Know what retirement clients need most from you

Clients often misunderstand just how much capital is required to fund and sustain a retirement lifestyle. Many clients I work with are middle-market millionaires, which means they have enough money to spend a little more freely but not enough to be “all set.” One misstep along the way and they could ruin their finances and be forced to either change their lifestyle or go back into the workforce.

To help people understand the gravity of not saving enough, I educate them about how much money they will realistically need for retirement. For example, I explain to people who have been working for 30 to 40 years and averaging $70,000-$90,000 a year in income, the amount of money that needs to be saved to generate that type of income in and through retirement. Once they actually sit down and think about the amount of cash required to make that occur, it often forces them to cut expenses, postpone retirement, change careers or work part-time. They also look to increase the rate of return on their portfolios that they’re trying to use toward their retirement objective.

Hands-on approach

According to Pew research, there are more than 10,000 people turning 60 years old every single day in the U.S. for the next 10 or 15 years. To reach this demographic, you need to conduct more hands-on and face-to-face meetings. Older clients are less apt to use technology. The younger retirees are integrated into technology, so it’s easier to communicate virtually and remotely with that younger retiree base than it is with an older client base. The amount of prospects that need financial education and our help is unlimited. However, the amount of advisers to service their needs has been somewhat on the decline.

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Start to read, study and talk to other financial advisers who are already successful. It’s important to enroll in educational courses, obtain designations and become a member of a financial association such as the Million Dollar Round Table. This can accordion down the process of the learning curve, so that you can become an expert in a much faster means over time than by simply working in the marketplace. For any adviser who would like to get into this marketplace, today is the day.

Gagne, ChFC, is a 16-year Million Dollar Round Table member with four Court of the Table and seven Top of the Table honors. He is founder of Affinity Investment Group, LLC, in Exeter, N.H., an investment advisory firm offering wealth management and distribution planning services for retirees or those planning to retire.