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America is on the verge of the greatest wealth transfer in its history according to an article in the Insurance Journal called "Baby Boomer Wealth Transfer."  The Baby Boomers - primary recipients of this shifting wealth - have redefined expectations around financial matters.  As financial planning evolves, understanding the needs, wants and trends of the Baby Boomers will be paramount to successful Boomer planning.

Retirement Trends
Research shows a great interest among Baby Boomers in staying productive.  A recent survey by Merrill Lynch found that 75% of Boomers intend to keep working in retirement.  Boomers are generally viewing retirement in a positive light.  There seems to be an energy with Boomers that after retirement they are going to do what makes them happy. Many Boomers are turning their hobbies into careers.  Boomers expect to retire from their current jobs at the average age of 64 – then launch a new career – the "next phase" of work.    The "retiring" entrepreneurs that have sold their businesses want to do some thing else now but are in want of a simpler, fast track version of building a business.  Many of our clients are stating that if they can be productive while maintaining their other retirement nest egg, they would be fine if the new venture is a break even.

Selling the Family Business
Another trend we are seeing is the 2nd or 3rd generation is not interested in taking over the "family business."  This is creating planning issues because many Boomers assume that of course their son or daughter wants to carry on the family tradition.  Succession planning is of paramount importance to Boomer business owners approaching retirement.  Communication is key and knowing the wants and needs of all parties will assist the transition choices whether it is choosing outside management to run the business and keeping it in the family after retirement or selling the business to an interested party.

Planning Trends
Baby Boomers see wealth as a means, not an end – a means of achieving what they want out of life.  For these people, the typical investment strategies are hardly enough to meet their financial planning expectations.  The management of their wealth should center around things such as career and business transitions, special medical needs, philanthropy, major lifestyle changes and family issues to name a few.  In most planning institutions today, the wealthy are juggling an array of specialist advisors who offer incomplete solutions based on their own areas of expertise.  Left to wade through the morass of independent views and often-contradictory advice, they are frustrated, overwhelmed and unsure of their decisions.  Baby Boomers want someone they can trust to pull together the necessary resources and expertise and offer advice based on a deep understanding of their goals, dreams, and concerns.

Supporting Dependents Trend
Studies show that Boomers waited longer to have children.  A recent Pew Research poll found that 50% of all Boomers were raising one or more young children and/or providing primary financial support to one or more adult children or elderly parent.   This dynamic requires planners to not only plan on the income needs for the Boomer themselves but also what the requirements are for providing income to support the parent/child for whom they are responsible.

Housing Trends
When it comes to housing, two trends are emerging. Later life could signal a return to communal living for Boomers, as people seek a lifestyle that's more affordable, social and supportive with less maintenance.  On the other hand, the very affluent are not downsizing but actually building bigger homes.  Some of these homes are in prime areas such as waterfront and ski resorts.  The logic is to have a place that is desirable for all of the family to get together. 

Boomers have been in an aggressive period of accumulating assets – homes, cars, boats, etc., but now they are going into a period of accumulating experiences.  These experiences changed the way we get coffee, sandwiches, even banking.  Unlike their parents and grandparents, most Boomers will not have the benefit of a pension check arriving each month. With the trends of Baby Boomers, traditional financial planning will need to adapt and consider these common themes to service and provide the experience this generation will demand.

Marc Scudillo is the Managing Partner of Amper Financial Services which provides financial planning investment and wealth preservation protection services to both individuals and corporations.

Marc L Scudillo Managing Partner, Amper Financial Services Registered Representative, Securities America, Inc., Financial Planner, Securities America Advisors, Inc. Securities offered through Securities America, Inc. Member NASD/SIPC. Advisory services offered through Securities America Advisors, Inc. Amper Financial Services and Securities America are unaffiliated.