Gregg Greenberg (InvestmentNews): Greg, let's talk about longevity risk, which is a frequent topic of advisors. Is there something specific within longevity risk that advisors miss the most?
Greg Large (Lenox Advisors): Yeah, I think asking the questions of their clients. I mean, if you think about it, when Social Security was first came out, people's life expectancy was about two to three years. Now, if you look at MIT labs, you're looking at individuals that are 60 years old, and by 2050 that population will more than double. Actually, the largest group of individuals from a growth perspective are people that are 85 and older, and the one thing that they miss the most is really that health span. 20% of your lifespan could be lived in poor health. So, the difference between lifespan and health span is really widening. You're needing to ask those tough questions with your clients to make sure that they navigate that.
Gregg Greenberg (InvestmentNews): And if one generation doesn't prepare for succession or retirement or wealth transfer, how much of a domino effect does that have on ensuing generations?
Greg Large (Lenox Advisors): Well, it's actually a domino effect that goes multi-generation. When we first started having our parents doing planning, that impact was that, but we might have generations of four generations in one household needing to be planned for. So, the oldest generation not having planned, the domino effect downstream to the next generations could be catastrophic, especially through the retirement plans and the portfolios and all the things that have been put into place in those families themselves.
Gregg Greenberg (InvestmentNews): So, if one generation screws up and doesn't take care of ensuing generations, what should the conversation look like? Where should it start with the client?
Greg Large (Lenox Advisors): Yeah, I think in the first quarter, it's really important for advisors to ask those questions; What has changed? Who is living in your household? Are there other individuals that you are now financially responsible for? What catastrophic events may have occurred in the past year that really impacted your portfolio, your ability to save? And is there anything else that you may become responsible for within your family, your extended family, that you need to navigate, that you hadn't planned for before? Without doing that, you're really leaving out a big part of the planning process and really putting the client at risk. Because portfolio theory, asset allocation, all those things only go so far. We need to really ask the tough questions with our clients, to really get under the hood and understand what they're really dealing with.
Gregg Greenberg (InvestmentNews): Well, you mentioned change. One thing that's changed a lot in the last few years is healthcare costs. So how do you help clients navigate rising healthcare costs?
Greg Large (Lenox Advisors): Well, I think it starts with being prudent, with having the proper healthcare but also ensuring that you're starting to save with health savings accounts and putting money away now for the future. Because it is really impossible for any advisor to predict what costs are going to be 20 years from now, what kind of a landscape we're going to have with health care, or what the dynamics of what's going to be necessary to provide for yourself then. So, ensuring that you plan today for what might happen, 20, 30, 40 years from now is really the most prudent thing to consider.
Gregg Greenberg (InvestmentNews): And then finally, can you talk about how the sandwich generation should plan? Because they've got to take care of their kids, their own retirement, plus they got to deal with their parents. And that's a big burden.
Greg Large (Lenox Advisors): It's a large burden. And coming right out of the holiday season. It's really nice - everybody wants to talk about the successes that they had with their portfolios, or the potential stock pick, or whatever it may be. But really the conversations that need to be had are about what are the plans that are in place, who are the decision makers? And Gen Z and Gen X really need to make sure that they’re creating boundaries for their own retirement planning with the conversations with their family and extended family. Because those burdens could ultimately become an impact on their ability not only to provide for themselves, but also to live the retirement that they want to live for themselves and ultimately protect their children from the outcomes of the decisions that are being made by the family members that are multiple generations ahead of them.
Gregg Greenberg (InvestmentNews): All right, thanks for coming on and talking about it.
Greg Large (Lenox Advisors): Appreciate it.
Greg Large, President of Lenox Advisors, joins Gregg Greenberg on InvestmentNews to discuss longevity risk, a growing concern as life expectancy rises and health span lags behind. Advisors must ask critical questions about household changes, financial responsibilities, and unexpected events to ensure clients are prepared. Without these conversations, traditional portfolio strategies fall short, and inadequate planning can create a domino effect across multiple generations.
Healthcare costs add complexity, making proactive strategies like health savings accounts essential. While predicting future expenses is impossible, planning today for long-term needs is key.
Finally, Greg addresses the “sandwich generation” – those balancing care for children, aging parents, and their own retirement. Advisors should help clients set boundaries and create structured plans to protect their goals. These conversations go beyond stock picks; they ensure clients achieve the retirement they envision while safeguarding future generations.
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