Displaying items by tag: retirement

Working with high-net-worth (HNW) clients offers advisors the opportunity to grow assets under management and revenue, but winning these relationships requires delivering more specialized expertise. Wealthy investors tend to prioritize education, performance and deep relationship-building, while focusing heavily on wealth preservation and legacy planning.

Surveys show that most HNW households plan to transfer wealth during their lifetimes, worry about healthcare costs and inflation, and are highly engaged in charitable giving, valuable insights that can help advisors shape their service models. 

To meet this demand, firms can expand into estate planning, succession planning, tax strategy and other complex services that align with affluent investors’ needs. Advisors who collaborate with estate attorneys, CPAs and other centers of influence may find it easier to build credibility and attract HNW prospects through referrals. 

Finsum: Ultimately, growing an advisory practice in the HNW segment comes down to offering sophisticated, personalized planning that speaks directly to the financial realities.

The Great Wealth Transfer, an estimated $90 trillion shifting across generations over the next two decades, is poised to reshape advisor–client relationships, yet most affluent investors remain underprepared for the transition. Nearly one-third of wealthy investors lack even a basic will or trust, and many who do have plans will require significant updates as their lives, assets, and tax environments evolve. 

The research identifies four distinct motivational segments—Financial Achievers, Leisure Seekers, Legacy Leavers, and Cautious Givers—each defined by emotional drivers that meaningfully shape how clients view wealth, planning, and risk. 

With younger generations showing a higher affinity for digital tools yet still wanting human guidance, advisors must blend personal expertise with accessible online solutions to meet clients where they are. 

Finsum: Ultimately, those who tailor their estate-planning approach to individual psychology will be the ones who thrive as this massive transfer of wealth unfolds.

Many investors today fear outliving their savings, a concern intensified by market volatility and persistent inflation, creating an opening for advisors to rethink how they deliver reliable retirement income solutions. 

Although annuities can address longevity risk, outdated perceptions of high fees and complexity still discourage clients, even though modern, low-cost versions now exist. To rebuild trust, advisors must simplify the experience by focusing on outcomes such as guaranteed lifetime income, downside protection, and tax-deferred growth rather than product jargon. 

Annuities also work best when integrated into a broader financial plan, balancing market exposure, liquidity needs, taxes, and estate goals instead of being presented as standalone products. 

Finsum: Ultimately, transparency, clear communication, and honest comparisons will help advisors shift annuities from misunderstood products to trusted tools.

The 401(k) system has significantly expanded retirement security, but many Americans still struggle to save due to rising living costs, shifting social norms, and limited access to plans. Looking ahead, five major trends are poised to reshape the industry: affordability pressures, new legislative and regulatory developments, increased consolidation and collaboration among providers, rapid innovation, and the rise of professional fiduciary services. 

Inflation and overlapping life milestones are making it harder for mid- and lower-income workers to prioritize retirement savings, increasing the importance of tools that support better habits and financial decision-making. 

Industry consolidation and wealth-retirement integration are creating more scalable, participant-focused models, while innovations like personalization, AI, CIT expansion, and retirement income solutions are transforming plan experiences.

Finsum:The growth of OCIO services and pooled employer plans is expanding fiduciary support, especially for smaller employers. 

A new TIAA survey finds that two-thirds of Americans believe retiring between ages 65 and 70 is no longer realistic, with only 37% confident they can retire “on time.” Financial strain is widespread—20% of respondents aren’t saving for retirement at all, and nearly a quarter expect to work longer just to cover basic expenses. 

Some are even turning to unlikely strategies, such as the 10% who see playing the lottery or buying luxury goods as potential retirement solutions. TIAA executives warn that many Americans lack both adequate savings and access to financial guidance, underscoring the need for guaranteed income products and professional advice. 

The survey shows 92% of respondents want a steady income stream beyond Social Security, yet 25% feel too uninformed to invest in annuities despite growing interest. 

Finsum: Advisor should help clients to understand supplementing Social Security with long-term income strategies is essential to ensure financial security in retirement.