Good Strategy For Today: Suggest A Financial Fresh Start
Much space in recent issues of this magazine has been devoted to the needs and concerns of baby boomer clients as they save for their retirement.
Most likely youve had some of those very clients asking for your help in determining how to recover from the losses their retirement accounts have experienced in the last few years.
What can you do to help your clients make a financial fresh start? One thing you can do is direct their focus to the future, rather than the past, by encouraging them to make some specific financial goals. Setting financial goals certainly has more appeal than reviewing the financial setbacks of the past, especially the most recent past!
You might begin by reminding your clients that, even if they are only a few years away from retirement, their financial goals still include the long term. For example, a client who retires at age 55 could be in retirement for anywhere from 20 to 40 years!
Financial goal-setting takes the same approach as any other goal-setting activity: determine short-, intermediate-, and long-term goals. Then break those goals down into activities that can accomplish the goals.
Before you meet with your clients, have them write three lists for their six-month, three-year and long-term financial goals. (See the chart for an example.)
For instance, one client might have a six-month goal of reallocating his contributions in a variable annuity. He may want to diversify his holdings in a manner appropriate to the time he expects to need the money.