That said, Tonkinson has noticed some frightening trends among clients and prospects largely because they suddenly find themselves supporting relatives they had always assumed would be independent. In some cases, withdrawal rates from retirement funds that were averaging around 7% before 2008 have spiked, in some cases to as high as 20% or 25%, often because of additional financial burdens such as those discussed above.
"Unemployment is not just an issue for the unemployed," he says. "It's putting a burden on retirees who are supporting some of those unemployed. The big challenge for 2011 into 2012 is to stem that tide. One of the primary issues we face is helping our clients maintain stability in their retirement accounts when they face unexpected burdens."
Past performance, as they say, is no guarantee of future performance or success. But Tonkinson's business model, and his self-described "boring and dull" investment strategy, have established an impressive track record through some tough economic times. He may be right about a potential national retirement crisis brewing, but if it emerges, his clients might be forgiven if they expect to fare somewhat better than clients of other firms. And it's worth noting that RT&A's client roster has not shrunk. In fact, it's growing.