Helping Boomers To Start Talking About Money

“If they go into more detail, I feel I have the right to bring up the topic of money…say, by asking, ‘How much do your vacations usually cost?’” He may discuss with them whether their current approach to vacations is working for them, giving them a sense of value.

If something is not working, that would be reason to go deeper, he says. Or, Heath may explore whether the clients can afford to handle vacations as they do now on a consistent basis in the retirement years.

Tatman also believes listening is critical. She spends at least 2 meetings getting to know new clients, focusing on what they value and what they want to do. “We do this before we send them to an attorney or other professionals. That’s important if we are to be effective and develop a plan that articulates their goals.”

Many boomers have never even thought about these things, at least not in such a direct way, she points out, adding that “a lot of times, it’s a case of ‘you don’t know what you don’t know.’” So her starting point is values, concepts and ideas.

Take a soft approach. Heath makes a point of not asking blunt questions, such as “How are you going to pay for that?” What works with a lot of older boomers is a “soft” approach, he says. “Help them make the connection between what they want and how they are enabled to do that…

“Start with the feeling questions, and then move to the hard facts.”

Work on a referral basis. Hochwalt has not made cold calls in over 15 years, but says he still brings in over 150 new clients a year. He attributes this to the fact that he focuses on referrals–boomers who arrive already prepared to talk about their money.

Even some referrals have difficulty getting to the point, he allows. But the referral at least provides a basis of trust. In time, most “do come forth with the data, and we do develop a comprehensive financial plan and provide full financial checkups.”

Pre-screen. Hochwalt pre-screens the referrals he gets, too. This helps him rule out seeing people who do not seem open or interested in working on their financials.

Charge fees. That is something Hochwalt is starting to do now. A lot of high-end boomers, especially those in their 40s, have been cautioned to “stay away” from certain types of advisors, including those who don’t charge fees, he says. These boomers believe that advisors who charge fees have “greater credibility,” he says, and they have the expectation that they will pay fees for what the advisor does for them.

This has positive impact, Hochwalt maintains. Not only are these boomers willing to talk about financial matters in detail, they are also “never late for an appointment” and “they call you first before they call their other advisors, when they want someone they trust to put it all together for them.”

Train the advisors. A lot of the time, “no one has trained the advisors to get people to open up about their dreams and aspirations,” Bell maintains.

This is so even though the advisors who are the superstars in the business are the ones who are better at connecting with people, he says. “It’s people skills, not product knowledge, that’s needed–listening, phrasing words, repeating back what the person has said, letting them know you hear them.”

The advisor needs to have rapport with the boomer, Bell stresses. “If you have that, the planning is relatively easy, and you can customize the plan and products to the person’s goals.”

Ask open-ended questions. Bell suggests asking questions like, “Have you thought about what will happen if you get disabled now or 20-30 years from now?” Or, “What would a normal day for you look like in retirement?”

If a boomer says he or she would like to spend more time with the grandkids, nieces and nephews, or more time traveling, Bell suggests opening that up. “Ask the boomer to think about how to do this, and how to set up a budget that will support that goal.”

Delve deeper and help clients focus on what they really want, Bell concludes.

Do this, even if the client says, “I haven’t a clue,” he says. In response, the advisor can say, “Maybe you ought to think about that first.” Also give the client a question sheet, to help them do that thinking.

“If you drill down from the big picture, boomers will often tell you their assets and other details,” he concludes. Advisors who do that will find that many people are really “very clear” about what they want, he says.

Use filters: Tatman believes that her business model includes various “filters” that help screen out prospects who do not want to talk about money matters. Such filters include working with referrals (from CPAs and attorneys), and residents of gated communities (who are typically age 55+, financially set, and strongly motivated to stay where they are, with their community).

Bell tells a story about one younger client who went through the process of identifying goals, disclosing financial details, and working the plan. (The goal was for the husband to retire early, spend time with his children, and teach part-time at a university; for the wife to have funds to achieve her own goals; and for the children’s schooling to be undisturbed.) This entailed financial change, some sacrifice, and further schooling at night for the husband, but all agreed. Today, several years later, the family is living that dream, he says.

The plan needed adjustments along the way, Bell allows, and it required “thinking small” at first and bigger as time went on. But once the couple articulated their goals and wrote the plan, it worked.

“It’s scary in a way,” Bell says. But with good communication and continual tweaking, people can discuss money and develop plans that work.