Who knew high-net-worth clients need just as much help with retirement as the rest of us?
Retirement planning for the wealthy comes down to one important ratio: desired lifestyle relative to asset base, according to Barbara Attardo.
She should know, since her sweet spot is working with clients that have investable assets in the $1 million to $10 million range.
"I do a lot of financial planning in addition to investment management," Attardo, senior client advisor and senior wealth strategist with Boston-based Daintree Advisors, recently explained. "The big issue I'm currently dealing with is baby boomer retirement. They come to me and essentially ask, 'What will my retirement look like?'"
Either they are on track and looking good, or off track and behind in their planning, she added. If it's the latter, she and her team figure out what they need to do in order to get on track.
"I try and avoid using the b-word—budget—because it has a negative connotation for some," she noted. "It's more about if the client has a high lifestyle and they have too much debt or spend too much, which levers do we pull to get it right?"
A common mantra at the firm is, "You can never start too early or too late when it comes to planning for retirement."
"Some clients will absolutely say, 'I'm not changing my lifestyle.' The only response is to tell them to work longer or die sooner, and the second option isn't palatable for them."
For those that are willing to change their lifestyles, she said, she often finds they spend out of habit — meaning what they're spending their money on isn't important to them or actually necessary. They do it because they've always done it.
