One of the best ways to limit the development of your own business is to automatically screen out certain areas of the market. We all do it, it’s natural: “I don’t do much protection“, “mortgages, no, never touch them”. But it’s also worth questioning your self - imposed exclusion zones.
Take just one example- Equity Release. Some of us tend to think of this area of the market only in term of problems with certain types of product 15 years ago. Or we see it purely as a “last resort”, not the sort of place your clients need to go!
But, consider the issue at a more fundamental level.
- Many of your clients have substantial equity built up in their home, or in other property
- In asset allocation terms they may be overweight in property
- They may feel their house is their pension
- But you know that a single asset in one asset class in one location is unlikely to be the best route to retirement planning
- Many of your clients will be lacking in long term care costs contingency funding – perhaps property equity could be used to fund this contingency
- In terms of life planning – many of your clients will have a deep felt feeling that, come what may, their house must be passed on to the next generation – but how many have fully discussed this with their family? Such plans should never be cast in stone – never to be questioned.
So, there is a case for the inclusion of all forms of assets in the overall financial plan. If you include property assets in the overall plan and take account of the case for asset diversification, life goals for client and family, fiscal efficiency and risk management including care costs then maybe Equity Release has a place in the conversation.