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Why longer retirements are changing what clients need from their advisors

“The successful planner will get paid by managing risks, not assets, in the next 25 years.”

That's a bold industry statement in an industry built around asset accumulation, but I believe it reflects a fundamental shift already taking place.

Let’s start with a simple reality: There are still a lot of advisors out there who haven’t heard of IRMAA. Or haven’t spent much time thinking about it.

And that’s a problem.

Because IRMAA (Income-Related Monthly Adjustment Amount) isn’t some obscure Medicare detail. It’s something that can directly impact a client’s cash flow in retirement.

Everyone tries to simplify success in business with an equation. I’ve resisted this simplicity because sometimes an equation complicates business. But at times it can be beneficial.

Consider the success the Bill and Melinda Gates Foundation had in mitigating diseases in Africa. Through data analysis, their team identified that a large percentage of infections occurred around the borders of African countries. During interviews with medical personnel and country leaders, it was determined that each country thought the other country had taken care of those villages close to their borders with vaccinations and supportive hygiene tools. The solution to reducing the disease by more than 80% was simply identifying where the disease was, putting some energy and coordination behind the effort, and executing on the needed steps.

If you can cut through the trash on social media, you can find leaders, authors and personalities that are worth pausing for. It’s worth taking 30 seconds to determine if an entire video or webinar has is something meaningful to listen to that makes me think and consider how I do business or lead.

In the realm of retirement planning, life insurance often takes a backseat to more traditional investment vehicles like 401(k)s, IRAs and annuities. But that doesn’t mean it’s not an effective retirement planning tool. A life Insurance retirement plan (often referred to as LIRP), besides being fun to say, offers more than just tax advantages.

Don’t Be Caught Unprepared for a Potential Market Correction

No one can deny that markets fluctuate routinely. Throughout my 36-year career, the markets have been good at times and poor-performing at times.

I have always taught the concept of proper asset allocation, buy-and-hold for long-term monies, and secure guaranteed income for a portion of your retirement income. Recently, we have been on a significant rise in equity markets.

Social Security is a big topic. It’s fluid, misunderstood and has a huge impact on your clients’ retirement. Even with beneficial changes in Social Security that took place in December 2024 (specifically, a repeal expected to increase benefits for more than 3,000,000 retirees), the program remains a complex benefit full of irrevocable choices for clients. And the problem is that there is not a good source of answers.

When you pose a question to the Social Security Administration, they are trained to respond to that specific question and nothing else. Unfortunately, even when we seek out advice, clients don’t get the whole story or the answers that are important to their situation.