Volatile investment markets in 2015 have no doubt made for some somber dialogue between independent advisors and clients as the year winds down. Such conversations—never simple nor easy—are nevertheless always opportunities to engage and solidify relationships with clients. Looking ahead to 2016 suggests more such opportunities on the horizon—and planning-focused advisors will not hesitate to seize them. Indeed, there are several conversations that will be all but “must do’s” for advisors as the new year commences.

First, some market context. As my colleague Russ Koesterich, BlackRock’s global investment strategist, noted in a recent commentary, the U.S. stock market has experienced a nearly uninterrupted advance each year for the past six years, with significant support from unusually accommodative monetary policy among other factors. But now—with interest rates (and also volatility) set to rise and market returns likely to moderate—the landscape going forward will probably be quite different.

Urgent And Enduring Concerns
In such an environment, investors’ most urgent concerns will persist—and, in fact, they are likely to be heightened. Retirement, naturally, looms over all others, and here the picture remains troubling. Retirement-focused investors are increasingly attuned to the pressing need to recreate paychecks with retirement-long secure income streams, but most remain woefully unprepared to fund such streams. Retirement-focused investors are increasingly attuned to the pressing need to recreate paychecks with retirement-long secure income streams, but many—even the relatively affluent—remain unprepared to fund such streams. In fact, according to our latest BlackRock Investor Pulse survey, Americans age 55 to 64 with $250,000 plus in investible assets want to have on average $59,600 in annual retirement income, but the savings they have accumulated ($567,000 on average) can generate just $37,800 in annual income—an annual gap of $21,800.

In helping clients maintain progress toward an overarching retirement goal—and other critical outcomes—planning-focused advisors will continue to enjoy an extraordinary advantage, we believe, with their inherent flexibility in choice of systems, strategies and support for the investment process. But it all begins, of course, with good dialogue that engages the client, compels focus and sets the necessary course.

What are the most essential advisor-client conversations for 2016?  We believe there are three:    

·  Is your portfolio still well-aligned with the goals that are most important to you?

·  What level of (perhaps new) investment risk should you adopt to reach your goals?

·  What else can we do to keep you on track toward a satisfying and secure retirement?

Alignment with goals? The best outcome-oriented advisors are always endeavoring to complement “style box” investing and 2016 will be no exception. A changing investment landscape—one likely to demand even more deliberate evaluation of investment fundamentals and careful asset selection—will reinforce the need to reassess portfolios for proper alignment with such key tactical goals as income generation and minimum volatility as well as longer term objectives—retirement, saving for college, legacy, etc.

Investment risk? With somewhat less certainty around the prospect of “beta returns” in coming months, it could be appropriate for many clients to adopt a different degree of risk in the process of choosing assets best aligned with their goals. We believe more investors could benefit from adding active strategies that blend well with beta while also capturing additional return opportunities as asset dispersion and market volatility increase. As always, careful discussion around the opportunities as well as the realities of risk will ensure that the client is highly comfortable with whatever the chosen path, including potentially an adjusted level of investment risk.

On track for retirement? This conversation first demands some introspection and self-analysis on the part of the advisor. The reality is that as the focus of retirement-oriented investors shifts from straightforward accumulation toward decumulation and the development of smart income-generating strategies, advisors need to ensure their practice model is structured to deliver what such clients need most—from appropriate counsel, to assessment of retirement income readiness, to access to appropriate income-generating portfolio strategies, up to and throughout the retirement years.

No Shortage Of Discussion-Worthy Issues
Of course, it’s not just a matter of the big planning-driven conversations; inevitably, other timely and discussion-worthy issues will arise. For example, the Department of Labor is steadily moving toward a consistent fiduciary standard for retirement-focused advisors—an issue that eventually will come on the screen of your clients. Regardless of what the DOL ultimately promulgates, look for opportunities to engage your clients around the topic of client-centered service and highlight the ways in which you are already meeting a notably high standard.

In addition, robo advice is here to stay. Yet, evidence is mounting that for planning-focused advisors, new advisory technology offers far more opportunity than threat. If you’ve incorporated innovative portfolio or communications technology into your practice, look for ways to underscore for clients the efficiencies that it brings to your service—at the same time that it is leveraging the ongoing value of the very human support that you continue to provide.

Your clients have sought you out based on strong positive conviction about your service. It’s an amazing fount of good will and yours to build in the year to come. And it’s all rooted in the care and concern that you show in every “touch” with your clients.  Make every effort to keep these key conversations going in 2016—your clients will be listening.

Joe DeVico is the head of the independent channel for BlackRock.