Reprinted from Retirement Advisor recognition,
What challenges do the senior and boomer markets face today?
I think the largest risk that retirees face today is longevity because longevity increases every other risk in retirement. Baby boomers are different than the generations before them, many of them without pensions or guaranteed income sources. This, combined with the reality that life expectancies are continuing to grow longer creates an uphill battle for many baby boomers. The longer we live, the more challenges we will see, including extreme stock market volatility and even crashes, inflation, health issues and rising taxes. If a retiree does not address longevity first, the rest of their lives they'll be on pins and needles hoping that they have enough money to survive.
The other big issue that I see with today's retirees is the low interest rate environment. Many investors become more conservative as they approach retirement, turning to "safer" investment vehicles such as CD's, bonds or annuities. However, all of these safe types of investment vehicles are impacted by the low rate environment, which makes accumulating enough for retirement increasingly more difficult, especially if we have a long life. Portfolio growth is key, but another risk that they could face, if dissatisfied with the returns of those safer alternatives, is overextending themselves in the stock market in an attempt to make more money. This usually doesn't end well and could prove very fatal to the overall success of their retirement plan.
How important is a comprehensive retirement plan and what is your process to integrate new clients?
We believe that education is truly imperative, especially as investors approach retirement and their investment needs change. Many advisors only handle one or two areas of a client's retirement plan, but we believe in order to best serve our clients, we must assist them with all of the financial areas of retirement and create one comprehensive plan. We also think this is how to act as a fiduciary to your clients, as advising on all areas and how they impact each other allows you to provide the best possible advice and put their interests first. That is why our prospecting is educationally based around all of aspects of retirement planning. At our workshops, prospects go through six checkpoints of retirement, learning not just about investment and retirement planning strategies, but also about the importance of health care and
As far as integrating new clients, our appointment process is completely plan driven. Since the workshops help layout the different checkpoints of retirement planning, the first appointment is spent going through the client's goals and objectives and understanding the retirement journey they want to take. By gathering this information and understanding how the client envisions their retirement, we are able to build a plan that is not product focused but instead plan focused. This comprehensive plan helps them to see the big picture and understand what each of their investments and each of their decisions are doing and how that impacts the outcome of their overall comprehensive plan. Once a plan is built and implemented, our clients feel peace of mind that all areas have been addressed, and they feel empowered to go out and enjoy what they have worked so hard for their entire lives.