It seems like as soon as advisors get familiar with one retirement challenge, a new one pops up. Advisors are constantly on their toes trying to stay up-to-date with regulatory changes and new Social Security strategies, not to mention the changes in their clients’ lives. With that in mind, the editors of Investment Advisor present what they see as the five biggest issues advisors and their retiree clients will face in 2014.
We also talked with Charlie Smith at Fort Pitt Capital Group about where he’s finding growth for the Fort Pitt Total Return Fund.
Also, Olivia Mellan shares ways for advisors to communicate with widowed clients at a time when they most need their help.
Helping clients plan for retirement is one of the major jobs for advisors. Helping in that task are retirement planning calculators, investing theories and vehicles, and Social Security strategies galore. Advisors and their clients must live in the real world, however, and all those tools must incorporate what we know and are learning about psychology, the markets, regulation and legislation, and demographic trends. To help advisors provide the best retirement planning advice for their clients, the editors of Investment Advisor suggest some of the most salient issues that you should be considering in your process. Some you may know, others you may not have considered as burning issues, but taken together these five issues provide a snapshot in 2014 of what near-retiree and in-retirement clients are and will be facing.
Charlie Smith and Fort Pitt Capital Group will take returns wherever they can get them, whether in new, growing businesses or mature companies offering dividends. Fort Pitt Capital Group started life as the money management division of a brokerage firm in Pittsburgh. The founding partners, including Smith, chief investment officer and manager of the firm’s Total Return Fund (FPCGX), broke the group off to form Fort Pitt Capital in 1995, launching the fund a few years later.
Executive Managing Editor Danielle Andrus talked to Smith about which sectors are providing the most value and what to avoid.
According to Texas Tech Associate Professor Brian Korb, seven out of 10 baby boomer wives are going to outlive their husbands. Many widows will be dual inheritors, receiving money from their parents as well as from their spouse. Clearly, it’s in an advisor’s interest to work well with this group. Yet 70% of widows are unhappy enough to fire the couple’s advisor after their husband dies, according to 2011 Spectrem Group research. Kathleen Rehl believes there’s a simple reason for the high abandonment rate: “Many of these advisors are very competent, but they never had a relationship—or a strong connection—with the woman in the couple.”
Money coach Olivia Mellan talked to Rehl to learn more about how advisors can help widowed clients through this difficult time.