KNOW: The world is shifting from a global capital surplus to an era of capital scarcity as Boomers transition from their peak saving years to wealth-draining retirement. In its “Equity Gilt Study of 2010,” Barclays Capital forecasts that long-term interest rates on government debt could double by 2020.

DO: If the Barclays forecast is right, the conventional strategy for pre-retirees — reallocating portfolios from equities to bonds — could backfire in the decade ahead. Financial advisors should acquaint their Boomer clients with the risks associated with long-term bonds, especially government bonds, the quality of which, ironically, the mass retirement of Boomers is undermining.

KNOW: More than one out of three Gen Xers, Boomers and Silent generation members are not married, by choice. How does that match your current client mix? Are you ignoring over a third of your marketing opportunity? Do you know the demographic make-up of your client base?

DO: Pay more attention to the demographics of your clients, and your prospects. A good snap shot of each generation helps, like these from Met Life. Don’t assume everyone over 35 is married or wants to be. Make sure your marketing and sales efforts are not biased towards married couples.

KNOW: Inter-generational obligations in the United Kingdom, the subject of much discussion of late, mirror trends in Canada and the United States. Adult children of Boomers are dubbed Yuckies (Young Unwittingly Costly Kids) for their prolonged financial dependence. Meanwhile, Boomers are increasingly more likely to go SKIing (Spending their Kids’ Inheritance) than leave an estate.

DO: Don’t assume that the G.I. Generation or Silent Generation models of inter-generational relations apply. Boomers are more involved in their adult children’s lives than their parents were — giving generously to their children now and leaving less when they die.

KNOW: Americans increasingly wonder about the financial strength of Social Security, the foundation of of nearly every person’s retirement plan. But the issues are so complex, the arguments so partisan and official Social Security documents so turgid to read. Where does one go for information?

DO: We recommend 10 Things You Need to Know about Social Security” in the Chicago Times as thorough but easy-to-read primer. But urge clients to read the comments by Allen W. Smith appearing below the article. He adds two more very important things your clients need to know.

KNOW: The debate continues as to whether Americans’ new-found propensity for thrift represents a genuine change of heart, or whether it’s imposed mainly by financial institutions as they tighten credit standards. A recent New York Times article suggests that Americans are learning to derive more satisfaction from their experiences than their possessions. A Vanguard executive sees the business cycle at work.

DO: We think that the value shift is real. Americans are rediscovering basic truths about the source of happiness. As you discuss your clients’ life goals, be attuned to the possibility that they want different things out of life than they did a few years ago.

KNOW: Social Security’s annual surplus nearly evaporated in 2009, according to USA Today, meaning that its trust fund is building up more slowly than anticipated and, when Boomers begin retiring en masse, could run out of money sooner. Meanwhile, Boomers have yet to make the radical lifestyle changes they need to save enough to enjoy a financially secure retirement.

DO: Boomers are pessimistic about the future, but they may not be pessimistic enough. Send them the USA Today article and let them ponder the implications for their retirement. Invite them to re-evaluate their long-term financial plans.

KNOW: Boomers are bummed out. More than half feel poorer than a year ago — and last year was nothing to brag about. Also, they’re less happy than other generations about their health and less satisfied with their jobs.

DO: Now is a good time to measure the mood of your Boomer clients. Not their usual optimistic selves, they may be inclined to set different financial goals and reconfigure their portfolios.

KNOW: The stock sell-off from the Global Financial Crisis could set back the incomes of roughly one in four Boomers by 10% or more. But working one extra year, to age 67, would significantly increase the odds of restoring their post-retirement income, concludes an issue brief published by the Urban Institute.

DO: Share the brief with Boomer clients. The conclusions may be self-evident to you, but it may not be obvious to your clients that working only one extra year (extending their working life by 2.2%) could increase their retirement income by as much as 10%.

KNOW: Single retirees earning more than $85,000 a year are subject to a Medicare Part B surcharge this year of $155 per month — up $44 from 2009. As inflation pushes incomes into higher brackets, the surcharge could become a major expenditure that middle-class Boomers didn’t count on seeing deducted from their Social Security checks.

DO: A trusted advisor warns clients of the risks and hazards ahead. As a fiscally stressed federal government seeks ways to fund runaway entitlement programs, it will be tempted to convert Medicare into a mechanism for redistributing even more wealth from “affluent” retirees to poor retirees than it already does. Help your clients plan accordingly.

KNOW: Congress is considering Social Security reforms that would, according to US News & World-Report, expand benefits to low-income earners and poor widows. It’s not clear yet where the money would come from, but one obvious possibility is from more affluent Social Security recipients.

DO: As budget deficits soar and the economic outlook remains grim, anything can happen in Washington, D.C. Warn Boomer clients of the risk that the Social Security payouts they may have incorporated into their long-term financial plans could be eroded through policies designed to help the poor.