April 14, 2017 2:06 PM

This blog is part of a series by Professor David Littell, Director of the RICP® program and Co-director of The American College New York Life Center for Retirement Income. Each post in this series will feature a video or videos from the Center offering valuable retirement income planning tips for advisors and their clients. Many of the experts in these videos are featured in the RICP® program curriculum.

This week we are posting a series of videos discussing a number of issues to consider when building a retirement income practice. This includes interviews with three different experts discussing this subject. First, Michael Kitces discusses why it makes sense to specialize in retirement income planning. Then Tom Hegna reviews how to build a retirement income practice, and finally we have Peter Stahl discussing the importance of including Medicare and other health planning as part of a retirement income practice. Here’s a bit more on what you’ll see in each video.

Focusing on the Retirement Income Plan

In the video “Why Should Advisors Focus on Retirement Income Planning?,” Michael Kitces makes the case for why income planning is such an excellent area of financial planning specialization. First, it is a complex area that involves a great deal of expertise to help clients make good decisions about claiming Social Security, electing the proper Medicare and other health care options, how to generate income from the portfolio, etc. Because it is complex, it requires expertise and credentialing, and allows financial advisors to distinguish themselves from other advisors. From a business perspective, it is a good specialty because of the large number of retirees who have accumulated significant assets who need help. Finally, it is a rewarding specialty because a knowledgeable advisor can help clients make better decisions that can substantially improve retirement security.

Why Should Advisors Focus on Retirement Income Planning?

Expanding Your Practice Through Education

In “Building a Retirement Income Practice,” Tom Hegna starts by reiterating the opportunity here to help the 78 million baby boomers who are transitioning into retirement and who are genuinely concerned about whether they have sufficient assets to last throughout retirement. When discussing how to build a practice, Hegna starts by talking about the importance of getting an education, encouraging advisors to earn the RICP® designation, consider going through a Thrive University course with Curtis Cloke, and reading books from authors including John Olson and Gary Metler. (Hegna himself has also authored some very worthwhile material.) He also suggests that offering educational seminars for clients and prospects, or teaching courses in local adult education programs are good ways to show your expertise and increase your exposure.

Tom Hegna explains to financial advisors why it makes sense to specialize in retirement income planning and steps to build a practice.

Health Care Costs Top Retiree Concerns

Our last video, “Financial Advisor’s Role in Retiree Health Care Planning,” features Peter Stahl and focuses on the importance of encouraging retirement income professionals to include advice and guidance in the area of health care planning. Stahl points out that worry over retiree health care costs has risen to the top of the list of concerns voiced by individuals of all income levels. He notes how important it is for advisors to connect with clients about those concerns and to be able to offer them help. This includes planning for retiree health care costs, managing Medicare and supplemental insurance decisions, as well as helping to minimize Medicare premiums by managing taxable income. It also includes the important area of financing long-term care expenses to free the family from having to provide all of the care to a better role of coordinating and supporting care.

Peter Stahl helps financial advisors understand why it is so important to include health care planning as part of the retirement planning process.

More Information on Retirement Income Planning

Visit The American College New York Life Center for Retirement Income to access more informative videos on this important topic. Additionally, the webcast "10 Tips for Helping Your Retired Clients Manage Health Care Expenses," is a great resource for better understanding how to budget for and navigate the profound challenges of health care expenses.


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