here are 10 ways to nurture happier, richer clients. meanwhile: check the tax season stress-o-meter.
by rick telberg
at large
if this is tax season, it should also be personal financial planning season. tax practitioners don’t need to be reminded about the personal financial planning opportunities that lie untapped in their legions of tax clients. or do they? a remarkably large number of tax mavens remain quite content to fill in the blanks, file the forms and cash the check. but, except in some of the more complex situations, it doesn’t take all the acquired skills of an accomplished and experienced cpa to do that. sure, cpas do taxes, and they do them probably better, more accurately and more reliably than anyone else. but the super-cpa can do so much more. and, by the way, many cpas working in private practice business and industry also have an important role to play. if you’re like most finance and accounting professionals, you have the ear of the owner and directors of your company. what kind of planning have they done for themselves? or succession planning for the business?beyond telling us the obvious fact that baby boomers are scared to death about not having enough money for retirement, a recent report on workers’ retirement savings preferences lays out a nice nugget about marketing financial planning services.
the report has already grabbed headlines with the finding that americans are finally starting to save and to plan. the total of employees saving for retirement outside the workplace rose to 66 percent in 2005 from 58 percent in 2004. other details about the worker respondents’ thoughts on saving and investing should give financial planners, particularly cpas, hope and ideas for increasing their businesses.
the report, sponsored by the transamerica center for retirement studies, has a david letterman-like top ten list of financial planning business ideas.
top ten financial planning ideas
10. while the working public seems inclined to want to save for retirement, 71 percent of workers admit that they do not know nearly as much about the process as they should.
action idea: sounds like a nice opportunity to step forward and impress with your knowledge of the field.
9. some 31 percent of workers say they would invest a $1,000 windfall into retirement saving.
action idea: maybe it’s time to think about pitching your financial planning services to tax clients who are due big refunds this season.
8. another 24 or workers said they would use a $1,000 windfall to pay off debt.
action idea: can you offer some debt restructuring expertise?
7. internet usage is an indicator of investing patterns. while non-internet users value savings more, online clients tend be more financially prosperous and, as such, a richer market for financial planning.
action idea: is it time to fine-tune launch your own financial planning blog and client newsletter?
6. married couples are far more likely than singles to save for retirement, yet only 60 percent of the married people surveyed said they now use a professional financial planner.
action idea: what are you doing about the other 40 percent of the market?
5. the market is even more fertile for non-married long-term domestic partners. more than 73 percent of them do not now use a financial planner.
action idea: this market is rich in disposable income, but bereft of reliable and sympathetic advisors.
4. experts say households using a financial planner are more likely to save than households without planners.
action idea: what more do you need to say to the savings-challenged?
3. experts say households that use a financial planner are not significantly more confident about their retirement security than other households.
action idea: perhaps it’s time to reassure your clients or at least ask them about their retirement concerns.
2. about 35 percent of those surveyed said they do not believe their employers are concerned about their retirements.
action idea: if they can’t rely on their employer, then who can they turn to but you?
1. but more important than items 10 through 2 is clearly the report’s broad finding that people want to save for retirement more than ever before. among other things the survey found is that the number of employees depositing lump-sum distributions into tax-qualified savings plans has more than doubled, to 43 percent in 2003 from 19 percent in 1993.
our number one action idea: it’s clearly a good time for cpas to enter into or expand personal financial planning services.
[first published by the aicpa]