Overcoming the many challenges associated with investing for retirement is a work in progress that requires constant innovation in thought, technique and approach.
The macro environment – persistent low interest rates – doesn't make things any easier, nor do increasing longevity risk or the rising costs of health care.
As such, the retirement discussion today is centered around the importance of income generation, and if advisors want to ensure their clients have sufficient income in their retirement, they need to be working closely with their clients to create well-tailored retirement plans, by using the innovative tools, technology and investment vehicles that continue to come forth into the retirement planning space.
At Envestnet's 14th Annual Advisor Summit in Chicago on Thursday, three leading investment managers discussed some of the tools they believe will help advisors to help their clients meet their retirement income goals.
Ross Znavor, director and head of CoRI Index Distribution, BlackRock
Since BlackRock launched its CoRI Retirement Index Series last July, the CoRI website has had more than 400,000 hits, says Ross Znavor, director and head of CoRI Index Distribution at BlackRock.
The CoRi indices allow advisors and investors to calculate either how much estimated annual income an investor's savings will provide throughout retirement, or, conversely, the level of savings an investor needs to generate a desired amount of annual income throughout retirement.
As income continues to remain front and center in the retirement discussion, the tool is vital for investors, Znavor says. The CoRI Indexes — which are designed to converge with the median price of an annuity at age 65 — will give advisors a whole new starting point for the retirement planning conversation, as well as support better informed discussions between investors and advisors on strategies for securing critical retirement incomes, he says.
Rod Greenshields, Consulting Director, Russell Investments
No one is immune to the risk of running out of money before running out of life.
Avoiding that dire predicament means engaging in a deep and meaningful relationship with clients, says Rod Greenshields, consulting director at Russell Investments, and constantly staying on top of financial plans to make sure they're heading in the right direction.
