And that is the main point being discussed today (and tomorrow) at the Retirement Income Industry Association’s (RIIA) annual meeting. The goal of our industry group is to share best practices “across the silos” in founder Francois Gadenne’s words.
The process that we believe that advisors should follow when planning for retirement is to “build a floor first, then create upside.” What does this mean? it means that especially for people who do not fall into the high net worth category (most folks), their retirement plans should contain an income “floor” constructed with risk-free or very low risk investment vehicles (like TIPS or treasury zero coupon bonds, and that any excess capital can be directed to “upside” planning, or for desires and aspirations (after necessities have been covered by the “floor”).
It’s been a great meeting so far – I just sat for a 3 hour exam in the 2nd class for the RMA designation (retirement management analyst) and I am quite excited about bringing more knowledge back to my clients. I am currently at the Harborside Hotel in East Boston, overlooking downtown Boston across the water – great view:
I’ll fill you in with more later – ciao for now…