Top 3 Advantages of Retirement Planning

By Daniella Rand

In the abstract, you know that it’s important to plan for retirement. Once you stop working completely, you can’t count on earned income to cover your expenses. Having a plan in place ensures that the cumulative income generated by your invested assets and other sources is sufficient to fund the lifestyle you’ve always envisioned for your post-work life — and to prevent you from burdening younger relatives.

Retirement planning has other advantages, too. Why don’t we take a closer look at some of the most important?


The Top 3 Advantages of Retirement Planning (In No Particular Order)

In no particular order, these are the top three advantages of retirement planning. They’re not the only three reasons to save for the future, though. What would you add to this list?

1. Increasing the Chances That You’re Able to Do What You Want in Retirement, When You Want to Do It

Isn’t this what retirement is all about? After you’re done with the daily grind, you deserve to be able to live life on your own terms. Making and adhering to a realistic retirement plan empowers you to do just that, when the time comes.

2. Preserving Assets for the Next Generation — Or a Very Long Retirement

Beginning the process of retirement planning today, while you’re still a ways off from hanging up your hat, is a great way to increase the chances that you’ll have a surplus to pass on to the next generation — if you have any heirs worth rewarding in such fashion, that is. Otherwise, you’ll ensure you have more than enough to see you through the remainder of what’s hopefully to be a very long life.

3. Boosting Your Self-Reliance (And Lessening Your Dependence on Benefits That May Never Come)

Lastly, putting in place a comprehensive retirement plan allows you to boost your self-reliance and lessen your dependence on outside sources of income — sources that may not be there when you’re ready to use them. Rather than rely on an overburdened corporate pension or an increasingly shaky government benefits program, you can reap the fruits of your labor: the nest egg that’s rightfully yours, now and for years to come.

What’s Your Reason for Saving?

As noted, these three top advantages of retirement planning aren’t the only reasons you should begin saving for the future today. Every investor has his or her own reasons for doing just that — some intensely personal and specific, some commonplace.

Regardless of your reasons for saving for retirement, you should never feel like you have to apologize for your sacrifice. The money you sock away and invest today will come in handy tomorrow. Indeed, it could mean the difference between a rewarding second act rich in novel experiences and self-discovery, and a tedious wait for whatever comes next.

Make the right call. Begin planning your retirement today.

Wealth Managers and the Concept of Enhanced Sales!

By Daniella Rand

“Wealth management” and “enhanced sales” don’t often appear in the same sentence. However, in a rapidly changing finance industry, wealth management professionals are increasingly cognizant of the importance of client prospecting. Word of mouth may no longer be sufficient to sustain a thriving practice.


4 Tips for Better Client Prospecting

For wealth managers more comfortable with market research reports than sales calls, the good news is that attracting new clients doesn’t require an overly aggressive approach. This isn’t a car lot, after all. If there’s one consistent theme in these four tips for better client prospecting, it’s that a gentler approach still gets the job done. 

1. Represent Your Approach Honestly

Why hide who you are? If you’re willing honestly and forthrightly represent your approach to wealth management, you’ll find prospecting a far more efficient exercise. These frank early conversations help clients self-select into relationships that fit their needs and investing philosophies. That’s far preferable to the alternative: trying desperately to shoehorn prospects into relationships that fundamentally disagree with their priors (and yours).

2. Be Clear About What You Look For in a Client

By the same token, it’s important to be upfront about what you look for in a client. Without limiting yourself to any great degree, emphasize your strengths, whether that’s working with small business owners, younger investors with high student debt loads, or high net worth families with complex financial holdings. Your prospects will appreciate the honesty.

3. Don’t Push Prospects to Sign Before They’re Ready

At some point, you’re going to have to make the ask. But hold off until you’re sure the prospect is ready to pull the trigger. Discretion is the better part of valor.

4. Never Forget Who You Work For

Lastly, never forget who you work for: the clients who’ve entrusted you with their hard-earned money. Your dedication will shine through in prospect meetings, if you allow it to, and you’ll attract the sorts of clients that you’ll genuinely enjoy serving. Think of this as a softer approach to enhanced sales — a way to allow your practice to speak for itself, rather than the other way around.

A New Approach to Wealth Management

No one seriously argues that wealth management professionals should prioritize sales prowess over the myriad other skills demanded by the job. While reasonable people can differ on the precise emphasis, it’s generally understood that wealth management professionals do well when they’re able to balance a range of competing interests while maintaining an even keel. Clients tend to stick with steady hands.

At the same time, we can’t ignore what’s going on around us. As attention spans shorten and technological disruption threatens long-settled business models, the wealth management industry must adapt — as must every other profession facing the same inexorable trends.

If that means adopting a more, shall we say, outgoing style, then so be it. At the end of the day, any wealth management professional thrives on excellent client service. Whatever we can do to deliver on that promise — within ethical and practical bounds — is fair game.