KNOW: The early indications that the recession is ending seems to be increasing optimism in your Boomer clients when it comes to their portfolios, according to new data. At the same time, they are still very cautious when it comes to consumer spending.

DO: Take advantage of the short-term market optimism and longer-term spending pessimism to get a larger share of their wallet in your hands to manage. If they aren’t spending money, they should be investing it, with a trusted advisor like you.

KNOW: Reverse mortgages are on the rise — 165,000 are forecast to be closed this year — and so is reverse-mortgage fraud.

DO: Don’t let your client be panicked by the headlines in yesterday’s Wall Street Journal. While the headline and lead anecdote were scary, the newspaper didn’t even try to make the case that there’s a problem unique to reverse mortgages. Judge reverse mortgages based on their financial suitability for your Silent Generation client, not vague fears of getting scammed.

KNOW: Boomer parents of college age children need advice and guidance on how to teach them about credit cards and the importance of building a credit history before graduating college.

DO: Talk with your Boomer clients about the options available for establishing a credit history for their college age kids — with their own credit card, one co-signed by their parents, as an authorized user of their parent’s card, or with a secured credit card.

KNOW: Like health care expenses, the cost of college fees and tuitions are out of control. Many Baby Boomers are sacrificing their retirement savings to help their Millennial Genration kids through college. Even so, the kids are graduating with huge educational loans.

DO: Committing $60,000 or more to a college education is as much an investment decision as preparing for retirement. Trusted advisors can help their clients by subjecting educational choices to rational Return on Investment analysis. Some college degrees are more remunerative than others. And for some kids, skipping the four-year residential college experience altogether may be the best option.

KNOW: The worst of the mortgage bubble may be over, but housing prices could take another beating from the bursting of the demographic bubble. When Baby Boomers start selling their houses to fund their retirement, says urban planner Dowell Myers, the number of potential sellers soon will overwhelm the number of prospective buyers.

DO: Savvy financial advisors have already revised the financial plans of their Boomer clients to take into account shrunken homeowners equity since the mortgage meltdown. They may want to revisit their assumptions once more, depending upon the demographics of the client’s state of residence. Check the tables on page 12 of the Myers article and see when the age wave will hit real estate markets in their state.

KNOW: Seventy-four percent of Baby Boomers say they look for honesty and trustworthiness in a legacy advisor. Other vital characteristics include the abilities to listen and communicate well. For many, Oprah Winfrey would make the ideal advisor.

DO: Take the extra effort to build empathy and trust with your clients. The long-term payoff is tremendous, especially if you can parlay that trust into becoming the family’s lead legacy advisor.

KNOW: Only four percent of Boomers say they expect an inheritance from their parents. Only three percent believe they owe their children an inheritance. Boomers would rather leave a legacy of values and memories than a pile of money.

DO: Trusted advisors will understand the different types of legacies that Boomers and older generations want to leave behind, and shape financial plans — and family estates — accordingly.

KNOW: The number of Boomers signing up for Social Security this year has surged by 23% over last year – even though benefits increase about 8% for each year they delay.

DO: One of the most important retirement decisions anyone can make is when to sign up for Social Security. The decision requires making trade-offs between current need, future benefits, the perceived likelihood of beating the actuarial odds, and an appraisal of the U.S. government’s ability to keep its promises. Trusted advisors walk clients through that minefield, building confidence for future recommendations.

KNOW: 43% of the retirees surveyed by Longevity Alliance seriously thought when they first retired that they might one day go back to work.

DO: If a client has stretched his retirement finances too thin, a trusted advisor will raise the back-to-work option. Explain that “retirement” is a flexible concept, and that there’s no shame in seeking employment again. Many other retired Americans are prepared to do the same.

KNOW: Younger Boomers, those under 55, are actually more interested in guaranteed income products (annuities) for their defined contribution retirement account right now than Older Boomers, those 55-64 years old.

DO: Don’t make assumptions that only those Boomers nearing retirement age are looking to protect themselves from market volatility. Talk to your clients ages 45-54 about annuities within their 401(k) or IRA accounts.