Talk to Me: Connecting with Clients Across the Generations

M5423BR2.3 (5/15)

For financial professional use only. Not to be used with the public.

Boomers are retiring—and it’s all about The Income GenerationToday, we’re in the midst of a two-decade span of Boomers retiring. And they’re looking for income solutions. They have become the “Income Generation”—the wealthiest generation of consumers in American history. Known for their optimism, self-confidence and ambition, Boomers have redefined each stage of life they pass through. The same will undoubtedly hold true when it comes to “Retirement.”

The Income Generation will need to fund longer retirements, likely without the aid of traditional pensions, in an environment of low interest rates, rising healthcare costs and continued market volatility. Many also find themselves sandwiched between generations—providing financial support to both parents and their adult children.

To successfully connect and serve Boomers, it has become essential to deeply understand their unique traits, expectations and communication preferences, as well as those of their Gen X and Millennial children who they often involve when making important financial decisions. In fact, new research reveals that 4 in 10 financial services providers to the affluent are now looking to engage clients’ children from the outset of the client relationship.*

The advisor who can “talk” across the generations will be one step ahead—and more likely to capture a greater share of assets today and tomorrow as wealth passes from one generation to the next.

M5423BR2.3 (5/15)

* Warren S. Hersch, “Advisors look to engage next generation of affluent,” LifeHealthPro, April 28, 2014.

For financial professional use only. Not to be used with the public.

The advisor who can “talk” across the

generations will be one step ahead

AIG offers a broad range of products, solutions and support to help you connect with clients across

the generations and further build your practice.

Matures Baby Boomers

Born between 1909 - 1945 Born between 1946 - 1964

Traits Dedicated Prone to sacrifice Molded by experience Value conformity/blending in Gained prosperity from moderation Conversant – easy to talk to Very patriotic Rules followers Digital migrants – exploring technology but it is

not dominant in their lives Value brands with history and longevity

Traits Competitive Consensus builders Optimistic and Idealistic Young at heart Workaholics Proud of success Team players Prefer face time Appreciates custom solutions Nostalgic Friends with their children

1 Ensure communication method is consistent with your firm’s standards.For financial professional use only. Not to be used with the public.

Ways to connect Show that you value what they’ve learned

through their experience. Ask for the “rules of engagement.” Spend time talking: unhurried; quality

conversations. Ask about hobbies – many have taken up new

hobbies in their senior years. Participate in their group activities when invited. Use respectful and polite references – ma’am

and sir, Mr. and Mrs. – until they ask you to be less formal with them.

Sales ideas Emphasize quality wherever possible.

Understand their definition of quality, make sure your product meets it, and highlight that fact.

Ask what experiences they could draw upon to help them come to a decision. Most decisions are based on personal experiences (vs. data or referrals).

Never mention that a product is good for their age group.

Highlight standard and pre-packaged offerings. Reports and research from institutions carry

credibility—where you have them, use them. • Ask for the business. Recap your offer using

the ideas above and ask for the sale by saying, “I’d be proud to have your business.”

Ways to connect Courtship and storytime. Invest in

relationships with Boomers—lunches, dinners, outings, meetings or excursions.

Selling is O.K. They are comfortable with traditional sales techniques and approaches.

Show optimism. They prefer optimistic and upbeat people.

Be a team player. Conduct yourself as a member of their financial team.

Find the right level of technology. Ask Boomers specifically what types of communications they prefer.1

Sales ideas Emphasize and illustrate how working with

you will save them time. Give Boomers a sense of control over the

process and the outcome. Celebrate their decisions and milestones as

small victories along the way. Boomers are a competitive generation; they want to feel like they’re succeeding.

Focus on the positive life experiences that are coming—what they can look forward to.

Offer custom solutions for the individual—Boomers are the first of several “Me” generations.

If the client involves their children, actively engage the children in the process.

M5423BR2.3 (5/15)

Gen X Millennials (aka Gen Y)

Born between 1965 - 1979 Born between 1980 - 2000

Traits Tough and informed customers Can remain distant—not overtly friendly Smart and tech-savvy “Seize the day” approach to life No deference to authority figures Resent Boomer generation “Stalk” products and services Fend for themselves Challenging Can be fiercely loyal, but achieving loyalty

is hard work

Traits Educated “Adult-olescent” Well-cared for and programmed Technophiles Issue-oriented Individualistic, yet group-oriented Impatient Big goals but no plans Texters Raised as parents’ friends

2 Be cognizant of industry regulations and broker/dealer compliance requirements. For financial professional use only. Not to be used with the public.

Ways to connect Keep it short and simple—avoid making them

feel pressured. Focus on their today and tomorrow, not your

past or your company’s past. Authenticity counts. Just be who you are. Be online. Xers will be frustrated if they can’t

read about and “interact” with your company via the web or through smartphone apps.

Time is more valuable than money. They generally don’t want to be courted—prove your ability to do things right and quickly.

Sales ideas Offer options, whatever is available. Let them

pick the option they feel suits them best. Help them create short-term goals in addition

to long-term goals. Help them create backup plans in case things

go wrong and go over them. Sell the steak – they’ll see through the

sizzle. Pretend they’ve asked this question: What is it? How does it work? What does it mean to me?

Collect peer references and use them.2

Be prepared to answer “Why?” a lot. Have fun doing your job. Show excitement for

the work but don’t take yourself too seriously.

Ways to connect Act your age. Don’t try to be young and hip,

unless of course, you are. Embrace technology. Set up a Facebook

page and a Twitter feed for your practice.2 Offer free Wi-Fi in your office.

Build rapport by recognizing their individuality and accomplishments.

Offer to meet with them with their friends. Be a trusted guide—reachable via email

or telephone.

Sales ideas Show your product’s immediate application

– instant gratification is key. “Here’s why this matters now…”

Illustrate that you understand their unique situation by offering products that complement their priorities, beliefs, goals.

Acknowledge that they are a part of the larger group, yet an individual within that group.

Answer the question “Why is this important to me?”

Spend time. Answer questions. Become a resource. Never add stress by trying to push.

Gather peer references. They can be important.2

M5423BR2.3 (5/15)

For nearly 100 years, AIG companies have been protecting clients and their families from the unexpected, and helping safeguard their dreams for the future. We are proud to offer a robust suite of product solutions to help address client needs across the generations and stages of life—from accumulation to distribution; protection to transfer.

n Annuities—Fixed, Immediate and Deferred Income, Index Annuities, Variable Annuities

n Life Insurance—Index Universal, Variable Universal, Term Life, Universal Life, Whole Life, plus “Quality of Life…Insurance®”

n Mutual Funds—Broad range of equity and fixed income offerings, including innovative products in global allocation portfolios, rules-based dividend strategies and alternative strategies

AIG’s Cross-Generational Solutions

For more information, contact your AIG Financial Distributors Wholesaler today.

3 Immediate and Deferred. 4 Rider on UL and/or VUL. 5 Term, GUL, IUL, UL, VUL. 6 Life and Annuities.

PR

OT

EC

TIO

N

A C C U M U L A T I O N

I N

CO

ME

SO

LU

TIO

NS

AIGSolutions

VariableAnnuities

FixedAnnuities

IndexAnnuities

IncomeAnnuities3

StructuredSettlementsLife

Insurance5

Quality of Life…Insurance®

Accident & Health

Private Placements6

Voluntary Benefit Plans

Group and Supplemental Benefits

GroupRetirementPlans

MutualFunds

Annuities

LifestyleIncome

SolutionSM4

For financial professional use only. Not to be used with the public.

[Bring on Tomorrow]

M5423BR2.3 (5/15)

M5423BR2.3 (5/15)

M5423BR2.3 (5/15)

Material developed in collaboration with Generational Insights. Not to be copied or reproduced. www.generationalinsights.com. © 2015. Generational Insights.

Mutual funds and variable annuities are sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges, expenses and other information regarding the fund or the variable contract and its underlying funds, which should be considered carefully before investing. Call 1-800-858-8850 ext. 6003 to obtain a mutual fund prospectus or 1-800-445-7862 to request a variable annuity prospectus. The prospectus should be read carefully before investing.

All annuity contract and optional benefit guarantees, including any fixed account crediting rates or annuity rates, are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer from which an annuity is purchased, by the insurance agency from which an annuity is purchased or any affiliates of those entities and none makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company.

Annuities are designed for long-term retirement investing. Early withdrawals may be subject to withdrawal charges. Partial withdrawals reduce the contract value and may also reduce certain benefits under the contract, such as the death benefit and the amount available upon a full surrender. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. An investment in a variable annuity involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested.

Life insurance policies are issued by American General Life Insurance Company (AGL) except in New York, where they are issued by The United States Life Insurance Company in the City of New York (US Life). Issuing companies AGL and US Life are responsible for financial obligations of insurance products.

Annuities are issued by American General Life Insurance Company (AGL) except in New York, where they are issued by The United States Life Insurance Company in the City of New York (US Life). The Elite Series of annuities is issued by The Variable Annuity Life Insurance Company (VALIC). Variable annuities and mutual funds are distributed by AIG Capital Services, Inc. (ACS), Member FINRA, 21650 Oxnard Street, Suite 750, Woodland Hills, CA 91367-4997, 1-800-445-7862.

Products and features may vary by state and may not be available in all states. The purchase of an annuity is not required for, and is not a term of, the provision of any banking service or activity. AGL, US Life, VALIC and ACS are members of American International Group, Inc. AIG Financial Distributors is the sales and distribution arm of AIG’s Consumer Insurance Division.

For financial professional use only. Not to be used with the public.

Not FDIC or NCUA/NCUSIF Insured

May Lose Value • No Bank or Credit Union Guarantee Not a Deposit • Not Insured by any Federal Government Agency