With many of the baby boomers turning into grandparents, Cadret Grant has come up with an innovative way for advisors to open post retirement talks with their clients. “Discuss grand-motherhood or grand-fatherhood with any of your clients and you are likely to see smiles. As a result, aging-related financial topics such as retirement income and spending, annuities and gifts, which few clients approach with much excitement - can be discussed more positively when grand-parenting elements are incorporated and the positive glow of being a grandparent shines a light on the discussion,” says the whitepaper.
Here are a few ways to start your client conversations:
Highlight grandparent-related expenses as a part of retirement spending plans: As soon as advisers learn that clients will become grandparents or have become grandparents (and inquiring about grandparent status should be part of standard procedures), you should request a meeting or a call. This is likely to change a client’s retirement plans and spending patterns, suggests the paper. “Much like the popular ‘What to Expect’ books for new parents, a basic, financially-oriented guide for grandparents explaining what they may encounter financially in their new role could be a welcome addition to the value-added materials an adviser provides,” it says.
Encourage them to save for grand children: There are many possible ways to incorporate a grandparent focus. One is to work with a local child psychologist or professor of child psychology at a local college or university to develop an event or series of events focused on the challenges of modern grand-parenting. Another way to encourage interaction is to learn about their interests and concerns as grandparents.
Use grand parenting as a gateway to initiate estate discussions: An annual review of beneficiary designations and titling are the most important tasks for advisors. Focusing on grandparental desires to provide for their grandchildren can be a way to use this periodic review of titling and beneficiary designation as a springboard for discussions about estate planning, gifting and the establishment of trusts. It also may be helpful in prompting discussions about insurance and the benefits of coverage that clients may not have otherwise considered, says the report.
In conclusion, the whitepaper says that advisers who understand this emotional bond and address the financial issues that surround the grandparent‑grandchild relationship stand to reap the rewards.