The New World of Retirement
Help your clients understand the new world of retirement.
Whether your client is fresh out of college or ten years into the workforce, retirement probably feels very far off. But here's the thing: the retirement savings habits your clients establish today will serve them well throughout their career, and putting time on their side by starting early gives them much greater freedom and flexibility later.
For clients starting out on the path to retirement, it all boils down to saving early, saving enough, and investing in the right way. BlackRock's Retirement Center offers tailored content, relevant action items and tools to guide your clients on their path to retirement.
What are the key conversations?
- Invest early and often. Help your clients to understand that by starting to save for retirement now—allocating small amounts over time—it is often much easier to achieve financial independence than having to play catch-up later in life.
- Understand retirement savings options. As the responsibility of saving for retirement shifts more squarely to investors, it's important that you talk with your clients about all the savings vehicles available and the tax benefits for each option—be it 401(k), IRA or different types of qualified retirement plans. Let BlackRock help you start key conversations with clients surrounding retirement accounts and tax diversification.
- Consider all investment options. Because clients in their 20s and 30s have more time to weather market fluctuations, focus on a more aggressive investment approach. Equities are an important component at this life stage—when laying a solid foundation for a retirement portfolio. Also talk to your clients about investment options such as alternatives, target date funds and annuities to grow a retirement portfolio.
- Combine active and indexing strategies for more diversification. The more diversified a portfolio, the better equipped to weather market cycles throughout the years. Talk to your clients about diversifying their portfolio by adding an allocation to index products, such as exchange traded funds.
- Use longevity to ride out market cycles. With time on their side, your clients can ride out market cycles, allowing them to explore opportunities beyond traditional retirement assets—and take advantage of investments with enhanced income and growth potential. In addition, talk to your clients about how commodities and alternatives can play an important role in building a retirement portfolio.
How to Use Resources
What does retirement mean to your clients in their 20s and 30s? It's never too early to start defining that retirement. Direct your clients to BlackRock's Define Your Retirement tool to help them visualize what their retirement might look like. It's an easy way to get the retirement conversation started—through an innovative web-based tool that allows clients to envision how they might want to live in retirement.
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* This is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information and opinions contained in this presentation are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all inclusive and are not guaranteed as to accuracy. Past performance does not guarantee future results. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the viewer.
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