Retirement and estate planning are becoming a national obsession. "How can I ensure that I'll enjoy a comfortable retirement?" "What if I outlive my money?" "Will I have anything to leave my spouse or children when I die?" "Will the taxes on my estate be a burden to my heirs?" These increasingly common questions are being asked of financial advisors and insurance agents every day.
William A. Kelly hopes to answer some of these pressing questions for seniors and preretirees in "Senior Safe Money StrategiesSM," (William A. Kelly Publishing, 2005). In his informative book, Kelly reveals some of the valuable retirement and estate planning lessons he has learned throughout his career of working with seniors. Over the past decade, Kelly has developed what he calls the "Senior Safe Strategies" program. He explains that users of his program "are informed of potential risks. They are equipped with choices. They are educated in the purpose of every investment and each action taken in their estate plan."
Because "Senior Safe Money Strategies" is geared toward senior consumers, it can serve as a valuable educational tool for a financial advisor's aging clients who seek guidance as they navigate what Kelly calls the "modern maze of retirement investment planning." Read on for some of the strategies and advice Kelly presents in his book.
Investing should not be a gamble
Kelly explains to readers that the "risk" involved with investing is not the same thing as gambling. "We need to keep clear in our minds the differences in these: money, risk, gambling, and investing," he says. "We need to decide as planners and as clients how and how much we want to be exposed." To minimize their exposure to risk, Kelly recommends that seniors always read the disclosure material provided along with any investment product. He points out that investments are "dependent on the underlying strength of the guaranteeing institution."
Kelly says that seniors should expect a certain level of respect from a financial professional. In his book, Kelly lists what each senior is entitled to when it comes to financial planning, calling it his "Senior Planning Bill of Rights." Included in this list of rights is the right to honest and responsible advice, suitable investments, time to make decisions, and freedom of flexibility. Financial professionals should keep these basic courtesies in mind when working with senior clients on their retirement and estate plans.
In order to convince clients to take their advice, Kelly claims that many financial marketers appeal to one of three emotions: fear, hope, or greed. Kelly warns senior clients not to allow the financial community to tap into their "investor emotional inventory." On the other hand, he advises seniors to work with their financial advisor to set reasonable expectations and make "a decision beforehand as to what acceptable minimum gain is satisfactory."
Effective estate planning
Kelly says, "Successful estate planning should flawlessly transfer your assets to your beneficiaries quickly and with minimal tax consequences." He recommends that senior clients see an attorney or other professional to create a will, discuss a living trust, write a living will, and assign a financial power of attorney. Kelly further explains that estate planning is not just for the wealthy. "Adding up the value of your assets can be an eye-opening experience," he says. "By the time you account for your home, investments, retirement savings, and life insurance policies, you may find your estate in the taxable category."
Offering a wealth of information about retirement investments and estate planning, "Senior Safe Money Strategies" serves as a valuable tool that you can recommend to your senior clients who may otherwise hesitate or put off creating a financial plan. Highlight the sections that would be most useful to your client and helpful in supporting your advice. As Kelly points out, his program "is a process, not a transaction," which requires "regular client reviews and consultations" with estate planning professionals.
Amy Bell is a freelance writer and frequent contributor to the Agent's Sales Journal. Visit her Web site at www.writepunch.com or email her at amy@writepunch.com.
