Financial Leadership Leading the Retirement Transition.

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

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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

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 pd@ci.com if you have any questions or concerns.