What happens when a baby boomer grows up? They turn into seniors. It’s an inevitable part of aging for any demographic, but boomers are unique in that there are so many of them. How will this so-called silver tsunami impact advisors?
Retirement Advisor’s annual Advisor Survey found that the wave of boomer-turned-senior has had an impact on 73 percent of advisors’ businesses.
When asked to elaborate a little on the details of the impact, the advisors did not disappoint. Continue on to see five ways the silver tsunami is impacting their businesses.
Clients worry they won’t have the income they need
It’s something we hear and read in the news again and again: Workers not prepared for retirement.
Health education and advances in medical practices are helping us live longer – which is great – but many have not planned for or saved enough for this longevity.
When clients realize their savings are going to come up short, they start looking to take on more risk than they should to try and make up ground, Gary Ruchin of Ruchin Associates LLC says. He advises against clients doing this. “It’s always better to be cautious than risky once the spigot is turned off,” he says.
Clients need to modify their spending, Ruchin says. “It takes a couple of years (for them) to realize that.”
Clients want out of the stock market
Bull and bear markets can make some people a lot of money, but a lot can be lost when those markets go bust.
“The market has gone down twice in 13 years,” says Jim Cadle of Guaranteed Retirement Solutions LLC. That has made a lot of people scared of the market and turn instead to safer investments.
“Some people are not too keen about 2 percent – 3 percent, but the older people are,” says Mark Steffen of Fortress Financial. Steffen says he is “having great success” with the older crowd opting for security.
“Market cycles go up and down, up and down,” he says. “There’s some money in the market, but there’s got to be some common sense. Put growth into something secure.”