Steering Clients Through Retirement
In the most recent BlackRock Investor Watch Survey™ 53% of investors said retirement planning was the most important topic of conversation with their advisor. Where are you focusing when clients raise their concerns about navigating the new world of retirement? We spoke with Elite Advisors who emphasized the following areas:
- Partnership: Sitting on the same side of the table as your clients will help you map out a comprehensive strategy together. Start with where they are and where they need to be, then figure out what type of asset allocation and investment approach will get them the returns they need.
- Preparation: With increasing concerns about Social Security, many companies no longer offering pension plans, and people living longer, clients are often left to their own devices when it comes to funding their retirement. Investors are seeking guidance in their uncertain journey; be prepared not only to help them when they ask, but also to be proactive before the questions arise.
- Changing Landscape: Clients are more aware and afraid of volatility than ever before, and so many plan to work longer to cushion their retirement savings plan. Help them understand the impact of increased longevity: long life can be used to a client's advantage. Educate your clients about risk assets that can help generate income and deliver returns over the long run.
- Diversification: Help investors understand how diversification can work in their personal situation. For example, some clients prefer holding an annuity-type product, which makes them feel comfortable being more aggressive with other parts of their portfolio. When investors expand their definition of diversification to include stocks, bonds, annuities and alternative investments, there are more ways to keep their money working harder and longer.
- Communication: Whatever you do when it comes to retirement and your clients, communication is key. Schedule regular meetings and reviews. When significant market events occur, call or email your clients to explain the impact and how they can still keep a long-term perspective.
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