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Joe Duran: What Investors Need From Financial Planners
During Tough Times

In the experience of Joe Duran, head Duran points to the example of a client
of Goldman Sachs Personal Financial that has not yet retired but was planning
Management, the value of a solid financial to do so soon. Rather than allowing the
plan is hard to overstate, especially during client to dwell on the unfortunate nature
difficult times in the markets. He spoke of sequence of returns risk, the advisor
about these and other key topics during can bring to the table some calculations
a media call featuring the results of the that show the client can make up most
“2022 Goldman Sachs Asset Management of the lost ground by working for another
Retirement Survey Insight Report.” year to 18 months. “You can show them
how they can pull levers they can control
1. A ‘precarious moment’: Top concerns that will put them back in the position
highlighted in the survey data pertain to the current position and generate that higher they would have been in before the mar-
solvency of Social Security, rapid inflation level of clarity about what may come next.” ket decline of the last year,” he explains.
in health care costs and uncertainty about A client who has already retired, on
what greater longevity means from a finan- 2. Seeking clarity and control: Duran the other hand, may need to reduce
cial perspective. Concerns across these and emphasized that no advisor, no matter their their spending by 10% for about four
other areas have all jumped meaningfully skill and dedication, can predict the future. years to make themselves “whole” again,
since the 2021 edition of the survey, Duran At the same time, no client can make Duran says. This isn’t going to be easy
notes, showing just how difficult the last perfect decisions all the time. Fortunately, for most, if not all, clients, but it is an
year has been for many people. that’s not what a good financial plan seeks actionable plan. “A good financial plan-
“The data shows us we are clearly in a to accomplish. “What we can do is use ner will walk people through this and
precarious moment,” Duran says, adding forecasting and scenario analysis that can help them understand that they can
that such an environment elevates the put your clients in the best position pos- respond to this moment constructively
importance of financial planning. “People sible for financial success,” he says. “The and without making some panicked
across the board want more advice outcome of a good planning process should move towards protection.”
about saving and generating retirement be that deeper sense of clarity and control.”
income — and understanding how long Duran explains that successful financial 3. No planning magic: Duran says finan-
their savings might last, especially in the planners are already engaging with their cial planners must also be humble and
context of high inflation.” clients about the aforementioned areas of understand their own limitations. For
Duran says the growing desire for per- concern and are helping them to under- example, no financial planner can craft a
sonalized, tailored advice shines through stand what levers they can pull to put comprehensive retirement plan for a cli-
basically all the findings in the new survey themselves in the most optimal position ent who may only be in their 30s.
report. According to the survey, essentially during what is clearly a difficult moment. “We simply don’t know enough about
all current workers say they could benefit “Your typical client with a balanced what this person’s future holds to be
from greater access to advice and support portfolio has now gone through a roughly able to have a constructive conversation
services from planning professionals. “We 20% decline in their accumulated about retirement income, for example,”
know that a sense of financial control and assets,” he says. “First of all, the financial Duran says. “What we can do is refocus
clarity are essential, but these are so diffi- professional can help ensure that there the discussion and instill financial disci-
cult to create on your own,” he says. “These are no ill-timed flights to cash that lock pline that will help this person through-
are the things a financial plan can address. in these losses, but that’s only part of the out their savings journey.”
A plan helps individuals understand their response to this moment.” —John Manganaro
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NOVEMBER 2022 INVESTMENT ADVISOR 1