Advisors need to give clear answers to clients’ questions about income security, said Gresham, CEO of The Execution Project, which works with firms and advisors to prepare them.
Advisors who have told investors they would “do their best” have to change, Gresham said, “because doing your best when someone’s got a finite amount of money and a finite timeline is not good enough.”
In an upcoming podcast, McAleer, head of wealth planning at Raymond James, observed that a requisite skill for financial advisors today is empathy.
Harshendu Bindal, managing director at Franklin Templeton, sees an inevitable evolution of advisors to “life coaches to their clients as we need to understand and pave (the way) for that transition” to retirement.
4. Technology will help you create winning client experiences. Jessica Liberi, head of platform technology at Fidelity and formerly head of product at eMoney, described the advisor/client relationship as one that matures through frank discussions over time.
“We’re having discussions about our goals, our priorities, how they’re changing all the time based on real things that are happening in our lives, based on how things are shifting in real-time,” she said.
Retirees have specific questions: When should I file for Social Security? What is an RMD (required minimum distribution)? When do I need to start taking RMDs—and what should I do with them? Is a Roth conversion right for me?
Fortunately, firms are developing fintech platforms to allow advisors to answer those questions and chart the path to enhanced income in retirement.
“The future of financial advice is the desktop,” said Heather Kelly, senior vice president, Allianz Life.
Ben Huneke, managing director, Morgan Stanley, said advisors’ assets under management will grow four to six times in the next few years. Morgan Stanley is investing heavily in technology that will support them.
“We believe financial advice is valuable. But we believe technology is going to be an increasingly important part of how that advice is delivered to clients,” Huneke said.
Bonus: Successful people derive strength, perspective and satisfaction outside the office, too. I ask every guest to share something they do that adds texture and meaning to their lives.
Palazzo attends and has performed opera. Damon Deru, senior product director at Addepar, explores caves. Jasmine Jirele, CEO of Allianz Life, advises organizations that support young people. Thiel dedicates time to promoting financial literacy. Fred Barstein, founder and CEO of The Retirement Advisor University, meditates daily.
What would you have to say if you were a guest on my podcast? Drop me a note.
Jack Sharry is co-chair of MMI's Digital Advice Community. He serves on the Next Chapter Advisory Council, hosts the WealthTech on Deck podcast, is the author of the book Authentic and Ethical Persuasion, and is executive vice president of LifeYield.