Think of your client base like a map—you need to know the terrain to navigate it successfully. Baby Boomers, born between 1946 and 1964, control a significant portion of wealth due to their lifetime of savings and investments. Yet, they are often mischaracterized, with outdated ideas clouding the true picture. These misconceptions can create missed opportunities to build meaningful connections with Baby Boomer investors. Here, we’ll address five common myths about Baby Boomer investors and set the record straight.
Myth 1: Baby Boomers Are Tech-Phobic
While they didn’t come of age with digital technology, the lion’s share of Baby Boomers today are at least open to learning about how to use technology in their personal lives. Per Statista, 76% of Boomers reported owning a smartphone in 2023. Many are comfortable using digital platforms to access statements and interact with advisors because of the convenience factor.
The lesson here? Don’t shy away from using digital tools to cater to this audience. They can still elect to use analog solutions, but you should at least give them the option for how they wish to engage. Their response might surprise you.
Myth 2: They’re Risk-Averse Investors
The perception that people over 60 have a “play it safe” mentality isn’t necessarily the case across the board. Many are comfortable with a portfolio of high-growth investments, especially as they have their sights set on maximizing retirement savings or planning an imminent wealth transfer to children or grandchildren. Generally speaking, Boomers are inclined to weigh risk against strategic returns.
With this in mind, advisors would be best served to present diversified investment options that consist of moderate-risk, high-reward opportunities. Like any generation, Baby Boomer clients want to feel like the advice they receive reflects their unique circumstances.
Myth 3: Baby Boomers Stick With Firms No Matter What
Loyalty may enter in the equation for some older investors, but that doesn’t mean they’ll put up with anything. Baby Boomers are increasingly inclined to fire advisors if they don’t feel heard or aren’t getting enough perceived value from the relationship. Demonstrate your worth by offering expert financial advice backed by proactive, personalized service. Be mindful about taking action to sustain their trust and give them a reason to recommend you.
Myth 4: All Boomers Are Preparing for Retirement
Though it’s imminent for many, not all investors in this generation are singularly focused on relishing the fruits of life post-work. Many are active business owners with no intention of slowing down soon and prefer to keep their minds and bodies engaged. Some Boomers are thinking about carving out a legacy through philanthropic efforts and want guidance on how to do so.
The idea here is to avoid subscribing to a one-size-fits-all approach. Get to know each investor’s goals and aspirations and ask clarifying questions when in doubt. You might uncover some helpful nuggets about their personal lives that help you connect with them on a deeper level.
Myth 5: Boomers Are Living the Easy Life
Some Boomers are sitting pretty, due to family wealth or other circumstances. But that’s not necessarily the case across the board. According to the Federal Reserve Bank of New York, boomers collectively are shouldering the burden of nearly $3 trillion in total debt. These liabilities include credit cards, car loans, mortgages, and other types of loans.
The bottom line: Baby Boomers are not a monolith nor should you treat them as such. We all have biases that impact our ability to do our best at work. The best thing we can do is acknowledge them and try to check them at the door. Making assumptions about a generation of investors’ needs, preferences and goals serves no one. There’s no substitute for getting to know each client on an individual level, no matter their demographic background. When clients feel valued, they’re more likely to stay and refer others.
To truly understand your clients, no matter their generation, you need to take the time to get to know them. Knowing your clients is often synonymous with gathering the right data, and that data is key to providing personalized and effective services. The process of gathering that information can take different approaches, and that’s where PreciseFP comes in. Whether you’re meeting face-to-face, sending a link, or scheduling a Zoom call, PreciseFP allows you to connect with your clients in the way they prefer. By organizing this information efficiently, you can position your firm as a premier, client-focused service provider. Get everything in place after the discovery stage, so your operations are streamlined and ready. Start with a free trial today and see how PreciseFP can transform the way you work with your clients.
