Over the past few years, the financial advisory profession has seen an emergence of a new class of clientele. This client is hard to describe, in that the client is neither fully working, nor fully retired. This client might be using some, but not all, of their retirement earnings. They are pre-retired — and it should be fully embraced as an option for you to present to those you serve.
Jobs and professions have become more intense and many corporations are in constant downsizing and restructuring mode due to technological change. Employees are looking at their lives and asking themselves if there’s a better form of work/life balance. Many employers are allowing, and even encouraging, work from home options. You will find clients who yearn to have their work revolve around their life, rather than their life revolve around their work.
An example would be a client, age 55, whose kids are out of college and whose house is almost paid off. A combination of debt reduction or elimination, part-time work, and perhaps some investment earnings would allow this person to earn 40-60% of their previous pay but also have lots of free time to enjoy their passions. Your new financial plan might include 15 or more years of this exact situation. The reduced stress might make them happier and healthier.
It’s important to realize this as you meet with both current clients and prospects. Help them solve the work/life balance and encourage the younger generations to save so they might open up this possibility for themselves later on in life.
Josh Decker is a certified financial planner at EFS Advisors.
Opinions expressed are those of the author, and do not necessarily reflect the views of NTSA or its members.
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