Holistic versus Individual Planning:
“Where else would you rather be than right here right now? "
Dr. Wade Pfau, focusing his session on recent events of the current market downturn, discussed how our psychological makeup becomes our own worst enemy. Be it an investment or retirement decision, if and when we make emotional decisions under times of extreme market volatility, we usually hurt ourselves. He points to utilizing an effective framework to set up guardrails to help one make better investment and retirement income decisions going forward. Wade broadened the scope of his conversation toward a more holistic view (mind/body/spirit/purpose) of the retirement journey and inclusion of the entire family’s lifestyle. Coordination of Resources and Communication with Client(s) Coordination: “It will take a Village” Awareness and coordination are the goals to improve our outcomes in this retirement lane. Legislative changes (SECURE and Proposed “SECURE 2.0”/DOL) are insufficient. There must be a commitment from all stakeholders; investment providers, vendors, recordkeepers, advisors, plan sponsors, and finally, plan participants. Rob Kapito of Blackrock summed it up best with the following close to his session. “Everyone in the eco-system needs to be on the same page in order to provide a secure and dignified retirement to all employees – not just domestically in the USA, but all workers throughout all nations.” A sub-theme here, if you will, is that Advice and Technology must go hand-in-hand.
That quote from Marv Levy, Coach of the Buffalo Bills, as they entered their first Super Bowl in 1991 was precisely the buzz at the Financial Advisor Next Chapter "Rockin’ Retirement" conference I attended. One of the conference speakers, Ross Levy, is often quoted as saying, “It’s Simple, Not Easy” very apropos for the tone of the four major topics within the conference: Shift Now, Longevity and Stages, Holistic versus Individual Planning, and Coordination and Communication. Shift Now: As noted by several speakers, the first theme, shift, or pivot, will be a difficult change for many financial advisors and retirement specialists. The goal is no longer accumulation and growth of wealth but has shifted to protection and security of the household's lifestyle! This focus on longevity (needs) and legacy (planning) pours over into wealth management as well as estate planning. What this shift isn't is stuff and more stuff. It is instead a move toward happiness and enjoyment. Longevity and Stages: Implementing longevity in your practice is an opportunity to build stronger client relationships, create loyalty with families, and differentiate your offering. Multiple speakers, using a variety of illustrative phrasing and categorization, emphasized that retirement at age 68 is both: 1. different from what it will be at 80 2. not the same for every household
Myles McHale Subject Matter Expert
Communication with Client(s) "Basic fundamentals here have not changed; however, failure to execute properly has unfortunately become part of some practice management processes in Wealth and RIA shops," said Tom Bradley from Charles Schwab as he spoke to Steve Gresham, Next Chapter Chair and Head Promoter. "Client(s) will not stand for that – communicate and educate or be replaced ." Regarding this crucial element of redesigning retirement, Ms. Underwood-Kotner put it this way, "It comes down to TLC: Time, Listen and Constant Communication." It is easy to blame losing a client over something out of your control, like market downturns. But according to a recent Spectrum survey, 80-85% of clients indicated their adviser's style and frequency of communication impacted their decision to retain (and refer) them.
... communicate or ...
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