KNOW: In an excellent and thorough commentary in National Underwriter, Linda Koco presents the case for defined benefit plan lookalikes — defined contribution plans with guaranteed income during retirement.

DO: Invest a few minutes and read Koco’s commentary and think about how you can package together DB-like features in a DC plan that can also factor in Social Security. Your Boomer clients will be especially interested.

KNOW: The news today is that Social Security faces a bigger deficit in 2010 and 2011 because of a spike in early retirements and disability payouts. What happened? The recession hit and many older workers found themselves laid off with no place to turn but Social Security.

DO: Remind your older clients who may have turned to Social Security for income now, during the downturn, that they can get a “do over” later. Up until age 70, one can pay back to the government all the money paid out, interest-free, and reapply for benefits at the higher level tied to their age.

KNOW: One in three Americans say they have little or no understanding of their employer-sponsored retirement plan, and three in four say they have a less-than-complete understanding, according to a new study by The Hartford Financial Services Group.

DO: Ask clients if they fully understand their employer-provided retirement benefits. If they don’t, offer to explain how the benefits work and how they can help build wealth. The exercise could lead to development of a full-fledged, long-term financial plan.

KNOW: Stealth benefit cuts will erode the value of Social Security as a financial platform for retirement. According to MarketWatch , workers who claim full benefits today will replace 41% of their income with Social Security. By 2030, the percentage will decline to about 30% of earnings.

DO: When drafting your client’s financial plan, take into account the slow devaluation of Social Security benefits due to Medicare Part B and the possibility of getting bumped into a taxable income bracket. Baby Boomers need to be aware of the problem; Generation X and Millennial Generation clients should consider developing alternate sources of retirement income.

KNOW: The Associated Press reports today that consumers, especially Boomers, are changing their point-of-view about investing and are moving away from the “cult of equities” into safer options like bonds and cash. No more decisions made in financial fairyland, where everyone lives happily ever after.

DO: Read the AP story from the source and be prepared for clients to ask you in the coming days about your investment recommendations. If you are still pushing stocks exclusively, you are not only missing the boat, you may be turning off potential clients.

KNOW: Three out of five home builders say they are planning to downscale, or have already, the size of the houses they build in response to market demand. Anecdotally, much of the retrenchment comes from overextended Baby Boomers who are worried about losing jobs, paying for kids’ tuitions and having enough money to retire.

DO: If your clients need to save more for retirement, encourage them to consider downsizing their residence. As a trusted advisor, your job is to explain the tradeoffs in life.

KNOW: A stark generational divide has emerged in which far more Baby Boomers and Gen Xers than other generations say they are saving insufficient money for future needs.

DO: Boomers and Xers need help with their finances. This is a golden opportunity for financial advisors to reach out and touch new clients. They will find many Boomers and Gen Xers more receptive than any time in their lives to start to think seriously about saving, investing and planning for the future.

KNOW: Many commentators worry about the impact of Baby Boomer retirement on stock and bond prices when retired Boomers start drawing down their assets. But a recent Congressional Budget Office report, “Will the Demand for Assets Fall When Baby Boomers Retire,” finds little empirical basis for the fears.

DO: The Boomer doomsday scenario is bound to come up in discussions with your clients. If they’re genuinely worried, send them a pdf file of the CBO report. If that doesn’t settle them down, you might recommend they convert some of their assets into annuities that protect against the risks they worry about.

KNOW: American households say they intend to save an amazing 14% of their income when the recession ends, according to a new study by AlixPartners. If Americans follow through on their good intentions, a new global economic order is at hand. Consumer-driven businesses will suffer. But those who cater to savers will enter a golden age.

DO: The two biggest generational targets of opportunity are the Baby Boomers and Generation Y. Boomers have the high incomes, the Gen Ys aspire to saving 20% of their income, and both generations outnumber Gen X and the older generations by a wide margin. To cash in on the coming bonanza, make sure you understand what makes each generation tick.

KNOW: Despite the horde of Baby Boomers verging on retirement age, the workforce is getting older. That’s because older Americans will work longer than anticipated and because young people are staying in school/college longer before entering the workforce.

DO: Adapt your practice to two realities. First, retiring early is not the big priority among Baby Boomers that it was for previous generations. Second, the Millennial Generation will enter the workforce later in life than any preceding generation — racking up bigger educational loans in the process, and turning to their Boomer parents for help.