What retirement issue has hit you or your clients out of left field, and how did you resolve it?
The biggest issue has been systematic withdrawals and clients simply running out of money.
Investors may have only taken out cash, but their portfolios are down. A client’s withdrawals may be 8-10 percent of portfolio, but when the portfolio is down, you may need to adjust your withdrawals and standard of living. Get back to a 4-6 percent withdrawal rate versus 10-12 percent. Going back to work is always an option to supplement retirement income.
What prospecting methods have been most successful for you in attracting retirement-planning clients?
Referrals are our biggest method in attracting retirement-planning clients. We talk about alternative strategies and about what’s making money. We have had great success partnering with CPAs. We have begun utilizing public relations as a cost-effective alternative to marketing and advertising. We continue to have several junior-level advisors doing more traditional prospecting.
Do you face any frequently occurring retirement-planning mistakes with prospects?