WEBVTT - How Financial Advisors Can Grow During the Great Wealth Transfer (Sponsored Content)

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<v Speaker 1>Because you're a subscriber to this Bloomberg podcast, we thought

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<v Speaker 1>you'd be interested in a sponsored podcast called The Great

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<v Speaker 1>Client Transfer, produced by Prudential and Bloomberg Media Studios. Here's

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<v Speaker 1>the recent episode.

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<v Speaker 2>Welcome to the Great Client Transfer. If you're a financial advisor,

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<v Speaker 2>I'm sure you've heard about and thought about the Great

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<v Speaker 2>Wealth Transfer. This is an inflection point where there's a

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<v Speaker 2>huge opportunity to try to solidify a new generation of clients. However,

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<v Speaker 2>when the money moves, there's a very good chance your

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<v Speaker 2>clients will move to Demonstrating true understanding of how this

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<v Speaker 2>new generation thinks about wealth and retirement will be essential.

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<v Speaker 2>Today we'll discuss the data behind the wealth transfer and

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<v Speaker 2>how financial advisors can make the most of this moment.

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<v Speaker 2>I'm Maggie Lake, a financial journalist, and I've heard experts

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<v Speaker 2>opine on this issue for years, but today I want

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<v Speaker 2>to boil it down to some hard facts and actionable ideas.

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<v Speaker 2>To do that, I've put together a fantastic panel. We

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<v Speaker 2>have Chelsea Ransom Cooper, a financial advisor with Zenith Wealth

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<v Speaker 2>Partners who's actively working to retain current clients and attract

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<v Speaker 2>new ones. Britney Castro, a financial planner will offer a

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<v Speaker 2>behavioral finance perspective for our conversation. She's here to decode

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<v Speaker 2>the why behind a lot of client actions we've been seeing.

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<v Speaker 2>And we have David Blanchette, the head of Retirement Research

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<v Speaker 2>for Prudential Financial and portfolio manager at PGIM. So welcome everybody.

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<v Speaker 2>It's wonderful to have you here in person.

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<v Speaker 3>Thank you for having us.

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<v Speaker 4>Yeah, great to be here.

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<v Speaker 2>This is a really important topic. So I think we're

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<v Speaker 2>going to have some fun and hopefully give some people

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<v Speaker 2>some stuff to learn about. David, Prudential has done a

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<v Speaker 2>lot of research on this great wealth transfer. What's the

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<v Speaker 2>research telling you?

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<v Speaker 5>I mean it's a really big number, right according to

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<v Speaker 5>our Serulei report, over one hundred trillion dollars it's estimated

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<v Speaker 5>to be transferred to generations in the next twenty five years.

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<v Speaker 5>So I mean we're talking about just this tremendou and

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<v Speaker 5>this you know, opportunity in this risk. Because if you

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<v Speaker 5>look at at people when they're asked like are you

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<v Speaker 5>going to stick with your parents' advisor? Only about nineteen

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<v Speaker 5>ish percent say they're going to stay with their advisor,

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<v Speaker 5>you know, going forward. So I think that what this

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<v Speaker 5>creates is just is just this question, like, how are

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<v Speaker 5>you preparing as an advisor to meet this new possible demand.

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<v Speaker 2>That's a shockingly low number. I think I was not

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<v Speaker 2>expecting to hear that. Brittany, you focus on the behavioral

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<v Speaker 2>part of finance. Why why is that number so low?

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<v Speaker 2>Why do people feel like they have to make a change.

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<v Speaker 4>Well, I think for so long they feel unheard or

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<v Speaker 4>unseen by the financial advisor, Especially in this scenario where

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<v Speaker 4>it's the next generation, they probably are looking at that

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<v Speaker 4>advisor as like no offense, but old dinosaur, Like they're

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<v Speaker 4>not talking to me in a way that makes sense.

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<v Speaker 4>They're not like relating to me where I'm at with

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<v Speaker 4>my goals, with my different lifestyle. I mean, planning is

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<v Speaker 4>a lot different for millennials and younger than it is

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<v Speaker 4>for the baby boomer generation. So if they're feeling unheard, unseen,

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<v Speaker 4>uncomfortable asking questions of the person that they're supposed to

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<v Speaker 4>hire as their professional, of course they're going to leave

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<v Speaker 4>and find somebody who is more relatable, who can help

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<v Speaker 4>them where they're at, help them feel empowered, not feel

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<v Speaker 4>bad about the decisions they've been making with their money

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<v Speaker 4>up until that point.

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<v Speaker 2>And I find it surprising because there is it's a

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<v Speaker 2>big important thing. It can be stressful, So you would

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<v Speaker 2>think continuity would be the easy path, the path of

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<v Speaker 2>least resistance, But they're blowing it up and saying, I

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<v Speaker 2>want something different, I want to find a change. Are

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<v Speaker 2>you seeing that?

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<v Speaker 3>Absolutely, I'm seeing it with a lot of the clients

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<v Speaker 3>that are even coming to us right now. So I

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<v Speaker 3>worked with a family who was going through the similar situation,

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<v Speaker 3>and as they were planning for their wealth transfer to

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<v Speaker 3>their children, the children met that advisor and when they

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<v Speaker 3>walked out of that meeting, they're like, this is not

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<v Speaker 3>our guy, this is not our person. It felt like

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<v Speaker 3>a dinosaur to Britney's point, and they wanted somebody that

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<v Speaker 3>could actually understand where they were coming from based on

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<v Speaker 3>where they were in their life as millennials. So I

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<v Speaker 3>think that's the element where they decided to look for

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<v Speaker 3>somebody on their own and then start to have family

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<v Speaker 3>conversations with this newer advisor akame instead of that traditional advisor.

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<v Speaker 2>This has to be a tough statistic for some to hear,

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<v Speaker 2>because I certainly know when I talk to people who

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<v Speaker 2>work so hard trying to grow their net assets and

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<v Speaker 2>have something to leave for the next generation. They've worked

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<v Speaker 2>so hard, they want to protect their life's work and

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<v Speaker 2>they want to make sure that it is able to

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<v Speaker 2>transfer in a seamless way. But now we hear this,

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<v Speaker 2>there's this big disruption.

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<v Speaker 5>So I think that for better for us, A lot

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<v Speaker 5>of times we're talking about about portfolios and financial advising.

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<v Speaker 5>We're not focusing on household or focusing on individuals and

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<v Speaker 5>perceptions of what matters really differ across men and women.

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<v Speaker 5>I think women are much more interested in things like protection.

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<v Speaker 5>But if you look at at surveys out there, there's

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<v Speaker 5>these huge gaps that exist in terms of what advisors

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<v Speaker 5>think they're doing for their clients and what people actually report.

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<v Speaker 5>Ording to an Alliance for Lifetime in Come peerp study,

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<v Speaker 5>sixty two percent advisors think they're talking about protecting with

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<v Speaker 5>their clients. Only twenty seven percent do. And so I

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<v Speaker 5>think I think it requires being intentional understanding, like where

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<v Speaker 5>your strength and weaknesses are, because if you if you

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<v Speaker 5>don't have a plan how to how to engage you know,

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<v Speaker 5>the spouse, the next generation, like you're going to be

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<v Speaker 5>part of that eighty percent, not the twenty percent.

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<v Speaker 4>And I've heard it so many times in my career

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<v Speaker 4>where women would leave the financial advisor after the husband

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<v Speaker 4>died or passed away because they didn't feel seen or

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<v Speaker 4>heard that entire relationship. And so while the advisor thought

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<v Speaker 4>it was a successful relationship, the client immediately when she

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<v Speaker 4>had the chance, she left.

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<v Speaker 2>Chelsea, this is interesting because you're in, you're on the

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<v Speaker 2>front line on this. Is it that the advisors are

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<v Speaker 2>not talking about it or that the clients aren't hearing

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<v Speaker 2>everything they're saying.

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<v Speaker 3>I think it's a bit of both, because I think

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<v Speaker 3>as advisors were taught away on how to deliver advice

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<v Speaker 3>and how to have conversations with individuals to make sure

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<v Speaker 3>that we're you know, dotting all our eyes and crossing

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<v Speaker 3>our t's when it comes to retirement planning, estate planning

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<v Speaker 3>and protect But if they're not receiving it because they

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<v Speaker 3>are just not prepared for that conversation or they're not ready, well,

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<v Speaker 3>then we're missing each other. And I think that's something

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<v Speaker 3>pretty common where we're doing something because we know this

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<v Speaker 3>is important to have this conversation, but maybe they're not

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<v Speaker 3>ready to receive it yet.

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<v Speaker 4>It's a huge problem, and I think for financial advisors

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<v Speaker 4>when they start to realize the value that they bring

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<v Speaker 4>to clients is more about helping that client make decisions,

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<v Speaker 4>helping them feel empowered with their money, excited, confident, versus

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<v Speaker 4>putting the data in front of them. They'll say everything

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<v Speaker 4>in one meeting, go over cash flow, tax planning, retirement planning,

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<v Speaker 4>and stay planning, all of it. But it is so

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<v Speaker 4>much information. And remember, money is emotional. So what I

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<v Speaker 4>retain in a meeting, even if you've told me everything,

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<v Speaker 4>I'm filtering through my own history, own emotions, behaviors, mindsets

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<v Speaker 4>with money. So maybe I walk out of that meeting

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<v Speaker 4>only hearing ten percent of what Chelsea told me. That's

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<v Speaker 4>a problem. So what advisors can do to help combat

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<v Speaker 4>that is also just deliver it in short forms. So

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<v Speaker 4>we have to remember that as financial advisors give clients

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<v Speaker 4>information in bite sized pieces, have more meetings more regularly,

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<v Speaker 4>talk about only one or two things at each meeting.

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<v Speaker 4>That's going to help the client so much more than

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<v Speaker 4>trying to dump everything in one meeting.

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<v Speaker 3>Right.

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<v Speaker 5>So, I mean, I'm an investment guy. I love me

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<v Speaker 5>a good portfolio, but portfolio is one very small component

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<v Speaker 5>of achieving a financial goal. I think what we're seeing.

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<v Speaker 5>Is this evolution or a profession away from advisors defining

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<v Speaker 5>their value propositions. I build portfolios to I help you

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<v Speaker 5>accomplish your financial goals, right, and that's retirement, that's everything,

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<v Speaker 5>And to me, like that should have always been the focus,

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<v Speaker 5>but it hasn't been. And it does require advisors to

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<v Speaker 5>think about how are they going to rise to the

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<v Speaker 5>occasion and do this?

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<v Speaker 2>How do you see that? How do you deal with that?

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<v Speaker 3>I absolutely see it, especially as I'm training the newer

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<v Speaker 3>advisors on our team as well, because there's so much

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<v Speaker 3>pride when you build that financial plan right, and you

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<v Speaker 3>have all your pages and you know all the math works,

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<v Speaker 3>and you show it to them and then is just

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<v Speaker 3>not as excited as you are, And it's like why

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<v Speaker 3>are they not as excited? It's like they're not emotionally

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<v Speaker 3>connected to all of this data you're putting in front

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<v Speaker 3>of them. So you have to find a way to

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<v Speaker 3>tie it to their values and what's important to them.

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<v Speaker 3>But I also encourage advisors to ask two really important questions.

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<v Speaker 3>The first one is what does wealth mean to you?

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<v Speaker 3>So when they talk to a new client and they're

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<v Speaker 3>starting to build that rapport, really understand their relationship with

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<v Speaker 3>money and what wealth truly means to them, but also

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<v Speaker 3>what does financial success look like in having a relationship

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<v Speaker 3>with a financial advisor.

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<v Speaker 4>And I think financial advisors have to be willing to

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<v Speaker 4>go to that place with clients, which is more emotional

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<v Speaker 4>intelligence versus just data. And so even having that open mindset,

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<v Speaker 4>like David's saying, there's things you could do. You can

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<v Speaker 4>learn skills to talk to your clients in a different format,

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<v Speaker 4>like there's financial coaches, or bring in a financial coach

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<v Speaker 4>if you don't know how to have these conversations. But

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<v Speaker 4>being that holistic, you know it's more than just numbers.

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<v Speaker 4>It's the life, it's their dreams, it's their family, it's

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<v Speaker 4>like what they care about most. And like Chelsea was saying,

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<v Speaker 4>and when you connect those two, they're going to be

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<v Speaker 4>so much more motivated to one implement, but then two

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<v Speaker 4>senior praises, and you'll probably get a lot more.

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<v Speaker 2>Referrals and that story may be different than the original client.

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<v Speaker 5>We talk about gaps. According to the Alliance for Lifetime

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<v Speaker 5>and Computer Purport seventy some advisors say they frequently discuss

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<v Speaker 5>how their clients are going to spend their time and retirement,

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<v Speaker 5>But clients report only twenty nine percent have those conversations, right, So, like,

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<v Speaker 5>I mean, retirement's about a lot more than money. And

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<v Speaker 5>I think if you're not talking about like how you're

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<v Speaker 5>going to fill your time, how you're going to structure

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<v Speaker 5>what you have to maximize that time, you're not doing

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<v Speaker 5>the best job you could.

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<v Speaker 3>And I think it's a hard conversation for a lot

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<v Speaker 3>of individuals to have to really think about that behavioral

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<v Speaker 3>component of what are you going to do, what's in enquirement,

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<v Speaker 3>and what's next. And I think sometimes clients are so

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<v Speaker 3>eager to work towards that goal where they can get

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<v Speaker 3>out of that nine to five or quit the corporate

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<v Speaker 3>rat race, that they're not actually thinking about what are

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<v Speaker 3>they going to do in that time so they still

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<v Speaker 3>feel fulfilled and all the other elements of their life.

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<v Speaker 3>But I think those are the core pieces that we

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<v Speaker 3>need to focus on to make sure that their values

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<v Speaker 3>are mapped to their financial plan in that roadmap.

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<v Speaker 5>I don't love the word retirement because I think as

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<v Speaker 5>negative baggage. I like the word financial independence. You know,

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<v Speaker 5>like think about if you were to be financial independent,

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<v Speaker 5>like how would you spend your time like, I like

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<v Speaker 5>that question more because I just like, maybe it's just me,

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<v Speaker 5>but I have like, like people golfing are going on,

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<v Speaker 5>I don't know that. Imagine you don't have to work,

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<v Speaker 5>what would you do? I think that's a better way

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<v Speaker 5>to think about the end of life stage versus quote

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<v Speaker 5>unquote retire.

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<v Speaker 4>I think that's also a great point too for financial

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<v Speaker 4>advisors to start to pay attention to the language they're

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<v Speaker 4>using with clients, because I agree, like the next gen

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<v Speaker 4>millennials and below are not thinking about retirement. We're thinking about, well,

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<v Speaker 4>let's find something that we enjoy that we can have

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<v Speaker 4>financial independence. Yes, but even the idea of stopping working

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<v Speaker 4>seems kind of like very odd.

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<v Speaker 3>And that's exactly what a lot of my clients talk

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<v Speaker 3>about because they are first generation wealth builders and the

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<v Speaker 3>term they'll use as a work optional lifestyle where they're

0:11:07.000 --> 0:11:09.600
<v Speaker 3>working for their passion because they choose to and not

0:11:09.640 --> 0:11:12.679
<v Speaker 3>because they feel obligated to. And that's really the number

0:11:12.720 --> 0:11:14.839
<v Speaker 3>that they're working towards, is where they have that piece

0:11:14.840 --> 0:11:16.360
<v Speaker 3>and that flexibility in their life.

0:11:20.320 --> 0:11:23.679
<v Speaker 2>The other thing that Prudentials Research has touched on is

0:11:24.160 --> 0:11:26.320
<v Speaker 2>a confidence gap. What do you mean by that?

0:11:26.360 --> 0:11:27.679
<v Speaker 5>What does that mean, yeah, I mean, you know, you

0:11:27.679 --> 0:11:30.560
<v Speaker 5>could call it a gap or a paradox, but you know,

0:11:30.600 --> 0:11:33.720
<v Speaker 5>there's this like people don't always have the best assessment

0:11:33.720 --> 0:11:35.920
<v Speaker 5>of where they are financially what they should be doing.

0:11:36.360 --> 0:11:38.800
<v Speaker 5>There are large gaps in what you'd call like subjective

0:11:38.880 --> 0:11:41.920
<v Speaker 5>and objective knowledge when it comes to finances. According to

0:11:41.960 --> 0:11:46.040
<v Speaker 5>the Prudential's latest pul survey, about ninety percent of mass

0:11:46.040 --> 0:11:49.720
<v Speaker 5>affluent Americans think that they're on track to cover their

0:11:49.800 --> 0:11:52.640
<v Speaker 5>essential expenses in retirement, but only about forty percent of

0:11:52.640 --> 0:11:54.880
<v Speaker 5>people have an advisor, only about a third of a

0:11:54.960 --> 0:11:57.839
<v Speaker 5>financial plan. So there's kind of this misalignment from where

0:11:57.960 --> 0:12:00.520
<v Speaker 5>folks think that they're in a really good spot, but

0:12:00.600 --> 0:12:02.280
<v Speaker 5>the data might suggest otherwise.

0:12:02.960 --> 0:12:05.199
<v Speaker 2>Brittany, can you help us make sense of that? How

0:12:05.240 --> 0:12:07.760
<v Speaker 2>can you be confident and to have no plan at

0:12:07.760 --> 0:12:09.880
<v Speaker 2>the same time two things seem like they would be

0:12:09.880 --> 0:12:10.679
<v Speaker 2>polar opposites.

0:12:10.840 --> 0:12:12.800
<v Speaker 4>I think a lot of people have this with their money.

0:12:12.920 --> 0:12:15.280
<v Speaker 4>They might know what to do, they might think they

0:12:15.320 --> 0:12:18.640
<v Speaker 4>know what to do, they might research everything what to do,

0:12:18.800 --> 0:12:20.960
<v Speaker 4>but they don't actually do it. And that is for

0:12:21.040 --> 0:12:24.040
<v Speaker 4>many reasons. I think money, like I said earlier, is

0:12:24.080 --> 0:12:26.920
<v Speaker 4>super emotional for people, so there's a lot of concepts,

0:12:26.960 --> 0:12:29.559
<v Speaker 4>a lot of mindsets, a lot of scripts that we

0:12:29.640 --> 0:12:35.040
<v Speaker 4>inherit from parents, from family, society, school, and to really

0:12:35.080 --> 0:12:37.840
<v Speaker 4>get clear that yes, you can have a crystal clear

0:12:38.040 --> 0:12:40.959
<v Speaker 4>plan in place, but that doesn't mean you're actually going

0:12:41.040 --> 0:12:44.359
<v Speaker 4>to implement or behave in that manner with your money.

0:12:44.480 --> 0:12:47.719
<v Speaker 3>So oftentimes when I work with clients, sometimes they'll come

0:12:47.720 --> 0:12:49.840
<v Speaker 3>to us because they feel obligated because this is the

0:12:49.880 --> 0:12:52.880
<v Speaker 3>thing to do. I know I should talk about my finances.

0:12:53.160 --> 0:12:55.400
<v Speaker 3>I know I should have an advisor, But deep in

0:12:55.440 --> 0:12:57.480
<v Speaker 3>their soul, they're really not at that place yet where

0:12:57.480 --> 0:13:00.240
<v Speaker 3>they're ready to do the work or actually engage and

0:13:00.280 --> 0:13:03.080
<v Speaker 3>like taking care of their finances. And that is okay

0:13:03.360 --> 0:13:06.120
<v Speaker 3>that maybe that's not their moment yet, but it's really

0:13:06.160 --> 0:13:08.679
<v Speaker 3>hard to work with somebody if they haven't reached that

0:13:08.720 --> 0:13:11.400
<v Speaker 3>phase and they know what their internal why is. So

0:13:11.440 --> 0:13:13.640
<v Speaker 3>I think there's an element of as advisors, we need

0:13:13.679 --> 0:13:15.280
<v Speaker 3>to do the work to make sure that we're bringing

0:13:15.559 --> 0:13:17.840
<v Speaker 3>the knowledge and the empathy to the table. But I

0:13:17.840 --> 0:13:20.600
<v Speaker 3>think clients also need to internally know their why too,

0:13:21.120 --> 0:13:23.960
<v Speaker 3>of what they're building, why they're building towards these goals,

0:13:24.200 --> 0:13:26.280
<v Speaker 3>so that it can really be a really good partnership.

0:13:26.480 --> 0:13:28.320
<v Speaker 5>You know. I think what we often overlook is that,

0:13:28.440 --> 0:13:31.960
<v Speaker 5>like we've kind of solved inertia for people in accumulation

0:13:32.080 --> 0:13:34.160
<v Speaker 5>right now, we have defaults. You know, we talk about

0:13:34.160 --> 0:13:37.640
<v Speaker 5>behavioral finance, like you know, automatic enrollment, default savings rates,

0:13:37.640 --> 0:13:40.320
<v Speaker 5>you know, targeted funds. All these things make the default

0:13:40.320 --> 0:13:43.080
<v Speaker 5>path easiest. Is you get closer to your retirement, like

0:13:43.120 --> 0:13:45.680
<v Speaker 5>you have to start making decisions, yes, right, And so

0:13:45.720 --> 0:13:48.000
<v Speaker 5>I think like that's where advisors are so viable, because

0:13:48.040 --> 0:13:50.280
<v Speaker 5>like you can't not make decisions or you'll make the

0:13:50.280 --> 0:13:52.360
<v Speaker 5>wrong ones. And so all of a sudden, you know,

0:13:52.520 --> 0:13:54.920
<v Speaker 5>like this this this knowledge gap. Well, like we're kind

0:13:54.920 --> 0:13:56.559
<v Speaker 5>of creating an environment here we don't have to be

0:13:56.679 --> 0:14:00.920
<v Speaker 5>very knowledgeable to build wealth. But then how how do

0:14:00.960 --> 0:14:03.280
<v Speaker 5>you even figure out how to accumulate that? That's an

0:14:03.360 --> 0:14:04.400
<v Speaker 5>entirely different skill set.

0:14:04.480 --> 0:14:06.640
<v Speaker 3>I actually was talking to a client recently where they're

0:14:06.640 --> 0:14:09.199
<v Speaker 3>about two years out from retirement, and just the thought

0:14:09.240 --> 0:14:11.360
<v Speaker 3>of pulling money out of that account where they've worked

0:14:11.360 --> 0:14:14.840
<v Speaker 3>so hard to see it grow every single year, and

0:14:14.880 --> 0:14:17.000
<v Speaker 3>now the element that we are pulling money out so

0:14:17.040 --> 0:14:18.880
<v Speaker 3>that they can live off of it was it was

0:14:18.920 --> 0:14:21.480
<v Speaker 3>a tough conversation. We had to have an in depth

0:14:21.520 --> 0:14:24.400
<v Speaker 3>meeting about like that feeling and why there is so

0:14:24.520 --> 0:14:27.160
<v Speaker 3>much hesitation around this when we had run the plan

0:14:27.200 --> 0:14:29.680
<v Speaker 3>and the analysis that they were okay. So I think

0:14:29.720 --> 0:14:31.960
<v Speaker 3>those are the elements of having somebody in your corner.

0:14:32.000 --> 0:14:34.440
<v Speaker 3>It's just so important the work that we do as advisors.

0:14:34.760 --> 0:14:36.600
<v Speaker 5>They need more help than they often realize.

0:14:39.480 --> 0:14:43.120
<v Speaker 2>So what should financial advisors be thinking about doing next week?

0:14:43.480 --> 0:14:46.120
<v Speaker 2>How can they make the change? What do those changes

0:14:46.200 --> 0:14:46.680
<v Speaker 2>look like?

0:14:47.080 --> 0:14:50.200
<v Speaker 4>One have an open mindset. I think learning is something

0:14:50.240 --> 0:14:53.320
<v Speaker 4>that you have to constantly be willing to do, no

0:14:53.320 --> 0:14:55.680
<v Speaker 4>matter what age you are, and that's just because of

0:14:55.760 --> 0:14:59.440
<v Speaker 4>the world we live in with technology, AI's constantly changing things,

0:14:59.440 --> 0:15:02.840
<v Speaker 4>So we all have to have that open beginner's mindset.

0:15:03.280 --> 0:15:05.800
<v Speaker 4>And for a financial advisor, if they go next week,

0:15:05.880 --> 0:15:08.720
<v Speaker 4>look at their practice, look at how they're communicating currently

0:15:08.760 --> 0:15:12.520
<v Speaker 4>with their ideal client, tele maybe start to identify are

0:15:12.520 --> 0:15:15.960
<v Speaker 4>there just terminology gaps, Like instead of saying retirement, should

0:15:16.000 --> 0:15:18.920
<v Speaker 4>we start saying financial independence? You know, in our marketing

0:15:19.040 --> 0:15:20.680
<v Speaker 4>and in our meetings with clients.

0:15:20.840 --> 0:15:23.720
<v Speaker 3>I think these are the elements wheref we're missing people consistently,

0:15:24.080 --> 0:15:26.880
<v Speaker 3>they're looking for somebody that is using the same language

0:15:26.920 --> 0:15:29.600
<v Speaker 3>that they're using, but understands the trajectory that they're trying

0:15:29.600 --> 0:15:31.360
<v Speaker 3>to go and can meet them on that path.

0:15:31.600 --> 0:15:34.400
<v Speaker 2>So you have an audience of financial advisors listening. Some

0:15:34.480 --> 0:15:36.800
<v Speaker 2>are earlier in their careers, some have a very well

0:15:36.920 --> 0:15:40.800
<v Speaker 2>established book of business with well healed clients. What should

0:15:40.840 --> 0:15:41.080
<v Speaker 2>they know?

0:15:41.760 --> 0:15:41.960
<v Speaker 4>You know?

0:15:42.000 --> 0:15:44.280
<v Speaker 5>So if you look at its surveys of financial advisors

0:15:44.320 --> 0:15:47.000
<v Speaker 5>in terms of, you know, threats that they perceive or challenges,

0:15:47.080 --> 0:15:50.680
<v Speaker 5>client acquisition is first followed intergenerational transfers, and so they're

0:15:50.720 --> 0:15:53.560
<v Speaker 5>kind of acutely aware that they need to get more

0:15:53.600 --> 0:15:55.560
<v Speaker 5>business and the need to retain the business of GOT.

0:15:55.640 --> 0:15:58.280
<v Speaker 5>If you've built a business doing something for a certain subset,

0:15:58.440 --> 0:16:00.400
<v Speaker 5>I think there's a really good chance that that might

0:16:00.440 --> 0:16:02.280
<v Speaker 5>work for a few more years. But to be long

0:16:02.360 --> 0:16:04.320
<v Speaker 5>term durable, you have to be able to meet with

0:16:04.360 --> 0:16:06.160
<v Speaker 5>the next generation. You got to have different paths to

0:16:06.200 --> 0:16:08.920
<v Speaker 5>offer services. I think that requires like a team model

0:16:09.280 --> 0:16:11.080
<v Speaker 5>and just doing more than what we've seen. And I

0:16:11.080 --> 0:16:14.400
<v Speaker 5>think there's been a really exciting evolution of our industry

0:16:14.440 --> 0:16:16.120
<v Speaker 5>over the last at least two decades in terms of

0:16:16.120 --> 0:16:18.920
<v Speaker 5>being more holistic, more advice. I think that has to continue,

0:16:19.480 --> 0:16:21.480
<v Speaker 5>and it's easier more now than ever given the tools

0:16:21.520 --> 0:16:22.440
<v Speaker 5>we're seen being created.

0:16:22.720 --> 0:16:26.480
<v Speaker 3>Yeah, I heard you say yes absolutically, And I think

0:16:26.520 --> 0:16:29.320
<v Speaker 3>the team based approach is so crucial because we can't

0:16:29.360 --> 0:16:31.960
<v Speaker 3>be everything to everyone and that's naive to assume that,

0:16:32.480 --> 0:16:34.600
<v Speaker 3>but we want to make sure that we're able to

0:16:34.640 --> 0:16:36.920
<v Speaker 3>add the right people on our team to make sure

0:16:36.920 --> 0:16:39.800
<v Speaker 3>that we can connect with different individuals. So I always say,

0:16:39.840 --> 0:16:41.800
<v Speaker 3>you know, trust is earned, and it's not just your

0:16:41.840 --> 0:16:44.440
<v Speaker 3>credentials or the performance you're able to get a client,

0:16:44.640 --> 0:16:46.760
<v Speaker 3>but it's really being there in those moments and having

0:16:46.800 --> 0:16:49.360
<v Speaker 3>people on your team that can connect with other members

0:16:49.400 --> 0:16:51.360
<v Speaker 3>of their family or different groups that you just may

0:16:51.360 --> 0:16:52.320
<v Speaker 3>not be able to connect with.

0:16:52.440 --> 0:16:54.120
<v Speaker 5>I mean, I think it's important to just acknowledge where

0:16:54.120 --> 0:16:54.920
<v Speaker 5>you are on that spectrum.

0:16:54.960 --> 0:16:55.080
<v Speaker 1>Right.

0:16:55.080 --> 0:16:56.840
<v Speaker 5>If you've got a bunch of younger clients, like you

0:16:56.840 --> 0:16:59.160
<v Speaker 5>should be in attack mode, right, you should build the

0:16:59.160 --> 0:17:03.160
<v Speaker 5>infrastructure to engage the next generation to get these clients

0:17:03.040 --> 0:17:05.920
<v Speaker 5>as they gain wealth. If you have an older, larger

0:17:05.920 --> 0:17:09.080
<v Speaker 5>book of business, how are you actively protecting it? What

0:17:09.119 --> 0:17:11.639
<v Speaker 5>are you doing to make connections to the spouses, to

0:17:11.640 --> 0:17:14.080
<v Speaker 5>the next relation to ensure that you know when things happen,

0:17:14.400 --> 0:17:16.080
<v Speaker 5>your position actually maintained those.

0:17:15.920 --> 0:17:24.640
<v Speaker 2>Assets to bring it all together. The world that financial

0:17:24.640 --> 0:17:27.600
<v Speaker 2>advisors work in is changing in a couple of key ways.

0:17:27.720 --> 0:17:30.040
<v Speaker 2>The people who will be their clients in five years

0:17:30.080 --> 0:17:32.879
<v Speaker 2>probably aren't their clients today. They need to be ready

0:17:32.920 --> 0:17:35.719
<v Speaker 2>and receptive to this new group of investors, and this

0:17:35.800 --> 0:17:40.000
<v Speaker 2>new cohort wants an advisor that's available, empathetic, and adaptable.

0:17:40.280 --> 0:17:42.240
<v Speaker 2>If that describes you in your firm, then you're in

0:17:42.240 --> 0:17:44.960
<v Speaker 2>good shape moving forward. Thank you to David, Brittany and

0:17:45.040 --> 0:17:47.800
<v Speaker 2>Chelsea for being with me today. Thank you to Bloomberg

0:17:47.840 --> 0:17:51.680
<v Speaker 2>Media Studios and Prudential for producing and sponsoring this episode.

0:17:52.119 --> 0:17:56.400
<v Speaker 2>I'm Maggie Late, Thanks so much for joining us.