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Earlier this week, I highlighted how advisors can help military veterans identify the right place to live when their time serving our country is up. Not to toot my own horn, but the piece was well-timed because Monday, May 27th is the Memorial Day holiday.
With that in mind, there are other compelling reasons for advisors to consider working with members of the military and their families and that goes for active duty personnel and vets alike. Aside from geographic issues, which are prominent with these potential clients because they move around more than other folks, there are other issues facing members of the military and their families – some of which advisors can certainly assist with.
New research from Armed Forces Bank highlighted some of the financial challenges faced by military personnel – many of which are unique to this group or more common than with civilian clients. Point is, service members need advisors and they might just be one of the easiest, most rewarding clients bases with which to work.
How Advisors Can Serve Those Who Serve
Armed Forces Bank’s Military Family Financial Readiness Report examines some of the avenues through which advisors can potentially be forces for good in the financial lives of military members and vets.
“Military families face distinctive financial concerns due to the nature of their service, including frequent relocations, deployment and fluctuating income. Understanding how they feel about financial readiness is crucial for providing tailored support and services," said Armed Forces Bank SVP and Regional Military Executive Tom McLean in a statement.
Among the issues advisors can help military clients with are deciding on whether to buy or rent a home – relevant because of the frequent moves – as well as challenges relating to financial confidence, literacy and how being a member of the military can shape one’s views on investing and personal finance.
“Military families encounter various external and internal challenges in managing their finances. External factors such as inflation, economic fluctuations, and high interest rates pose macro-level challenges,” according to the report.
Advisors Can Help with Product-Level Support
The Armed Forces Bank study indicates military members are highly confident with basic financial tools such as checking and savings accounts and credit cards. However, service members and vets are less likely to be using more advanced, highly important tools.
“According to the survey, the most commonly used banking products among military families are checking (79%) and savings (72%) accounts, as well as credit cards (69%). They less frequently leverage retirement accounts (36%), insurance products (35%) and investment services (30%), indicating potential areas for improvement and wealth-building strategies,” according to the study.
Given advisors’ obvious competencies when it comes to investing and retirement strategies and insurance, it’s clear advisors can make an array of positive impacts in the military community.