How an advisor focused on retirement income wins over his clients

Building a plan for longevity

Little has branded his approach the ‘Wealth Legacy Retirement Income Plan’ and it’s specifically designed to tackle the existential crisis that can come when someone stops getting a paycheque from their employer. That initial real moment after retirement can prompt some serious questions and challenges as to whether they might outlive their savings.

Little’s approach begins with a plan and a discovery stage. He notes that there are examples of clients who have been at serious risk of outliving their savings, especially if they retire with mortgage debt or look set to take on debt as they try to help their children get a head start in life. In the case of those clients, Little will show them what kind of outlays make their retirement unsustainable.

Little’s approach also involves some education. He will explain in great detail what happens to RRSPs as they convert into Registered Retirement Income Funds (RRIFs). He outlines how government mandated drawdowns on RRIFs will eventually lead to a point where no amount of return generated can outpace the required withdrawals.

Those drawdowns get built into the plan, as does an extremely conservative estimate on returns to ensure that a client’s retirement income works even in dire markets. The plan also involves aspects of psychological preparation for the unexpected. Little will talk to his clients about the risk of sudden losses and what that can mean for their retirement as well, including the potential realities of downsizing and lifestyle changes as people age. It also involves a fulsome estate plan, with Little’s commitment to help manage client estates if and when they pass on so they leave a legacy that their heirs can enjoy.

Allocating assets to serve retirement income

The way Little puts it, his focus on retirement income operates in much the same way that a cardiologist focuses on the human heart. Clients accumulating assets can be well served by an advisor who operates more as a general practitioner, but he tells clients that if they want to retire successfully, they need someone with a real focus on their retirement income.