Steven's Thoughts

Was Buddha the first Babyboomer?

Perry Garfink from National Geographic describe why he thinks Buddhism is an approach  that makes sense for Boomers overwhelmed by stress and materialism.

National Geographic video

Financial Services is Unprepared for Boomer Retirement

The financial service industry as a whole is unprepared to meet the needs of Baby Boomers, only a few firms have begun taking advantage of this growing opportunity.

• 65% of asset managers are currently taking no action at all

• 20% of firms have begun conducting Boomer research, but have not begun the initial stages of product and marketing strategy execution.

• 10% of firms are planning initiatives but haven't executed them

• 5% have created Boomer-focused product and marketing materials, but these still don't adequately address their needs and the challenges they face

1. Products need to be developed that take into consideration the Boomers met-values and financial needs.

2. Marketing efforts must apply Boomer specific segmentation in order to communicate with them.

Current Product Development Efforts Don't Match Boomer Needs

Product development in Financial Services is missing the mark in regards to developing products based on Babyboomer needs.

Although pervasive PR efforts may give the impression that financial service firms have products specifically designed to meet Boomer needs, most firms are simply trying to market their existing products to Boomers without any true product development enhancements. Current product development efforts are not truly focused on this target's actual needs; they are looked upon as any other investor. Every investor hopes to beat inflation, or keep pace with the market to ensure minimal risk. While the Boomers certainly mark a change in risk profile/tolerance and investment needs compared to past audiences entering retirement, firms need to challenge themselves to go beyond their current product mix.

Firms that actually have existing products that match Boomer-specific needs should take advantage of this opportunity and market to them as much as possible. It makes sense for firms to step outside their product mix and partner with a firm that can provide a gap in their own product offerings. However, in order to truly differentiate, and fully take advantage of the opportunities Boomers present, firms need to challenge themselves to create new and innovative products.

Rydex has recognized this need to differentiate and has partnered with a Princeton professor in an effort to revolutionize portfolio theory. Despite this effort, due to the broad extent of the theoretical changes, Rydex will still need to continue developing their product mix, as well as their packaging, to better match Boomer-specific needs. Further product development will definitely be needed, if they truly want to capture the attention of this segment and the advisors who serve them.