section 1 - The American College Online Learning Center

a. Problems with implementation are often tied to information that the planner doesnot know (for example, marital problems, health issues).b. The planning process stirs up a lot of issues that may have to be addressed.c. If the client is too “hands on” during the process, he or she may not be “buyinginto” the plan or there may be a lack of trust.d. If implementation is seen by the clients as being driven by the advisor, they mayresist the process.e. Sometimes the issues that get in the way of implementation can be predicted atthe beginning of the process if you are asking the right questions.6. Monitoring the retirement income plan (Video: Monitoring the retirement income plan:Littell, Tacchino, Kitces, Guyton)a. The consequences of change in retirement are more serious because there arefewer options to resolve the problem.b. This means paying close attention and reacting more quickly to issues that arisethan in other life stages.c. The client views monitoring as “am I still okay?”d. The time frame is shorter and the impact of change is larger, meaning that there isa lot of responsibility on the advisor.e. There can be disconnects between the advisor’s goal of making sure that the clientis going to have sufficient resources and the client’s willingness to accept change.f. How often do you stay in touch with the clients?(1) Two annual meetings(2) Four written quarterly reports(3) Four to six other touch points (newsletters and other notices of currentevents)g. There is some annual planning required (specifically tax planning).h. Clients also need to monitor the advisor as well.LO 7-3-2: Ensuring client participation in the retirement income plan1. Findings from behavioral finance that affect how financial advisors work with their clients(Video: Ensuring client participation in the retirement income plan: Littell, Jordan)a. The way people make financial decisions has never changed. However, today weare beginning to have a better understanding of that process through behavioralfinance research.b. We understand that we have to consider not just knowledge, but also how peoplefeel about a decision.c. We need to frame the conversation around income — and not about assets.d. Successfully working with clients requires managing clients’ expectations. It is notpossible to have control over market conditions. Also, many will face a shortfallin retirement and they need help (maybe some tough love) to appreciate thesituation.2. How do we translate this information into practical ways of working with clients?a. Clients want a process, not a product.b. Questions need to be devised that elicit feelings as well as facts.c. The clients needs to feel that the solution matches their needs.3. MetLife income analyzer tool7.26