10: Integrate all considerations––present alternatives and agree on a plan
Clearly, there are trade-offs in addressing possible concerns and solutions in a retirement income plan. Clients will have to make some difficult choices. For example, strategies that improve income security in retirement may have a negative effect on wealth accumulation for legacy goals.
Clients may not fully understand the issues until they see several alternatives, so a back-and-forth process should be expected. Getting to a final plan clearly requires some give and take, and the planning may go through a number of rounds before a final plan is agreed upon.
Once a plan has been proposed, approved and implemented, it may be almost time to circle around and start the process all over again. Possibly no other type of financial planning will hit more road bumps along the way. There may be a big dip in the market, the client spends too much, inflation suddenly increases, or a grandparent takes on financial responsibility for adult children or grandchildren. Each of these changes affects the plan, and regular contact is required to evaluate and revise that plan. Retirement income planning can be rewarding work; you are really helping your client invent and navigate a new life stage. It’s challenging as it requires a process, a wide range of knowledge, and the tools to help design and implement the plan. A successful advisor will be an important part of their clients’ lives.