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Wouldn’t it be nice if you could make your marketing hit at exactly the right moment for each of your clients? And no, we’re not just talking about segmented marketing (although you can read up on that here). We’re talking fly-on-the-wall, know-what-your-clients-need-before-they-ask type marketing. The ultra-personal type that anticipates their needs and gets you rave reviews and more referrals. The good news is you don’t need a magic-8 ball, crystal ball, or a palm to read. Your best asset just so happens to be knowing your client’s date of birth. Here’s how your clients’ birthdays trigger marketing moments that matter.
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Sending a happy birthday message to your clients is undoubtedly a great personal touch (bonus points if it’s a fancy 3-D card), but strengthening client relationships and capitalizing on marketing moments goes beyond what you can buy in a Hallmark store. There are 15 age-related triggers that create unique wealth management risks and opportunities for your clients. Knowing what they are, and when your client and their family members will encounter them, can make you the advisor who has personalized service in the bag. Here’s when to reach out and what to say:
Birth: Stay in the know about when your clients are expecting, and feel free to send congratulations their way, but don’t leave it at that. New parents have a host of financial updates to make while navigating sleepless nights, so why not create a checklist for them? Include adding their newest addition to health insurance and their will (or creating a will), updating tax forms, and adjusting HSA contributions. Other timely considerations are investing in savings vehicles like whole life insurance or a 529.
Age 14: Once your client’s children hit their second year as teenagers, they meet federal working age, provided they have the right documentation. Reach out to your clients with state-specific guidance along with recommendations for what to do with that first paycheck. Now is a great time to provide resources on budgeting basics for teens!
Age 15-17: Clear the roads- your clients’ kids are tackling driver’s ed and daydreaming about a new set of wheels. Do your clients plan to gift a new car to their freshly-minted 16-year-old? What about insurance premiums? Ask how you can help them budget for these expenses.
Age 18-21: Your client’s kids have now reached the age of majority and/or termination, which means, depending on where they live, they can sign contracts and take control of custodial accounts. Time to send a card, make a call, and lay the groundwork for a next-gen client! Much like healthcare, dependents can receive free advice from their parent’s financial advisor up until age 26.
Age 26: If you’ve established a relationship with your clients’ children, now is the time for them to break out on their own within your firm. Ask them if they’d like to work with the same advisor or someone else within the firm, and, of course, don’t forget to offer guidance on choosing a healthcare policy.
Age 50: Over-the-hill isn’t all bad! Clients who hit 50 before the year’s end are now eligible to make catch-up contributions. Now is a great time to a) stop putting individual candles on birthday cakes and b) send out information on catch-up contribution limits and offer to help re-work their budget.
Age 55: Is your client considering an early retirement? If they decide to leave the workforce during the year they turn 55, they’re eligible for penalty-free withdrawals from a 401(k) or 403(b). If retirement is still a few years off, inform them of HSA catch-up contribution limits.
Age 59 ½: Your client can now withdraw funds from a qualifying Roth IRA tax- and penalty-free! Be sure to backtrack 5 years from this milestone so that clients who don’t have a Roth can set one up in time to enjoy these benefits.
Age 60: For clients who have lost a spouse, reaching age 60 means they’re now entitled to 71½ - 99% of their deceased partner’s basic amount, although beneficiaries cannot claim both their own SS payout and that of a deceased spouse. Help your clients determine what is best for their retirement needs, create a plan accordingly, and be sensitive to the demographics. Statistically, survivors are women who also report less confidence in handling their finances.
Age 62: This is the earliest age your clients can claim Social Security benefits. Is it worth it for them? Waiting until they reach their full retirement age may or may not meet their needs. Visual aids are a great way to help them understand the pros and cons.
Age 65: It’s automatic enrollment time! Medicare is complex and often confusing to clients, making this a great chance for you to meet them where they’re at. Consider a webinar or event, or reaching out to meet one-on-one to provide education and resources. You should also educate your clients on the impact on their HSA contribution eligibility and help them strategize accordingly before their 65th birthday rolls around.
Age 66-67: Depending on your client’s birthday, they’ve reached Full Retirement Age! Age 62 is the start of their Social Security Benefit choose-your-own-adventure, and this is its conclusion. Full Retirement Age may also mean your client is eligible to receive pension benefits. All of this means a review of their retirement income is in order, as well as some savvy tax strategizing.
Age 70: Social Security benefits max out once your client hits their 70th trip around the sun, so there’s no longer the same financial incentive to stay in the workforce. This may also be a great time to address retirement satisfaction: has your client kept on working to max out their SS benefits or for deeper psychological reasons?
Age 70½: For the IRA owner who loves to give, Qualified Charitable Distributions are a great tax benefit that kicks in at age 70½. Educate your clients on their options so you can time their QCD with their RMD (hot tip: give your clients more than an alphabet soup of acronyms when explaining).
Age 73: RMDs are required at this age! Send your clients a friendly reminder so they don’t get hit with costly penalties. If they DID miss a withdrawal, you can be their knight in shining armor by helping them file a form 5329 to ask for leniency from the IRS.
As you can see, knowing when to stick a birthday card in the mail is one of your biggest assets as a financial planner. Tracking your clients’ ages allows you to keep track of financial opportunities that they may or may not be aware of, positioning you as the expert in the know who has their back. You may not know everything, but by marketing for and communicating about the moments that matter, you can address the wealth management needs that are just around the bend– no fortune-telling required.
Related: Messaging About Major Life Events: Focus Your Marketing Around Client Milestones