Mark Singer's Blog

There's no shortage of people who are willing to advise you on financial issues. But before you choose someone to help you manage your money, you should understand the different types of financial planning models. Historically, the financial advising industry has focused on investments, which is why many people think of money management when they think of "planning." Recently, however, the definition of planning has evolved so it now encompasses much more than just investments.

Let's examine four types of financial professionals, the service they provide and how they get paid: insurance agents, accountants, traditional brokers and independent financial planners.

Life Insurance Agents

Historically, life insurance agents primarily sold some form of life insurance on a commission basis. Several years ago, however, insurance companies realized that it was important for their life insurance agents to do more than just sell insurance. Today, many life insurance agents focus on both life insurance and investment-oriented products. Typically, they have access to proprietary products associated with the insurance company they work for. Life insurance agents provide an excellent insurance platform for their clients, while also trying to add value to their clients' investment portfolios.

"You're most likely to find true planners within the world of independent financial planning." [ Tweet this ]

Accountants

The accounting industry, as a whole, tried to make changes to its business models about 12 to 15 years ago. Like insurance agents, accountants realized they were leaving money on the table by focusing solely on accounting. As a result, many accountants opted to include financial planning on their service menu.

The changes came in two forms. Many accountants tried to do financial planning on their own, in addition to tax work. However, most realized they couldn't really offer effective financial planning services on their own. They had to rethink how���and if���they were going to offer financial planning to their clients. The accounting firms that were able to effectively expand their services were typically those that brought in experienced financial planners to do the work for their clients. These firms approached financial planning in its truest sense and were compensated through either a fee or a commission for their work.

Traditional Brokers

When many people think of financial planning, they think of a traditional broker. Brokers are typically employed by large, well-known financial institutions, and they are well versed in portfolio management. Traditionally, brokers were paid a commission for each transaction they generated for the client, whether it was a stock or bond trade or selling a mutual fund.

This broker model has evolved as well. Many large brokerage firms now offer their own version of financial planning. The assets-under-management model, where the planner gets paid an annual fee to manage the money, has become the platform of choice. Of course, many brokers still work on a traditional transaction-to-transaction basis. Increasingly, however, brokers are embracing the assets-under management fee model. Independent

Financial Planners

Finally, there are the independent financial planners. These financial planners do not have managers telling them what to sell; they make their own decisions. More successful and mature financial planning firms that are associated with larger independent broker-dealers are able to offer an enormous selection of investment products to their clients. You're most likely to find true planners within the world of independent financial planning. These individuals are focused on providing complete financial planning to clients; their services go far beyond selling the investment-related products that those working in other sectors focus on.

Currently, independent financial planners tend to be paid in one of two ways. Some charge a fee to client in exchange for a plan, plus a fee to manage the client's money. Others still sell commission-based products to their clients. In either case, the independent financial planner typically has a more consultative approach than a person who is focused on product sales.

I am an independent financial planner. I am biased in terms of what I believe is the best model—that is the model that I have embraced over the past 25 years I've been serving my clients as a CERTIFIED FINANCIAL PLANNERTM professional. But I also recognize the benefit of having a different approach. Just as Baskin Robbins has 31 different flavors, the financial planning industry needs to offer different flavors to potential customers. You may like chocolate chip, but someone else may like butter pecan. It is important to have a flavor that matches each customer. The same holds true in our industry.

The Responsibility Is Yours

Remember, there are several different models for “financial planning.” As a customer, the burden is on you to make sure that you are aligning yourself with the professional who is right for you and who will help you reach your goals.

About Mark Singer

Mark Singer is a CERTIFIED FINANCIAL PLANNER™ professional and the author of The Changing Landscape of Retirement—What You Don't Know Could Hurt You. He has been The Retirement Guide to thousands of investors for close to 25 years and is the creator of the Retirement Roadmap, which contributes to a solution to investors' greatest concerns–properly coordinating their financial affairs. These systems have become a primary resource for the people who have worked with Mark over the years. You can download the first chapter of Mark's new book for free by Liking it on Facebook.

As you near retirement, you are likely to become increasingly concerned with the issue of preserving your assets. One strategy you can use to help do that is purchasing long-term care insurance. As more and more of the options that used to be available within the world of Medicaid planning disappear, long-term-care insurance has become a sound component of an asset protection strategy for many individuals.

First, a quick definition. Long-term-care insurance is a type of coverage you can purchase that will help pay for the costs of a nursing home stay, in-home health care, adult daycare or other types of assistance you receive because you can no longer care for yourself on your own. Since long-term care can be extremely expensive, and programs such as Medicare and Medicaid provide very limited assistance, many people purchase LTC insurance to help manage the costs.

There are many books and resources available that will help you evaluate your options when purchasing a long-term-care insurance policy. I can’t cover all those different variables in this blog post. Instead, my intent here is to raise your awareness with regard to how to think about long-term care insurance. Many of the people who I speak with are already on those “lists” for marketing purposes, and they are being inundated with information and requests to purchase long-term-care insurance.

One objection to long-term care insurance that I frequently hear from people has to do with the price. This is another case where your Retirement Roadmap can help you decide whether or not you can afford a long-term care insurance program. The question really does become, “If I pay long-term-care insurance annual premiums, how will it impact my cash flow today, and tomorrow?”

I often counsel my clients to pay the annual premium out of one of their investments. Instead of having it come out of your cash flow, you can choose to have the annual premium taken from one of your investment line items that is earmarked annually to be the source for payment for the insurance. By going back to the Retirement Roadmap and plugging in the annual premiums, you can easily determine, before your purchase a policy, whether or not long-term-care insurance is for you.

About Mark Singer

Mark Singer is a CERTIFIED FINANCIAL PLANNER™ professional and the author of The Changing Landscape of Retirement—What You Don't Know Could Hurt You. He has been The Retirement Guide to thousands of investors for close to 25 years and is the creator of the Retirement Roadmap, which contributes to a solution to investors' greatest concerns–properly coordinating their financial affairs. These systems have become a primary resource for the people who have worked with Mark over the years. You can download the first chapter of Mark's new book for free by Liking it on Facebook.

Getting organized and coordinating your financial affairs is one of the most important things you can do to secure your financial future. Let me tell you a story about a couple—Stephanie and Tom—in their late 50s who have two children in college (a common situation, since many people are having children a little later in life). In this case, the couple has to address both college funding and retirement planning issues. From a planning perspective, it can be difficult to manage both at the same time, as this couple had discovered.

Pay for College or Save for Retirement?

Stephanie and Tom's biggest issue was that the husband hoped to retire in the next three to five years. The market hadn't been cooperating, however, and the husband was no longer sure that would be possible. He'd lost a lot of money in the market and a lot of faith in his financial advisor.

The second issue for the couple was that they were drawing on their retirement nest egg to pay for the kids' college expenses. If they continued along this path, they could potentially bankrupt their retirement by putting their kids through college.

In addition, the couple was unsure about how much life insurance they should own and how to pay for it. Plus, they kept getting invitations to buy long-term care insurance, which they weren't sure they really needed. Finally, the couple had too many advisors: two different brokers, two different insurance agents, an accountant and several friends who were all providing "guidance." They were totally confused and unsure of where to go next.

Steps to Success

When I met with the couple, the first thing that we did was create the foundation for the Retirement Roadmap. To do this, I asked some basic questions: What were their goals, what was important to them, and how would they like to prioritize all of the issues facing them? After we took some time to develop their roadmap, the solutions to their problems became much clearer.

Next, we created a portfolio for the husband that fit his needs. Because he had lost faith and trust in the person who was giving him financial advice, his broker, he had taken over control of the investment portfolio without really knowing what to do. We worked together to create an investment plan that would work for him.

Third, we addressed how to pay for the college expenses. The couple was fortunate to have significant equity in their house, and they agreed it was better to pay a portion of the college expenses through the tax-deductible expense of a mortgage. We also gave them guidance about how to explain to their children that their financial situation had changed. The kids stepped up and agreed to shoulder a portion of the college expenses.

We also determined that the couple didn't have enough life insurance coverage. We helped them understand how to put together an appropriate life insurance portfolio and protect themselves from the unexpected. We also gave them tips on how to talk to their life insurance agent and obtain the right amount of insurance.

Finally, we considered long-term care insurance. While long-term care insurance can be an excellent choice in the right scenario, the timing wasn't right for this couple. Together, we decided to put long-term-care insurance on the back burner, with the intention of evaluating the issue again when the kids were out of college. Their budget was simply too tight to buy long-term care insurance at this time.

The Perks of Working with a Financial Advisor

The final thing this couple needed was a "go to" trusted financial advisor who could coordinate all of the issues and find the correct solutions for them. This couple had too many voices saying too many different things. That created a tremendous amount of confusion and anxiety. When they chose to work with us, they were able to understand exactly what they needed to do and how to get there. Simplifying the decision-making process helped them to get back on track toward achieving a successful retirement.

About Mark Singer

Mark Singer is a CERTIFIED FINANCIAL PLANNER™ professional and the author of The Changing Landscape of Retirement—What You Don't Know Could Hurt You. He has been The Retirement Guide to thousands of investors for close to 25 years and is the creator of the Retirement Roadmap, which contributes to a solution to investors' greatest concerns–properly coordinating their financial affairs. These systems have become a primary resource for the people who have worked with Mark over the years. You can download the first chapter of Mark's new book for free by Liking it on Facebook.

Few people enjoy paying taxes. So, if I told you that I could show you a way to reduce your taxes, would you be interested? Of course you would. Today, we’ll look at two scenarios involving couples who are about to retire. Each couple has a similar investment portfolio, but different needs and financial goals. I’ll analyze each couple’s situation and discuss what they can do to minimize the impact of taxes.

Two Couples, Two Different Situations

Imagine that we have two couples, both 66 years old and about to retire. Each couple has an investment portfolio worth $500,000. Of the $500,000, $300,000 is in an IRA rollover and $200,000 is in a taxable, jointly owned investment account.

The first couple (Jane and Tom) has an income need of $70,000 in retirement. Between pensions and Social Security, they are receiving $70,000. So, they have no need to generate income from their investment portfolio.

The second couple (Anne and Bill) also has a retirement income need of $70,000. Between their pensions and Social Security checks, however, their income is only $60,000. They need to generate income of $10,000 from their portfolio. Let’s assume that in each scenario, the couple wants to invest in traditional stocks and bonds.

Let’s also assume they wish to take on an appropriate amount of risk and that they have already adequate emergency reserves; therefore, they can fully invest in both stocks and bonds. We can also assume that they’d prefer not to dip into principal if possible. Typically, a bond or bond fund generates more income than a stock or stock fund, and the couple is comfortable with both. For these hypothetical situations, I’ll assume that the bond portfolio can generate a 4% yield and the stock portfolio a 1% yield.

Jane and Tom: Minimizing the Impact of Taxes on Earnings

Jane and Tom have decided they’d like to take on prudent investment risk. Even though they don’t need income from the portfolio, they still need to overcome inflation, and would like to take some trips and make some major purchases in the future. Therefore, they decided to invest in a portfolio that has a 50% allocation to bonds and 50% allocation to stocks.

The real question for Jane and Tom, since they don’t need to generate income, is what they can do to minimize the impact of taxes on their earnings and capital gains. The answer lies not in the specific investments they actually select, but in how those investments are held.

If we assume that the majority of the total return for a bond or bond fund is in the yield, then to reduce the impact of taxes on the yield it would be better to hold the majority of the bond portfolio inside their IRA. If they were to hold the bonds in the taxable account, all of the yield would be exposed to taxes—assuming they are taxable bonds. By owning these investments inside the IRA, they’ll pay less in taxes.

Assuming that the majority of the total return for a stock or stock fund is with the capital appreciation potential, it would be proper to own the majority of the stock portfolio in the taxable account. Typically, you would owe little or no tax on a stock or stock mutual fund unless you realized capital appreciation. Therefore, if all you did was hold the stock or stock fund, you could minimize the impact of taxes because you would have little in the way of realized capital gains.

Thus, to reduce the impact of taxes, Jane and Tom are better off holding the majority of the bond allocation inside their IRA and the majority of the stock allocation to their taxable account.

Anne and Bill: Generating Tax-Efficient Income

For Anne and Bill, the issue is different. They need to generate income from their portfolio. For them, the big question is, “How do I generate the income I need in a tax-efficient manner, and which account should it come from?” Understanding how to answer this question will not only help Anne and Bill match the investment portfolio with their retirement goals but also allow them to minimize tax exposure.

In this scenario, Anne and Bill should own the bond portfolio in the jointly held taxable account and the stocks in their IRA (the opposite of the first scenario). They could generate a 4% yield on $200,000 (the jointly held account), which would account for an additional $8,000 of income. This income would be taxed at favorable rates because this is dividend income. We would then need to make a distribution from the IRA of only $2,000, which would be considered ordinary income.

 

Know Where You Are On Your Investment Journey

Not only is it important to recognize what investments to own and how to coordinate them with your retirement goals, but also to understand what part of the investment journey you are on and how to own each investment properly in order to minimize tax exposure. Remember, it’s more important to know what your income need is, and to own the investments in the right accounts, than it is to own the right investments.

About Mark Singer

Mark Singer is a CERTIFIED FINANCIAL PLANNER™ professional and the author of The Changing Landscape of Retirement—What You Don't Know Could Hurt You. He has been The Retirement Guide to thousands of investors for close to 25 years and is the creator of the Retirement Roadmap, which contributes to a solution to investors' greatest concerns–properly coordinating their financial affairs. These systems have become a primary resource for the people who have worked with Mark over the years. You can download the first chapter of Mark's new book for free by Liking it on Facebook.

One of my favorite stories is about a client who called me to find out if she could replace her kitchen cabinets. Clearly, she was not asking me for advice on building the kitchen cabinets, because I am the furthest thing from a handyman. What she was asking in this seemingly simple question was really a series of questions: Do I have the money to buy new kitchen cabinets? If I do, where does the money come from? If I take the money, will it impact my current income? And most importantly, if I spend the money today on the kitchen cabinets, will I have the money I need tomorrow?

In my practice, I have called this the “kitchen cabinet” question, and it comes in many forms: Can I take the trip? Can I buy another car? Can I earmark money to fund college expenses for my grandchild? Can I buy a second home? These are just some of the questions that address the concern, “If I spend my money today, will it be there tomorrow?” Without the benefit of a clearly defined Retirement Roadmap, it isn’t always easy to understand the answer to that question.

The true benefit of having done the proper planning is that when something new comes up you can go back to the plan and determine what would happen if you changed some of the assumptions based on the new objectives. That will allow you to see if your Retirement Roadmap still works. The beauty is that you can see the result before you make the decision—to buy the car, to do the kitchen cabinets, to go on that trip.

ithout a properly defined Roadmap, you may never truly know whether or not the decisions you are about to make will impact your ability to continue to pursue your retirement dreams. Furthermore, you could be constantly second-guessing your decisions, which would mean you would never truly gain a sense of peace of mind.

About Mark Singer

Mark Singer is a CERTIFIED FINANCIAL PLANNER™ professional and the author of The Changing Landscape of Retirement—What You Don't Know Could Hurt You. He has been The Retirement Guide to thousands of investors for close to 25 years and is the creator of the Retirement Roadmap, which contributes to a solution to investors' greatest concerns–properly coordinating their financial affairs. These systems have become a primary resource for the people who have worked with Mark over the years. You can download the first chapter of Mark's new book for free by Liking it on Facebook.

I believe one of the biggest mistakes people make when planning for retirement is not properly coordinating all of their goals. It is one thing to say that you would like to retire and you would like to get a certain amount of return on your portfolio, but without truly understanding the details and without setting clear and definable goals, the probability of you accomplishing/maximizing the journey into retirement could be compromised.

If I had a nickel for every time someone came up to me and asked me if "this mutual fund" or "this stock" was a good investment, I would be a very rich man. The answer I gave was the same every time: "Without understanding what your retirement goals are, or what risk you are willing to take with your portfolio, or the risk you should take with your portfolio, I cannot give an intelligent answer."

Experts tell us to analyze and understand what we invest in, but you have not been told how important it is to sync up your retirement goals with your investments. And without understanding exactly what your retirement needs are, how can we possibly understand how good or bad a particular investment is relative to your overall goals? This is why a Retirement Roadmap is so crucial to the foundation of helping you to pursue the retirement of your dreams.

I believe there is a great misunderstanding about the concept of investment risk within an investor's portfolio. Too many people believe that you can only take so much risk, and they would prefer to be risk averse. The reality is you could also take on too little risk, which could mean that you would not be able to achieve the retirement lifestyle you desire.

So the question isn't, "Is this investment good?" The correct question should be, "Is the risk that I am taking with this investment suitable given my retirement goal?" The answer to taking on the proper amount of risk can only be found once you understand how much income you need in retirement.

The lesson to be learned here is that you need to sync up your retirement goals with your investment portfolio in order to make sure that you are taking on the "proper" risk.

About Mark Singer

Mark Singer is a CERTIFIED FINANCIAL PLANNER™ professional and the author of The Changing Landscape of Retirement—What You Don't Know Could Hurt You. He has been The Retirement Guide to thousands of investors for close to 25 years and is the creator of the Retirement Roadmap, which contributes to a solution to investors' greatest concerns–properly coordinating their financial affairs. These systems have become a primary resource for the people who have worked with Mark over the years. You can download the first chapter of Mark's new book for free by Liking it on Facebook.

Too often, we focus on the markets and how they might impact our ability to retire. However, what truly drives a sense of peace of mind is how we actually "live the journey." Feeling good about what we do, and making good decisions about how we interact with our families, is very important, often more so than the money issues.

Our long-term clients, Harry and Louise, came to us to revisit their plan because a new situation had arisen. We know that things will change, people's priorities change and this situation was no different. Although this couple had a well-functioning retirement plan, their priorities had shifted a bit. Louise was now considering leaving the workforce to take care of their 13-year-old daughter. They were worried about her, as she was entering middle school. She would be coming home and staying alone without supervision every day from 2-5 p. m. Louise really wanted to be there for her, but the couple didn't want to sacrifice their retirement. Currently in their 50s, they had made plans to retire in about eight years.

Together, we reviewed the couple's Retirement Roadmap and reevaluated the numbers if Louise was to stay home. As we went through their cash flow chart in detail, we found that their current cash flow would be OK if she left the work force, but only if Harry cut his retirement contributions in half. The good news was that we could solve their immediate cash flow issues. However, Harry expressed concern because he didn't want the reduced contributions to prevent them from meeting their retirement goals. He had always been told to maximize his retirement savings.

We went through the numbers in detail, using the reduced contribution amount but still targeting the same date for retirement. We found that by making some adjustments in the portfolio allocation and rethinking some of our original calculations, the couple could give up Louise's income and have her stay home with their daughter while staying on track to reach a successful retirement.

Without a Retirement Roadmap, Harry and Louise would not have been able to develop a solution that worked for them. With proper planning, we took the guesswork out of what they needed to do and how it would impact them, and gave them the gift of freedom to choose what they wanted. Now they can take care of their family, and their future, while feeling confident in their decisions.

About Mark Singer

Mark Singer is a CERTIFIED FINANCIAL PLANNER™ professional and the author of The Changing Landscape of Retirement—What You Don't Know Could Hurt You. He has been The Retirement Guide to thousands of investors for close to 25 years and is the creator of the Retirement Roadmap, which contributes to a solution to investors' greatest concerns–properly coordinating their financial affairs. These systems have become a primary resource for the people who have worked with Mark over the years. You can download the first chapter of Mark's new book for free by Liking it on Facebook.

When it comes to estate planning, women have special concerns. Often, a woman will outlive her husband, leaving her with the task of preserving and protecting their assets for the rest of her life, and also taking care of the proper distribution of assets for her children upon her death. Single and divorced women also have unique estate planning needs.

The process of estate planning is about putting in place the proper documentation so that the caregivers and heirs will know exactly what to do and when. It is important to put these instructions in writing.

Women simply need more money. On average, women live longer than men, and they are more likely to be widowed. Women are often paid less in wages and typically work fewer years than men, resulting in lower Social Security and employer-provided benefits. It is important to acknowledge these facts when working with an estate planning attorney, in order to tailor the planning accordingly.

Two key areas to review are life insurance and the spouse's pension plan. It is important to understand the impact of the death of the husband on the ability for the surviving spouse to continue to lead her life in the way that she chooses. Often this means that there is a need to develop a properly designed life insurance program. The life insurance proceeds can provide needed liquidity and income that would be necessary to sustain her cash flow needs. However, it is important to own the insurance properly so that it is not unnecessarily taxed upon receipt.

The husband's pension often comes with choices. Assuming he dies first, the surviving spouse may be left with less income, depending upon the pension choice that was taken upon his retirement. It is important to recognize what the choices are and to pick the right pension option in order to make sure that both spouses will be taken care of.

Women often have an interest in charitable giving. For many women, charitable giving is a key estate planning goal, providing both emotional and financial benefits. It is necessary to take the time to develop a plan that balances charitable giving with asset preservation and retirement income planning.

Women's needs are often defined by their marital status. Married, single and previously married women have different estate planning needs, as do women with blended families. Married women should be encouraged to take an equal role in the estate planning process to ensure that their future needs are met. Women in second marriages or with blended families may be particularly concerned with children's needs, as well as protecting their individual interests. Planning is no less important for single women, who may wish to provide for their parents, siblings or children.

Open communication is truly the key to putting in place a proper estate plan. As a CERTIFIED FINANCIAL PLANNER™ professional, I typically initiate the conversation about estate planning with my client, and then direct her to see the proper estate planning attorney. It is important for the dialogue to be open and honest, and it must touch on topics well beyond the usual financial conversations. Understanding the relationships within the family is an important element to crafting a successful estate plan.

Once you have completed the estate planning process, you should feel more secure, organized and aware about your future and that of your surviving heirs. This will help you achieve the peace of mind you so richly deserve. An important note to keep in mind is that as your life changes, or your goals change, you should revisit the estate planning documents to make sure they are reflective of your current wishes.

 

About Mark Singer

Mark Singer is a CERTIFIED FINANCIAL PLANNER™ professional and the author of The Changing Landscape of Retirement—What You Don't Know Could Hurt You. He has been The Retirement Guide to thousands of investors for close to 25 years and is the creator of the Retirement Roadmap, which contributes to a solution to investors' greatest concerns–properly coordinating their financial affairs. These systems have become a primary resource for the people who have worked with Mark over the years. You can download the first chapter of Mark's new book for free by Liking it on Facebook.

As a financial planner, I often work with female clients. Sometimes, when these clients first come to me, they are confused and overwhelmed. For these individuals, I recommend a five-step process to help them take more control of their financial life. While I have primarily used this process to help my female clients who are in transition, it is appropriate for anyone who feels that they need to take control of their finances.

Make the time. Women typically are better at multitasking than are men, and this is both a good and bad characteristic. The good news is that women are dealing with many issues and are often able to accomplish more than men. The downside to multitasking is that life may feel a bit chaotic, and it may be difficult to sit down and focus on one particular issue clearly. My recommendation is to make financial planning a high priority in your life and to clear your calendar, be it for an hour or for a day, to focus on this important aspect of your life.
Paint your picture. Most coaches will tell you that the best way to accomplish your goals is to actually visualize where it is you want to end up and how you want to get there. How do you want to live the rest of your life? What is most important to you? What do you want to accomplish? This exercise can be daunting, because it is difficult to visualize what you truly want to do or what you want to become 10, 20 or even 30 years from now. So I suggest to start thinking about what you want to accomplish over the next two or three years. In that way it becomes a much more manageable exercise. This will be the start of your Bucket List. The Bucket List can include trips you would like to go on, relationships you would like to improve upon, adventures you would like to start, or any other items of importance to you. Make this Bucket List as personal as you can.
Put a plan in place. Once you've established what it is you wish to accomplish, put it in writing. I am a big believer in delegating and utilizing experts who are available to help me accomplish my goals. Therefore, if your life is constantly busy and you are often on the go, hiring a financial planner may be one of the best decisions you can make. Think of your financial planner as your coach. You will want to develop an open and trusting relationship with this individual. Your planner needs to understand what keeps you up at night, and what you wish to accomplish for the rest of your life. The financial planner should help ease the burden of your day-to-day decision-making and enable you to focus in on the other areas of your life. By aligning your interests with a qualified financial planner, you will have a guide to lean on to help you enjoy your retirement journey.
Become financially organized. After you have written your plan, it is time to get rid of some of the clutter that you may be dealing with as a result of all of the paperwork that will be coming your way. Becoming better organized will ultimately not only put you in more control of the overwhelming amount of paper that you will be receiving, but also provide a resource for you and your entire family to deal with all of your pertinent financial data. A benefit of being in control and more organized is that you will be able to focus on other areas of your life, knowing that you have taken care of this one.
Enjoy your life. My philosophy is to "enjoy the journey." Given what comes at us on a day-to-day basis, sometimes it is difficult to truly enjoy the journey that we are on. Every once in a while we have to just step back and take a proper perspective on what it is we've accomplished in life and how blessed we are. Even in the midst of your busy day, try to find a moment to step back and gain that proper perspective, or view that wonderful sunset, that can bring joy to your life. And part of the joy of having put together a successful financial plan is that you know that you are taking care of yourself and your family.

But the work is not done. It is important to put a tickler in on a semiannual basis to review your goals and to make sure that your plan is updated. The more you stay on top of your plan, the better the chance you will have of truly enjoying your journey into retirement.

About Mark Singer

Mark Singer is a CERTIFIED FINANCIAL PLANNER™ professional and the author of The Changing Landscape of Retirement—What You Don't Know Could Hurt You. He has been The Retirement Guide to thousands of investors for close to 25 years and is the creator of the Retirement Roadmap, which contributes to a solution to investors' greatest concerns–properly coordinating their financial affairs. These systems have become a primary resource for the people who have worked with Mark over the years. You can download the first chapter of Mark's new book for free by Liking it on Facebook.

Many financial advisors have extensive and rigorous training in investments and financial concepts. However, in the male-dominated investment industry, few advisors are taught the best ways to interact with women as clients. These advisors are often unable to nurture their relationship with women or understand their needs. Being able to serve women clients is critical, however, especially since many women are now actively involved in managing their own finances. Advisors can avoid common pitfalls when working with their female clientele by taking the following steps.

Build a Relationship

When working with women, the successful advisor will not only provide expertise in managing her portfolio, but also spend time to educate and address her individual concerns. Before you can tailor her portfolio to her requirements, you should discuss the pros and cons of each option. You should also provide follow-through to make sure you truly understand her financial goals. Engaging the client in a thorough discussion helps both the advisor and the client achieve a better understanding and also strengthens the client relationship.


Understand Her Unique Situation

t's not just about the money. Many financial advisors will hit an impasse with their female clients if their focus is solely on managing the money—without taking any unique circumstances that their client may have into consideration. Advisors paid solely for managing money on a percentage of assets or commission-based model may find this a more difficult hurdle to cross, since jumping at the opportunity to “touch the money” may be inappropriate in the female client's eyes. This can especially be the case for the recently widowed or divorced woman. In these circumstances, it can be important to let life settle after such life-altering events and take the time to re-establish emotional, and sometimes financial, well-being. The advisor who takes the time to help a female client through this time will set the foundation for a truly rewarding long-term client relationship. Fee-based financial planners may be better able to accommodate these types of situations.


Listen and Empower Them

Many years ago, it took my 7-year-old daughter, Erica, to teach me this lesson, a lesson better learned from her than any conference or seminar. Every evening, Erica would come to me when she was supposed to take a bath and ask if she should wash her hair. “Of course you have to,” I'd reply. Then, World War 3 would break out. Not a fun conversation to have with a 7-year old. So, one day I tried a different tactic. When she came to me with the same question, I told her she didn't have to wash her hair that night. Interestingly enough, she went ahead and washed it anyway.

Erica hadn't just been asking if she should be washing her hair, she wanted to know if she had the choice to do so. So many times, financial advisors make the mistake of prescribing options to their female clients, rather than empowering them to make an informed choice. Educate women on their choices and give them expert guidance tailored to their unique needs and you'll have a better chance of gaining their trust and keeping them listening.

Too many advisors make the mistake of not trying to improve their relationship with their female clientele. Not understanding how to listen, how to create a stronger relationship as well as how to identify unique situational needs (especially if divorced or recently widowed) should not be mistakes that keep you from building and retaining your own female clients. Cultivating a fiduciary relationship, performing a thorough needs analysis and listening are key aspects of any successful advisor's business and are just as important to your female clients as to your male clients.

About Mark Singer

Mark Singer is a CERTIFIED FINANCIAL PLANNER™ professional and the author of The Changing Landscape of Retirement—What You Don't Know Could Hurt You. He has been The Retirement Guide to thousands of investors for close to 25 years and is the creator of the Retirement Roadmap, which contributes to a solution to investors' greatest concerns–properly coordinating their financial affairs. These systems have become a primary resource for the people who have worked with Mark over the years. You can download the first chapter of Mark's new book for free by Liking it on Facebook.