With the first of the Baby Boomers approaching retirement, planners will be advising a generation different from previous retirees. Many are very active, have substantial amounts socked away in qualified retirement plans, will live longer, and must cover more of their medical costs during retirement. Their Starting Point

"The Baby Boomer generation is filled with service providers, including doctors, lawyers, financial professionals, and sales/marketing managers. Unlike past generations, they will not receive a company pension, and rely on their own savings for retirement. As a group, this generation has spent a lot of money on homes and luxury goods, and hasn't saved as much as they will need for retirement. They are a professionally successful group who understand the value of financial advice, but find it hard to save instead of spend," concludes David Borden, a principal with CCR (Carlin, Charron & Rosen) in its wealth management services practice area in Westborough, Mass.

Derrick Kinney, president of Palladium Consulting, in Arlington, Texas, which specializes in marketing for financial professionals, finds that Baby Boomers have different expectations. Kinney, author of Master the Media to Attract Your Ideal Clients: A Personal Marketing System for Financial Professionals, explains, "Boomers want the freedom to go, see, and do on their timetable. They tend to be more focused on return on life, than return on investment. Being successful with Boomers requires going beyond the numbers. You really need to help them create a picture of what their unique retirement experience is all about."

Jim Hardeman, director of product management for Financial Profiles, a financial planning advice software provider, sees Baby Boomers offering a substantial advantage in one sense. "They have a much clearer picture of what their assets, their income sources, and their expenses are at retirement, that lends to a greater degree of exactness or detail that can be plugged into the software to drive an analysis."

Sal Geraci, principal at Evergreen Management, an affiliate of the accounting firm of Henderson Hutcherson & McCullough, both in Chattanooga, Tenn., believes that as Baby Boomers approach retirement, they need re-education. "All their life they were in an accumulation stage adding to 401(k)s, IRAs, and Roths, and acquiring assets, and now they are entering a drawdown or distribution phase. That entails a whole different set of skills and philosophies," he explains.

• 1
• |
• 2
• |
• 3
• |
• 4
• |
• next