Using Software to Help Clients Prepare for Retirement

Kristi Cook, co-author of the 403(b) bible, The Source, launched her leadoff workshop session at this year’s NTSA 403(b) Summit June 22 with an anecdote: Her husband, a college professor, asked her if she thought maybe he could retire and what they might need in retirement. So Cook became the client. She did some of her own research and found there were lots of rules of thumb (you need to replace 80 percent of income, withdraw 4 percent of assets, etc.) but very little data. “And I’m not sure any of them are right,” she said. 

So she went to her advisor and asked that question.

“Your clients are going to be coming to you with that question and you better know how to answer it,” Cook said. “Advisors need to know how to keep their clients once they’ve retired, and it takes more than just managing their money.”

To begin with, advisors need to know about Social Security — not just how to work the calculator on the Social Security website, because that’s not always correct, but all the ins and outs of timing and coordination. Advised Ed Dressel of Trust Builders, Inc., who co-presented with Cook in their session on using software to help clients prepare for retirement, “There are thousands of scenarios for a couple of about the same age who want to file and suspend, and you need to make sure that whatever software you’re using can handle all of them.”

The essential message is customization. If generic models are all that an advisor has to offer a client, that advisor is going to be replaced. The difference between a generic projection and a customized one can be thousands of dollars.

“Know the client’s pension,” Dressel said. “Read the plan document. It won’t kill you, and your client isn’t going to because he’ll expect you to know it.”

The bottom line: Find out what a client wants and give it to him or her. Giving clients only what you think they want, or what you’re willing to give, won’t keep their business. Find the best tools you can and learn how to use them to customize the information for each client. And make sure that you’re proud of what you provide — make it attractive, accurate and polished. If you don’t, you’ll be replaced by someone who will.