What retirement issue has hit you or your clients out of left field and how did you solve it?
Stress on the portfolio from recent market downturns is one and stress on the portfolio from the low interest rate environment that we’re in is the other.
These two events have clients revisiting their cash flow requirements and led us to go through what we call additional stress tests on the new post-correction values.
We just want to make sure that the client is still on target with the original investment plan and the retirement plan that we had for them in place. If they’re not, then we make certain adjustments.
What prospecting methods have been most successful for you in attracting retirement planning clients?
This year is a unique opportunity to attract retirement plan assets given the fact that the income requirement for Roth IRA rollovers has been lifted. This has allowed our group to highlight the benefits of a high net worth individual rolling over their assets into a Roth IRA.
Do you face any frequently occurring retirement planning mistakes with prospects?
Yes, misunderstanding of NUA, which is Net Unrealized Appreciation. We run across clients who have been advised or have it in their mind that when they retire, the entire value of their retirement assets should be rolled over into an IRA.