Guide Clients on Their Path to Retirement
How prepared are your clients for retirement? Six out of ten advisors in a BlackRock survey agreed that clients are lowering their expectations for the lifestyle they will have when retired. But it doesn't have to be that way.
Take National Save for Retirement Week as an opportunity to put your clients on a good path. Whether setting up dedicated meetings on the topic or allocating time during your year-end check ins, spending time on retirement planning will improve your clients' confidence. Here are a few talking points for your discussions:
- What are your goals for retirement? Use this question to gauge general sentiment, and to compare the feelings between spouses if applicable. It will likely make clients more comfortable than asking outright whether they feel prepared. Consider using BlackRock's Define Your Retirement Tool to help aid the process by clicking here.
- What types of expenses do you foresee? Break costs beyond one lump sum into ongoing essential expenses,discretionary, mortgage, special events/purchases, medical, etc. Make sure clients understand the implications of Medicare.
- Will you have ongoing sources of income once you stop your primary job(s)? Identify both existing and future income sources including full- and part-time employment, Social Security, pensions, IRAs, real estate, annuities, and so forth. Segue from here into a discussion about matching income to expenses, including optimizing existing sources of guaranteed income (such as pensions), developing withdrawal strategies for assets, and applying income to appropriate expenses.
Source: BlackRock, Spring 2012
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