By Cindi Hill, CFP®, CRPC®, Retirement Solutions
Consultant, CUNA Brokerage Services
Do you think people are more likely to spend five hours
deciding on a car, planning a vacation or working on their retirement
investments?
A 2014 Charles Schwab survey
of 1,000 retirement savers shows what you’ve probably already guessed: More
than half said they spent over five hours on their last car decision, and 39 percent
said they’d spent that much time planning their last vacation. But only 11 percent
reported spending that much time on investing for their retirement savings.
We get it. Deciding which car to buy or beach or ski hill to
visit is fun and easy for most people. But, figuring out how to turn retirement
assets into an income stream for the future? That can be pretty intimidating for many.
The good news is: As financial advisors, we’re here to help
turn these experiences from scary to smart for the people and families we
serve. To achieve this, we recommend two key tactics that can ease
clients’ minds, stress levels and willingness to recommend to friends and
family.
First, offer planning
tools.
Today, many people face a more uncertain future in
retirement than previous generations: Most don’t have pensions and will have to
make sure the assets they’ve accumulated while working will support them
through retirement. They need financial planning tools that help them
understand:
- Their expenses in retirement and how to prioritize and minimize them.
- The income they’ll be able to generate based on
different variables like when they start to collect Social Security, how much
they withdraw each year
,and the impact of things beyond their control (like the health of the stock market and the inflation rate). - How various asset allocation mixes will affect their nest egg.
Support them with
written plans.
To get the most out of any planning tools, we recommend
complementing them with a written plan. Why? Think of the times you’ve set goals in your own life—and
when you achieved them. We’re guessing you generated more success when you took
the time to map out your strategies and tactics.
Research shows it makes a difference for advisors in more ways than one: A study from MoneyGuide Pro has found that the broker/dealer firms offering written plans were much more likely to drive referrals:
- Without a written plan, clients were only 44 percent likely to refer their advisors to friends.
- That probability grew to 75 percent when firms offered a written plan.
- And, if another firm created the client’s financial plan, they were 26 percent less likely to refer a friend to their original advisor for help.
For more insights you can use, we invite you to connect with us here and download our white paper on the changing retirement landscape. Or, stay informed on the employment opportunities we have for advisors here.
Are these ideas part of your approach?
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The views expressed in the communication represent the current views of the
author and do not necessarily represent the views of the management of CUNA
Brokerage Services, Inc.
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services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered
broker/dealer and investment advisor. CBSI is under contract with the financial
institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No
Financial Institution Guarantee. Not a deposit of any financial institution.
CBSI is a registered broker/dealer in all fifty states of the United States of
America. The representative may also be financial institution employee that
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