| Building a Successful Practice: It is estimated that | | | | minimizing concerns. |
| 70-80% of investors who deal with a | | | | Even though it appears the retirement specialist is |
| stockbroker, financial planner or advisor will change | | | | "leaving money on the table," the reality is quite |
| advisors before retirement. Some will make the | | | | different. A portion of a client's portfolio may be |
| change while in their fifties, others will wait until | | | | in CDs, government securities and fixed-rate |
| their early or mid-sixties. The reason for the | | | | annuities, but another part may be in |
| change is simple: Investors view their financial | | | | growth-oriented mutual funds that include a |
| person as being "growth oriented," an accumulator | | | | systematic withdrawal plan. And, just because |
| who is not an expert when it comes to | | | | someone is in an income mode does not mean |
| structuring income. When the change is made, a | | | | she no longer needs insurance or no longer |
| retirement specialist is sought. | | | | desires to fund a grandchild's college fund. |
| Clients Change Advisors: Over the past couple of | | | | Competitive Edge: During a brokerage firm's |
| years, the brokerage industry has begun to | | | | annual meeting in a big conference hall, someone |
| promote retirement income, but the campaign has | | | | from Harley Davidson rides down the aisle in a |
| been limited and met with skepticism by investors. | | | | motorcycle towards the podium. He parks the |
| After all, advisory account compensation is based | | | | bike, steps up to the podium, looks at the |
| on assets under management--distributions only | | | | audience of surprised advisors and says, "What's |
| erode the advisor/broker base. The retirement | | | | your sound?" Harley's have a special sound but |
| benefit specialist has a very different agenda: | | | | how many brokers do you know have their own |
| maximizing periodic distributions at an acceptable | | | | "sound?" No one can distinguish the sound |
| risk level. | | | | between a Honda, Suzuki, BMW or other |
| Investors are generally loyal to their broker or | | | | bike--except a Harley. This is why the company |
| advisor, but such a relationship usually ends once | | | | has trademarked their sound. |
| the investor gets serious about retirement | | | | What makes you different? Why would someone |
| planning. It is not that they no longer like their | | | | want you to manage their money instead of a |
| advisor, they simply view this person as not | | | | neighbor, friend or golfing buddy who does the |
| having the expertise to help them with the | | | | same thing? Investment products have largely |
| income phase of their life. Enter the retirement | | | | become "commoditized" and offered by |
| plan specialist. | | | | everyone. Ed Slott has made a fortune by |
| Retirement Specialist: The vast majority of your | | | | becoming the IRA-go-to-guy; he is frequently |
| peers and competitors promote themselves as | | | | quoted in publications and is considered an expert. |
| being able to do everything for the investor. This | | | | Ed has a lucrative practice of advising brokers, |
| makes it difficult for any advisor to differentiate | | | | and fee-based seminars and referrals. Someone |
| themselves. It is always the specialist we seek | | | | else could have filled such a position, but Ed was |
| out when a problem arises (e.g., car mechanics | | | | first and will probably not be replaced. You could |
| who specialize in foreign cars, the doctor who only | | | | become the retirement plan specialist in your |
| does a certain type of eye surgery, etc.). This is | | | | county or the retirement specialist that is referred |
| a lesson brokers, planners and advisors have still | | | | by accountants and lawyers. |
| not learned. For example, how often do you see | | | | Understand Your Customers and Prospects: |
| an advisor who advertises as a "retirement plan | | | | People seek out and feel comfortable with a |
| specialist" or simply a "retirement specialist?" | | | | specialist. The first step to becoming an income |
| The specialist makes the most money and has | | | | specialist or retirement specialist is to obtain |
| the least complicated life. A retirement benefit | | | | certification marks that distinguish you from |
| specialist can hone his skills by concentrating on a | | | | others. Being a designee shows everyone that |
| very narrow aspect of the financial services | | | | you have the specialized training necessary to |
| industry, thereby differentiating himself and | | | | handle their income needs. |