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Retirement Planning > Retirement Investing

Five Ways to Succeed at Retirement Planning

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The last decade has been punishing to equity investors and the majority of the retirement projections prepared for clients in the past are now null and void. The most unsettling news for clients is that they’ll have to work longer.

The solution is to approach the planning process as if this is a new game with new rules, a new definition of retirement and a new “normal”.

What prospecting methods have been most successful for you in attracting retirement-planning clients?

Making important financial decisions has become both complex and intimidating. Working with the client’s accountant and estate attorney provides team consensus and confidence to the investor and is a great way to cultivate referrals.

Do you face any frequently occurring retirement-planning mistakes with prospects?

Clearly the most frequent mistake we witness is procrastination.

It’s great to see so many boomers age 55-60 getting serious about debt reduction and wealth accumulation, but it leaves a short window to accomplish financial security.

What challenges do you face when modeling clients’ retirement incomes and cash flows, and how do you resolve them?

We can establish fairly good parameters for income distribution but the biggest challenge is predicting the future costs of living.

For example, how much will I need for health-care related expenses? Will inflation erode buying power at 3% or 6% percent per year? What will my tax rates be in the future?

What mix of products and solutions do you use most often and why?

In this world of uncertainties, we like products that insure and hedge against future market losses.

Annuities with living benefit guarantees can help grow and protect a retirement portfolio. Managed accounts, mutual funds, dividend paying stocks, life insurance, Roth IRAs, ETFs, can all play a role in the planning process.