In answering five questions with us, one of our readers says he has taken the approach of embracing regulatory change, and why not? It's inevitable, right?
As part of our "five questions" series, we talked with Jeff Bucher,president of Perrysburg, Ohio-based Citizen Advisory Group and got his thoughts on suitability as well as the senior and boomer markets. Below are highlights from that discussion.
Senior Market Advisor: What drew you to the senior market in the first place?
Jeff Bucher: My first position in the insurance business was with a captive insurance company that focused solely on the senior market. At the time it was just a job. I quickly fell in love with helping retirees overcome the many challenges that they face. This is why even today I am a comprehensive advisor. Health care is a challenging issue with all the changes and various options. Long-term illness is a concern for many. Their final expenses and legacy must be carefully navigated with all of the changes in tax laws. And, most importantly, they are retiring with lump sums of money that must be managed for the rest of their lives. Many advisors only focus on one piece of this challenging puzzle, but I feel I can bring more value to my clients by taking a comprehensive look at everything that will impact their retirement. It is my passion that my clients sleep well and can enjoy what are supposed to be the golden years.
SMA: Why did you make seniors the focal point of your practice?
Bucher: Once I fell in love with the industry I realized the tremendous opportunity that is ahead of us all in servicing the baby boomer generation. I also recognized that with this opportunity comes great responsibility. This is why I decided to focus on all of the facets that will impact my clients, including being a balanced advisor and picking up my securities license.
SMA: Have you changed the way you do business or do you have plans to make changes in light of regulatory changes?
Bucher: I embrace change and think regulatory changes are going to be good for the business. As an IAR, I have been able to greatly expand my knowledge base and become a better producer on the fixed insurance segment as well. I am prepared for any change as I am doing what's best for my clients in providing a full financial plan that consists of safety and growth. How could any advisor argue that doing what's best for your clients beyond just what's suitable is unreasonable?
SMA: In what key way (or ways) do you incorporate suitability into your selling approach?
Bucher: Suitability is the key these days with all insurance carriers. The requirements have become much more stringent and the issuance of policies comes with great care from the carriers. We make sure, by our fiduciary standard, that any product we place a client in meets the standard of care. This means we leverage the carriers and our IMO to be certain suitability and our fiduciary requirements are met for the client. Suitability isn't an issue when you are doing the right thing for your clients.
SMA: How have you customized or changed your business to address the needs of the new baby boomer generation of clients?
Bucher: The baby boomers are a much more sophisticated client base. I am proud to have customized my business to meet their needs. With over 76 million people retiring over 20 years, this new emerging market wants assurance they will not outlive their assets. They have seen volatility over the last decade that has wiped out their assets. The psychology of this group is different: Their needs have changed; their future is not as certain as it once was. It's my job with my baby boomer clients to provide them with that plan. I meet with clients and chart a course for them well into retirement. We adjust this plan as time goes on and needs change. Using some proprietary income planning tools, I am able to provide a sense of security through some insurance products while giving them an opportunity for growth on other assets. If I can maximize their assets to provide certainty and guarantees based on their needs, then I can provide an opportunity to enhance their lifestyle with growth.
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