Aging Clients Are a Potential Boon for Accountants
Seniors have recently been recognized as a potential untapped cache of financial resources for accountants. Financial services for our aging population reveal new revenue possibilities for financial planners. The rewards for such ventures are not one-sided. An accountant will reap the rewards of performing their job while the senior clients gain better financial stability.
The population of United States citizens over the age of 65 has been steadily rising for decades. It is becoming increasingly common for these seniors to seek out financial planning services to stabilize and grow their finances. There are almost 50 million senior citizens alive today with the potential for that number to double in 30 years. The increase in this population alone equates to a significant demand for financial services catering to this demographic.
Saving for retirement is a priority for aging citizens, but what financial plans should be made after retirement? This is the question that drives clients to financial planners. Seniors are seeking to invest their money, generate positive cash flow, and build a solid financial foundation for the future. Financial planning for seniors often focuses on the funding of retirement, insurance needs, estate concerns, taxes, and investments.
Benefits to Accountants
With the variety of services an aging client may require, it is within an accountant’s best interest to offer those services. An innovative financial planner that focuses on services for seniors opens themselves up to a flood of new clients. Planning and strategies for insurance, IRAs, investments, and social security are just the tip of the iceberg.
The increase in services offered means that more work is done for fewer clients. This can, at first glance, appear to be counterproductive, but it is anything but that. A smaller number of clients lead to more services provided to clients. Service fees for these offerings leave the planners well paid and clients with the stability of a single financial firm to help with their finances.
More services means that clients will use the same firm for multiple financial needs and services. The addition of different financial avenues will also attract clientele that will be loyal. Client loyalty correlates to a secure revenue resource for planners.
Benefits to Clients
In the past, financial planning services were broken off into different categories with separate financial specialists for each one. This meant that a senior would need to employ the services of several specialists to accomplish their financial goals. This antiquated system would result in more fees for services rendered and the spreading out of finances among different firms. Accountants today are making the change to offer more services out of a single firm to save clients’ money and build mutually satisfying financial relationships.
Building a good rapport and trust with a financial planner instills loyalty within a clientele. A firm where everything can be done under one roof is an incentive to most clients, but especially to seniors. The ability to get to know their financial planner and become familiar with one office is comforting. To have the freedom to discuss numerous account strategies with one planner lessens confusion and helps clients and planners make better decisions.
Like any new business, offering bigger and better options attracts clients. Keeping clients on the roster comes down to how well business is conducted. Financial planning should be performed with the needs of the clients in mind. Only financial planners well-versed in multiple financial categories should bill themselves as a planner.
Accountants that focus on solely taxes or investment strategies are not a financial planner and should present themselves as a specialist in their field. A financial planner comes equipped with knowledge of many different financial categories. Clients will seek out planners who are capable of discussing, strategizing, and implementing plans for their entire financial portfolio. The job of a financial planner is to assist clients with financial decisions that will see them through the rest of their lives.
Financial Planning for the Older Generation
Financial planning strategies for seniors are more complicated than with most other types of clients. Often financial planning for seniors involves planning for the present, future, and after the passing of the client. This leads to the need for preparation in advance for everything from retirement to estate division. A financial planner is qualified to initiate the following strategies:
– Cash flow analysis
– Estate planning
– Financial advisement
– Income forecasting
– Investment planning
– IRA accounts
– Life insurance
– Tax preparation and strategies
– Long-term tax planning
– Retirement planning
– Social Security benefits
I’m a Certified Professional Accountant based in Hawaii. I love discussing Tax and Accounting issues. I’m a small business owner, and I admire people working hard to create companies and promote the economy. I really hope you liked my article. Please do not hesitate to give me reviews. As a side note, when you e-file 1099’s this year, use www.efile4biz.com. You won’t regret it.
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