The job of a financial advisor is not simply giving financial advice. There are times the advisor steps into the worlds of psychology, counseling, personal trainer, travel agent and even surrogate parent or child. This might seem intrusive or invasive, but in long term client relationships, you become the first call they make when problems develop. However, you also develop a sense for when your client should be keeping in touch, but all you hear are crickets. That is a bad sign.
As people age, they tend to slow down. They do less and less. They get bored. It often happens gradually. They go into a self imposed isolation. What are the signs? What can you do? Let us assume your client is in wonderful financial shape.
1. The kids stop visiting. These are the people who will be heirs someday. They might keep in touch by phone. Maybe they live at a distance. You are in touch with them, because they are clients too. You know everyone’s birthdays. You can encourage them to setup a party or visit your older client.
2. Your client stays home a lot. They have a wonderful house. They don’t entertain anymore. They tend to watch TV all day. They have not taken a vacation since their partner died. You can take them out to lunch now and then. You will likely split the bill or take turns paying.
3. They are driving less and less. There could be a good reason! Their children, trying to be helpful, have discouraged them from getting behind the wheel. They have not introduced an alternative means of transportation. You can introduce them to Uber and Lyft. Other services too. Help them set this up when you encourage them to come to the office for their quarterly portfolio review.
4. Their friends are dying off. This happens when you get up there in years. They need new friends. Are they interested in visiting the local senior center? (It probably has a more acceptable name.) Do they have favorite nonprofit causes? Sound them out and try to get them interested.
5. They have become more religious. This is a good thing. Maybe they have been this way for decades. Religious organizations have great support systems in place. They have groups meeting monthly. The might have a food pantry that needs volunteers. Their pastor provides the same (non investment) help you are trying to provide. They are probably better at it.
6. Are they getting any exercise? This is another way they can socialize. Does a local gym offer a senior program like Silver Sneakers? This should have little or no cost along with classes they can attend. They will meet other people.
7. Are they philanthropic? This can be a good moment to talk about a Donor Advised Fund. They might be in the position of having low cost basis stock. They might be taking mandatory retirement plan distributions, but don’t need the money. If they start giving money away to local charities, they will quickly gain new friends!
8. Get them to eat out. They might not be cooking much at home. Do they have favorite restaurants? See if you can encourage them to build a list of four and visit a couple every week. The staff will get to know them and socialize with them.
These are ways you are showing your client you really care about them. Their accounts are likely on an asset based pricing platform. They follow your thoughtful advice. Their mind is still clear. Help them enjoy life as long as possible.
Related: Post April 15th: What Did the Accountant Tell Your Client?