The New New Retirementality:
The World is Beginning to Listen

Mitch Anthony

 

Since The New Retirementality was first written, much has happened in our world to accelerate some of the changes called for in the original version. I wrote about the importance of taking the time to reflect on our working lives––and life in general. The world events that ushered in this millennium caused us all to make such an examination. I wrote about the need for a more realistic approach toward retirement funding and how the ensuing market events and corporate scandals led many down a path filled with insecurity and peril. I wrote about the need to find fulfilling work because of the possibility we may be working longer than we had originally intended. The pension crises only confirmed what we suspected about most corporations––they aren’t looking out for us first.

             

The message resulted in many amazing inroads. Since the book’s original release, I have had the opportunity to help many of you change how you help your clients prepare for the period of life known as retirement. Organizations have begun to realize that their old, outdated models are no longer resonating with the public, and that, as important as the numbers are, they are only there to serve the lives that produced them. Possibly you have seen a few of the television ads emphasizing the importance of understanding individual lives and their dreams for retirement as a critical exercise in retirement planning.

             

I wrote that corporations would be compelled to rethink how they deal with their most precious resource––aging, experienced baby boomers––and to find new ways to keep from losing the intellectual capital that’s about to walk out the door. This trend is well underway and the last few years have seen many companies realize their need to demonstrate more flexibility both in how they let people work and how long they keep them around. We are seeing progress in this arena but need to see much more. This trend is too powerful to reverse and millions more of your clients (not to mention yourselves), know that they have plenty to give but want it on their terms.

 

Financial life planning was a novel concept when we first introduced it in 2000. Today’s enlightened financial professionals, however, realize that crunching numbers alone, without considering what is happening in their clients’ lives and what events are on the near horizon, is useless and shortsighted. Financial life planning is the future of our industry as more and more advisors realize that the central point in all planning should be the individual vision and unique situation of their clients. Because many of today’s advisors are now approaching retirement and financial planning in this manner, clients no longer have to accept an inferior approach.

             

I am hopeful and encouraged that many in this industry recognize that life itself is what matters––much more than just collecting a paycheck. Whether we’re talking about our clients or about ourselves, we should be able to work as long as we wish and do what we want. Advisors can add value and make a difference as long as it is in their hearts to do so. 

 

Moving From ROI to ROL

 

              Today’s clients need a new standard of success regarding their financial lives. The current standard, return on investment (ROI), is self-limiting and adds undo pressure:  “What if the markets have a bad year?” “Should I worry myself sick and loathe my existence?” “Why do others seem to be getting better returns than I am?” “Should I beat myself up over it and think I’m unlucky with money?”

 

              So much of ROI is out of your clients’ control. They can properly diversify. They can be industrious about saving and investing. They can avoid greed and foolish schemes. But they cannot control the behavior of the markets or the events that affect the markets any more than they (or you) can control the climate patterns. As your clients’ financial advisor, it’s incumbent upon you to make sure they not only understand the risks and realities, but also understand that you’re there for them.

 

I am proposing that the new standard for financial success is Return on Life™ (ROL), which is expressed in the phrase, “How well are you doing on living the life you want with the money you have?” The ROL approach to life implies the following:

 

  • I’m living well within my means.
  • I’m investing time, energy, and resources in those I love.
  • I’m allowing myself to have experiences and live.
  • I’m saving with discipline.
  • I’m not comparing my progress to others who have an entirely different set of circumstances.

 

Money is a utility that helps people navigate where they want to go in life. Unfortunately, many of your clients probably feel as if their lives are little more than about “getting ahead.” My question is, “Getting ahead of what?” Getting ahead of an artificial definition of success? Getting ahead of their neighbors and coworkers? Getting ahead of where they are now?  In seeing money as a utility, we see what it is not. It is not the shore we travel towards. It is not the sea we travel upon. It is not even the vessel that transports us. It is nothing more than a utility (like a sail) that must be skillfully utilized (in all climates) to keep us moving toward what really matters in our lives.

 

Many of your clients are suffering from what I term half-fluence––they have the money they’ve always dreamed of but not the life they thought would come with the money. Clearly they’ve missed something along the way, and that something is how to get a greater return on life. As their financial life planner, you need to help them achieve that return.

 

The best financial discussion you will ever have with your clients is to ask them, “What really makes you happy in life?” and then help them manage their finances to keep those people and experiences front and center in life.

 

Adapted from The New Retirementality:  Planning Your Life and Living Your Dreams…at Any Age You Want by Mitch Anthony (©2008 Mitch Anthony.  Published by John Wiley & Sons, Inc.)

Mitch Anthony is the founder and president of Advisor Insights Inc. and The Financial Life Planning Institute, training companies serving advisors and the financial services industry. He is the author of several books for advisors including the StorySelling for Financial Advisors.  His newest book, From the Boiler Room to the Living Room:  What the Coming Revolution in Financial Services Means to You and Your Clients will be published by John Wiley & Sons later this year.  Anthony is a contributing editor for Research magazine and his column “Financial Life Planning” appears in Financial Advisor magazine. He has been a named a “Mover & Shaker” by Financial Planning magazine and is frequently quoted by the media as an expert on financial life planning. His radio feature, The Daily Dose, is heard every day on approximately 200 radio stations nationwide. 

Contact him at mitch@mitchanthony.com

© 2008 Mitch Anthony