Retirement Income Karma Boomerang - Systematic Relative Strength

From time to time, I?ve written about karma boomerang: the harder you try to avoid getting nailed, the more likely it is that you?ll get nailed by exactly what you are trying to avoid.? This concept came up again in the area of retirement income in an article I saw at AdvisorOne.? The article discussed a talk given by Tim Noonan at Russell Investments.? The excerpt in question:

In [Noonan's] talk, ?Disengagement: Creating the Future You Fear,? he observed that lack of engagement in retirement planning is leading people toward the very financial insecurity they dread. What they need to know, and are not finding out, is simply whether they?ll have enough money for their needs.

I added the bold.? This is a challenge for investment professionals.? Individuals are not likely on their own to go looking for their retirement number.? They are also not likely to go looking for you, the financial professional.? They may realize they need help, but are perhaps intimidated to seek it?or fearful of what they might find out if they do investigate.

Retirement income is probably not an area where you want to tempt karma!? Retirement income is less secure than ever for many Americans, due to under-funded pension plans,?neglected 401k?s, and a faltering Social Security safety net.? The only way to secure retirement income for?investors is to reach out to them and get them engaged in the process.

Mr. Noonan, among other suggestions, mentioned the following:

• ?Personalization? is tremendously appealing. ?Tailoring? may be an even more useful term, since ?people don?t mind if the tailor reuses the pattern,? Noonan explained. They may even enjoy feeling part of an elite group.
• ?Tactical investing? is viewed positively. ?People know they should be more adaptive, but they aren?t sure what of,? said Noonan. Financial plans should adapt to the outcomes they?re producing, not to hypothetical market forecasts.

Perhaps personalization and tactical investing can be used as hooks to get clients moving.? To reach their retirement income goals, they are going to need to save big and invest intelligently, but none of that will happen if they aren?t engaged in the first place.

This entry was posted on Thursday, October 11th, 2012 at 8:28 am and is filed under From the MM, Investor Behavior, Retirement/Saving, Tactical Asset Alloc, Thought Process. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Source: http://systematicrelativestrength.com/2012/10/11/retirement-income-boomerang/

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