The life journeys of clients and prospects are full of opportunities to lead with proactive, client-centric and impactful advice. Financial advisors play a vital role in helping their clients navigate the risks and opportunities that these “moments that matter” provide. And you might be surprised how many of these golden moments there are.
Here, we highlight five age-based milestones and life events that collectively present more than 40 million advice opportunities, enabling caring financial advisors to showcase their care and expertise beyond traditional investment strategies, build trust and create after-tax value.
Buying or selling a home: 8 million opportunities for value-added advice
Zillow forecasts over 4 million home sales for 2025. As individuals embark on what is often the largest single financial transaction of their lives, financial advisors can provide invaluable advice and guidance.
For homebuyers, this includes considerations such as total cost of ownership, financing options, insurance, titling, and tax implications. On the other side of the transaction, sellers benefit from advice on maximizing sale proceeds, managing tax implications, and then updating financial and estate plans. By offering support during this pivotal life event, advisors can add quantifiable value for their clients and build trust and goodwill at the same time.
Getting married or divorced: Over 5 million opportunities to prepare for a better future
Wedding bells ring for about 4 million Americans per year, while around 1.4 million get divorced. Both occasions are meaningful life events during which advisors want to make sure that their clients (and prospects) think about and cover some key bases.
For example, when getting married, it is helpful for couples to have honest conversations about financial goals, budgeting, credit and debt, insurance, bank accounts, taxes and retirement planning. In addition, estate planning and potential prenuptials are to be considered as well.
And in the unfortunate event of a divorce, advisors can help their clients understand different aspects of potential child support, alimony and property division. In addition, there are best practices around titling, estate planning and working with legal and other experts that an advisor can share to help their clients navigate this life event and prepare for a happier future.
Reaching age 62 and Social Security benefits: 4 million opportunities for impactful advice
According to the CDC, over 4 million Americans will turn 62 this year, making many eligible to file for hard-earned Social Security benefits. Advisors understand the significance of getting the timing of the filing right; while workers can start receiving benefits at age 62, their monthly benefits increase if they wait until later (up to age 70). Factors such as current income needs, life expectancy, spousal situation and other considerations play a crucial role in determining the best course of action.
Making catch-up contributions at ages 50, and 60-63: 19 million opportunities to boost tax-advantaged saving and investing
Over 3 million Americans will turn 50 this year, and another 16 million will turn 60, 61, 62 or 63, according to the CDC. That provides advisors with 19 million opportunities to advise on regular catch-up contributions at age 50, and brand new, even higher “max saver” contributions that SECURE 2.0 now affords to those turning 60, 61, 62 or 63 this year.
By not only maxing out the regular annual contribution limits for their retirement accounts, but also (if possible and as appropriate) making additional catch-up contributions, investors increase their chances for a successful retirement by benefitting from all the tax-advantaged savings and investing opportunities that Uncle Sam provides.
Moving to a new state: 8 million opportunities to optimize the tax domicile
Each year, around 25-30 million Americans move homes, with about 8 million moving across state lines. When moving to a new state, it’s important and beneficial to determine and effectuate the desired tax domicile. Client-centric advisors can assist their clients with checklists and best practices to ensure that both the old and new states accept the desired tax domicile.
Tech to the rescue
Even if an advisor trims these opportunities by saying “I only work with the top x% of families,” that still means hundreds, if not thousands, of opportunities in their own book of business – too much for even the best of them to handle manually.
Thus, over the past five years, a new crop of “Advice Engagement” wealthtech solutions has emerged, helping advisors identify and execute on timely, personal and impactful advice opportunities at scale.
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