to capture the liquidation of assets from all three of these events.
Boomers also want transparency and visibility. This requires more than the traditional advisor-knows-best type of advice. The more successful client-advisor relationships are more peer-to-peer.