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Copyright 2009 J. Coughlin
Friends, Finance, & the Future of Advice
Joseph F. Coughlin, Ph.D.Director
April 29, 2009Presentation to the
Million Dollar Round Table
Copyright 2009 J. Coughlin
Copyright 2009 J. Coughlin
The ‘Me’ Generation Rewrites ‘Ritz Rules’
“The notion of what our parents wanted … is different from what today’s generation wants.”
Source: WSJ 6/23/06
Friends, Finance & Future of Advice
• Women & Social Networks
• Social Networks as Filters
• Friends & Family as Validation
• Looking for People Like Me
• Boomers Need More Information
• Future of Advice
• Emerging Technology Platforms
Copyright 2009 J. Coughlin
Copyright 2009 J. Coughlin
1. Women & Social Networks
• Women most educated.
• Female workforce -- all time high ~70%.
• Live longer than men .• Family CEO -- place
premium on solutions not products.
• Comprehensive solution & information seekers
Copyright 2009 J. Coughlin
Implications for Financial Advisory & Practice Management
• Develop client relationships that build predictability – trust as well as results.
• Provide comprehensive explanations of recommended strategies that address financial performance and larger value, e.g., how one product may benefit survivors or LTC issues, etc.
2. Social Networks Information FilterEmotional Filtering & the Older Consumer
+ enhanced
emotion-regulation &
social adjustment
– missing negative
(potentially crucial)
information
Implications for Financial Advisory & Practice Management
• Emphasize positive results of planning, ‘what can be done.’
• Address emotional concerns as well as factual impacts of planning.
• Identify what can be done for others, e.g., legacy, reduction of financial and emotional burden on family members -- “planning is a gift to others.”
Copyright 2009 J. Coughlin
3. Friends & Family as Validation• More choice, more
freedom, more to do. • Growing expectations by
and for the consumer to do more, be more responsible and to balance competing demands, e.g., health, finance, work, family, caregiving, education, civic duty.
Copyright 2009 J. Coughlin
The Consumer’s Daily “Job”Navigating Life’s Tyranny of Trade-Offs
FaithSelf
Life Planning
Marriage
Eldercare
Children
Education
Work
FriendsTransportation
HomeCivic Engagement
Retirement
Health
Copyright 2009 J. Coughlin
Consumer Fatigue
• 54% of baby boomers agree with the statement:
“I am too tired to do all the things I want to do.” -
Yankelovich (2006)
Implications for Financial Advisory & Practice Management
• Whenever possible, ‘auto’ is everything.
• Serve as a solutions provider, not as a planner.
• Aggressively identify and pursue other venues for ‘time to plan,’ e.g., employer worksite, affinity events, such as college or military reunion.
4. Trust in “People Like Me”
Trust in a Time of ‘Crisis’
• Three Examples:
- Watergate
- Johnson & Johnson
- 911
• Focus on system trust versus individual trust
• Current financial crisis, different tact -- focus must be on individual relationships
QuickTime™ and a decompressorare needed to see this picture.
QuickTime™ and a decompressor
are needed to see this picture.
QuickTime™ and a decompressor
are needed to see this picture.
Implications for Financial Advisory & Practice Management
• A brand name is not a guarantee for consumer loyalty without performance
• Good performance is a given; distinguishing yourself in the market depends on the additional services and convenience you can provide
• History is…history
Copyright 2007 J. Coughlin
5. Boomers Need & Want More Information to be Better Planners
Copyright 2007 J. Coughlin
Implications for Financial Advisory & Practice Management
• Provide working actionable knowledge, not more information.
• Present comprehensive but accessible materials.
• Understand and be prepared to serve multiple roles -- agenda-setter, coach, teacher, expediter.
Copyright 2007 J. Coughlin
6. Future of Advice
Implications for Financial Advisory & Practice Management
• Engage entire household in establishing family financial strategy.
• Become familiar with adult children or social network.
• Read and participate in extended/virtual social networks, e.g., on-line reputation, presence, etc.
“Our Living Room”Emerging Technology Platforms
for Social Networking• 200 M people on Facebook• Now about 1.5 million female
users older than 55 on Facebook
• 550% increase over six months ago. People younger than 25 grew by less than 20%.
• Boomers use social network sites differently than younger users -- getting to know new people and learn new things
"Boomers are really affected by what's going on, and they like not to be alone with their thoughts.”
Robin Wolaner, TBD.com
Copyright 2009 J. Coughlin
On-Line End-of-Life Planning & Family Financial Management
• On-line planning strategy• Life insurance policy
bundled with 24/7 concierge services anywhere in North America.
• Gateway product to develop relationship with family.
Implications for Financial Advisory & Practice Management
listic life planning, longevity planning, not retirement planning, e.g., starting a business, part-time work, discretionary healthcare costs.
• Capacity to link financial planning & products with practical solutions, e.g., eldercare services.
• Comprehension of overlapping between privately funded and publicly provided services.
