Retiring during these tough times can be stressful. In times like these, distributors play an important part to provide assurance so that clients do not take any decision in panic. This may not be that bad, if your clients exercise their options diligently.
- Cash is the king: During trouble times like these, cash comes increasingly handy to take care of day to day needs. Its fine for your clients to keep all the proceeds received post retirement in deposits and earn marginal interest over it. Your clients take the decision of investments over a period of time.
- Selling in haste: Sudden retirement can be traumatic to clients. Moreover, seeing the fall in their investments and the urge to have more cash, clients would rush to sell their investments to stop further losses. However, its times like these, that distributors can inform them about notional losses and things will get better eventually.
- Diversity is their saviour: Not everything is losing its value and not everything is needed at the same time. Gather all your clients investments such as their investments in mutual funds, PPF, EPF, gratuity, bonds, deposits, secondary home etc. Provide a consolidated report stating the accumulated investments under each category and how you plan to use the income during the retirement phase.
- Don’t rebalance or shuffle: This is not the right time to rebalance or shuffle your clients investments. Let the dust settles, its not easy for your clients to digest the fact that their would no more be working. Once they process this new change in their life then have a discussion with them, understand their needs and plan out better.
- Don’t allow them to indulge or distribute: Once they see their investments in totality, then often jump to the conclusion of distributing their assets to their loved ones, thinking they wont have time ahead. Due to which, clients often take decisions in haste which may or may not be the right options to choose.
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