Five Minutes of Fuel- Do You Trust Me?
Posted on August 30, 2010 in Advanced Planning
Do You Trust Me?
Aladdin uttered these words when he took Jasmine’s hand as they prepared to leap out of the window to elude the bazaar police in that great Disney movie. He made the initial sale, disappeared, then later he returned to the palace pretending to be someone he wasn’t. In the process of reselling the Princess he stumbled and bumbled thinking he knew what she wanted or needed. What won her heart in the end was his being true to his heart and hers (aside from saving the Kingdom)…Simply doing the good and right thing for the people for whom he cared deeply.
Isn’t trust at the core of our successful relationships with our own families, friends, business associates and clients? Trust is necessary and essential if those relationships are to go deep and remain long lasting. And it is especially true when working with seniors. This month’s issue of Senior Market Advisor highlights the 2010 Senior Survey and the results demonstrate the skepticism seniors have with financial advisors.
Slightly less than half of those surveyed turn to financial advisors for guidance, and those that have indicate they have had great results. But of those who do not have an advisor the majority of them said there is nothing anyone could do to earn their business.
One would expect seniors to be conservative with their investment strategy and the survey reveals 92% want financial products that are low risk and provide peace of mind. However, only 7% of those that use advisors seek out insurance brokers or agents for help. In addition, health care issues are top of mind for seniors, but nearly 70% are rather adamant about not discussing health care issues with their advisors.
The key to a good advisory relationship with seniors includes: trust, knowledge, loyalty, good listening skills, honesty and integrity. But with that said, why is there such disconnect with critical issues such as health care and financial security? Is it aversion to the sales process….to be “sold” a product? Many seniors are savvy purchasers. They take the information and they “think about it”, they go back home and they do their own research, on-line or talking with friends and family, without the pressure of the sales situation. Those seniors (only about one third of those surveyed who have advisors) who have long term relationships with their advisors reveal the greatest satisfaction. These advisors tend to know their clients and listen to what it is their clients are thinking and why.
Steve McCarthy, Chairman of the National Business Ethics Bureau, has some simple advice for advisors:
- Do what’s right for clients. If you do you’ll earn more than enough money.
- Client needs are more sophisticated. Learn how to address them.
- Don’t hold yourself out to be something you are not.
- Don’t misrepresent products. Show the pros and the cons, benefits and risks…full disclosure.
- Bottom line- Don’t pursue self-interest at the client’s expense.
Aladdin learned his lesson, and in the end he got the money and the girl! Do you trust me?
Glen Coral
Director, Advanced Markets
610.862.2263 – gcoral@cbiz.com