The Strategic Imperative of Retirement Asset Management in Modern Wealth Advisory

Saving for retirement is still a top priority for investors in the US but they desire professional advice. Recent data from the ICI 2023 Q2 Quarterly Retirement Market Data, indicates that total US retirement assets have seen a substantial uptick, surging by 3.1% in Q2 2023. † However, according to Cerulli only 36% of 401(k) participants use a financial advisor to plan for retirement. †† This significant gap underscores the importance of incorporating retirement asset management into your advisory practice. Future-ready advisory firms are turning to technology to assist in delivering retirement planning and asset management advice. This is where Future Capital steps in.q

Mastering the Evolving Wealth Advisory Landscape

Historically, wealth advisors have primarily focused on investment management, portfolio diversification, and tax optimization. While these aspects remain fundamental, the wealth advisory landscape has witnessed profound changes. Investors of all generations now seek more comprehensive financial planning that transcends traditional wealth accumulation strategies. This shift in client expectations places retirement planning at the forefront.

The Ascendance of Retirement Asset Management

The 3.1% growth in US retirement assets and overwhelming participant demand for advice underscore the increasing prominence of adding retirement planning to your solution set. This data reflects not only heightened contributions to retirement accounts but also a growing awareness among individuals regarding the critical importance of securing their financial future through comprehensive financial planning. For seasoned wealth advisors, recognizing this trend is imperative, as it necessitates aligning your practice with the evolving needs of your clients.  

Retirement Assets: A Pillar of Household Financial Stability

It's crucial to grasp the enormity of retirement assets in the overall financial landscape. Retirement assets accounted for a staggering 31 percent of all household financial assets, as revealed by the ICI 2023 Q2 Quarterly Retirement Market Data. Where are these investors obtaining their advice? Wealth advisors have the opportunity to deliver a holistic, ongoing relationship providing more high-touch advice than what is currently offered through a retirement plan provider.  

Incorporating Retirement Asset Management: A Strategic Imperative

Incorporating retirement asset management into your advisory services empowers you in multiple ways, contributing to the growth and scalability of your practice:

  • Client Strengthening and Expansion: Offering holistic retirement planning fortifies your client relationships. Clients can benefit from advisors who can expertly guide them through diverse life stages, from wealth accumulation to retirement and beyond.
  • Business Growth: The addition of retirement asset management can be a potent catalyst for practice growth. It positions you as the ultimate destination for your clients' diverse financial needs, attracting new clients and expanding your referral network.
  • Enhanced Trust: Demonstrating a comprehensive commitment to your clients' entire financial journey fosters trust. This trust may translate into an increased volume of assets under management, as clients allocate more of their financial portfolio to your stewardship.
  • Competitive Advantage: Remaining attuned to industry dynamics is essential for every advisor. Embracing retirement asset management can set you apart from the competition and solidifies your reputation as a forward-thinking, industry-leading advisor.

How Future Capital Supports Wealth Advisors Pursuing Retirement Assets

Future Capital’s technology platform is designed to streamline the entire spectrum of retirement planning. Our comprehensive toolkit encompasses financial assessments, retirement analysis, investment management, and ongoing monitoring, providing you with the resources to implement retirement asset management seamlessly for your clients.

We help assess risks associated with retirement investments so you can guide your clients during market fluctuations. We also facilitate ongoing monitoring and rebalance accounts quarterly, recognizing the dynamic and ever-evolving nature of retirement planning. With Future Capital as your strategic partner, you can incorporate retirement asset management into your practice, supporting your clients' overall financial goals, and positioning yourself for success.

In conclusion, the 3.1% upswing in US retirement assets during Q2 2023 underscores the strategic significance of retirement planning in modern wealth advisory. As a wealth advisor, the integration of retirement asset management into your service portfolio is not only advantageous; it is a necessity. Future Capital, with its cutting-edge technology and unwavering support, is prepared to assist you in integrating retirement asset management into your practice.  

† ICI 2023 Q2 Quarterly Retirement Market Data;

††  Cerulli Associates, The Cerulli Edge, U.S. Retirement Edition, 3Q2023