Whether it's for savings, retirement, or estate goals, clients need reminders to stay on track
A good financial advisor does more than sell investments and pocket fees; more than ever, clients need advice that goes beyond transactions. They need someone who can help them figure out objectives, assess risks, and figure out their options. In other words, good advice requires a relationship — one in which the client gets nudged to achieve their goals.
People tend to miss the big picture, which means discussions involving long-term goals need to be had sooner rather than later, according to the Wall Street Journal. One example is retirement saving, which is becoming more critical as fewer companies offer decent pensions or sponsored plans. But many clients still aren’t saving enough.
“They need to be nudged,” Matthew Gilmore, managing director at US-based Strategic Asset Services, told the Journal. To help clients save more and build up their nest egg, he said he emphasizes the importance of monthly goals and using automatic-contribution tools.
Another important topic is the possibility of part-time work in retirement. Some pre-retirees are unable to meet their goal through pensions, savings, and investments alone. In such cases, broaching the possible need to take on a part-time job early on is crucial. While people may find it challenging to imagine themselves working in a different job, it’s important to help them explore all the options before they can realize — or compromise — their retirement plans.
Finally, focusing too much on retirement could cause people to miss two other concerns: long-term care and estate planning. Gilmore told the Journal that among the prospective clients he speaks with, almost 70% don’t have a will, and a similar proportion have no long-term care insurance. The problem is that people often start planning for health issues and catastrophes too late — which could make planning more difficult and result in bigger insurance premiums.
“Someone in their 50s doesn’t want to talk about an eventuality that could be 30 years down the road,” he said. “And that’s why it falls on us as advisers to start that conversation.”
Related stories:
Why debt is a prevalent retirement risk
Canadian investors regret inadequate retirement savings
People tend to miss the big picture, which means discussions involving long-term goals need to be had sooner rather than later, according to the Wall Street Journal. One example is retirement saving, which is becoming more critical as fewer companies offer decent pensions or sponsored plans. But many clients still aren’t saving enough.
“They need to be nudged,” Matthew Gilmore, managing director at US-based Strategic Asset Services, told the Journal. To help clients save more and build up their nest egg, he said he emphasizes the importance of monthly goals and using automatic-contribution tools.
Another important topic is the possibility of part-time work in retirement. Some pre-retirees are unable to meet their goal through pensions, savings, and investments alone. In such cases, broaching the possible need to take on a part-time job early on is crucial. While people may find it challenging to imagine themselves working in a different job, it’s important to help them explore all the options before they can realize — or compromise — their retirement plans.
Finally, focusing too much on retirement could cause people to miss two other concerns: long-term care and estate planning. Gilmore told the Journal that among the prospective clients he speaks with, almost 70% don’t have a will, and a similar proportion have no long-term care insurance. The problem is that people often start planning for health issues and catastrophes too late — which could make planning more difficult and result in bigger insurance premiums.
“Someone in their 50s doesn’t want to talk about an eventuality that could be 30 years down the road,” he said. “And that’s why it falls on us as advisers to start that conversation.”
Related stories:
Why debt is a prevalent retirement risk
Canadian investors regret inadequate retirement savings
