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Advisors contend with a dizzying array of acronyms, many of them related to regulatory agencies and issues. Then there are those of the pop culture or societal variety.
Dual Income, No Kids, or DINKs, is in the latter category and the acronym is implicit. DINKs are couples -- married , cohabitating, etc. – that have two incomes, no children and are unlikely to have kids. While DINKs may appear to be a highly segmented group that might not be large enough for advisors to focus on, but there’s clear validity in focusing on DINKs. If for no other reason than that the birth rate in the U.S. has been declining for years and there’s little chance that scenario will materially reverse anytime soon.
Advisors shouldn’t get into why married/committed clients haven’t decided to reproduce. It’s not the advisor’s business, but advisors should be paying more attention to DINKs than they likely are. Let’s explore several of the reasons why that’s the case.
DINKs Make More
If advisors need a strictly capitalistic reason to work with DINK, here it is: they typically make more money than their counterparts with children.
“When analyzing the Current Population Survey from the United State Census Bureau, Rocket Mortgage found that DINKs earn an average of $138,000 per year, which is almost 7% more than dual-income families with kids,” according to Nationwide.
Without children in the equation, DINKs often have higher rates of savings than couples with kids and, as Nationwide points out, can lend itself to greater portfolio flexibility. That can include more diversification and exposure to asset classes with elevated return potential and products that could generate more revenue for advisors.
“Without the need to plan for future child-related costs, DINK couples can often take more risks with their investments, potentially leading to higher returns,” adds Nationwide.
DINKs Need Advisors
Estate and retirement planning are two more marquee issues underscoring why DINKs and advisors need to come together. Focusing on estate planning, DINKs are unique in that without kids in the equation, it’s not as clear-cut regarding to whom assets will be bequeathed.
Nieces and nephews could be involved and either or both members of a DINK couple may want to leave some money to charity. Another reason DINKs need advisors when it comes to estate planning is that given the likely independent nature of one or both members of the couple, there’s a reasonably good chance their assets will be directed to different places when they pass on.
Point is DINKs are a prime cohort for advisors and many DINKs have the income and education pedigrees to support that assertion.
“Financial planning for DINK couples offers unique opportunities and requires tailored strategies. Although the reasons your DINK clients don’t have children may vary, generally households with two incomes and no dependents can free up more money for spending, saving, and investing,” concludes Nationwide. “By understanding the distinct financial landscape of dual-income, no-kids households, you can provide more effective advice, helping these clients achieve their goals—whether it’s early retirement, extensive travel, or simply enjoying a comfortable lifestyle.”
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