subject: Projected Financial Security and Planning [print this page] One of the most frequent messages related to the impact of retirement, is the financial aspect. Many who call themselves "retirement planners" are retirement planners in name only. In truth, they are financial advisors who prefer the broader description of retirement planner.
Being a true retirement planner means taking a comprehensive view of a client's retirement situation. That includes not just financial aspects but also life satisfaction, leisure interests, family and marital issues, adaptability, health, and even your attitude toward retirement.
Taking a wider view of a client's retirement doesn't mean becoming an expert in all of these areas, but it does mean doing at least three things:
Engaging clients in conversations about more than just their financial situation;
Having sufficient expertise to highlight problem areas and talk about these with clients;
Developing a network of professional advisors in these areas to which clients can be referred if needed.
In talking with planners who have focused only on finances, I've heard three reasons why they won't go the "whole-retirement" route. First, there is a perception that most clients don't want or need broader advice. Second, it's often outside a planner's comfort zone and existing expertise. And finally, I've had planners talk about how time-consuming it can be to get into a comprehensive conversation about a client's total retirement picture.
These planners also express concern about how they would be compensated. Simply put, just talking to clients about their financial needs is a simpler conversation, and can lead to a faster sale than getting mired down in the minutiae of the clients' retirement lives.
All this is absolutely true if we're looking at things from just one point of view. But view things from our clients' perspective, and we see quite a different story.
Did you know that retirees generally feel they have their financial needs well in hand, and primarily seek retirement advice?
Among affluent pre-retirees aged 45 to 64, however, a substantial majority are looking for comprehensive advice.
While you can quote data, the same situation holds true for both Canada and the US. Not every client is looking for a planner who can provide a broader view of his or her retirement, but a substantial number are and there's no reason to believe this number won't increase.
Taking a whole-retirement approach has a number of benefits for both planners and their clients.
Taking a whole-retirement approach has a number of benefits for both planners and for you.
By providing broader advice, you receive increased value and planners reduce the risk of client defections. Planners also have a competitive advantage in talking to prospective clients. At the same time, there is a reduced reliance on investment returns to drive client satisfaction, making it a win-win situation. And many advisors find that their conversations and relationships with clients become more rewarding as a result.
Some may view the whole-retirement relationship as controversial: does it really make sense to encourage clients to not concentrate on their finances and thus reduce the dollars available for retirement? But this strategy has had significant success; not only does it help clients achieve their goals, it enables the principals to get into conversations with clients about their hopes and dreams, conversations that otherwise would not have taken place.
How far your financial planner goes engaging you in conversations about your retirement will vary. Similarly, some coaches focus on investments and finances, while others go much further to review clients arrangements to ensure that their needs are met. They will also refer clients to affiliated services to search the market for the most competitive and holistic relationships.
But just having the desire is not enough: the right skill set is also required. Many coaches pursuing this route will have to upgrade their knowledge. Remember, the goal is not to be the expert in all areas but to have a working understanding of all aspects of retirement, with specialization in some specific areas.
Some coaches offer programs to help their clients beef up their abilities to engage in these conversations. There are also external programs for attaining designations such as the certified retirement coach through Retirement Income Options Inc.
Another vital component in a whole-retirement practice is a focus on planning. Most coaches who focus on comprehensive advice use a retirement plan as the linchpin of their approach. Coaches don't need to have staff dedicated to planning, but they do need to have the capability to develop and discuss retirement plans with clients.
Not to be overlooked is the right network. Coaches who take a comprehensive retirement approach typically work with clients to ensure co-ordination of their clients' affairs. When clients don't have professionals in place and where the need exists, coaches with a whole-retirement mindset have a network of experts to whom they can confidently refer these clients. The benefits of this approach is that this can lead to referrals in return. Although I could advise people on the financial aspect of retirement, considering my 15+ years experience in the financial industry, my focus is primarily on the life aspects of retirement. I've been meeting with financial planners so we can work together to provide a comprehensive look at clients' retirement lives. I prefer to leave the financial advising to the experts who stay on top of industry change, just as I do on the life arenas.
Moving to a whole-retirement approach is not fast, easy or painless. An up-front investment of time and money to develop the expertise and infrastructure was required, as well as a major shift in mindset. But since I take the long view on my business and my life, moving to a whole-retirement practice can be viewed as one of the most important moves I've made.
Your Assignment:
Write down the answer to the following questions:
What plans do you have in place for adequate financial security to obtain your desired lifestyle during your retirement or renewal years?
Is this a sufficient plan for all that you plan to do?
Once you've answered what you will do, contact a financial advisor who can review your finances so you can be sure you are adequately prepared. They can show you ways to adjust your plans.
If you're not sure what you will do each day, if you're looking for ways to figure out what your retirement will look like, and you know you definitely DON'T want to leave it to chance, contact me for a 30-minute 'Get Acquainted Session' to see if there are ways I can help you.
Simply email me at Tracey@NewFaceOfRetirement.com and we'll set up a time to chat.
This information is based on the original work created by Richard P. Johnson, Ph.D. in his book The New Retirement and the training certification through the Retirement Success Profile (RSP).
