Why to Use Retirement Maps in Every Meeting

by Kyle Happe
Investment Team

At Riskalyze, we love financial planning tools. In fact, the Risk Number® is integrated into all the major comprehensive platforms on the market. Advisors love using planning software to show in detail the implications of every financial decision clients/prospects make. You collect data, take it back to the lab and plug it all in. It can be a time-consuming back-office process, but producing these beautiful reports can win business and impress clients.

What happens after the initial client meeting or prospect close, though? Clients put that elegant report in the fancy leather bound binder away in their home in case they'd ever need to reference it again. You, the advisor, have a saved copy in your system, and you refer to it as you implement the portfolio that will best help your client achieve their goals. You then put in all the work to update it when necessary.

What if there were a simple, quick way to bring that "wow" factor to every client meeting? Often, advisors simply need a tool that's quick and efficient. Riskalyze has a feature available to every Pro and Premier user's account, and it's built upon the award-winning Risk Number. It's called Retirement Maps, and here's why you should use it in every meeting.

Retirement Maps enables you to quickly determine the probability of success for a given retirement strategy. You can engineer a retirement strategy for both retirees and pre-retirees in an interactive, intuitive way. Lightning-fast calculations encourage advisors to show their clients the impact of various retirement plan assumptions in real time.

Riskalyze built Retirement Maps with the goal to help you marry your client's Risk Number and portfolio allocations with their retirement goals. One platform, one screen, one client-friendly tool that allows you to explain how risk not only affects your portfolio today but your retirement goals in the future. With Retirement Maps, advisors can objectively express whether a client's retirement goals, Risk Number and/or existing portfolio have a high probability of success.

Working alongside some amazing advisors, we've identified several in-meeting opportunities to show off some of your planning value on the spot.

Saving a Client from Themselves

Picture this: you're meeting with a client, and they mention that after an amazing vacation they're thinking about purchasing a motorhome for traveling. They plan on either pulling $100,000 from their trust assets or financing it (which would add $800/month in retirement income needed). Instead of chatting about implications hypothetically or telling them you'll have to rerun some numbers and follow up later, you can give them information visually and instantly. With only a moment's notice, you're adding value and proving yourself to be a trusted advisor looking out for their best interests.

The Risk-Averse Client

Investing in the market can be intimidating. In times of high volatility, it can be downright scary. But unless your client is a multimillionaire, they'll have to accept some level risk with their investments to achieve their retirement goals. Every once in a while you come across a client that wants zero risk, but wants to retire young and live like a king. At this point, you're forced to be the bearer of bad news; their best interest lies in investing more and taking on more risk. Advisors love having an intuitive, visual aide to help them say, "there's no way we're getting from New York to California in one day if you're afraid to fly."

The DIY Prospect

The "Do It Yourself Prospect" is intelligent, fee conscious and knows enough about the markets to be mildly successful, but do these prospects truly know if their portfolio will meet their retirement goals? These prospects are often tough to nail down and it's even more difficult to collect all the data needed for a comprehensive financial plan. Retirement maps can have you assess retirement probability with five, simple numbers: investment amount, monthly savings, retirement year and retirement income, and, of course, the Risk Number. Now you're able to credibly and respectfully say, “Mr and Mrs. prospect, your DIY portfolio gives your retirement a 0% probability of success. Here’s your probability of success with the portfolio I’ve designed for you.” Once they see that their "free" DIY tools actually cost them money in the long run, they'll become your raving fans.

What If?

Some clients have rigid retirement goals. They're set in stone. Others, though, can be a bit more fluid. Objectives change, dates shift or purchases are added. How do you handle impromptu "what-ifs" during a review meeting? Are you trying to calculate quick numbers in your head? Does it look like you are dodging the question with “having to take the numbers back to the lab”? Do you come across as stern by suggesting clients not change the plan at all? Instead, let's play with the numbers in real time. That fancy RV purchase would require another $500/month to be saved. Stop guessing. Stop speaking in generalities. Quench your client's curiosities on the spot.

No more "back to the lab," no more confusing deluge of statistics. With Riskalyze, you can align how much risk your clients want (Risk Assessments), how much risk your clients have (Portfolio Analysis), and how much risk your clients need in order to reach their goals (Retirement Maps). Now, you're ready to empower fearless investing.

Oh, and did I mention that as a Riskalyze user you already have Retirement Maps? Go explore! Need any help? Check out our Knowledge Base Article, or better yet, schedule a free 1:1 call with one of the industry's best coaches. They'd love to meet you.

Mountain View

Kyle Happe is a former investment advisor and Riskalyze user. He now leads our investment team at Riskalyze and focuses our teams on partnering with advisors to empower fearless investing.

Follow @Kyle_Happe on Twitter.