Serving Main Street

Clients don’t have to be wealthy to benefit from the services you provide in towns and cities across America.

By Kevin Mayeux, CAE

Anew survey by international investment management behemoth, Blackrock, has found, not surprisingly, that most Americans are not prepared for retirement. Also, not surprisingly, people are stressed about this lack of preparation. I learned about this survey from an interview with Blackrock CEO Rob Kapito on the “CBS This Morning” program.

Kapito and Blackrock, described as “the largest money manager in the world with assets of over $6 trillion,” are doing a fine job with their survey and media appearances to raise awareness of the problem. But as I watched the program, it struck me that a broad segment of Main Street Americans already know they are struggling to prepare for retirement. This is simply not news to them. Their question is not what, but how?

It also struck me that there is another segment of people who may not be struggling, or, at least, who are confident they are doing something to confront the problem. These are the people who work with professional insurance and financial advisors like you to prepare for the future.

As a NAIFA member, you serve clients in cities, towns, and neighborhoods across the United States. And clients don’t have to be wealthy to benefit from your services. A recent survey of NAIFA members found that nine out of 10 serve middle-income clients, and almost half serve at least some lower-income clients. More than 80% say their typical clients have a combined annual household income of less than $150,000, and about half say their typical clients earn less than $100,000 a year.

Your clients include people struggling to get by from paycheck-to-paycheck, those living very comfortably, and everyone in between. If they have financial decisions to make, no matter how grand or small, you can help. Most importantly, as an advisor, you don’t just make consumers aware of the problem — you offer them solutions as well.

As a NAIFA advisor:

*You help families create and stick to realistic budgets so they can plan for the expected (retirement, college expenses) and the unexpected (loss of employment, illness or injury, surprise expenses).

*You review their insurance policies, 401(k) plans, and other accounts, and work with them to find ways they can save money or plan better.

*You counsel them on how to get their financial houses in order. If they are in debt, you work with them to create a strategy to pay it down. Even if they have several bills, if it’s at all possible, you urge them to pay themselves first because if they try to pay themselves after paying all of their bills, they may never be in a position to do so.

*You provide them with flexibility to pay for your financial advice, products, and services in the way that works best and is most beneficial to them.

*You work with the knowledge that even if they incorporate only half of the advice they receive, it is better than doing nothing or having no budget at all.

*Most importantly, you build relationships with your clients. You have frequent conversations or communications with them, year-round, to review their financial goals and make sure they are staying on track.

As a NAIFA advisor, what you do for Middle America is priceless: You help them stay on track with their financial goals and provide the guidance they need to secure a sound financial future.