NEXT CHAPTER

Steve Gresham

The next big thing is the biggest of all things .

RECENTLY ATTENDED A MEETING OF TOP ADVISORS HOSTED BY

Wayne State University in Detroit , and while I was there , I shared the chart below with the attendees .

“ What ’ s that going up ?” you may ask . Is that Tesla ’ s stock price ? Is it a projection for bitcoin ? Is that the amount of money spent by fintech firms ?

It ’ s a nearly perfect S curve , so whatever it is , it favors early adopters . Note where the arrow is . So imagine the surprise from my audience at my big reveal : The chart is actually a measure of the risks clients face from incapacity as they age — specifically their risk of debilitating problems like Alzheimer ’ s , other kinds of dementia or MCI — mild cognitive impairment . My surprise got a mixed reaction . Many audience members nodded their heads . They see these problems every day among their clients , friends and families .

Savvy advisors know these ailments change both clients ’ lives and the lives of their family members . The impact of these debilitating diseases is both immediate and ongoing . Nothing will be the same .

People ’ s priorities must change . And when clients face diminished capacity , their financial advisors will be needed more than ever , and in more complex ways .

What ' s This Going Up ?

90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 %

WE ARE HERE

50 60 70 80 90 100

The response of the advisory community to these problems is critical . We have to react with empathy but also engage clients professionally and with confidence when they go through these changes .

Like doctors , let ’ s start in a place much like an emergency room — and end up in a place that looks more like longterm care . It won ’ t just be our primary clients affected by these conditions . We ’ ll also have to be there for perhaps three generations of family members affected by their aging parent ’ s or grandparent ’ s new reality . Everyone needs to know we can help .

As you can see from the chart on the following page , we don ’ t have much time before these conditions accelerate in frequency . Currently , one in eight people at age 68 will suffer from one of these illnesses . That figure more than doubles by the time they reach 78 , and it increases sixfold by the time they are 88 . Over the next 10 years , nearly one in three people we now serve is likely to become incapacitated , and a great many more will be affected when someone in their life does .

For advisors and their firms serving the nation ’ s 76 million baby boomers , this transition has been looming , yet our preparation is still light . Every firm and every advisor will need policies , procedures and supportive tools to do the following things :

• Determine a client ’ s incapacity ;

• Protect them from things like iden-

SEPTEMBER 2022 | FINANCIAL ADVISOR MAGAZINE | 25