RISE Insights

When asked to give the keynote address at the AARP-EBRI 2006 Conference on Pension Reform, Pulitzer Prize–winning journalist Hedrick Smith had this to say regarding the most important find­ings from the production of his PBS Frontline documentary “Can You Afford to Retire?”: 

You have to go back to a far more basic level of communication with people. They don’t have any idea how to figure it out, what it is that they need, why retirement is so expensive. 

The retirement income management process should not be presented as complex, nor should it lead the client to infer that retirement planning is complex. It need not be laden with sophisticated sales and marketing claims or specialized computer programs touting Monte Carlo simulations that infer the message, ”Since the computer calculates the plan, you can rely on it.” One national banking giant has done just that — touting its new software system at the core of its retirement planning services, all 26 pages! 

None of this is necessary; and if anything, it reaffirms to the prospective client that the planning is going to be a painful process, something they should avoid for as long as possible. So they do, perhaps for another year . . . when it might be too late.  This process can be made to be fun and entertaining. It can be a transparent process, not translucent. It is time to turn financial education on it head. (The RISE Mature Simplicity™ process adheres to these principles, and is more fully explored in Garth Bernard’s Insight piece – Selling by Engaging.)

There are some things that stand the test of time. Often these tried and true things are quite simple in their nature, reflecting an elegance of "mature simplicity" - which for most people remain consistently easy to comprehend. They just seem to make sense.

So it comes as no surprise that savvy financial writers like Walter Updegrave, when questioning the stability and continued value of income annuities in an unstable marketplace, writes in his recent column, New doubts about a once sure bet (http://money.cnn.com/2009/01/22/pf/expert/annuity_safety.moneymag/index.htm?postversion=2009012606), that yes: "annuities can play a valuable role in your retirement."

Much like the unsuspecting beachgoer who gets caught in a dangerous riptide, the great majority of the Baby Boom generation will find itself in sink-or-swim time when confronting the realities of retirement.

The purpose of engagement is not problem-solving. It’s about building trust through education. Engagement delivers a clear and compelling story that resonates with clients and gets them to take action. Using tools properly brings clarity and comfort. The “sale” is made during the engagement and education process and a real relationship can start with the advisor.