they know ? Most people still underestimate their longevity , so what plans do you have for them to hedge that risk ? What about those trimesters of retirement ? Have you had the conversation with every client close to retirement age or already in retirement about the second and third trimesters ? What does “ slow go ” imply for their plan — including where they will live ? And what about “ no go ,” when one partner or
Most people still underestimate their longevity , so what plans do you have for them to hedge that risk ?
CONTINUING EDUCATION CENTER ing what happened to relatives in similar situations . But the look on the couple ’ s faces said it all . I ’ d overstepped their expectation for the meeting . And just that quickly , they thanked me and left my office . That was my first encounter with the downside of being candid about retirement planning .
A few weeks later they called and asked for another meeting . “ We ’ ve made some decisions ,” they said . “ First , we really appreciate what you said . We weren ’ t ready to hear it .” They went on to say they listened and had taken steps . They scrapped the Nova Scotia plan in favor of Lake Champlain in Vermont where they could store their boat year-round and also buy a condo in the same town as one of their children , who welcomed the idea . They also wanted to supplement the pension with a more protected form of income and liked the idea of an annuity in lieu of some of their mutual funds . Like a paycheck , they reasoned .
Real Retirement Planning Takes Courage
The facts are stubborn , and the fact is that most of our clients are not prepared . Nearly half of people with more than $ 100,000 in a retirement plan have no advisor , no financial plan and , we know , not enough money to retire and maintain their lifestyle .
You can say that this doesn ’ t apply to your clients , that they are more sophisticated and affluent . But are they really ready to finance 30 to 40 years of additional life ? How do you know ? How do spouse is gone ? My mom ’ s in that phase now , and her circumstances are very different from what they were during the other two trimesters .
You Can ’ t Fake Retirement Planning
The advisors who sell a sunny retirement funded by a balanced investment portfolio are a better fit only for multimillionaire clients who can keep their spending in check . And that is a tiny percentage of the population . For all of the other clients and advisors , there is real work to be done with trade-offs and pivots as the inevitable challenges of longevity pop up . Professional imposters won ’ t last , and naïve clients will fail . The real advisors will protect their clients and earn both unprecedented growth and the feeling of achievement . Do good and feel good .
STEVE GRESHAM is the managing principal of Next Chapter , a leadership community dedicated to achieving better retirement outcomes for everyone . He also serves as senior education advisor to the Alliance for Lifetime Income . He was previously the head of Fidelity ’ s Private Client Group . Steve is the author of The New Advisor for Life ( Wiley ).
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