Threatened by AI? Try Aikido Instead!

You’ve probably noticed all the noise lately about how AI is taking over the world, especially in financial services. Everywhere you look, there is someone warning that the services financial advisors once offered to stand out, have become table stakes. AI is rapidly commoditizing those important parts of the profession.

Back in the ‘80s and ‘90s, if you had access to information and financial products, you were ahead of the game. In the 2000s, you showed value by managing investments. Then planning came along and became the big differentiator.

Well, now AI can crank out a retirement plan, optimize a portfolio, and spit out a client-ready proposal before you can finish your first cup of coffee. What used to be our edge is now automatic.

But here’s the good news: AI doesn’t have to be your competition. It can be your secret weapon…if you know how to work with it instead of against it.

Enter Aikido

Aikido is a martial art that doesn’t fight force with force. Instead, you step into the pressure, move with it, and turn it to your advantage. That’s the mindset we need now.

The most successful advisors in the future won’t be the ones trying to out-tech the tech. They'll be the ones doing what machines can’t: understanding people. Helping them connect the dots between their money and their values. Listening. Asking good questions. Giving permission, not just projections.

Let AI do the math…you do the meaning.

Be the one who guides your client through life’s messiness with wisdom and heart. That’s the real value and it’s something no AI tool can touch.

Housing Wealth: A Secret Weapon Hiding in Plain Sight

Now, for a little Aikido of our own, let’s talk about a planning opportunity that too many advisors (and some AI tools) overlook: the client’s home.

For your retirement-age clients, housing wealth often touches everything they care about:

• Independence
• Flexibility
• Security
• Legacy

And here’s the kicker: this group holds nearly 70% of the financial assets and about $14 trillion in home equity. Doesn’t it make sense that comprehensive planning must include the evaluation of all options, including housing wealth, for the plan to be considered a holistic plan? Ignoring it is easier, but client-focused, full-balance-sheet planning doesn’t allow for that.

Whether a client owns their home outright, carries a maximum mortgage, has a HELOC, or uses a reverse strategy, it isn’t siloed or occurring inside a vacuum. The way the house is handled in the plan can shape their entire retirement outcome.

This kind of work takes more than software, it takes thoughtful discovery, personalized modeling, and a good dose of human common sense. That’s your edge. AI might draw the map, but you’re the one who helps your clients pick the right road.

You’ve Still Got the Advantage

AI can generate numbers. But it takes your human heart and mind to make those numbers matter.

That’s why integrating housing wealth into your process isn’t just smart, it’s necessary. It makes your advice more complete, more personal, and a whole lot harder to replace.  Once you dig in, wrap your head around the math, you’ll be shocked to see the number of client challenges and retirement risks you can mitigate with housing wealth. 

By the way, while you’re considering AI, consider asking your favorite artificial friend what it thinks about reverse mortgages as part of a retirement plan. You might find it provides some interesting insight. You might even find that AI can be a great friend, not an overwhelming adversary.   

Want help truly understanding this often-overlooked asset?  To move beyond AI, connect with our team, the only group of advisors actively educating our industry on how, when, why, and when not to include home equity in retirement.   

Connect with us HERE!