Your Architect and Your Contractor
You need both an architect to create your plan and a contractor to implement it. I have found that things work most efficiently when your planner also has involvement in and/or oversight of the management of the income-producing assets. First let’s talk about using an advisor as the architect of your blueprint.
In 2005, a major report was produced and issued to the member companies of the Life Insurance Marketing and Research Association (LIMRA). The report focused on the needs of consumers who were either in retirement or were a few years away from commencing retirement. It spelled out the need for member companies to get their advisors properly trained in order to be able to assist their clients in making the transition from the accumulation year to the income years.
And therein is a very interesting point. Over the last two decades, there has been much emphasis from financial institutions and advisors on helping people accumulate the assets that, in turn, would serve to provide income in retirement. And that was a very appropriate focus at the time. But as the Baby Boomers came closer to retirement, a shift began to happen and is still unfolding. People need help in turning these assets into income and advisors who are proficient in this specific area are not all that easy to find. In fact, the conclusion of the LIMRA report, referring to those people who are about to commence retirement income, was this: “People need advice from a knowledgeable ...