Dispelling the Myths of Financial Planning

In addition, more investors need advice than at any other time in recent history. A May article in InvestmentNews noted that by 2030, Social Security will provide only 26.9 percent of retirement income, down from 38 percent for current retirees. More than half of the nation’s 132 million workers do not participate in any kind of employer-provided pension or retirement plan. People in their mid-50s and early 60s had median savings of just $42,000 in retirement accounts in 2001, which is well below the estimated $1 million that financial advisors estimate the average household with an annual income of about $40,000 will need in order to ensure a comfortable retirement. Baby boomers in particular will be concerned that their retirement will consist of greeting people at their local discount retail outlet store, and they’ll look for advisors to help them in this regard.

Rather than fret over whether to offer needs-analysis services, brokers and agents should look for tools to help them do it in the most productive and result-oriented manner possible. The right planning tools empower advisors to be flexible in the breadth and depth of planning that they provide for clients. Like the carpenter who uses various saws for different jobs, so too should the planning tools match the advisor. In the ability to be tailored to each client’s situation, the right tool will increase a financial representative’s productivity as well as their value to the client — a win-win situation. 

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Ross Emmer is a 15-year financial service veteran, and a product consultant at Financial Profiles, Inc., producers of comprehensive financial advice software, consulting, training and support services. The company works with many nationally recognized financial services organizations. For more information about this or other Financial Profiles products and services, visit the company’s Web site at www.profiles.com.

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