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.