BLOG

There’s nothing like using the word “great” in a phrase to get people to sit up and take notice, especially in our industry. The Great Depression, the Great Prosperity, and the Great Recession all identified periods in our history with significant economic impacts.

Now, the Great Wealth Transfer is coming. Or, considering that the oldest baby boomers are nearly 80 and the oldest Gen Xers turn 60 this year, it’s no doubt already here. So, what does that mean for you? Two crucial statistics stand out: 1) It’s estimated that $124 trillion will change hands by 2048¹ and 2) More than 80 percent of heirs fire their parents’ advisors after inheritance². This could present a serious risk—but also a “great” opportunity—for the future of your advisory business.

 Ask your clients to rate the life they’re living on a scale from 1 to 10.

Their car? An 8 or 9.
Their home? Maybe a 7 or 8.
Their kids’ school? An 8, maybe higher.

Your clients work hard to provide a life they’re proud of. But when it comes to protecting that lifestyle, too many are only planning for a 3. To me, that’s a disconnect. If your clients are working hard to give their families the best, why would the plan to protect it fall short?

Retirement income planning is one of the most critical, yet misunderstood, aspects of financial advising. Many advisors and clients alike hold on to outdated beliefs that can negatively impact long-term financial security. In a recent McGSpeaks podcast, I interviewed Randy Kitzmiller, ChFC, CLU, FLMI, RICP and tackled five of the biggest myths surrounding income planning and revealed how advisors can better serve their clients by challenging conventional wisdom. Below, we explore these myths and present actionable insights that can transform retirement planning strategies.

Can you identify the “solo agers” among your client base? They’re broadly defined as unmarried, divorced, or widowed adults with no close heirs. It’s a growing demographic and one that’s often overlooked when it comes to financial planning. Given the lack of traditional planning models for this group, there are several things to keep in mind when working with them.

Buy low in one market. Sell high in another.

It’s the basic philosophy of investing, driven by arbitrage. Many clients are taking advantage of arbitrage in some form, be it stocks, bonds, currency, real estate or another leveraged investment to build portfolio wealth.

But what about leveraging the price discrepancies between insurance products?

In a market dominated by meme stocks, crypto surges, and constant noise, it’s easy to lose sight of the fundamentals. But repeatedly, consistent planning, diversification, and disciplined habits outperform impulse and hype.

The role of a financial professional isn’t just to set the course; it’s to help clients stay on it when the water gets rough or distractions emerge. This opportunity is key to reframing the conversation, shifting focus away from short-term speculation, and highlighting the quiet strength of long-term, intentional planning.

In times of market volatility, investors often find themselves riding an emotional roller coaster of uncertainty, fear, and frustration. Sometimes, irrational optimism can also creep in. For financial advisors, these moments are not just about numbers and asset allocations but people and relationships. That’s where a nuanced understanding of communication and conflict resolution becomes just as essential as market analysis, which can be unreliable over short time horizons.

Volatile markets test even the most disciplined investor. Stories are everywhere talking about the potential for a recession (or not), inflation (or not), and rate cuts (or not). Information overload and filtering become real concerns. Hype from news services and social media can lead clients to second-guess their strategy or fight the urge to panic-sell at the wrong time. Advisors serve as the emotional anchors in these moments, providing perspective, patience, and a long-term view.

“Tariff - that’s a beautiful word, isn’t it?” Lately, all we seem to talk about are tariffs, but the discussions rarely focus on orthography. For some, tariffs signify a new beginning, driven by the resurgence of American manufacturing due to re-shoring. For others, tariffs spell inflation, economic uncertainty, and strained diplomatic relations. For those in the first camp, let’s temper our enthusiasm, and for those in the second, let’s lower our defenses. Let’s examine this issue from an apolitical perspective to understand its implications for our economy, especially in the context of client portfolios.

Oftentimes, as clients retire, a window of opportunity opens. If they retire before beginning RMDs, or in some cases even prior to starting Social Security, they may find themselves in the lowest tax bracket they’ve been in since they became employed. This can be a great time to complete Roth conversions, which are the movement of pretax money into a post-tax Roth IRA. The obvious cost at the time is the taxes due on the converted amount, as the money is treated as ordinary income. However, several oft-forgotten costs to Roth conversions may make them less beneficial than previously estimated. Naturally, these are client-dependent and may not affect every individual, nor are they reasons to forgo the conversion, but they are worth investigating when determining if the conversion makes sense.

As our clients approach retirement, the conversation flips from asset accumulation to income distribution, and this change involves new complexities. One of the most important parts of a successful retirement plan is preparing a tax-efficient income withdrawal strategy. This strategy isn’t just about guaranteeing income; it’s about preserving wealth over the client’s lifetime by minimizing their income taxes. A good withdrawal plan can impact the longevity of retirement savings and the total taxes the client pays over their lifetime.