The client in front of you is on the doorstep of a whole new phase of life: retirement. He’s dutifully planned for this moment, accumulating assets and making sure the money’s all there. How can you help make his dreams come true?
Chris Hill, CSA, regularly tackles this problem for two kinds of clients. “One group is the one nearing retirement: the one who gets there the right way, and once he’s there, he’s getting the right amount of income,” says Hill, a financial advisor at First Financial Group in Reston, Va. “The other is the person who comes in when he is 65 and says, ‘I have a million dollars, and I need to start taking income. What’s the best way to do that and where do I get the most income, growth potential, tax efficiency, safety, control and access while I still have something to pass along to my children?’”
Hill, a member of Northern Virginia AIFA, educates everyone he works with by giving them a handout that summarizes the six predators that are after their money—taxes, inflation, longevity risk, interest rate volatility, stock market volatility and withdrawal pressure—and the nine things they should demand from their money.
Spell it out
Hill’s list itemizes the nine areas clients need to address when they are planning a retirement-income strategy. By spelling them out up front, clients are aware of what you want to do for them. “I tell them that I will design an income strategy that hits all nine of these buttons,” says Hill. “This is what I know that they can and should demand, and I’m going to come through and follow through to create a retirement income for them.”
The Nine Demands
The biggest challenge in retirement-income planning is hitting these nine items. but if you can promise and deliver on them, you’re golden. Keep this list handy when your clients are ready to talk about retirement-income planning. You can download your own copy of “The Nine Demands.”