Trade a Turkey for Some Beef

I’m sure this fella would agree…it might be time to trade a turkey for some beef.

There’s a whole flock of so-called financial advisors out there professing to provide “retirement advice.”  After all, it’s a giant market of 78 million baby boomers just waiting to be gobbled up. Why not take a shot at gathering more assets and just call yourself a retirement advisor?  The problem with this, for you the person preparing for retirement, is myriad. Thankfully, Your Retirement Advisor is here to ruffle some feathers and help you trade a turkey for some beef.

While there are many good advisors out there, some of these thinly veiled, self-proclaimed “retirement” advisors are little more than data gatherers who meet with you a couple times: first, inputting your data into a planning software program and letting it do its thing, and then second, giving you the software’s lengthy printout of numbers and projections in a nice leather folder, without the retirement services you truly need. The cost of this glorified retirement plan can be pretty steep as well. The average advisor, according to Michael Kitces is charging 1.65% on a portfolio of $500,000!1

There’s not a lot of difference between these traditional advisors and the new flock of robo-advisors…which are online software companies doing similar data gathering and calculations in the cloud.  While robo-advisors are undercutting the traditional advisor fees for data output, they truly must be on cloud nine to think that the average baby boomer wants a computer program to plan his/her retirement.

What we’ve found after working with baby boomers over the last 30 years, and more recently with a focus on helping our clients plan their retirement, is that people want a person to help them. A qualified person whom they can trust. But, the challenge remains, in an industry run amok with myths and misinformation, extreme biases and so many choices when it comes to advice…how do you stay away from the fox in the henhouse and find a retirement expert who can truly help you?

We believe knowledge is power so first you must educate yourself. Find a source or sources who consistently deliver objective information. Next, make sure to seek out the academic proof…every sound retirement strategy has research and data that proves it out. Demand this proof. Do not accept hearsay or conjecture.

Next, be really picky about choosing who you work with for advice. Ask how much time he/she is going to commit to doing your planning… working collaboratively to plan your retirement, not just behind the scenes running software programs in his/her comfy office. Retirement planning is hard work and requires a BIG time commitment on both parties to be done right. Demand this time. Don’t settle for less.

Next, ask tough questions to be sure he/she isn’t a thinly veiled “retirement” advisor. You wouldn’t hire just anyone to take care of your kids or to work in your company…the same time and care should be taken to find the right retirement planning advocate. Aside from asking about his/her background and experience, and getting to know their firm, these are the questions a retirement advisor must answer for you:

  • What’s their approach to retirement planning and their process? Is it well defined and disciplined?
  • Do they educate you in the planning process? How?
  • Do they help organize you financially and help clarify your retirement objectives and timeline?
  • How much time do they commit to working collaboratively you?
  • Are they knowledgeable beyond growing a portfolio? What do they know about distribution planning in retirement?
  • Are they licensed to offer annuities and do they educate you on how they work to offer guarantees and protect your portfolio from loss?
  • Have they discussed how to use the equity in your home through a reverse mortgage to increase the effectiveness of your retirement plan?
  • Do they understand how wills and trusts work, and work with you to develop a proper plan to protect your assets from a potential healthcare event?
  • What other value added services do they offer you?
  • Do you like them as a person and trust in their recommendations?

And if you really want to find out what their stuffing is made of, ask if him/her if they offer these services, critical to a potentially better retirement outcome.

Do you offer…

  • Market Volatility Stress Testing (MVST) – a stress test of your current retirement against many different market environments utilizing sophisticated technology. If necessary, proper adjustments should be discussed to increase the probability of a better retirement outcome.
  • Tax Efficiency Assessment – a tax efficient income distribution strategy to reduce taxes and ultimately increase the probability of portfolio survival.
  • Social Security Timing Strategy – assessment of multiple Social Security filing strategies to determine the most efficient strategy to maximize this benefit.
  • Portfolio Analysis and Management – a high quality, low-cost, optimized portfolio that combines the growth potential of stocks with guarantees provided by Fixed Index Annuities.
  • Risk Management –a life insurance and Long-Term Care needs analysis to assess and then minimize potential risks.
  • Medicare Planning – a Medicare service to help you analyze your options to select and file the best plan.
  • Ask the Advisor Service – access to your retirement advisor via email or personal meetings anytime to address questions or concerns.

Finally, get FULL DISCLOSURE of “all” fees you’ll pay, and find out if they offer all of the above education and services for the fee you are paying. This will help you gauge the value they bring to your planning process and your retirement outcome.

On this Thanksgiving eve, we invite you to our table to check out the value and retirement advocacy we offer.  If you’re working with the right advisor, you won’t have to ask yourself “Where’s the beef?” It will be evident in everything they do for you.

As your retirement advisor (and advocate), we offer the following :

  • A disciplined educate, plan, implement process that is focused on teaching you about retirement, getting you financially organized, determining your priorities, exploring what’s possible, making decisions and implementing and tracking your plan…together, collaboratively and interactively.
  • The highest level retirement planning service to assure your retirement success – All YRA programs are designed and developed based upon academic research and statistical evidence. We have an absolute commitment to each client to assure that all recommendations are based on sound research-based evidence and NOT conjecture.
  • Local retirement professionals – We offer access to a network of local retirement professionals that have been trained on the YRA approach. Every advisor is vetted and monitored by us to assure he/she is consistently delivering the highest quality, lowest cost services to you. If you’re in need of any retirement services, we have an affiliated advisor ready to determine the best solution to your issue. We have the right retirement resources for you when you need them.
  • One stop financial/legal/tax specialists – YRA has relationships with local taxes, elder care law, Medicaid, Medicare, and Social Security specialists to help you with any retirement issue. Utilize YRA as your “one stop” retirement services resource.
  • “Ask the Advisor” service – Email or call with your question or concern and be assured that you’ll receive an answer to your question via email, phone or personal “one-on-one” meeting at no additional cost.
  • Retirement education resource – YRA is a robust Retirement Education resource for your retirement continuing education. As a YRA client, you have access to our online Learning Center which contains articles, whitepapers, research reports, videos and more on many retirement issues. You also have access to all YRA University e-classes . You’ll also receive regular educational emails along with invitations to webinars, workshops and classes conducted at local colleges. We are deeply committed to helping you know more and have more…now and in retirement.
  • High quality, low cost retirement service – We believe we’re uniquely positioned in the market to offer the highest value retirement planning services. We’re on a mission to revolutionize retirement advice with comprehensive services at really affordable fees. Understanding your TOTAL fees and our promise of “full disclosure” of all fees is paramount to your retirement success.

Ready to trade a turkey for some beef? Request a complimentary consultation with us to discuss your retirement plan.

Want to learn what you don’t know about retirement? Check out our Learning Center or e-classes

  1. Source: Michael Kitces, Inside Information, 2017 Planning Profession Fee Survey

Investments in securities do not offer a fix rate of return. Principal, yield and/or share price will fluctuate with changes in market conditions and, when sold or redeemed, you may receive more or less than originally invested.  No system or financial planning strategy can guarantee future results.  Therefore, no current or prospective client should assume that future performance or any specific investment, investment strategy or product will be profitable.