In this episode, Wade and Alex discuss the evolution of messaging in the financial advisory industry and the importance of retirement income planning. They highlight the transition from brokers to investment managers to wealth managers and the shift from accumulation to decumulation. They emphasize the need for comprehensive financial planning that considers both the asset and liability sides of the balance sheet. They also discuss the challenges of retirement income planning, including longevity and liquidity risks, and the importance of addressing these risks in a client’s financial plan. In this conversation, Wade Pfau and Alex Murguia discuss the signs of a retirement income advisor who is knowledgeable and focused on the specific needs of retirees. They highlight the importance of advisors addressing concerns and risks faced in retirement, such as sequence risk and longevity risk. They emphasize the need for advisors to have a well-thought-out approach to retirement income planning beyond just investment diversification. They also discuss the significance of advisors having specialized retirement income certifications, such as the RICP or RMA designations. Additionally, they stress the importance of advisors having a clear and specific messaging that resonates with retirees and solves their unique retirement income needs.
Takeaways
- The financial advisory industry has evolved from brokers to investment managers to wealth managers, reflecting a shift from transaction facilitation to comprehensive financial planning.
- Retirement income planning is a distinct field within financial services that focuses on managing assets to meet liabilities in retirement.
- Comprehensive financial planning considers both the asset and liability sides of the balance sheet, taking into account the goals and risks of retirement.
- Retirement income planning addresses challenges such as longevity risk and liquidity risk, ensuring that clients have sufficient resources to meet their expenses and unexpected spending shocks in retirement. A knowledgeable retirement income advisor will address concerns and risks faced in retirement, such as sequence risk and longevity risk.
- Advisors should have a well-thought-out approach to retirement income planning beyond just investment diversification.
- Specialized retirement income certifications, such as the RICP or RMA designations, can be a good indicator of an advisor’s expertise in retirement income planning.
- Advisors should have clear and specific messaging that resonates with retirees and solves their unique retirement income needs.
Chapters
00:00 Introduction and Acknowledgments
02:51 The Shift from Accumulation to Decumulation
06:12 Comprehensive Financial Planning: Managing Assets and Liabilities
10:13 Addressing Longevity and Liquidity Risks in Retirement
22:08 Signs of a Knowledgeable Retirement Income Advisor
24:12 Beyond Investment Diversification: A Comprehensive Approach to Retirement Income Planning
27:19 The Importance of Retirement Income Certifications
31:23 Clear and Specific Messaging: Key to Effective Retirement Income Planning
Links
Join Alex and Wade for our workshop “Elevate Your Practice: Workshop on Marketing Mastery for Retirement Income Advisors” to discover how to better market yourself as a retirement income advisor so you can stand out, attract prospects, and turn them into loyal clients. Register to attend LIVE on August 6th or 7th at www.risaprofile.com/marketingworkshop
Watch this episode on YouTube: https://youtu.be/akIBikbLnkw?si=H3FkSf8tT7ceU4-W
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips
