This segment will demonstrate how to bridge the gap in client discussions about longevity planning and it will also show ways in which LTC planning can introduce new relationships to the advisor. We know that LTC planning makes good financial sense. We also know that there are obstacles which get in the way of advisors speaking to clients about LTC planning. Our recommendation is that, as an advisor, you first align yourself with a support system that can help you with ltc planning. One that is market intuitive, experienced, innovative and puts the best choice for your client at the top of the priority list. In seeking a supportive partnership, common objections that held the advisor back disappear. Objectives include:
- Not enough time
- It’s an uncomfortable conversation
- Skeptical about the market
- It’s too complicated
Identify the right clients: 45-75 net worth of $400k+, premium allowance of $3,000 to $5,000 per year. Clients with existing life/annuity products Start the conversation by asking clients if they’ve ever known someone who has had a care event and then ask them to tell you about it. Find the common threads that put you in the seat of uncovering planning opportunities. Tell your client how accountable you feel to help them plan for every aspect of their retirement…especially by protecting their retirement plan.
When you protect your client, you also protect their family…and your business. 2% of children keep their inheritance with their parent’s financial advisor. The millennial are the biggest generation to hit our country since the baby boomers. Every year for the next 50 years $1 trillion will pass from one generation to the next. How prepared will you be when your clients children call to ask you about Mom/Dad’s long term care plan? Filial laws are not to be ignored. In 28 states there is a legal precedent of financial responsibility for the expenses of a loved one. State agencies can seek collection of funds on Medicaid services. Document your LTC planning discussion with your clients. Have the client sign and acknowledge that you discussed options and either took next steps or decided to take their chances. Either way, the family members should know that you as the advisor took necessary steps to educate their loved one on LTC planning.
Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.