financial leadership leading the retirement transition
TRANSCRIPT
Financial Leadership
Leading the Retirement Transition
Financial Leadership
1. Retirement is change
2. Change is hard
3. Major reason is lack of leadership
4. We need to lead
5. What leaders do – a model
Retirement is Change
• Life is about beginnings and endings
• Change is challenging
• Loss
– loss of a role
– loss of a person
– loss of a place
– loss of a sense of where you fit in the world
• Change forces us to let go of the familiar and face an uncertain future
Financial Leadership
VULNERABILITY
Financial Leadership
Life Transitions
Financial Leadership
High Anxiety
Source: The McKinsey Quarterly 2005
Financial Leadership
40
34
28
42
21
40
0
10
20
30
40
50
60
70
80
45 - 54 55 - 64 65 and over
Moderately AnxiousExtremely Anxious
Percentage of people who expect or currently enjoy retirement “a great deal”
Source: Ameriprise Financial New Retirement Survey 2005
60
65
70
75
80
+16 Yrs before 6-15 yrs before < 5 yrs before 1 yr after 16 yrs after2-15 yrs after
Financial Leadership
Change is hard
Financial Leadership
Change is Usually Mis-managed
Financial Leadership
Advisor EvolutionLeader
“Fulfill your potential”
Salesperson “Buy something”
Consultant “Buy into something”
Financial Leadership
A Framework for Leading the Retirement Transition
Financial Leadership
Leading the Retirement Transition
SuccessfulTransition
Motivation + Implementation =Vision + Expertise +Resistance=ExpertiseVision Implementation+ +MotivationXConfusion=Motivation Expertise Implementation+Vision +XAnxiety=Motivation Vision Implementation++ ExpertiseX
Adopted from Ambrose 1987
Frustration=Motivation ExpertiseVision ++ ImplementationX
Financial Leadership
Leading the Retirement Transition
XMotivation Vision Expertise Implementation Resistance+ =+ +
• What is the value?
• What’s in it for me/my family?Motivation
Financial Leadership
Motivation
Retirement Risks
• Longevity
• Inflation
• Health care costs
• Market
Motivation
www.ci.com/pd
New Retirement Realities (SS)
Client version
This presentation provides a look at the new realities of retirement and how the changing retirement experience will impact investors.
Multi Media | PPT | PDF
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Discussion Points for Clients
• 7/10 investors concerned with short and mid-term spending
• “Surprise” retirement puts a big wrinkle in plans of many
• 7/10 expect to continue to work
• > 50% expect to use equity in their home
• Retirement income planning is not understood
Motivation
XMotivation Vision Expertise Implementation Confusion+ =+ +
• A common, understood, compelling future state
• Provides direction and a sense of unity
• A leader provides a “reframed future”
Shared Vision
Leading the Retirement Transition
The human being is the only animal that…
thinks about the future!
Shared Vision
Shared Vision
1. We don’t imagine or vision well
Shared Vision
Presentism“The tendency is for current experience to
influence one’s view of the future”
Shared Vision
“What do you want to be when you grow up?”
“What do you want to be NOW?”
Shared Vision
The Ideal Financial AdvisorWhile older retirees and pre-retirees want a financial advisor who is trustworthy,
those 55 - 64 seek life-planning guidance, especially help in visualizing their future.
51%
39%
47%43%
45% 44% 43%
37%
0%
10%
20%
30%
40%
50%
60%
Helps mevisualize my
future
Able to relate toand understand
my currentlifestyle needs
Works for acompany
I trust
Is extremelyknowledgeableabout financial
planning
Characteristics that best describe the ideal financial advisor
Ages 55 - 64 years
Age 65+ years
Source: AIG SunAmerica / Harris Interactive “Resourcing Retirement” survey
Shared Vision
Shared Vision
1. We don’t imagine or vision well
2. Seek out people who are actually experiencing the future events we are merely thinking about
Shared Vision
Engage the Clients
• Set up and host retirement “Advisory Groups”
Shared Vision
• Have clients of different ages share stories
Shared Vision
The Taylors
Shared Vision
1. We don’t imagine or vision well
2. Seek out people who are actually experiencing the future events we are merely thinking about
3. Logical and emotional feedback
Shared Vision
Shared Vision
Discussion Points With Clients
• Factual motivation or crisis is not enough
• Fear of death
• Speak to people’s feelings
• Help people see problems and solutions in ways that influence feelings/emotions – not just thoughts
• Positive, inspiring and emotionally resonant
Joy of life
Shared Vision
XMotivation Vision Expertise Implementation Anxiety+ =+ +
• The skills and knowledge needed to move into the new reality
• A range of expertise
• A holistic integrated approach
Expertise
Leading the Retirement Transition
Expertise What makes an expert?
Expertise
X• Straight talk/common sense • Really cares about people • Long term, patient view • Communicates in stories and real life
situations • Helps people put finance in context of
their lives
Expertise
It Takes a Village….
• Team Approach
Expertise
Retirement Transition Team
Investmentmanagement
Legal guidanceInsurance
Tax & estateadvice
Cash
manag
emen
t
Life co
achin
g
Health
care
coor
dinati
on
Philan
throp
y
Expertise
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Discussion Points With Clients
• Consolidation of advice – with you as the LEADER
• “Quarterback” the team of professionals
• Relationship manager is key role
Expertise
XMotivation Vision Expertise Implementation Frustration+ =+ +
• Making sure things that are supposed to happen actually happen
• Translate big thoughts into concrete steps for action
• Following through with accountability
Implementation
Leading the Retirement Transition
Leaders Are Passionate About Getting Results
• Involvement of all key players
• Details on the “hows” of execution
• Milestones for progress with strict accountability
• Contingency plans to deal with the unexpected
Implementation
Written Financial Plans Work
Source: Ameriprise New Retirement Landscape 2006
Plan No Plan
Living my dream retirement 42%
68%
54%78%Retirement worked out
as planned
70%93%Feel very/somewhat
prepared for retirement
69%84%Anticipate feeling
optimistic in retirement
Implementation
Leading the Retirement Transition
Financial Leadership
Leading the Retirement Transition
SuccessfulTransition
Motivation + Implementation =Vision + Expertise +Resistance=ExpertiseVision Implementation+ +MotivationXConfusion=Motivation Expertise Implementation+Vision +XAnxiety=Motivation Vision Implementation++ ExpertiseX
Adopted from Ambrose 1987
Frustration=Motivation ExpertiseVision ++ ImplementationX
Financial Leadership
Helping Clients Deal with the Emotional Rollercoaster
SuccessfulTransition
Motivation + Implementation =Vision + Expertise +Resistance=ExpertiseVision Implementation+ +MotivationXConfusion=Motivation Expertise Implementation+Vision +XAnxiety=Motivation Vision Implementation++ ExpertiseXFrustration=Motivation ExpertiseVision ++ ImplementationX
Adopted from Ambrose 1987
Financial Leadership
All Types of Leaders
• Visionaries
• Deal makers
• Administrators
• Enforcers
• Transformers
• Laissez-faire leaders
Leadership
Servant Leadership
• Begins with the natural feeling that one wants to serve – to serve first
• Then the aspiration to lead
• Different from one who is “leader” first – for power or to acquire possessions
Leadership
Servant Leadership – Characteristics
• Listening
• Empathy
• Stewardship
• Commitment to people’s growth
• Building Community
• Persuasion
• Conceptualization
• Foresight
Leadership
Thank you
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