Many wealth advisors focus exclusively on high-end clients. That’s understandable from a business perspective, but it doesn’t mean that advisors can’t serve the mid-market effectively.
Kevin S. Seibert, CFP, CRC, CEBS, is managing director of InFRE, the International Foundation for Retirement Education (infre.org). The non-profit education foundation provides retirement education and certification for financial advisors, including the Certified Retirement Counselor (CRC) designation, and is based in Lubbock, Texas.
Seibert doesn’t define mid-market clients by income or net worth, which is the usual method. Instead, he focuses on the clients’ risk of running out of money if their spending assumptions are unrealistic, a problem that can affect the wealthy as well as those with more modest assets.
The key to successful retirement income for these clients is to have a systematic method for managing retirement income and risks, says Seibert. The InFRE method has six steps:
1: Estimate duration of retirement assets
2: Identify and manage retirement risks
3: Identify distribution, tax, and estate issues and opportunities
4: Identify options for addressing gaps