Stonewood Financial

What AI Says You Should Focus on in the Year Ahead

Written by Becky Swansburg | October 11, 2024 at 4:00 PM

Artificial intelligence tools - like OpenAI’s ChatGPT and Google’s NotebookLM - will increasingly impact the way financial advisors create content, interact with clients, and manage their practices. 

Of course, they’re not quite ready to take our jobs. But as a fun thought experiment, I let ChatGPT take a turn drafting today’s post.

First, here’s what I asked: 

I am writing a blog post and I need your help. My audience is successful, independent financial advisors in the retirement income market. These advisors help higher-net-worth savers age 50+ plan and prepare for retirement, particularly by mitigating taxes, overcoming market risk, ensuring savers have income they can't outlive, and leaving a legacy for their heirs. 

I’d like your help identifying 5 efforts that are currently helping independent retirement advisors generate leads, meet with more clients, and grow the value of their financial practices. These 5 ideas should be specific and not universally known. Please give me 5 ideas that independent retirement advisors should prioritize in 2025 to see similar results to today’s most successful advisors.

While I’m not an expert at prompt engineering, ChatGPT did return some decent ideas.

Here’s what AI is suggesting you focus on in the year ahead:

Here’s a list of five key focus areas that independent retirement advisors should prioritize in 2025 to grow their practices and better serve their clients:

1. Leverage AI and Automation in Marketing

AI-driven marketing tools are becoming essential for scaling client acquisition efforts. Advisors who adopt AI to automate email campaigns, personalize outreach, or even analyze client behavior will be able to generate more leads efficiently. For instance, AI chatbots on websites can engage prospects after hours, and machine learning tools can help identify patterns in client behavior to better segment and target high-net-worth leads.

2. Host Educational Webinars on 2025 Retirement Tax Law Changes

With potential shifts in tax laws following the 2024 election, advisors should focus on educating clients about upcoming changes. Hosting webinars or virtual events about how these tax changes might impact retirement savings, inheritance taxes, and income generation could position advisors as proactive and informed leaders in the field.

3. Promote Personalized Retirement Income Planning Strategies

With growing market volatility, clients want tailored solutions that give them peace of mind. Advisors should focus on offering highly personalized retirement income plans, which take into account multiple factors like market risk, longevity, and the client’s personal goals. The use of scenario-based planning can be highly effective for demonstrating a client’s probability of success in retirement.

4. Strengthen Social Media Presence for Client Education

Advisors who aren't utilizing platforms like LinkedIn and YouTube to build their brand are missing out on an opportunity to reach a broader audience. By creating short, informative videos about common retirement challenges—such as taxes, market risks, or income generation—advisors can educate potential clients while positioning themselves as trusted authorities in the field. In 2025, social media will continue to play a crucial role in relationship building.

5. Focus on Multigenerational Wealth Transfer and Legacy Planning

As more clients in the 50+ demographic become concerned about legacy planning, advisors should help facilitate conversations between their clients and their heirs. Offering estate planning services, introducing charitable giving strategies, or using tools like donor-advised funds can be appealing to wealthier families. Being able to manage both the accumulation and distribution phases of wealth for multiple generations can set advisors apart in 2025.

This list captures both marketing strategies and topics advisors should be prepared for, ensuring they stay relevant and competitive in the retirement income space. Let me know if you need any more details

So, how do you think ChatGPT did with this quick assignment? 

I was glad to see it recommended tax-focused webinars and seminars following the election. With the coming expiration of provisions in the Tax Cuts & Jobs Act next year and a new administration in the White House, all eyes will be on taxes and retirement. (Here’s a post I wrote last month on that very topic.)

I also know more advisors are looking for (compliant!) ways to leverage artificial intelligence into their practices - from data analysis to client outreach. 

Of course, some of its recommendations were a little obvious. Leverage social media to reach Baby Boomers? That’s nothing new. Legacy planning? A core building block for many of our practices. 

Still, it’s fun to brainstorm with AI and see how its analysis matches what we’re hearing from advisors across the country. 

One thing’s for sure: AI is going to dramatically impact how ALL financial advisors do business in the years to come. And I, for one, am excited to see what that future holds.