When To Use a Safe Savings Rate Plan

Safe Savings Rate plans are designed for clients who are in the wealth accumulation (ie: working) phase of their lives, and not the decumulation (ie: retirement) phase of their lives.

There are three main groups that benefit the most from a Safe Savings Rate plan: younger clients, children of older clients, and your prospects.

Young Clients

For young clients, the most important factor for their financial future is the amount they are saving. If they save enough, then everything else takes care of itself. If they do not save enough, then there really isn’t much you can do for them, other than helping them reset their expectations. A Safe Savings Rate Plan will help them understand what they need to be doing. It will give them a target.

One of the other issues that young clients have is that there is considerable uncertainty about what their future will look like. When retirement is 20 or 30 (or more) years away, it’s hard to get into too much detail. Safe Savings Rate plans allow you to stay relatively high level, and focus on what really matters.

Children of Current Clients

Advisors often end up helping the children of their current clients. You may be bringing them on as actual clients themselves, managing their money as part of the parent’s advisory relationship, or just doing it as a favor. In all of those situations though, the underlying reality is that they are probably relatively early in their financial lives. Just like a traditional younger client the thing that they need to focus the most on is the amount that they save. There is often a lot going on in these types of situations, so you’ll want to keep everyone focused on the basics of saving.

Using Safe Savings Rate Plans with Prospects

Safe Savings Rate plans are a great tool for prospects. Because the plans are easy to build, and don’t get bogged down in detail, they work very well for providing prospects with an overview of their financial situation and concrete actions that they should be taking. The more you can show prospects concrete actions that they understand from the beginning the more likely you are to build a strong relationship with the prospect, and the more likely you are to bring them on board.

Safe Savings Rate plans are designed to help clients who are in the accumulation phase. If your client is saving for something, a Safe Savings Rate plan can help quantify just how much they need to save to make it work. inStream wants to help you provide your clients with concrete steps that they can take to meet their financial objectives.

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