Advisors Promote Health And Wellness
Clients hire an advisor to focus on their money. But some advisors take a broader view.
Increasingly, health and wellness play a central role as advisors collaborate with clients on formulating a comprehensive, long-term financial plan. Issues related to diet, smoking and stress enter into their discussions.
Advisors who gently prod clients to adopt healthier habits strengthen their relationship and produce added value. For example, they might persuade individuals to take steps to reduce risk factors that threaten their longevity.
"If I think a client is responsive, I'll give them information on how they can make healthier choices," said Susan Pack, a certified financial planner in Cincinnati. "They see that I'm interested in their entire well-being."
Part of the reason for advisors' interest in a client's health reflects surging medical costs. Health care spending will rise at an average annual rate of 5.5% from 2017 to 2026, according to the U.S. Centers for Medicare & Medicaid Services. Prescription drugs will rise on average 6.3% a year, potentially blowing a hole in the budget of all but the highest-income earners.
On a more personal level, clients appreciate advisors who look beyond dollars and cents to assess the whole person. They're more apt to rave to friends that their advisor doesn't just manage money, but really cares about keeping them happy and healthy.
"It's a huge part of what we should be doing as financial planners," said Bridget Grimes, a certified financial planner in San Diego. "For all we do, it's for nothing if someone isn't healthy."
Healthy Choices, Lower Cost
Another tactic that advisors use to convince clients to lead healthier lives centers on cost savings. Rather than scold people for making poor choices, they may crunch the numbers and let clients draw their own conclusions.
Marguerita Cheng, a certified financial planner in Gaithersburg, Md., recalls helping a couple in their 30s purchase term life insurance. In completing the application, she learned that they were social smokers. Comparing the premium, she showed them that they'd save $87 a month if they were nonsmokers.
"They bought the insurance at the higher rate, but they vowed to quit over the next year to qualify for the preferred, non-nicotine rate," she said. "I never nagged them. It wasn't about shaming. But they did say, 'This is our motivation to quit.' And they did."
Because advisors often work with clients to craft a budget, they can signal the importance of good health by approving certain purchases. For instance, Cheng may tell clients, "I want you to eat healthy, and it can cost more to eat right!"
If they want to join a CSA (community supported agriculture) run by a local farmer, she gives an enthusiastic thumbs-up. If they're weighing whether to buy salmon or other nutritious but pricey food, she assures them it's fine.
"I tell them I won't micromanage where they shop," she said. "But I'll validate it and put it in their budget."
Similarly, Pack often assures clients that they can afford organic foods, yoga classes and other investments in their health.
"Some people need permission to spend money on themselves," she said. "I tell them we're building those expenses into their plan."
A longtime vegetarian, Pack doesn't preach to clients. But if the topic arises, she might send them links to information on toxic chemicals in foods.
"When people know the why and the reward, then they don't feel selfish spending extra money on organic food," Pack said.
Increasingly, health and wellness play a central role as advisors collaborate with clients on formulating a comprehensive, long-term financial plan. Issues related to diet, smoking and stress enter into their discussions.
Advisors who gently prod clients to adopt healthier habits strengthen their relationship and produce added value. For example, they might persuade individuals to take steps to reduce risk factors that threaten their longevity.
Part of the reason for advisors' interest in a client's health reflects surging medical costs. Health care spending will rise at an average annual rate of 5.5% from 2017 to 2026, according to the U.S. Centers for Medicare & Medicaid Services. Prescription drugs will rise on average 6.3% a year, potentially blowing a hole in the budget of all but the highest-income earners.
On a more personal level, clients appreciate advisors who look beyond dollars and cents to assess the whole person. They're more apt to rave to friends that their advisor doesn't just manage money, but really cares about keeping them happy and healthy.
"It's a huge part of what we should be doing as financial planners," said Bridget Grimes, a certified financial planner in San Diego. "For all we do, it's for nothing if someone isn't healthy."
Another tactic that advisors use to convince clients to lead healthier lives centers on cost savings. Rather than scold people for making poor choices, they may crunch the numbers and let clients draw their own conclusions.
Marguerita Cheng, a certified financial planner in Gaithersburg, Md., recalls helping a couple in their 30s purchase term life insurance. In completing the application, she learned that they were social smokers. Comparing the premium, she showed them that they'd save $87 a month if they were nonsmokers.
"They bought the insurance at the higher rate, but they vowed to quit over the next year to qualify for the preferred, non-nicotine rate," she said. "I never nagged them. It wasn't about shaming. But they did say, 'This is our motivation to quit.' And they did."
Because advisors often work with clients to craft a budget, they can signal the importance of good health by approving certain purchases. For instance, Cheng may tell clients, "I want you to eat healthy, and it can cost more to eat right!"
If they want to join a CSA (community supported agriculture) run by a local farmer, she gives an enthusiastic thumbs-up. If they're weighing whether to buy salmon or other nutritious but pricey food, she assures them it's fine.
"I tell them I won't micromanage where they shop," she said. "But I'll validate it and put it in their budget."
"Some people need permission to spend money on themselves," she said. "I tell them we're building those expenses into their plan."
A longtime vegetarian, Pack doesn't preach to clients. But if the topic arises, she might send them links to information on toxic chemicals in foods.
"When people know the why and the reward, then they don't feel selfish spending extra money on organic food," Pack said.
| For More Details: http://www.advisorwellness.org/ |
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