Clients may not understand the benefits of opening themselves up to financial risk through an aggressive model portfolio, so it’s vitally important for financial advisors to know how to talk to clients about their current level of financial risk and determine what their risk level tolerance is.
The retirement industry has seen significant changes in recent years—and as the industry continues to change, shouldn’t the way we talk to clients about retirement planning and preparation change, too? How can we change the conversation to get clients and plan participants on track to reach their retirement goals? Enter CoPilot.
It’s no secret that working as a financial advisor is highly rewarding. You make a clear, concise difference in the lives of workers who are trying to get ahead financially, and your impact is lasting. You help ease the financial stress your clients feel on a day-to-day basis, and you help them feel confident that they’ll reach financial freedom in due time.
The rewards are plentiful, but being an advisor isn’t always a walk in the park—especially if you want to be a successful one. You have to be good with all types of financial education and investment advice, but to be truly successful, you have to be good with people.
When looking for a new service provider, consumers don’t typically end their search with the first provider they find. Think about it; when you chose your cable and internet provider, did you make your decision based on which provider you saw first or did you take things like plan fees, connection speed, channel options, and customer service into account? We’re willing to bet you did some research and comparisons before moving forward with a selected provider. And it’s no different when someone begins their search for a financial advisor.
Wouldn’t it be great if there was a retirement-industry equivalent of Smokey the Bear? Someone always ready to tell pre-retirees, “Only YOU can protect your financial future!” and encourage workers to begin saving for retirement—and whatever else the future might hold? Unfortunately, there is no retirement-industry equivalent of Smokey. But financial advisors can have the same effect on pre-retirees that the fire-preventing bear has on America’s youth, and it starts with encouraging better behaviors.
If you’re anything like us, you have a love-hate relationship with your alarm clock. While we appreciate that it helps us get the day started so we can earn a paycheck, our appreciation only slightly outweighs our desire to smash it with a hammer each and every morning. But as owners of these bittersweet little machines, we do yield a great power over them…the snooze button. With nothing more than a push of a button, we’re able to forget about our morning tasks in favor of 10 more minutes of rest, which will surely make today that much better.
Unfortunately, saving money for retirement is also seemingly suffering from a snooze button, especially among younger generations
In today’s retirement landscape, financial education is a hot topic—and for good reason. Financial education is necessary to foster responsible fiscal decisions, healthy savings habits, and overall retirement readiness among today’s consumers. And as a financial advisor, you understand this more than anyone. Yet, despite its crucial importance, American workers seem reluctant to approach the intimidating topic of financial literacy.
Today’s upcoming retirees face many demands on their personal finances, and they’re often torn in numerous directions. They may be gearing up to help their kids fund college or perhaps trying to get that mortgage paid off before reaching the years of retirement bliss. Whatever the case may be, it’s important for financial advisors to keep clients on track when it comes to saving for their future.
By the time many people have reached their 40s, they’ve already experienced the highs (and perhaps the lows) of personal finance. They may have some money in the bank, own a house, be saving for their child’s college tuition – and hopefully, they’ve also been contributing to a retirement plan. With so much to gain, and so much to lose, financial mistakes made in a client’s 40s may have a much more devastating effect than the same mistake made twenty years earlier. And as a financial advisor, you have the unique ability to offer advice and education that may prevent seasoned workers from making common financial mistakes. You just have to start the conversation.
Lewis Grizzard once said, “The game of life is a lot like football. You have to tackle your problems, block your fears, and score your points when you get the opportunity.” When he spoke these words of wisdom, he probably wasn’t thinking about fiduciary responsibility, but that’s just the problem that needs to be tackled for retirement plan sponsors. Fiduciary liability can loom like a linebacker over small businesses that offer a 401(k) plan. They need a playbook to help them manage it — and that’s where financial advisors come in.
In one of the greatest superhero movies of all time, the Joker tells a group of wealthy businessmen, “If you’re good at something, never do it for free.” And while this guidance may come from a raging supervillain, it’s actually pretty sound advice. As a financial advisor, you’re in the unique position to provide advice and guidance on monetary issues – which eight out of ten American adults report they could benefit from. You’ve been able to turn your financial savviness into a career, and it’s important to continue bringing in new clients and growing your business. But with more than 300,000 financial advisors in the U.S. alone, you have to set yourself apart.
There’s a lot that goes into running a retirement practice, and with so many duties and responsibilities, it seems like there’s never enough time in the day to finish everything that needs to be done. Having more time to spend with current and potential clients is the first step to growing your business — but you can’t just add minutes into the day. So how are you going to find the extra time that’s needed? That’s where investment managers come in.
It should come as no surprise that Baby Boomers are one of the largest generations alive today, and they’re beginning to close in on retirement. With roughly 10,000 Baby Boomers turning 65 every day , financial advisors may want to turn their attention to the next generation that will reach retirement readiness: Generation X.