Round Up IARFC Members and Financial Industry Experts were asked for their insight and advice on issues facing consultants in today’s economy. Note: Responses are printed in no particular order.
Q: What type of financial plans are you providing your clients?
A: With regards to new clients, I have always stated that 90% of our job is to protect our clients against large losses — which extends far beyond just large losses in their investment portfolios. In other words, I believe the first and most important step is to build a “moat around their castle” — rather than building a castle that can easily be stripped away and cause financial ruin from life’s unexpected events. Therefore, nearly all of my financial or retirement plans begin by reviewing important details such as their car/home/umbrella insurance, disability insurance, long-term care, health insurance, social security, wills and trusts, end-of-life planning, and life insurance. Another reason this planning process works well is because, while my clients are in underwriting for any necessary insurances, we can continue our planning process with subsequent meeting(s) to discuss what they really enjoy talking about — which is growing their money versus protecting it. This affords us more time to spend together, get to know each other better, and review their existing investment strategies, allocations, fees, performance, etc. — and ultimately propose my recommendations for improving their investment results going forward. So whether someone becomes a client by purchasing an insurance policy or establishing an investment account, I have found they are highly likely to work with you on both matters. Therefore, this has proven to be a solid planning process for both my clients and my practice. Christopher Hill, RFC® Roanoke, VA A: Recently our office did a study on client demographics and found that 44% of my clients are 60 years or over. For this demographic when they retire as part of their annual review, we offer to provide a monthly cash flow integrating all sources of income. The previous financial plan, goal setting, expectations and results are now converted to achieving a lifestyle! The registered retirement plans combine with government pensions along with corporate and other pensions. Minimum and/or maximum payout restrictions are explained as well as clawback provisions of the Old Age security pension. This exercise provides an opportunity to examine any changes that have taken or
The Register | March-April 2015
? will take place in their lives: changes in beneficiaries, power of attorney, funeral prepayments, life insurance updates, executor changes or other concerns. It most often keeps both spouses up-to date-which is most appreciated! Noel Milner, RFC® Ontario, Canada
The ideas and strategies you receive from this and other sections of the Register may inspire you to send us your answer to one of our future Register Round Up questions. If you would like to share your tips and techniques with other RFCs, please do not hesitate to send in your response to editor@iarfc.org.
Our next issue will ask this question Why is Accreditation for the IARFC important? What we are looking for are several sentences, although more are welcome. This may entice you to submit a short article on the current proposed Register Round Up question. These questions are sent out via email. Contact us to join the list. You can also send us a short article for the Register or suggest additional topics for future issues. Remember, our goal is to make this magazine an even more valuable resource for you and the clients you serve.
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