It’s your job as an advisor to make sure that you are there—and active—during all these phases.

The client-advisor relationship goes beyond financial solutions during the transition phase.

Retirement is a moving target that defies a singular definition because it will be different for each client. However, planning for this event occurs continuously throughout the client’s financial life-cycle and usually has five phases. It’s your job as an advisor to make sure that you are there—and active—during all of these phases. Let’s take a look at each.

1. The savings phase: This starts as soon as possible after the client’s career begins. During that time, he will be preoccupied with other competing savings objectives, such as buying a home and dealing with family-building expenses. Your role is to motivate him to save for retirement, educating him about the importance of starting early. Establishing good retirement-savings habits despite the lure of short-term goals is essential to retirement security because of the miracle of compound interest.

During this period, a client may change jobs, and your role is to make sure that retirement savings are not cannibalized for other uses. Rollovers, tax-free transfers from one tax-qualified vehicle (an employer plan, for example) to another (an IRA, for example) can be a key service you provide.

2. The increased preparation and visualization phase: This phase cannot be identified with a particular age, but it involves your client kicking his retirement planning into high gear. Often, he sees his parents’ retirement and realizes he wants to emulate the positive and not repeat the negative. In the “increased-preparation” part of this phase, it’s your client who sees the need to increase 401(k) contributions or make paying off the house mortgage before retirement a priority. At this point, you should use retirement-income projections and expense calculators to identify the amount your client needs to save to fill the income gap during retirement.

In the “visualization” part of this phase, your client becomes even more focused. Your client may begin to understand that limiting expenses can be just as important a goal as increasing savings. You might suggest that your client save all the raises that he earns in the five or six years prior to retirement. By putting those salary increases into a 401(k), Roth IRA or a traditional IRA, he will not only save more for retirement, he will also lock in spending habits and learn not to grow his lifestyle and budget—an important lesson for retirement.

You might suggest that your client save all the raises that he earns in the five or six years prior to retirement.

3. The decision phase: This phase is often characterized by the imminent event of retirement. The year before, the year of and the year after retirement bring many planning choices and challenges. A client may grow tired of his career, and may consider retiring because his children have completed college or he has received an inheritance, for example. On other occasion, age may drive the decision to retire. You should educate your client, however, that health and money are more accurate drivers of the retirement decision.

During the decision phase, you should counsel your client on a variety of issues such as pension distributions, when to start receiving Social Security retirement benefits and how to convert assets into retirement income.

4. The retirement transition and lifestyle phase: This phase follows immediately after retirement. It is often accompanied by increased spending on travel and other recreational pursuits and a focus on adapting to a changed environment. Travel, golf, gardening and volunteer work often occupy your client’s calendar.

Once your client has settled into retirement, you must help him adjust his spending accordingly. As time passes, the nature of the client’s environment also changes. Friends and family may die or move away. At this point, you may need to help him whether or not to move near family members or to a continuing-care retirement community. From a financial perspective, clients become more asset rich and income poor. You must be ready to help with the psychological and emotional needs that accompany these changes. The client-advisor relationship goes beyond financial solutions during the transition phase.

5. The frailty phase: Again, this phase does not depend on any specific age, but is marked by dealing with health issues, care-giving for a spouse and the loss of mobility. A client in this phase tends to become lonelier and more dependent on others. Proximity to medical services and community services becomes more important.

You can assist your client by directing him to the appropriate social services. It is also rewarding to know that your counsel has helped your client have sufficient resources during retirement. Financial independence can soften the loss of physical independence.

For more information on this topic, consider taking the LUTC/FSS course FA 261: Foundations of Retirement Planning through The American College.

Richard Dulisse, CLU, ChFC, CFP, CASL, a member of NAIFA-Greater Philadelphia, is an LUTC author and editor, and assistant professor of financial planning at The American College.

Article extracted from http://www.advisortoday.com/200805/5retirementphases.html on 6 June 09

I am very happy how things have happened lately. No more sad things. Only productive activities.

Lesser procrastination. More discipline.

Lesser doubt. More focus.

With focus, I believe I will do it.

No longer saying, tomorrow will be a better day.

Say this

Today is a better day!

The day did not have a fantastic start.

It was greeted by a series of wake up calls and many comments that could be done without easily. What would create noises in a group of we-thought-good-working partners?

Miscommunication. Taking things for granted. Procrastination. Lateness. No Activeness.

What else?

Disappointed with how the day started. Glad at how the day ended.

The first day of school our professor introduced himself and challenged us to get to know someone we didn’t already know. I stood up to look around when a gentle hand touched my shoulder.

I turned around to find a wrinkled, little old lady beaming up at me with a smile that that lit up her entire being.

She said, “Hi, handsome. My name is Rose. I’m eighty-seven years old. Can I give you a hug?” I laughed and enthusiastically responded, “Of course you may!” and she gave me a giant squeeze.

“Why are you in college at such a young, innocent age?” I asked.

She jokingly replied, “I’m here to meet a rich husband, get married, have a couple of children, and then retire and travel.”

“No seriously,” I asked. I was curious what may have motivated her to be taking on this challenge at her age.

“I always dreamed of having a college education and now I’m getting one!” she told me.

After class we walked to the student union building and share a chocolate milkshake. We became instant friends. Every day for the next three months we would leave class together and talk nonstop. I was always mesmerized listening to this “time machine” as she shared her wisdom and experience with me.

Over the course of the year, Rose became a campus icon and she easily made friends wherever she went. She loved to dress up and she reveled in the attention bestowed upon her from the other students. She was living it up.

At the end of the semester we invited Rose to speak at our football banquet. I’ll never forget what she taught us. She was introduced and stepped up to the podium. As she began to deliver her prepared speech, she dropped her three by five cards on the floor. Frustrated and a little embarrassed she leaned into the microphone and simply said, “I’m sorry I’m so jittery. I gave up beer for Lent and this whiskey is killing me! I’ll never get my speech back in order so let me just tell you what I know.”

As we laughed she cleared her throat and began: “We do not stop playing because we are old; we grow old because we stop playing. There are only four secrets to staying young, being happy, and achieving success. “You have to laugh and find humor every day. You’ve got to have a dream. When you lose your dreams, you die. We have so many people walking around who are dead and don’t even know it!”

“There is a huge difference between growing older and growing up. If you are nineteen years old and lie in bed for one full year and don’t do one productive thing, you will turn twenty years old. If I am eighty-seven years old and stay in bed for a year and never do anything I will turn eighty-eight. Anybody can grow older. That doesn’t take any talent or ability. The idea is to grow up by always finding the opportunity in change.”

“Have no regrets. The elderly usually don’t have regrets for what we did, but rather for things we did not do. The only people who fear death are those with regrets.”

She concluded her speech by courageously singing The Rose. She challenged each of us to study the lyrics and live them out in our daily lives. At the years end Rose finished the college degree she had begun all those years ago.

One week after graduation Rose died peacefully in her sleep.

Over two thousand college students attended her funeral in tribute to the wonderful woman who taught by example that it’s never too late to be all you can possibly be.

 

Story quoted from http://www.inspireme.net/inspirational-stories/dreams.htm

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From today onwards, I want to STOP behaving like a dreamer. I want to start building my dream, brick by brick. I found this useful literature, and though it might be a good tool to start with.

Take one home everyday, and stay connected and motivated.

13.) I will get started now, and will not stall

I will write down what needs to be done everyday, and make sure it will be completed.

14.) I will improve my self-persuasion ability and learn the difference between reasoning and rationalizing

I will stop giving myself excuses not to do something and will commit to achieve what I had promised to do.

15.) I will be optimistic which will increase my chances of success

I will applaud myself every time I commence my activities and give encouragements to my partners whenever we end the activities.

16.) I will first decide how I want to start, and what needs to be done first

I have decided to follow the Adviser Initiative and gives my 100% commitment in all the activities I participate.

17.) I will read literatures that are related to the situation

I will commit to read a book every quarter on the areas that I want to improve my self.

18.) I will use self-signaling devices – notes, signs, cues, reminders.

I will stick these reminders notes in places where I will see often, example my table top, my laptop, in my phone and etc.

19.) I will promise myself rewards

I will reward myself with entertainment such as movie or kbox or other materials that will make me feel pampered whenever I performed well.

20.) I will use the stimulation provided by good news to do extra work

I will work even harder whenever I received good news or incentives.

21.) I will recognize conflicts and make a choice

I will make a decision on what is my next move whenever I face resistance from others.

22.) I will give myself the right to make mistakes as no one is perfect

I will try everything and make as much mistakes as possible so that I can learn from my mistakes. I will be a mistake if I do not make any mistakes.

23.) I will exercise my sense of humor as laughter indicates a realistic point of view

I will laugh as much as possible and pass the happiness and energy that I possessed to everyone around me.

Having personalised the 23 ways to motivate myself, I foresee myself being stronger and happier than who I am today.

Many people have big dreams and big goals. Yet many people failed to achieve their dreams and goals -  They prefer to settle for something smaller with lesser effort.

I have big dreams and I want to be the one who achieve it. So this is what I am going to do – To motivate myself forward. These are the 24 ways that I will follow:

1.) I put my plans on paper, with my goals spelled out and the ways to reach them.

I want to qualify for Hokkaido Convention next year. I need to have an Annual First Year Premium for $100,000 Regular Premium and $500,000 Single Premium by 31 March 2010.

2.) I need to be specific. The advice that I give myself must be such that I can put into practice.

I must follow the Adviser Initiative as closely as possible, with my dedication and passion.

3.) I must break the task down into small pieces so that I can handle them easily

I break down the qualifying requirement into 10 months, which translates to $10,000 RP and $50,000 SP per month.

4.) I establish checkpoints on my progress as well as rewards

I will review my performance monthly, making sure that I am on track. I can reward myself with my favourite food or new clothes with every good performance.

5.) I will remind myself of the benefits I can expect from completing the task

I will remind myself by sticking reminder notes in my wallet, diary, laptop, handphone and etc. This will ensure that I keep my goals real.

6.) I will avoid temptations and circumstances that might sidetrack me

I will avoid playing facebook when I am involved in any work-related activities (eg. meeting). I will avoid and resist gossiping every time before the commencement of activities.

7.) I will recognize my limitations and will not set unrealistic goals.

I recognize that I cannot stay focus when I am doing things that I do not enjoy. Therefore, I set a limited time slot for that particular activity so that I have no time to lose concentration.

8.) I will take advantage of my own energy peaks

I tends to get hype up whenever I have a good laughed. I will make myself laugh before I commence activities, and whenever I loses the steam.

9.) I will use negative thoughts to motivate and remind myself of the consequence of inaction

I will remind myself that I will lose the qualification of a paid-holiday in Japan, which is my desired holiday destination. I will also lose out in the year end adviser competition.

10.) I will keep a time-control budget which do not let one task take control over others.

I will follow the Adviser Initiative Timetable closely and not make any others commitments during that allocated time.

11.) I will set deadlines and hold myself to them

I will review my performance weekly and monthly to ensure I am on track.

12.) I will make an honest distinction between “I can’t” and “I don’t want to”

I will verify my statements whenever I faced resistance. I can do it.

Yesterday was 22 April 2009.

 Today is 23 April 2009.

Tomorrow will be 24 April 2009.

I enjoyed my work yesterday.

I enjoyed my work today.

I will enjoy my work tomorrow.

I loved my myself.

I loved my career.

I loved what I do.

I took the first step.

I persevere.

I will succeed.

I promised.

What is the root of all evil?

It is not money. Money is just a common denominator in the society to exchange for food, shelter, clothes, education and etc. Although money is not everything, but without it, life is not going to be easy and comfortable. Money is essential, and vital for survival.

Neither is it the betrayal of your boss, wife, friends, parents collegues or whoever you can think of, which i have heard of it many times. One simple reason why they are not the root of all evil; because my actions are not affected by their attitude towards me. I do what needs to be done and there is no reason why I should pust the blame.

The worse is when what needs to be done are not done. That is the root of all evil – PROCRASTINATE. It means that you can do, but you CHOOSE not to do. By giving yourself excuses or shifting the focus, you extend the deadline again, again and again.

Regardless of the fact that you do procrastinate, or not, life still goes on and earth still orbits around the sun. There is still only 24hours a day. Again, you can CHOOSE to make full use of it, or do nothing about it.

It is the root of all evils, because it is a CHOICE. Money is required to make a transaction. We can control how others want to behave. But we can CHOOSE how to behave. If we behave like animals, remember it is a CHOICE. If we procrastinate, it is also a CHOICE.

How can I stop being a procrastinator?

On the 14th of April 2009, I traveled by Tiger Airways to Macau, for the first time in my life. Although I heard many stories about how bad thisbudget airline is, but I feel that they did not fare too badly after all. The only thing that I wished for is to have a bigger seating space.

At the end of the day, consumers have to pay for quality. With the price that I paid, I would still give it a thumbs up.

Macau is a well-known gambling island full of chips, and hopes of hitting the jackpot. I checked in to Venetian, a grandly renovated with gold furnishings hotel, with branded shopping arcade and casino.

The hotel room was fantastic! It comes with 2 queen sized bed and a plasma TV, a separate living area with sofa bed, a big bath tub and showering room. A very cosy and comfortable resting area to recharge ourselves for the next day.

After locking up our important documents into the safe, we headed to the food court for dinner. The central food court serves expensive and distasteful food. The only palatable food will be the western cuisine, FatBurger. As the name suggests, they served tasty fatty burgers and fries. I highly recommend their fruity strawberry milkshakes, very smooth and cooling. Simply Delicious!

The afternoons in Macau were used to attend the Asia Pacific Life Insurance Congress 2009 in Venetian Convention Center. Once the sun sets, we headed out to explore different parts of Macau, for food and sight-seeing. Nothing crazy about the food and landscape.

But I have some bad impressions on the taxi drivers and retailers. Probably Singaporeans are much more polite. I was rather pissed off and offended by their service quality. They are very rude and dishonest.

On the last 2 days of travel, we crossed the borders to China – Zhu Hai. Their hotels were similar to the local condominium with tennis court and gym. Their room itself is identical to Singapore’s HDB. Hotel that looks like HDB?  So ironic.

The goods in Zhu hai are cheap. I brought 2 adidas and 2 levis Tee shirt for $100 Yuan = about $23 Singapore dollars. Another set of Adidas long sleeve tee and long pants for $105 Yuan = about $24 Singapore dollars. Its cheap. But of course, imitation goods. Haha. They do have nice apparels, similar to those that can be found in Far East, very trendy and fashionable.

I would have gotten those too, but I wouldn’t have much chance to wear it. Haha.

In general, Zhu hai is a place good for shopping at very low prices. Macau is a place good for doing nothing besides gambling. Nevertheless, I enjoyed my first business cum holiday trip. And I am now, looking forward for my next holiday!

Lets work hard towards it. GANBATE NEH!