Riding the Waves: How to help your clients cruise through retirement


Riding the Waves: How to help your clients cruise through retirement

Have you ever been on a cruise ship? The first day at sea can feel pretty strange, especially if it’s a windy day and the sea is churning with waves. If you’re not accustomed to walking on a ship, you might even find yourself holding on to the walls. 

Though they may rock a little, cruise ships and other large vessels will continue cutting through the water with ease – they are built with a strong foundation and designed for balance.

 

Riding the Market Waves

Many Americans find their retirement vacillating on market returns, and early in 2016, the markets created choppy waters for those seeking steady income. So, how can you make sure your clients don’t have to hang on to the walls through retirement? 

Like a ship, they need a strong foundation and balance to cut through the waves. With a doubt, a ship has to sway to some degree – just like a portfolio of well-balanced stocks and bonds. However, the variations in performance sometimes make things lean too far for a comfortable ride. No matter what happens, a strong foundation will bring their ship back to the middle. 

 

Creating Strength and Balance

I’m not advocating everyone place their assets into instruments providing guaranteed income. Instead, I think you should think of a couple points when designing a portfolio for your clients.  

  1. You should take longevity off the table with a guaranteed, long-term income stream so your clients will not run out of money for essential living expenses

  2. You should help provide inflation protection for future health care needs and overall growth

 

The next time you take on a retirement planning case, think about designing the portfolio like a ship. Guaranteed income will provide a strong foundation, and a selection of other assets can meet any needs that might arise and rock the ship. 

Winning Strategy

A ship must be built to withstand all conditions – a retirement portfolio should be built the same way. Build a strong foundation and create balance so your clients can have smooth sailing through retirement.  


About the Author

Mike McGlothlin is the Executive Vice President of Annuities at Ash Brokerage. His strength is helping advisors become more efficient and effective in their businesses. He and his team provide income-planning solutions focused on longevity and tax efficiency, and they also assist advisors with entering defined-benefit termination planning and structured settlement markets.