Financial Leadership Leading the Retirement Transition.
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Transcript of Financial Leadership Leading the Retirement Transition.
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Financial Leadership
Leading the Retirement Transition
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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
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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
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VULNERABILITY
Financial Leadership
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Life Transitions
Financial Leadership
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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
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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
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Change is hard
Financial Leadership
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Change is Usually Mis-managed
Financial Leadership
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Advisor EvolutionLeader
“Fulfill your potential”
Salesperson “Buy something”
Consultant “Buy into something”
Financial Leadership
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A Framework for Leading the Retirement Transition
Financial Leadership
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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
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Leading the Retirement Transition
XMotivation Vision Expertise Implementation Resistance+ =+ +
• What is the value?
• What’s in it for me/my family?Motivation
Financial Leadership
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Motivation
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Retirement Risks
• Longevity
• Inflation
• Health care costs
• Market
Motivation
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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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www.ci.com/pd
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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
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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
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The human being is the only animal that…
thinks about the future!
Shared Vision
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Shared Vision
1. We don’t imagine or vision well
Shared Vision
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Presentism“The tendency is for current experience to
influence one’s view of the future”
Shared Vision
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“What do you want to be when you grow up?”
“What do you want to be NOW?”
Shared Vision
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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
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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
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Engage the Clients
• Set up and host retirement “Advisory Groups”
Shared Vision
• Have clients of different ages share stories
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Shared Vision
The Taylors
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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
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Shared Vision
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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
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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
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Expertise What makes an expert?
Expertise
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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
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It Takes a Village….
• Team Approach
Expertise
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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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www.ci.com/pd
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www.ci.com/pd
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www.ci.com/pd
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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
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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
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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
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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
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Leading the Retirement Transition
Financial Leadership
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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
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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
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All Types of Leaders
• Visionaries
• Deal makers
• Administrators
• Enforcers
• Transformers
• Laissez-faire leaders
Leadership
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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
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Servant Leadership – Characteristics
• Listening
• Empathy
• Stewardship
• Commitment to people’s growth
• Building Community
• Persuasion
• Conceptualization
• Foresight
Leadership
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Thank you
All charts and illustrations in this guide are for illustrative purposes only. They are not intended to predict or project investment results. ®CI Investments and the CI Investments design are registered trademarks of CI Investments Inc.
®SunWise is a registered trademark of Sun Life Assurance Company of Canada.
Please email [email protected] if you have any questions or concerns.