1. Aging Client’s and End of Life Issues: Impact on the Adviser's Practice RIIA® Research Committee May 6, 2015 GDC Research and Practical Perspectives

2. An Aging America Sources: U.S. Census Bureau, Population Estimates and Projections 2 In Millions

3. Increasing Focus for Advisors Sources: Retirement Income Insights 2014 – Using Products and Providers 3 Net Change in Retirement Income Clients Served

4. The First Half When to Retire Creating a Vision of Retirement Identify Income Needs and Wants Lifestyle in Retirement Building and Managing Income Portfolio But What About The Second Half? 4

5. What Will Support Needs Be In The Next 15, 20 or 30 Years? 5 Sources: U.S. Census Bureau, Population Estimates and Projections In Millions

6. Practice Impact of Aging Clients and End of Life Issues Greater volume of aging clients Client demand for more support, but difficult to discuss Broader skills and services Understanding family dynamics and working with the client’s children and heirs Aligning the advisors’ value proposition to assist clients through retirement and after they’re gone Will require more time and effort, and is difficult to monetize Will require a more formal process and an upfront plan to mitigate problems and issues 6

7. Benefits of Addressing End of Life Issues Differentiated service Higher client satisfaction Greater asset retention Higher likelihood of retaining the heirs Faster and fewer problems in settling the estate Business development opportunity 7

8. The Second Half Clients in the Second Half Often starts in late 70’s or early 80’s Slowing down Minor and major health issues Assisted living Hospice and death Can be spread over 5 to 10 year period Support in the Second Half Broader in Scope Less Focus on Managing Assets Estate Planning & Wills Focus on Non-Traditional Support Health Care & Elder Care Funeral Arrangements Settlement of the Estate 8

9. The Foundation for Addressing End of Life Issues Starts With Step 1 Source: GDC Research and Practical Perspectives Key Steps in Developing an Effective Retirement Income Practice Steps 9

10. Discovery and Planning – For the Second Half Introduce issues related to end of life Address estate planning and gifting  Financial and Non-financial Updating Wills and related legal documents  Health care, Power of Attorney, etc. Discuss family dynamics  Include the children/extended family in the process, if possible Discussion can be conducted over time  Discuss need and approach to issues at the initial discovery  Detailed discussions can take place over time  But before health or mental issues arise Discovery/Planning Checklist Family Dynamics - Topics Any problem children? Who do they rely on? Who would be a potential caregiver? Who would have the Power of Attorney? Who lives the closest? Any long-term dependents? Who will be the Executor of the estate? 10

11. Client Reviews and Monitoring Personal Circumstances Changes to personal situation including health, family, and living situation for client and spouse/partners Financial Circumstances Changes to financial situation including assets, sources of income, and major obligations Spending Behavior & Needs Review of recent spending patterns and any changes anticipated in the coming period Plan Targets & Action Steps Review of plan targets, action steps, and tracking of client to these agreed upon objectives and milestones Risk Assessment Discussion of key risks and measures in place to manage these challenges Accessibility of your office and your location –Wheelchair accessible, parking, etc. Provide good lighting Use larger font type for paperwork Take a little extra time to review materials Have furniture and chairs that are easy to sit down in and get out of Offer to make house calls –Especially if mobility is an issue –Observe the client and how well they are doing at home Meeting with Aging Clients Source: GDC Research and Practical Perspectives 11

12. Monitoring Client Physical and Mental Health 12 Hearing Vision Personality Change Mood Swings Frequent Injuries Memory Loss/ Confusion Poor Judgment Unhealthy Weight Loss Client Appearance Lack of House Cleaning Failing Routines Lower Attention Span Look for Signs Source: GDC Research and Practical Perspectives

13. Be Prepared to Advise, Guide Recommend, and Refer 13 Elder Care Attorney Family Counseling Assisted Living Funeral Arraignments In-Home Care Home Maintenance Services Estate Appraisals Hospice Care Source: GDC Research and Practical Perspectives

14. Settling the Estate & Avoiding Conflict Minimize any surprises Make sure the Will is up-to-date and all legal paperwork Develop a detailed estate plan –Financial assets –Real estate/property –Cars, Boats, etc. Personal items –Artwork, jewelry, pot and pans, furniture, pictures, etc. –Sentimental items are often a source of conflict –Very emotional and potential conflict can disrupt the entire process Transparency is key to minimizing conflict –Involve the heirs in the planning process of the client –Have key items appraised Suggest client’s inventory sentimental items –Create list of items and who will inherit them –Ask heirs what they would like –Settle upfront any top items sought by multiple heirs –To make sure its as equitable as possible Giving while living –Passing on wealth and personal items while client is still living Include an estate appraisal service as part of the estate settlement –Appraisal of furniture and other household items 14

15. Closing Comments Greater volume of aging clients and demand for end of life guidance and support Need a more formal process and upfront planning for aging clients and addressing end of life support Will require better understanding of family dynamics and involvement with the children and heirs Leads to greater client satisfaction, asset retention, greater likelihood of retaining the heirs, and a smoother settlement of the estate 15

16. Business Development Opportunity 16 Most clients are grappling with health care, elder care, and end of life issues with their parents or relatives Strong topics for client appreciation events and seminars

17. Dennis Gallant, President GDC Research (781) 314-0606 office (508) 397-9296 mobile gallant@gdcresearch.com www.gdcresearch.com Contact Information Howard Schneider Practical Perspectives (978) 590-7290 howard.schneider@practicalperspectives.com www.practicalperspectives.com 17