Editor’s note: Bryce Sanders is a longtime columnist with Rethinking65. Read more of his articles here.
Bryce Sanders
Music often sets the mood. In scary movies you know suspenseful music means something horrible is about to happen. Years ago, when staying at a Club Med, I noticed they played Leaving on a Jet Plane (John Denver, 1969) as last week’s group of guests was checking out. “All my bags as packed, I’m ready to go…” certainly signals it’s departure time. Do you have older clients acting as if life is over for them? How can you bring them back into this world? How can you get them to enjoy themselves?
Here are 11 things to bring up with them:
The stock market has been hitting all-time highs
This was true around Sept. 19. This person would not be your client if they did not have assets. They are probably invested in the stock market to some degree. Your investment advice helped make them financially comfortable. They should enjoy it.
How much they earned their first year in the workforce
Let us assume they entered the working world in the 1970s. Maybe their first job paid $12,000 a year. The S&P 500 average monthly return in August was 2.28%. If they have about $525,000 invested in the stock market, a $2.28% average return is about $12,000. This means that in some months their portfolio may have risen more than they were paid in their first year’s annual salary!
This client has been complaining about low interest rates for how long?! You saw 5% CD rates over the past few months and banged the drum! They followed your advice! Since the Federal Reserve has lowered rates, that 5% CD yield is history. They locked it in for some time period.
Will they run out of money? Probably not
You have been meeting regularly for portfolio reviews and the occasional financial plan review. You run three scenarios, showing a possible best, worst and average case. The numbers all look good. When my wife and I contemplate getting older, I always remind her that our financial advisor has her living to 107! Your client has saved for a comfortable retirement. They have arrived. Now enjoy it.
The human body can run for 100 years on its original parts
No one has shown me a statistic to make this point; it’s common sense. We live in a world where many products are expected to need replacement after a few years. Laptop computers are expected to last 4 to 5 years. Refrigerators last 10 to 20 years. Thanks to advances in medical science, as long as your mind is intact, the doctors can fix, replace or repair almost everything else. (There are some diseases that are the exception.) According to 2015 research, a 65-year-old has a 62% (men) or 71% (women) chance of reaching age 80 today. If your client lives in an area with great hospitals, they have a lot going in their favor.
The children get more interested the older you get
You might feel your children are living their own lives or are busy raising families. They don’t keep in touch that much. As their children become independent, they will have more time. They might become more attentive. The fact you will eventually leave a nice inheritance helps. There is a saying, “Money can’t buy happiness, but it keeps the kids in touch.”
What have they wanted to do during their lifetime?
I don’t like the expression “bucket list.” It has a sense of “fatality.” I like the “during your lifetime” approach. Watching the film “The Bucket List” might be a good start. It has been said at the end of our lives, we don’t regret the things we did, we regret the things we did not do.
Take advantage of bargains
Does your client live on the East Coast? Are they an Anglophile? I recently came across $407 round trip New York to London airfares on major airlines. Your client’s time is their own! Take advantage of great deals. As their advisor, you might point them out.
Sailing-soon cruise fares
This is another area where you, as their advisor, can help. Does your client live in a homeport city like New York, Miami or Fort Lauderdale? Great airfares to Europe might require advance planning. Last-minute great cruise fares are for people who can sail next week (or within the next few weeks). Your client can spend a week or two being pampered, often at an absurdly reasonable price. They can make new friends!
Time to read those books you got as presents
We had lunch with a recently widowed friend. She said that for years her husband was given books by family members as holiday gifts. Now she has the time to look them over, pick the ones she likes and determine the order in which she will read them. How many books does your client have that they never read?
Stop to smell the roses
Your client has a balcony, a back yard or some outdoor space. How often do they sit in the sun and enjoy their surroundings? Do they listen to the birds? They bought a house with outdoor space for a reason. Why not enjoy it before winter comes?
Your client is in an enviable position. They have worked hard to get into good financial condition. They might know other people who have more money than them, but they have plenty to be happy about. They need to see things from your perspective. You can help them.
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor” is available on Amazon.
