Vulnerability

Years ago, when our oldest turned 15 and secured his learner’s permit, my older attorney sister asked me how much umbrella liability coverage Kathie and I had.  I responded, “None!”  She reminded me that over the course of the next 2 years, our liabilities on the road would increase from two to five as our younger two children joined Nathan on the road. We took out an umbrella liability policy within 24 hours.

Though most advisors do not offer property and casualty insurance, they ought to know the property and casualty insurance enough explore client vulnerability. As in our case decades ago, clients who have teenagers who are driving need our counsel in guiding them to see the importance of adequate liability coverage.

The topic of vulnerability exposes many aspects of our lives; places that transcend insurance and market risk. For example, call to mind clients who are within two years of qualifying for Medicare and/or reaching full retirement age need our guidance. They need us to walk them through their Social Security options—few now than before—and how Medicare may impact their spending on healthcare. 

Others in our world may be sensing vulnerability as they prepare their children for college. If they have 529 plans in place, wonderful!  If they have not established a plan or plans, have that conversation and soon. Some may have them in place but are not adequately funding them. For clients with children, 529 conversations are easy.

But an equally important aspect of college preparation is to ask your clients how their kids are doing in school. Find out what subjects they seem to excel in and the sports or extra-curricular activities those children enjoy. Parents’ aspirations for their children need all the encouragement we can give. And sometimes, they simply need to share both successes and struggles with someone like you who cares about their family.  Lean in and listen for signs of client vulnerability, even stress.  

When it comes to our health, especially past the age of 60, we all begin to feel more vulnerable. On the one hand is the awareness we are aging; vigor, energy, and that spring in one’s step is not quite what it was. On the other hand, we often find the expense of staying healthy is tapping more of our resources. Seniors sense a vulnerability they may not be able to express. Be the advisor who, in a caring and warm way, invites clients to talk about their lifestyle: what’s important to them, what gives them joy, what health concerns they may have. Keep listening and genuinely convey both your presence and your concern.

In a word, all the above have financial implications. When we feel vulnerable, that feeling has a direct link to our wallets. Tune in to those moments in client conversations and be the person with whom they can comfortably share their feelings, fears, hopes, and needs.